DT2711 - DT: Australia: old agreement, Article 12 Dependent personal services

This agreement applies up to 5th April 2004 for UK income tax and up to 30th June 2004 for Australian taxes. For later periods the new Agreement applies. This can be accessed via the page Tax Treaties – in force http://www.hmrc.gov.uk/international/in_force.htm.

(12)(1) Subject to Articles 14, 15 and 16, salaries, wages and other similar remuneration derived by a resident of one of the territories in respect of an employment shall be subjected to tax only in that territory unless the employment is exercised in the other territory. If the employment is so exercised such remuneration as is derived therefrom shall be deemed to have a source in, and may be taxed in, that other territory.

(2) Notwithstanding the provisions of paragraph (1) of this Article remuneration derived by a resident of one of the territories in respect of an employment exercised in the other territory shall be exempt from tax in the other territory if -

(a) the recipient is present in the other territory for a period or periods not exceeding in the aggregate 183 days in the year of income or the year of assessment as the case may be of that other territory; and

(b) the remuneration is paid by or on behalf of an employer who is not a resident of the other territory; and

(c) the remuneration is not deductible in determining the profits of a permanent establishment or a fixed base which the employer has in the other territory.

(3) Notwithstanding the preceding provisions of this Article, remuneration in respect of an employment exercised aboard a ship or aircraft in international traffic may be taxed in the territory in which the place of effective management of the enterprise is situated.

(4) In relation to remuneration of a director of a company derived from the company the preceding provisions of this Article shall apply as if the remuneration were remuneration of an employee in respect of an employment and as if references to employers were references to the company.