Inward investing financial entity (non-ADI)
An inward investing financial 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 financial entity (non-ADI) 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.
For more information, see:
- subsection 820-185(1A) of the ITAA 1997 for non-ADI entities
- subsection 820-395(2) of the ITAA 1997 for ADI entities.
Inward investment vehicle (financial)
This is an Australian entity that is foreign controlled. See foreign controlled Australian entity.
For more information, see subsection 820-185(2) of the ITAA 1997.
Inward investor (financial)
An inward investor is any foreign entity. Such entities are effectively only subject to the thin capitalisation rules if they have Australian income-producing assets.For more information, see subsection 820-185(2) of the ITAA 1997.