Foreign-incorporated companies: transitional compliance approach extended

July 15, 2021

The ATO has extended until 30 June 2022 (or 31 December 2021 for early balancers) the transitional compliance approach set out in PCG 2018/9 for companies that treated themselves as non-residents on the basis of withdrawn TR 2004/15 but qualify as residents under TR 2018/5 due to their central management and control being in Australia.

This latest extension is confined to companies “impacted in their efforts to change their governance arrangements” due to the COVID-19 pandemic. However, the transitional period will cease if proposed legislation to amend the corporate residency test is assented to before 30 June 2022 (or 31 December 2021 for early balancers).