An entity is an inward investing entity if it is either of the following:
- an inward investment vehicle; that is, an Australian entity that is controlled by a foreign entity or foreign entities
- an inward investor; that is, a foreign entity. Although all foreign entities are inward investors, the thin capitalisation rules only affect foreign entities
- with an Australian permanent establishment or other Australian income producing assets
- that are claiming debt deductions.
Inward investment vehicles can be either general or financial. An inward investor can be a general, financial or ADI entity.
See also:
- subsection 820-185(2) of the ITAA 1997
- subsection 820-395(2) of the ITAA 1997.