Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p6
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 6/16)
Character Range: 7569509–7572187

interest of 100%; and
 (ii) that is not an Australian resident; and
 (iii) that is not a resident trust estate for the purposes of Division 6 of Part III of the Income Tax Assessment Act 1936.
 (2) Each of the following is part of a sovereign entity group:
 (a) a body politic of a part of a foreign country;
 (b) a *foreign government agency in relation to that part of that foreign country;
 (c) an entity:
 (i) in which an entity covered by paragraph (a) or (b) holds a *total participation interest of 100%; and
 (ii) that is not an Australian resident; and
 (iii) that is not a resident trust estate for the purposes of Division 6 of Part III of the Income Tax Assessment Act 1936.
 (3) Each entity that is part of a *sovereign entity group is a member of the group.

Subdivision 880‑B—Basic tax treatment of sovereign entities

Guide to Subdivision 880‑B

880‑50  What this Subdivision is about
      This Subdivision provides that a sovereign entity is liable to pay tax. It also provides that a body politic (or a foreign government agency) of a foreign country, or part of a foreign country, is treated as being a person that is not a resident of Australia, but is a resident of the foreign country.

Table of sections

Operative provisions
880‑55 Sovereign entity liable to pay tax
880‑60 Bodies politic of foreign countries and foreign government agencies treated as foreign residents

Operative provisions

880‑55  Sovereign entity liable to pay tax
  A *sovereign entity is liable to pay *tax.
Note: The actual amount of tax payable may be nil.

880‑60  Bodies politic of foreign countries and foreign government agencies treated as foreign residents
 (1) For the purposes of this Act, treat a body politic of a foreign country, or a part of a foreign country:
 (a) as being a person that is not a resident of Australia; and
 (b) as being a resident of the foreign country.
 (2) For the purposes of this Act, treat a *foreign government agency in relation to a foreign country (including a foreign government agency in relation to a part of a foreign country):
 (a) as being a person that is not a resident of Australia; and
 (b) as being a resident of the foreign country.

Subdivision 880‑C—Sovereign immunity

Guide to Subdivision 880‑C

880‑100  What this Subdivision is about
      This Subdivision provides a tax exemption for certain sovereign entities in respect of certain returns on membership interests (etc.) in entities that are Australian resident companies or managed investment trusts. To obtain this exemption, the relevant sovereign entity group can hold only a portfolio interest in the entity, and cannot have relevant influence over the entity.