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

Chapter 6 - Interpreting this Act  

Part 6-2 - Meaning of some important concepts  

Division 188 - Meaning of GST turnover  

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 GST turnover or * projected GST 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 the indirect tax zone;

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 .