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ATO Publishes Draft Taxation Ruling on Treatment of Licensing and Distribution of Software as Royalties

|Approved Changes|Australia
Australia

The Australian Taxation Office has published for public comment Draft Taxation Ruling TR 2021/D4 Income tax: royalties - character of receipts in respect of software, which provides guidance on whether amounts received in respect of software are royalties and are not royalties. The ruling replaces Taxation Ruling TR 93/12 Income tax: computer software, and when finalized, will apply both befor…

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