In the wake of finalized tax guidance, Australia is expected to see a rise in the number of foreign companies considered tax residents.
The Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI) became effective January 1, 2019 in Australia, France, Israel, Japan, Lithuania and the Slovak Republic.
The Australian government has published a discussion paper on whether to introduce a new interim digital tax. The digital tax is expected to apply to service providers such as news and information providers (e.g., search engines and digital advertising), digital streaming and sharing services, accommodation platforms and other digital platforms.
The Australian government confirmed that in order to be eligible for a reduced corporate income tax rate, a company must have less than 80 percent passive income.
The Australian Tax Office issued a tax ruling confirming that an entity with central management and control in Australia may be considered an Australian tax resident.
The Australian Taxation Office has proposed a number of clarifications to thin capitalization rules.
On May 19, 2017, a law was passed on the gradual tax rate reduction for small businesses for the period from July 1, 2016, to July 1, 2022.
The Australian government proposed an increase in administrative tax penalties.
The bill implementing the diverted profits tax (DPT) has been passed by the Australian Parliament.
The 2015/16 Budget moves away from the austerity measures ushered in by the 2014 budget and instead focuses on tax relief for small businesses and extra childcare benefits for families.
Given the focus on tax avoidance practices that have been the subject of negative publicity, the recent BEPS recommendations suggest there is an appetite within Australia for transparency.
Guidance sets out the taxation’s commissioner view on transfer pricing documentation an entity should hold to meet the relevant requirements of the Taxation Administration Act