Australian Tax Treaties

United States Convention  

United States Protocol (No 1)  

ARTICLE 13  

(1)    
This Protocol shall be subject to ratification in accordance with the applicable procedures of each Contracting State, and instruments of ratification shall be exchanged as soon as possible.

(2)    
This Protocol, which shall form an integral part of the Convention, shall enter into force upon the exchange of instruments of ratification and its provisions shall have effect: ^[1]

Entered into force on 12 May 2003 upon exchange of instruments of ratification.

(a) in Australia:

(i) in respect of withholding tax on dividends, royalties and interest that is derived by a non-resident, in relation to income derived on or after the later of:

(A) the first day of the second month next following the date on which the Protocol enters into force; or

(B) 1 July, 2003;

(ii) in respect of other Australian tax, in relation to income, profits or gains of any year of income beginning on or after 1 July in the calendar year next following that in which the Protocol enters into force; and

(b) in the United States:

(i) in respect of withholding tax on dividends, royalties and interest that is derived by a non-resident, in relation to income derived on or after the later of:

(A) the first day of the second month next following the date on which the Protocol enters into force; or

(B) 1 July, 2003;

(ii) in respect of other taxes, for taxable periods beginning on or after 1 January in the calendar year next following that in which the Protocol enters into force.

(3)    
Notwithstanding paragraph (2), Article 6 of this Protocol shall not apply to dividends paid by a REIT if the person beneficially entitled to the dividends is an LAPT (as defined in paragraph (4) of Article 10 (Dividends) of the Convention as amended by this Protocol) and the shares in respect of which the dividends are paid were:

(a) owned by the LAPT on March 26, 2001;

(b) acquired by the LAPT pursuant to a binding contract entered into on or before March 26, 2001; or

(c) acquired by the LAPT pursuant to a reinvestment of dividends (ordinary or capital) with respect to such shares.

In such case, the provisions of Article 10 (Dividends), as it was on March 26, 2001, shall apply.