Sovereign entities and tax exemptions
Sovereign entity
A sovereign entity includes any of the following:
- a body politic of a foreign country, or a body politic of part of a foreign country
- a foreign government agency
- an entity that is wholly owned by any of the above (where that entity is neither an Australian resident nor a resident trust estate for the purposes of Division 6 of Part III of the Income Tax Assessment Act 1936).
Tax exemption
As a sovereign entity, you may be eligible for a tax exemption for returns on certain investments in Australia.
Division 880 of the Income Tax Assessment Act 1997 provides a tax exemption for certain sovereign entities in respect of certain returns on membership interests in entities that are Australian resident companies or managed investment trusts. This replaced our previous administrative practice for sovereign immunity from 1 July 2019.
To be eligible for this exemption, the relevant sovereign entity group:
- can hold only a portfolio interest in the entity
- can't have relevant influence over the entity.
This information will help you to apply for a private ruling about this exemption through a tailored application form.
Who can use this form
Use this form to apply for a private ruling about the tax exemption available to sovereign entities. This form can't be used for any other purpose.
If you have a previous private ruling
If you're a sovereign entity that has previously received a private ruling from us and you need a private ruling about your investments in Australia for future years, in your application identify what facts:
- in your original ruling are still accurate
- have changed or are new.
This includes changes to your Australian investments.
Before you complete this form
Before you complete your form, review law companion ruling LCR 2020/3Opens in a new window, which gives guidance to foreign investors about their eligibility for sovereign immunity when they invest in Australia.
Information we need
To provide a private ruling, we need information to determine your eligibility. You can find the exemption in Division 880 of the Income Tax Assessment Act 1997.
If you don't give all of the relevant information, your application will be delayed and we may reject it. The relevant information includes:
- accurately completing the application form
- attaching the documents we request.
Download the form
Download the Portable Format Document (PDF) Private ruling application – sovereign immunity form (NAT 75254, PDF, 294KB)Opens in a new window.
This form follows the format and numbering of Private ruling application NAT 74957. We have included specific questions that will help you submit the information we need to provide a ruling regarding the tax exemption for sovereign entities.
If you have trouble completing or lodging the form, email us at PGIAdvice@ato.gov.au or contact us for help.
Apply for a private ruling for a sovereign entity seeking a tax exemption from certain returns on membership interests.