Foreign-incorporated companies: transitional compliance approach extended

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compliance approach set out in PCG 2018/9 for companies that treated themselves as non-residents on the basis of withdrawn TR 2004/15 but qualify as residents under TR 2018/5 due to their central management and control being in Australia.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).