Private ruling: International issues - permanent establishments
Date of advice: 10 September 2020
Published: October 2020
Ruling period: 1 July 2019 to 30 June 2020
Date scheme commenced: 1 July 2019

Ruling: Q1: Does Foreign Co have a permanent establishment (PE) in Australia as defined by Article 5 of the Relevant Tax Treaty? | A1: Yes | Q2: Will the profit from the transactions between Foreign Co and Third Party Co (TPC) be attributable to the Foreign Co PE under Article 7 of the Relevant Tax Treaty? | A2: Yes | Q3: Is the interest derived on the loan from Foreign Co to Aus Co attributable to Foreign Co under Article 11 of the Relevant Tax Treaty such that the interest income will be subject to withholding tax in accordance with section 128B of the Income Tax Assessment Act 1936 (ITAA 1936)? | A3: Yes | Q4: Is the Foreign Co PE, in respect of its Foreign workers providing services to satisfy the contract with TPC, required to withhold amounts under section 12-35 of Schedule 1 of the Taxation Administration Act 1953 (TAA 1953)? | A4: Yes | Q5: Is the Foreign Co PE, in respect of its Foreign workers providing services to satisfy the contract with TPC, required to withhold amounts under the Superannuation Guarantee Administration Act 1992 (SGAA)? | A5: Yes