Australia: ATO not to extend approach to permanent establishments (COVID-19)
ATO will not be extending its compliance approach to permanent establishments beyond 31 December 2021.
ATO will not be extending its compliance approach beyond 31 December 2021.
The Australian Taxation Office (ATO) announced it will not be extending its compliance approach to permanent establishments—an approach taken in response to the coronavirus (COVID-19) pandemic—beyond 31 December 2021.
According to the ATO release, the decision not to extend the approach to permanent establishments was made after considering feedback received during a consultation process, the current status of the COVID-19 pandemic (as compared to the circumstances in March 2020), and the easing of travel restrictions in Australia and abroad.
Pursuant to an addendum to Taxation Ruling TR 2002/5, the ATO will continue to take into consideration the impact of COVID-19 when determining whether a permanent establishment exists in Australia.
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.