Permanent establishments: COVID-19 and beyond.

For those non-resident taxpayers which already have a permanent establishment in Australia, changes to work practices in response to COVID-19 may prompt an evaluation of whether they still need to maintain a permanent establishment in Australia. COVId-19 has changed the workplace and may also affect permanent establishments. To assist taxpayers caught in this situation, the ATO has issued guidance stating that it will not deem a foreign business to have a permanent establishment in Australia if employees are temporarily located in Australia due to COVID-19 travel restrictions.