International tax & business 2016

An inbound investor's feast

Source: The Tax Specialist Journal Article

Published Date: 1 Aug 2016


Foreign investors contemplating investment in Australia must consider a range of Australian taxation factors which are likely to affect any decision to invest. This article outlines four such factors. The authors first examine the availability of double taxation treaty relief for investment in land rich and non-land rich entities. Next, the article focuses on multiple entry consolidated (MEC) groups (foreign-owned groups of Australian companies which can consolidate despite not having a single Australian head company).

The article then discusses the recently enacted withholding tax regime affecting taxable Australian property, which broadly, requires a person who acquires certain types of taxable Australian property from a foreign resident to remit 10% of the purchase price to the Commissioner, and which applies to the acquisition of an affected asset which occurs on or after 1 July 2016. Finally, the article addresses some common state tax considerations affecting inbound investors and the entities in which they invest. This article was written on 1 March 2016 and has not been updated to reflect any changes in law since that time.

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International tax & business 2016

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