Australia: Discussion paper on thin capitalization rules for foreign bank branches
Comments are due 31 May 2024.
Comments are due 31 May 2024.
The Australian Taxation Office (ATO) released a discussion paper on the safe harbor formula for determining the minimum capital amount of inward investing authorized deposit-taking institutions (ADIs) for purposes of applying the thin capitalization rules.
Specifically, the paper outlines the ATO’s suggested view on determining the risk-weighted assets (RWAs) attributable to a branch of a foreign bank, as well as the required supporting documentation. The ATO also requests comments on the effective date of the rules.
Comments are due 31 May 2024.
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.