Guide A: Guide to thin capitalisation

Do you need to read this publication?

Australia's thin capitalisation rules apply to:

• Australian entities investing overseas and their associate entities
• foreign entities investing in Australia.

If you answer 'yes' to any of the questions below, or there is a possibility the rules could apply, read this publication to work out whether you or your client is affected by the thin capitalisation rules.

• Do you carry on business outside of Australia?
  
• Do you control a foreign entity by having at least a 10% interest in a foreign entity (this includes direct and indirect interests and interests held by associate entities) or otherwise have substantive control of a foreign entity?
  
• Are you associated with anyone who does carry on a business outside of Australia or has at least a 10% interest in a foreign entity?
  
• Is your Australian entity controlled by foreign entities, either directly or indirectly?
  
• Are you a foreign entity that has investments in Australia?