The Australian Taxation Office (ATO) updated guidance concerning whether the presence of employees in Australia, due to coronavirus (COVID-19) pandemic-related travel restrictions, creates a permanent establishment.
The updated guidance states that the ATO will not apply compliance resources to determine if there is a permanent establishment under the following conditions:
According to the ATO, this approach is applicable until 30 June 2021, after which, employers will be required to consider whether ongoing arrangements give rise to a permanent establishment in Australia.
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