Australia

Abstract

The current definition of permanent establishment (PE) under domestic Australian law is included in section 6(1) of the Income Tax Assessment Act 1936 (amended 2011) [ITAA 1936], via section 995-1 of the Income Tax Assessment Act 1997 [ITAA 1997]. This definition was inserted in 1967 as part of the broadening of Australia's withholding tax regime to introduce non-resident interest withholding tax, and has only been the subject of minor amendments in 2011. The domestic definition of PE is primarily relevant for withholding tax purposes as Australia taxes non-residents on the basis of source.