On 17 April 2024, the Australian Taxation Office (ATO) published a discussion paper regarding the safe harbor formula for calculating the minimum capital requirements for inward investing deposit-taking institutions (ADIs) under the thin capitalization rules. The document elaborates on the ATO’s recommended approach for assessing the risk-weighted assets (RWAs) associated with a foreign bank’s branch and outlines the necessary supporting documentation. Additionally, the ATO is seeking feedback on the possible implementation date of these rules. Stakeholders are requested to submit their comments by 31 May 2024.
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