• Federal Budget 2016 - International

International

Diverted Profits Tax

A new Diverted Profits Tax (DPT) is to be introduced imposing a 40% tax charge on large multinational entities that artificially divert profits from Australia. The tax is proposed to be effective from 1 July 2017. Read more.

Hybrid mismatch

The Government has announced that rules will be introduced to eliminate instances of hybrid mismatch as part of the implementation of the Organisation for Economic Co-operation and Development’s (OECD) Action Plan on Base Erosion and Profit Shifting (BEPS) – Action 2 and with further details in a Board of Tax report released on the same day as the Budget. Read more.

Transfer pricing amendments

Over the last few years, there have been significant OECD developments as a result of its global Base Erosion Profit Shifting (‘BEPS’) initiative, including revisions to certain chapters of the OECD Transfer Pricing Guidelines. The report Aligning Transfer Pricing Outcomes (released on 5 October 2015) contains such revisions to chapters of the 2010 OECD Transfer Pricing Guidelines. Read more.

Increased Administration Penalties for Significant Global Entities

As a part of the Government’s proposed measures to tackle multinational tax avoidance, the Government proposes to considerably increase the administrative penalties for companies deemed significant global entities. Read more.