Double Tax Agreement

Double tax agreements, also known as a tax treaty, are formal bilateral agreements between two countries. This is to ensure that income earned in a foreign country will not be taxed twice.

The Tax Office has issued more information on double taxation agreement in the International Tax Agreement Act 1953. In addition, the ATO provides further guidance in interpreting Australia’s double tax agreement through the taxation ruling (TR 2001/13).

Australia has tax treaties with multiple countries which include the following:

• US
• UK
• France

For the list of countries that have a tax treaty with Australia, please see here.

In general, if there is double tax agreement, a withholding tax will not be applied in the overseas country. For more information on US property investment, please see here.