International Tax Agreements Act 1953

SCHEDULE 25A - Second Finnish Protocol (Repealed)

(Repealed by No 146 of 2007)

History

Sch 25A repealed by No 146 of 2007, s 3 and Sch 1 item 8, effective 24 September 2007. The new 2006 Finnish agreement came into force 10 November 2007 - see Art 28 of the 2006 agreement for rules concerning entry into force. Sch 25A formerly read:

SCHEDULE 25A - Second Finnish Protocol

Note: See section 3.
PROTOCOL TO AMEND THE AGREEMENT BETWEEN AUSTRALIA AND FINLAND FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME

ARTICLE I

Sub-paragraph (b) of paragraph (1) of Article 2 of the Agreement shall be deleted and replaced by the following:

(b) in Finland:

(i) the state income taxes;

(ii) the corporate income tax;

(iii) the communal tax,

(iv) the church tax;

(v) the tax withheld at source from interest; and

(vi) the tax withheld at source from non-residents ' income.

ARTICLE II

Article 10 of the Agreement shall be deleted and replaced by the following:
ARTICLE 10 Dividends
(1)
Dividends paid by a company which is a resident of one of the Contracting States for the purposes of its tax, being dividends to which a resident of the other Contracting State is beneficially entitled, shall be taxable only in that other State.

(2)
Notwithstanding the provisions of paragraph (1), dividends, other than dividends that are paid out of profits that have borne the normal rate of company tax, may also be taxed in the Contracting State of which the company paying the dividends is a resident for the purposes of its tax, and according to the law of that Contracting State, but the tax so charged shall not exceed 15 per cent of the gross amount of the dividends. If the relevant existing law in either Contracting State changes after the date of signature of this Agreement, other than in minor respects so as not to affect its general character, the Contracting States shall consult with each other with a view to agreeing to any amendment of this paragraph that may be appropriate.

(3)
For the purposes of paragraph (2), profits have borne the normal rate of company tax:

(a) in Australia, to the extent to which the dividends have been fully " franked " in accordance with its tax; and

(b) in Finland, where they have been subject to the corporate income tax.

(4)
The term " dividends " as used in this Article means income from shares and other income assimilated to income from shares by the taxation law of the Contracting State of which the company making the distribution is a resident for the purposes of its tax.

(5)
The provisions of paragraphs (1) and (2) shall not apply if the person beneficially entitled to the dividends, being a resident of one of the Contracting States, carries on business in the other Contracting State of which the company paying the dividends is a resident, through a permanent establishment situated therein or performs in that other State independent personal services from a fixed base situated therein, and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment or fixed base. In any such case the provisions of Article 7 or Article 14, as the case may be, shall apply.

(6)
Dividends paid by a company which is a resident of one of the Contracting States, being dividends to which a person who is not a resident of the other Contracting State is beneficially entitled, shall be exempt from tax in that other State except insofar as the holding in respect of which the dividends are paid is effectively connected with a permanent establishment or fixed base situated in that other State. Provided that this paragraph shall not apply in relation to dividends paid by any company which is a resident of Australia for the purposes of Australian tax and which is also a resident of Finland for the purposes of Finnish tax.

ARTICLE III

The opening lines and sub-paragraphs (a) and (b) of paragraph (2) of Article 23 of the Agreement shall be deleted and replaced by the following:

(2)
Subject to the provisions of Finnish law regarding the elimination of international double taxation (which shall not affect the general principle hereof), double taxation shall be eliminated in Finland as follows:

(a) where a resident of Finland derives income which, in accordance with the provisions of this Agreement, may be taxed in Australia, Finland shall, subject to the provisions of sub-paragraph (b), allow as a deduction from the Finnish tax of that person, an amount equal to the Australian tax paid under Australian law and in accordance with the Agreement, as computed by reference to the same income by reference to which the Finnish tax is computed;

(b) dividends paid by a company being a resident of Australia to a company which is a resident of Finland and which controls directly at least 10 per cent of the voting power in the company paying the dividends shall be exempt from Finnish tax.

ARTICLE IV

Sub-paragraph (i) of paragraph (a) of the Protocol to the Agreement shall be deleted.
ARTICLE V

(1)
The Contracting States shall notify each other that the constitutional requirements for the entry into force of this Protocol have been complied with.

(2)
The Protocol shall enter into force thirty days after the date of the later of the notifications referred to in paragraph (1) and its provisions shall have effect:

(a) in Australia:

(i) in respect of withholding tax on income that is derived by a non-resident, in relation to income derived on or after 1 July in the calendar year next following that in which the Protocol enters into force;

(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;

(b) in Finland:

(i) in respect of taxes withheld at source, on income derived on after 1 January in the calendar year next following the year in which the Protocol enters into force;

(ii) in respect of other taxes on income, for taxes chargeable for any tax year beginning on or after 1 January in the calendar year next following the year in which the Protocol enters into force.

IN WITNESS WHEREOF the undersigned, duly authorised thereto, have signed this Protocol.

DONE in duplicate at Canberra this fifth day of November 1997, in the English and Finnish languages, both texts being equally authentic.

FOR THE GOVERNMENT OF AUSTRALIA:
PETER COSTELLO
[ Signatures omitted] FOR THE GOVERNMENT OF FINLAND:
ESKO HAMILO

View history note

Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.