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 4   Taxes covered  

1.    
The existing taxes to which this Taxation Code shall apply are:

(a) in Australia:

(i) the income tax, but excluding the petroleum resource rent tax;

(ii) the fringe benefits tax;

(iii) the goods and services tax; and

(iv) the superannuation guarantee charge,

imposed under the federal law of Australia;

(b) in East Timor:

(i) the income tax, including either the tax on profits after income tax or the additional profits tax, as applicable to a specified petroleum project or part of a project;

(ii) the value added tax and sales tax on luxury goods (``value added tax''); and

(iii) the sales tax,

imposed under the law of East Timor.

2.    
The provisions of this Taxation Code shall also apply to any identical or substantially similar taxes which are imposed after the date of signature of this Treaty in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify each other of any relevant changes which have been made in their respective taxation law as soon as possible after such changes.

3.    
A Contracting State shall not impose a tax not covered by the provisions of the Taxation Code in respect of or applicable to:

(a) the exploration for or exploitation of petroleum in the JPDA; or

(b) any petroleum exploration or exploitation related activity carried on in the JPDA, unless the other Contracting State consents to the imposition of that tax.

4.    
Nothing in paragraph 3 of this Article shall be taken to prevent a Contracting State from imposing, in accordance with its law, penalty or interest charges relating to the taxes covered by this Taxation Code.