Updates: Welcomes to Daud Consultancy (PVT) LTD... Read More
Updates: Welcomes to Daud Consultancy (PVT) LTD... Read More
Australia and Greece have recently updated their double tax agreement, providing relief to businesses and individuals by avoiding double taxation on income earned in both countries. This agreement was first established back in 1983, providing a framework for the avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income.
The updated agreement was signed on 7 June 2019 and took effect on 1 January 2020. The agreement provides clarity on the taxation of different types of income, including dividends, interest, and royalties. It also ensures that employees and self-employed individuals are not subjected to double taxation on their income.
Under the new agreement, Australian residents who receive income from Greece will generally only be taxed in Australia. Similarly, Greek residents who receive income from Australia will generally only be taxed in Greece. This will provide relief to businesses and individuals who would otherwise have to pay tax in both countries.
Another important aspect of the updated agreement is the reduction of withholding tax on dividends, interest, and royalties. For example, under the previous agreement, the withholding tax rate on dividends was 25%. Under the new agreement, the withholding tax rate on dividends is now 15%. This reduction in withholding tax will encourage investment and trade between Australia and Greece, benefiting businesses in both countries.
The updated agreement also includes provisions for the exchange of information between the Australian Taxation Office and the Greek tax authority. This will help to combat tax evasion and ensure individuals and businesses pay the correct amount of tax in their respective countries.
In conclusion, the Australia Greece double tax agreement has been updated to provide relief to businesses and individuals who earn income in both countries. The reduction in withholding tax and clarity on the taxation of different types of income will encourage investment and trade between the two countries. The exchange of information provisions will also help combat tax evasion. This updated agreement is an important step towards strengthening the economic relationship between Australia and Greece.