Australian Government Announces Changes to Foreign Fund Investment Income to be Exempt From Income Tax
Canberra, Australia (News4us.com) February 08, 2011
On 19 January 2011, the Australian Government announced changes to the income tax treatment of investment income of foreign funds, which will make it more likely foreign-based funds will use Australian-based fund managers. Under the change, broadly, relevant investment income of a foreign fund that is taxed solely due to the existence of ‘permanent establishment’ in Australia will be exempt from income tax.
The change will apply to the 2010-11 and later income years. Assistant Treasurer and Minister for Financial Services and Superannuation, Bill Shorten said, “This change uses an Investment Manager Regime (IMR) framework to provide an exemption for offshore funds engaging domestic investment advisers. This change is an important step towards improving Australia’s international standing as a financial services centre.”
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