Document ID: chunk:federal_register_of_legislation:C2025C00029:section:12:p34
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 12 (pt 34/34)
Character Range: 5161176–5163030

of a public trading trust (see subsection 102T(9) of the Income Tax Assessment Act 1936).
 (2) A body corporate incorporated under a *foreign law that:
 (a) is a resident of a foreign country for the purposes of an agreement in force between that country and Australia that:
 (i) is a double tax agreement (as defined in Part X of the Income Tax Assessment Act 1936); and
 (ii) includes a definition of permanent establishment; and
 (b) carries on business in Australia through a permanent establishment (within the meaning of that definition) of the body corporate in Australia;
is an R&D entity to the extent that it carries on business through that permanent establishment.
 (3) However, an *exempt entity cannot be an R&D entity.

Subdivision 355‑C—Entitlement to tax offset

Table of sections
355‑100 Entitlement to tax offset
355‑105 Deductions under this Division are notional only
355‑110 Notional deductions include prepaid expenditure
355‑115 Working out an R&D entity's total expenses

355‑100  Entitlement to tax offset

If notional deductions are between $20,000 and $150 million
 (1) An *R&D entity is entitled to a *tax offset for an income year equal to the percentage, set out in the table, of the total of the amounts (if any) that the entity can deduct for the income year under any or all of the following provisions:
 (a) section 355‑205 (R&D expenditure);
 (b) section 355‑305 (decline in value of R&D assets);
 (d) section 355‑480 (earlier year associate R&D expenditure);
 (e) section 355‑520 (decline in value of R&D partnership assets);
 (g) section 355‑580 (CRC contributions).

Rate of R&D tax offset
Item                    In this case:                                                                                                                                                                          The percentage is: