Income Tax Assessment Act 1997
Each of the following is an R & D entity :
(a) a body corporate incorporated under an *Australian law;
(b) a body corporate incorporated under a *foreign law that is an Australian resident.
Each of the above paragraphs extends to a body corporate acting in its capacity as trustee of a public trading trust (see subsection 102T(9) of the Income Tax Assessment Act 1936 ).355-35(2)
A body corporate incorporated under a *foreign law that:
(a) is a resident of a foreign country for the purposes of an agreement in force between that country and Australia that:
(i) is a double tax agreement (as defined in Part X of the Income Tax Assessment Act 1936 ); and
(ii) includes a definition of permanent establishment ; and
(b) carries on business in Australia through a permanent establishment (within the meaning of that definition) of the body corporate in Australia;
is an R & D entity to the extent that it carries on business through that permanent establishment.355-35(3)
However, an *exempt entity cannot be an R & D entity .