Petroleum (Timor Sea Treaty) Act 2003

Schedule 1 - Timor Sea Treaty  

Note: This is the copy of the Treaty referred to in the definition of Treaty in subsection 5(1) of this Act.

Annex G under Article 13(b) of this Treaty  

Taxation Code for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion in Respect of Activities Connected with the Joint Petroleum Development Area

Article 19   Avoidance of double taxation  

1.    
In the case of Australia, subject to the provisions of the law of Australia from time to time in force which relate to the allowance of a credit against Australian tax of tax paid in a country outside Australia (which shall not affect the general principle of this Article), East Timor tax paid under the law of East Timor and in accordance with this Taxation Code, whether directly or by deduction, in respect of income derived by a person who is a resident of Australia of the following types:

(a) dividends paid wholly or mainly out of profits, income or gains as referred to in paragraph 1 of Article 8;

(b) interest paid by a contractor as referred to in paragraph 2 of Article 9;

(c) royalties paid by a contractor as referred to in paragraph 2 of Article 10; or

(d) profits, income or gains after income tax as referred to in paragraph 5 of Article 8, shall be allowed as a credit against Australian tax payable in respect of that income.

2.    
In the case of East Timor, subject to the provisions of the law of East Timor from time to time in force which relate to the allowance of a credit against East Timor tax of tax paid in a country outside East Timor (which shall not affect the general principle of this Article), Australian tax paid under the law of Australia and in accordance with this Taxation Code, whether directly or by deduction, in respect of income derived by a person who is a resident of East Timor of the following types:

(a) dividends paid wholly or mainly out of profits, income or gains as referred to in paragraph 1 of Article 8;

(b) interest paid by a contractor as referred to in paragraph 2 of Article 9;

(c) royalties paid by a contractor as referred to in paragraph 2 of Article 10; or

(d) profits, income or gains after income tax as referred to in paragraph 5 of Article 8, shall be allowed as a credit against East Timor tax payable in respect of that income.

3.    
The dividends, interest or royalties taxed by a Contracting State in accordance with the provisions of this Taxation Code and referred to in this Article shall for the purposes of determining a foreign tax credit entitlement under the law of the other Contracting State, be deemed to be income derived from sources in the first-mentioned Contracting State.