8 Residence & Source[rtf]

Services income generally where the services are

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Services income – generally where  the services are performed ( French ) Business income – generally where  the goods are sold ( D&W Murray ) or  where the business is transacted  ( United Aircraft ) Interest income – usually the place  where the loan agreement is  entered into and the money is lent  ( Spotless Services ) Temporary residents Temporary residents Temporary resident is a person  who: holds a temporary visa  is not an Australian resident under  the  Social Security Act 1991 does not have an Australian 
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resident spouse Temporary residents are generally  treated in the same way as foreign  residents (Subdiv 768-R) Permanent establishments Permanent establishments Special rules apply to taxpayers  that carry on business through PEs,  eg: Special assessment and withholding  tax rules apply where dividends are  paid to foreign companies through  an Australian PE Income tax and capital gains tax  exemptions apply where resident  companies derive income etc  through a foreign PE
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Definition of permanent Definition of permanent     establishment establishment PE defined in s 6(1) ITAA36 as a  place at or through which a person  “carries on any business” (ie, a  “branch”) and includes: a place where the person is carrying  on business through an agent  a place where the person has, or is  using or installing substantial  equipment or machinery  a place where the person is  engaged in a construction project a place where goods are  manufactured, assembled,  processed, packed or distributed 
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(provided certain criteria satisfied) Definition operates subject to  exclusions
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