The Agreement between the Federal Republic of Germany and Australia for the Elimination of Double Taxation with respect to Taxes on Income and on Capital and the Prevention of Fiscal Evasion and Avoidance, which was signed on November 12, 2015 (Hereafter: the DTA), entered into force on December 7, 2016.

 

The fact that the DTA entered into force on December 7, 2016 means that based on Article 32, Paragraph 2 of the DTA (“Entry into Force”) the provisions of the DTA shall have effect:

(a) in the case of Australia:

(i)   in respect of withholding tax on income that is derived by a non-resident, in relation to income derived on or after January 1, 2017;

(ii)  in respect of fringe benefits tax, in relation to fringe benefits provided on or after April 1, 2017;

(iii) in respect of other Australian tax, in relation to income, profits or gains of any year of income beginning on or after July 1, 2017;

(b) in the case of the Federal Republic of Germany:

(i)   in respect of taxes withheld at source, in relation to amounts paid or credited on or after January 1, 2017;

(ii)  in respect of taxes on income, for the taxes levied on income derived during the periods of time beginning on or after January 1, 2017;

(iii) in respect of the tax on capital, for the tax levied for periods beginning on or after January 1, 2017.

 

Article 32, Paragraph 3 of the DTA subsequently arranges that the Agreement between the Commonwealth of Australia and the Federal Republic of Germany for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital and to certain other taxes, signed at Melbourne on 24 November 1972 and the Protocol to that Agreement, also signed at Melbourne on 24 November 1972, shall terminate upon the entry into force of this Agreement. However, the provisions of the first-mentioned Agreement and the Protocol shall continue to have effect for taxable years and periods which expired before the time at which the provisions of this Agreement shall be effective.

 

In our article from November 12, 2015 we already discussed a selection of provisions included in the DTA of which we think they might interest our readers.

 

 

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