• Service: Tax, Global Mobility Services, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 2/6/2014

Australia - R&D design, CGT discount for foreign residents repeal 

February 6: The KPMG member firm in Australia prepared reports on the following developments (read the February 2014 reports by clicking on the hyperlinks provided below):
  • Design R&D expenditure - In December 2013, the Australian Taxation Office (ATO) released Draft Tax Determination TD 2013/D9 regarding design expenditure incurred as part of a research and development (R&D) project. While the draft TD represents the Commissioner’s preliminary view, made available for public comment, and affords taxpayers interest and penalty protection, it is an interpretation unfavourable to taxpayers seeking to claim design expenditure that otherwise may be eligible under the R&D tax incentive.

    Read a February 2014 report

  • Additional method to calculated monthly PAYG instalments - Starting this year, corporate tax entities that meet or exceed the $1 billion threshold (base assessment income) will need to make monthly “pay as you go” (PAYG) instalments. Taxpayers required to comply will already have been notified by the Australian Taxation Office (ATO).

    Read a February 2014 report

  • Removal of CGT discount for foreign residents - The Australian government announced on 8 May 2012 that the 50% capital gains tax (CGT) discount concession will not apply to foreign residents, for the portion of the discounted capital gain that accrues after 8 May 2012.

    Read a February 2014 report

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