New International Tax Arrangements (Foreign-owned Branches and Other Measures) Act 2005 (64 of 2005)

Schedule 1   Dividends received by foreign-owned branches

Income Tax Assessment Act 1936

6   After subsection 128B(3D)


(3E) This section does not apply to income that consists of a dividend that:

(a) is paid to a person who is a non-resident carrying on business in Australia at or through a permanent establishment of the person in Australia; and

(b) is attributable to the permanent establishment; and

(c) is not paid to the person in the person's capacity as trustee.

Note: This subsection not only ensures that this section does not apply to that income to make withholding tax payable on it, but also (as a result) ensures that none of that income is non-assessable non-exempt income under section 128D. Subsection 44(1) makes that income assessable income.

(3F) In subsection (3E):

permanent establishment of a person:

(a) has the same meaning as in a double tax agreement (as defined in Part X) that relates to a foreign country and affects the person; or

(b) has the meaning given by subsection 6(1), if there is no such agreement.