Document ID: chunk:federal_register_of_legislation:C2025C00014:section:128b:p3
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 128B (pt 3/10)
Character Range: 1244791–1247310

whom is not a resident, and is, or is in part, an outgoing incurred by the non‑resident payers in carrying on business in Australia at or through a permanent establishment of the non‑resident payers in Australia;
this section also applies to that income or to the part of that income mentioned in paragraph (a).
 (2D) Subsections (2B) and (2C) do not apply to income to the extent to which it is a return on an equity interest in a company.
 (3) This section does not apply to:
 (aaa) income that consists of a non‑share dividend that is unfrankable under section 215‑10 of the Income Tax Assessment Act 1997; or
 (a) income derived by a non‑resident that is:
 (i) exempt from income tax because of section 50‑5 (other than because of item 1.6 in the table in that section) or 50‑10, item 6.1 or 6.2 of the table in section 50‑30, section 50‑40 or item 9.1, 9.2, 9.3, 9.4 or 9.5 of the table in section 50‑45 of the Income Tax Assessment Act 1997; and
 (ii) exempt from income tax in the country in which the non‑resident resides; or
 (aa) income derived by a non‑resident that is an overseas charitable institution (within the meaning of section 121C) where the income is exempt under subsection 121ELA(1); or
 (ba) income that is exempt from income tax because of section 124ZM (which exempts dividends paid by PDFs); or
 (d) income in respect of which a trustee is liable to be assessed under section 99 or section 99A; or
 (e) income that is derived by a trustee, being a trustee in relation to a trust created by a person who, at the time the income is derived, is a resident and in respect of which the Commissioner is empowered, under section 102, to assess the trustee to pay income tax; or
 (ga) income that consists of:
 (i) the franked part of a dividend; or
 (ii) in relation to a dividend that is paid by a former exempting entity (within the meaning of the Income Tax Assessment Act 1997) on a share acquired under an employee share scheme (within the meaning of that Act)—the part of the dividend that is franked with an exempting credit; or
 (iii) in relation to a dividend that is paid by a former exempting entity (within the meaning of the Income Tax Assessment Act 1997) to an eligible continuing substantial member (within the meaning of that Act)—the part of the dividend that is franked with an exempting credit;
  other than a dividend in respect of which a determination is made under paragraph 204‑30(3)(c) of the Income Tax Assessment Act 1997 or a dividend or a part of a dividend in respect