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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.

See also

• subsection 820-185(2) of the ITAA 1997 for non-ADI entities
• subsection 820-395(2) for ADI entities.

Inward investment vehicle

This is an Australian entity that is foreign controlled. See foreign controlled Australian entity.

See also

• subsection 820-185(2) of the ITAA 1997.

Inward investor

An inward investor is any foreign entity. Such entities are only subject to the thin capitalisation rules if they have Australian income-producing assets.

See also

• subsection 820-185(2) of the ITAA 1997.