New International Tax Arrangements (Foreign-owned Branches and Other Measures) Act 2005 (64 of 2005)

Schedule 1   Dividends received by foreign-owned branches

Income Tax Assessment Act 1997

8   Paragraph 115-280(1)(b)

Repeal the paragraph, substitute:

(b) when the dividend is paid, either you are an Australian resident or you are an individual who is a foreign resident and carries on business in Australia at or through your permanent establishment in Australia, being a permanent establishment within the meaning of:

(i) a double tax agreement (as defined in Part X of the Income Tax Assessment Act 1936) that relates to a foreign country and affects the individual; or

(ii) subsection 6(1) of that Act, if there is no such agreement; and

(ba) if, when the dividend is paid, you are an individual who is a foreign resident and has in Australia such a permanent establishment - the dividend is attributable to the permanent establishment; and