Taxation Laws Amendment Act (No. 8) 2000 (156 of 2000)

Schedule 6   Other amendments

A New Tax System (Goods and Services Tax) Act 1999

32   At the end of Division 188

Add:

188-40 Supplies of employee services by overseas entities to be disregarded for the registration turnover threshold

(1) In working out a*non-resident's*current annual turnover or*projected annual turnover in order to determine whether it meets the*registration turnover threshold, if:

(a) the non-resident makes a supply of the services of an employee of the non-resident; and

(b) the*recipient of the supply is the non-resident's*100% subsidiary; and

(c) the services that the employee performs for the recipient are performed in Australia;

disregard the supply to the extent that the payments that the non-resident makes to the employee for performing those services would, if they were made by the recipient, be*withholding payments.

(2) This section does not affect how to work out any*turnover threshold other than the*registration turnover threshold.