Private ruling: International Issues
Date of advice: 20 March 2026
Published: 9 June 2026
Ruling period: Year ended 30 June 20XX | Year ended 30 June 20XX | Year ended 30 June 20XX | Year ended 30 June 20XX | Year ended 30 June 20XX | Year ended 30 June 20XX | Year ended 30 June 20XX | Year ended 30 June 20XX | Year ended 30 June 20XX | Year ended 30 June 20XX | Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Is the ordinary and statutory income derived by Entity A from its interests in the Test Entities not assessable and not exempt income under subsection 880-105(1) of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes.

Relevant facts and circumstances: Entity A is a part of a foreign country. Entity A is funded solely by public monies and all returns are public monies. Entity A is not a public non-financial entity or public financial entity. Entity A holds investments in Australian entities (the Test Entities), and it is anticipated it will hold additional investments in the future. The investments which are covered by this Ruling are investments in the Test Entities which have all of the following characteristics: (a) The Test Entities are membership interests, debt interests or non-share equity interests. (b) The Test Entities are Australian resident companies or managed investment trusts (MITs). (c) Entity A derives income from the Test Entities in the form of interest, dividends, trust distributions and/or capital gains. (d) Entity A and all members of its sovereign entity group hold collectively less than 10% of the total participation interests in each of the Test Entities. (e) Entity A and all members of its sovereign entity group would hold collectively less than 10% of the total participation interests in the Test Entities in the circumstances detailed in paragraph 880-105(4)(b) of the ITAA 1997. (f) Neither Entity A, nor any members of its sovereign entity group, has involvement in the day to day management of the business of any of the Test Entities. (g) Neither Entity A, nor any members of its sovereign entity group, has the right to appoint a director to the Board of Directors of any of the Test Entities. (h) Neither Entity A, nor any members of its sovereign entity group holds the right to representation on any investor representative or advisory committee (or similar) of the Test Entities. (i) Neither Entity A, nor any members of its sovereign entity group, has the ability to direct or influence the operation of the Test Entities outside of the ordinary rights conferred by the equity interest held. (j) Entity A's interests, including Entity A's interests when combined with the other interests held within its sovereign entity group, do not provide an entitlement to either directly or indirectly determine the identity of any person who make decisions that comprise the control and direction of the Test Entities' operations. (k) No person involved in the control and direction of the Test Entities' operations is accustomed or obliged to act in accordance with the directions, instructions or wishes of Entity A, or members of Entity A's sovereign entity group. Entity A will form part of a sovereign entity group including any entities in which Entity A either directly or indirectly holds 100% of the participation interests.

Relevant legislative provisions: Income Tax Assessment Act 1997 (Cth)section 880-105

Reasons for decision: Summary: All of the conditions listed in subsection 880-105(1) of the ITAA 1997 have been satisfied in relation to Entity A's investments in the Test Entities. As such, section 880-105 of the ITAA 1997 will apply to the effect that amounts of ordinary and statutory income derived by Entity A from its investments in the Test Entities are not assessable and not exempt income for the ruling period.

Does IVA apply to this private ruling?: Part IVA of the ITAA 1936 has not been considered as part of this Ruling.