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.


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