Inward investing entities

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.