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  • Non-ADI financial inward investor

    The 6 steps a non-ADI financial inward investor takes to calculate if they have met the thin capitalisation rules are:

    For more information about making an election for an Australian permanent establishment of a foreign financial entity to be treated as part of a consolidated group, see Consolidated groups and MEC groups.

    Record keeping

    Non-ADI general inward investors and non-ADI financial inward investor are subject to certain record keeping requirements if both of the following apply:

    • They are carrying on business at or through a permanent establishment.
    • Total revenues of at least $2 million are attributable to that permanent establishment.

    Under these requirements, financial statements, including all the necessary notes, must be prepared for its Australian permanent establishment using one of the following:

    • the Australian accounting standards
    • the accounting standards of the European Union, Japan, USA, UK, Canada, New Zealand
    • the international accounting standards.

    See also:

    Summary flowchart

    This flowchart summarises the steps a non-ADI financial inward investor follows to work out whether any of its debt deductions are disallowed and, if so, the amount of the disallowed deductions. Use this flowchart to help you work through the steps.

    Flowchart 7: Non-ADI financial inward investor's steps to work out if any of the debt deductions are disallowed


    Last modified: 09 Mar 2016QC 48248