Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 355.35

             (1)  Each of the following is an R&D entity :

                     (a)  a body corporate incorporated under an * Australian law;

                     (b)  a body corporate incorporated under a * foreign law that is an Australian resident.

Note:          Each of the above paragraphs extends to a body corporate acting in its capacity as trustee 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 .

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