Inward investing entities
An inward investing entity is either of the following:
- an Australian entity controlled by a foreign entity
- a foreign entity that derives Australian assessable income through an Australian permanent establishment or direct Australian investment; for example, an Australian rental property.
An example of an inward investing entity is an Australian company that is a subsidiary of a United States parent company.
An ADI will be an inward investing entity where the ADI is a foreign bank which carries on its banking business in Australia at or through one or more Australian permanent establishments.
Inward investment vehicle
This is an Australian entity that is foreign controlled. See foreign controlled Australian entity.
An inward investor is any foreign entity. Such entities are only subject to the thin capitalisation rules if they have Australian income-producing assets.
Explains inward investing entities, inward investment vehicle and inward investor.