Australia has announced a range of measures in response to the COVID-19 crisis that broadly are consistent with the global response, including economic stimulus and cash flow support measures.
However, measures specifically related to international tax and transactions include:
Practical responses to COVID-19 measures can have international tax consequences. While the ATO’s advice is welcome, companies may want to consider carefully the impact of travel restrictions on Australian PE risk or corporate residency.
Australia’s FIRB process changes increase the number of transactions that will require FIRB approval or notification. Where FIRB approval is required, companies may want to consider preparing for expected ATO queries.
Finally, stimulus measures may increase the present value of capital expenditure, but companies may also need to confirm their eligibility.