Australia Sees February Guidance Related to Software-Tax Ruling

Australian authorities plan to issue guidance in February on their compliance approach to company taxation on payments from software sales and development.

The draft practical compliance guidance is aimed at helping taxpayers understand where the Australian Taxation Office is likely to apply its compliance resources with respect to this area, the ATO said Tuesday. The office had previously indicated it planned to issue guidance, but hadn’t given a timeline.

• The guidance will deal with compliance with a January 2024 draft ruling on when companies’ payments to bring software into Australia will be treated as royalties subject to withholding taxes. The ...