Further to our previous alert on the DPT Bill, the DPT was enacted today with the passing of the Treasury Laws Amendment (Combating Multinational Tax Avoidance) Act 2017 (the Act). The Act was passed with minor amendments (which clarify the DPT's interaction with the controlled foreign company rules).
The Act allows the Commissioner of Taxation to tax the diverted profits of certain multinationals at a rate of 40 per cent, and will apply to income years commencing on or after 1 July 2017 regardless of whether a relevant transaction was entered into before that date.
For more information about the DPT, please see our previous alert Diverted Profits Tax (DPT) Bill introduced.
If you have any questions, or would otherwise like to contact us, please do not hesitate to get in touch with a member of our team.
As the Act is not available at time of publication, please click here to read the Bill, as passed by both Houses.
Click here to read the revised Explanatory Memorandum.
Click here to read our previous alert Diverted Profits Tax (DPT) Bill introduced.