Attribution of profits to permanent establishments in Australia – Part 1: Subdivision 815-C

Published Date: 26 Apr 2024


Subdivision 815-C of the Income Tax Assessment Act 1997 (Cth) (ITAA97) was introduced more than 10 years ago to modernise Australia’s transfer pricing rules with respect to the attribution of profits to permanent establishments (PEs) (ie cross-border dealings within single legal entities) and complements Subdiv 815-B ITAA97, which was introduced at the same time and applies to cross-border dealings between separate legal entities. While there are evident similarities between Subdiv 815-C and Subdiv 815-B, there are also important differences and additional complexity involved with Subdiv 815-C compared with Subdiv 815-B.

Part 1 of this article considers the interpretation of Subdiv 815-C and describes a framework to assist with determining whether Subdiv 815-C might or might not apply in particular circumstances. Part 2 will consider the attribution of profits to PEs under the business profits article in Australia’s tax treaties.

Sorry, this is subscriber only content.

To gain access to this material and much more - Subscribe Now.

(Note: Members can access Taxation in Australia journal articles without a Tax Knowledge Exchange subscription - please log in to access).

Already a Subscriber? Login now

Already a Subscriber? Login now


The material is copyright. Apart any fair dealing for the purpose of private study, research criticism or review, as permitted under the copyright Act, no part may be reproduced by any process without written permission from The Tax Institute.

Unless expressly stated, opinions are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.

The Tax Institute
(ABN 45 008 392 372 (PRV14016))


The Tax Institute is a Recognised Tax Agent Association (RTAA) under the Tax Agent Services Regulations 2009. 

Copyright Statement

All materials provided on this site are protected by copyright and are owned by or licensed to TTI.

Except as expressly permitted by TTI or the copyright owner, any person or company who uses this site must not use, reproduce, redistribute, retransmit, publish or otherwise transfer, or commercially exploit, the materials or any information, software or other content, in whole or in part, which is available through this site.



Share this page