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

355 - 115   Working out an R&D entity's total expenses