International Tax Agreements Act 1953
SECTION 17A
WITHHOLDING TAX
17A(1)
Where a provision of an agreement limits the amount of Australian tax payable in respect of a dividend or a royalty, being a dividend or a royalty in respect of which withholding tax is payable, and the amount of that withholding tax exceeds the limit specified in the agreement, the liability of the taxpayer for the withholding tax shall be reduced by an amount equal to the amount of the excess.
17A(2)
Where the liability of a taxpayer for withholding tax payable in respect of a unit trust dividend would have been reduced in pursuance of subsection (1) if that unit trust dividend had been a dividend paid to the taxpayer by a company that is a resident, that liability shall be reduced by an amount equal to the amount by which the liability would have been reduced if the unit trust dividend had been a dividend paid to the taxpayer by a company that is a resident.
17A(3)
In subsection (2):
17A(4)
If:
(a) a provision ( basic royalty provision ) of an agreement is covered by either of the following subparagraphs:
(b) another provision of the agreement expressly excludes particular royalties ( excluded royalties ) from the scope of the basic royalty provision;
17A(5)
Section 128B of the Income Tax Assessment Act 1936 (which deals with liability for withholding tax) does not apply to the payment of a royalty as defined in subsection 6(1) of that Act if:
(a) the royalty is paid to a person who is a resident of a Contracting State or territory (other than Australia) for the purposes of an agreement; and
(b) the agreement does not treat the amount paid as a royalty.
Where a provision of an agreement limits the amount of Australian tax payable in respect of a dividend or a royalty, being a dividend or a royalty in respect of which withholding tax is payable, and the amount of that withholding tax exceeds the limit specified in the agreement, the liability of the taxpayer for the withholding tax shall be reduced by an amount equal to the amount of the excess.
View history note
Hide history note17A(2)
Where the liability of a taxpayer for withholding tax payable in respect of a unit trust dividend would have been reduced in pursuance of subsection (1) if that unit trust dividend had been a dividend paid to the taxpayer by a company that is a resident, that liability shall be reduced by an amount equal to the amount by which the liability would have been reduced if the unit trust dividend had been a dividend paid to the taxpayer by a company that is a resident.
17A(3)
In subsection (2):
unit trust dividend
means a unit trust dividend within the meaning of Division
6C
of Part
III
of the
Income Tax Assessment Act 1936
.
17A(4)
If:
(a) a provision ( basic royalty provision ) of an agreement is covered by either of the following subparagraphs:
(i) paragraph 1 or 2 of Article 12 of the Chinese agreement ;
(ii) a corresponding provision of another agreement; and
(b) another provision of the agreement expressly excludes particular royalties ( excluded royalties ) from the scope of the basic royalty provision;
section 128B of the Income Tax Assessment Act 1936 (which deals with liability for withholding tax) does not apply to the excluded royalties.
17A(5)
Section 128B of the Income Tax Assessment Act 1936 (which deals with liability for withholding tax) does not apply to the payment of a royalty as defined in subsection 6(1) of that Act if:
(a) the royalty is paid to a person who is a resident of a Contracting State or territory (other than Australia) for the purposes of an agreement; and
(b) the agreement does not treat the amount paid as a royalty.
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