Exempt entities - companies controlled by exempt entities

Introduction

Whether a company controlled by an income tax exempt entity is income tax exempt or taxable depends on that company's particular circumstances. Just because a company is controlled by an exempt entity does not mean the company is exempt from income tax.

This fact sheet gives examples of where a company controlled by an exempt entity will be exempt from income tax. The examples are not an exhaustive list. There will also be many other instances.

The examples are grouped under the following exemption categories:

• charities
• sports clubs
• community service organisations.

For more information about how income tax applies to companies that are controlled by exempt entities, refer to Taxation Ruling TR 2005/22 Income tax: companies controlled by exempt entities.