Document ID: chunk:federal_register_of_legislation:C2025C00014:section:128b:p7
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 128B (pt 7/10)
Character Range: 1254417–1256947

Australia; and
 (b) is attributable to the permanent establishment; and
 (c) is not paid to the person in the person's capacity as trustee.
Note: This subsection not only ensures that this section does not apply to that income to make withholding tax payable on it, but also (as a result) ensures that none of that income is non‑assessable non‑exempt income under section 128D. Subsection 44(1) makes that income assessable income.
 (3F) In subsection (3E):
permanent establishment of a person:
 (a) has the same meaning as in a double tax agreement (as defined in Part X) that relates to a foreign country and affects the person; or
 (b) has the meaning given by subsection 6(1), if there is no such agreement.
 (4) A person who derives income to which this section applies that consists of a dividend is liable to pay income tax upon that income at the rate declared by the Parliament in respect of income to which this subsection applies.
 (5) A person who derives income to which this section applies that consists of interest is, subject to subsections (6) and (7), liable to pay income tax upon that income at the rate declared by the Parliament in respect of income to which this subsection applies.
 (5A) A person who derives income to which this section applies that consists of a royalty is liable to pay income tax upon that income at the rate declared by the Parliament in respect of income to which this subsection applies.
 (6) Where:
 (a) income to which this section applies consists of interest and is paid to the person by whom it is derived by a person to whom this section applies; and
 (b) the interest is, in part only, an outgoing incurred by that person to whom this section applies in carrying on business in a country outside Australia at or through a permanent establishment of that person to whom this section applies in that country;
income tax is payable under subsection (5) upon so much only of the income as is attributable to so much of the interest as is not an outgoing so incurred.
 (7) Where:
 (a) income to which this section applies consists of interest and is paid to the person by whom it is derived by a person who, or by persons each of whom, is not a resident; and
 (b) the interest is, in part only, an outgoing incurred by the person or persons by whom it is paid in carrying on business in Australia at or through a permanent establishment of that person or those persons in Australia;
income tax is payable under subsection (5) upon so much only of the income as is attributable to