Double taxation agreements
Do you have foreign-sourced income? Be sure you’re not paying tax twice!
Australia has entered in a number of comprehensive double taxation agreements with many other countries to avoid tax having to be paid to multiple jurisdictions – and also to prevent fiscal evasion by those who do not declare foreign income.
Double taxation agreements (DTAs) essentially override domestic income tax provisions. When Australian tax residents have foreign income, the DTA for the country where that income is sourced needs to be reviewed to determine whether the income is taxable in Australia, taxable in the country of source or taxable in part in both countries.
DTAs are subject to constant revision, however the Treasury maintains a list of tax treaties including agreed tax limits for unfranked dividends, interest and royalties.
The transfer pricing provision provides a legislative framework for dealing with arrangements under which profits are shifted out of Australia, primarily through the mechanism of inter-company and intra-company transfer pricing.
In recent years the ATO has devoted significant resources to the enforcement of these rules, resulting in an outpouring of lengthy public rulings on various aspects of the fundamental concept of arm’s length pricing.
Due to an in-depth understanding of how double taxation agreements, Greenhalgh Pickard accountants can make them work for you and your business to ensure you don’t pay your taxes twice.
John Greenhalgh and Andrew Patrick are both experienced in the field of double taxation agreements (DTAs).
If you need advice relating to DTAs and how this impacts your tax obligations, call (07) 5444 1022.
What types of foreign income should be declared?
Due to the Common Reporting Standard for the collection, reporting and exchange of financial account information, the ATO receives data from other tax jurisdictions for Australian residents making it far more difficult to hide income overseas so voluntary disclosure is wise – especially given DTAs in place.
All foreign income should be declared, including:
Get in touch today on (07) 5444 1022 to learn more.
Greenhalgh Pickard’s DTA experts
Greenhalgh Pickard is an innovative Queensland accounting and law firm, with clients predominantly living and working on the Sunshine Coast or the Whitsunday Coast but with many clients also located throughout Queensland, interstate and even overseas. With offices in Caloundra, Kawana, Coolum Beach and Airlie Beach, Greenhalgh Pickard takes pride in being trusted guides and advisers to clients everywhere.
Here are some thoughts from us
There is still a lot of uncertainty around the future of our property market. Most forecasters are predicting a drop in property prices, but by just how much is still unknown. Whilst property only makes up around 13% of the total estimated...
The last few months have been an intense period of survival for many business owners, and it’s not over yet. This next phase will be one of inevitable scrutiny, particularly around JobKeeper entitlements. Here’s what you need to know. Errors in...
As at the end of June 2020, Australian’s had accessed $25billion in early access Super, a Government scheme put in place to help people financially affected by the ongoing Coronavirus Pandemic. When the scheme first opened back on April 20,...
Contact Your Nearest Office
If you are interested in meeting with an accountant or lawyer regarding your business or commercial interests, please fill out the form to book an appointment or call (07) 5444 1022