Australian Tax Treaties
With respect to Article 7:
(a) nothing in the Agreement shall be construed as preventing a Contracting State from imposing on the profits attributable to a permanent establishment in that Contracting State, being a permanent establishment of a company which is a resident of the other Contracting State, a tax in addition to the tax which would be payable on the profits of a company which is a resident of the firstmentioned State, provided that any such additional tax shall not exceed 10 per cent of the amount by which the profits attributable to that permanent establishment for a year of income exceeds the tax payable on those profits to the firstmentioned State.
(b) in relation to paragraph 3:
(i) it is understood that a Contracting State shall not be required to allow the total deduction of certain expenses where they are limited in some way in the determination of profits under its domestic tax law or to allow the deduction of any expenditure which, by reason of its nature, is not generally allowed as a deduction under its domestic tax law; and
(ii) no deduction shall be allowed in respect of amounts, if any, paid otherwise than towards reimbursement of actual expenses by the permanent establishment to the head office of the enterprise or any of its other offices, by way of royalties, fees or other similar payments in return for the use of patents or other rights, or by way of commission, for specific services performed or for management, or, except in the case of a banking enterprise, by way of interest on money lent to the permanent establishment. No deduction shall be allowed, in the determination of the profits of a permanent establishment, in respect of amounts received by the permanent establishment otherwise than towards reimbursement of actual expenses from the head office of the enterprise or any other of its branch offices, by way of royalties, fees or other similar payments in return for the use of patents or other rights, or by way of commission, for specific services performed or for management, or, except in the case of a banking enterprise, by way of interest on money lent to the head office of the enterprise or any of its other branch offices.
(c) in relation to paragraph 4, the export of goods or merchandise purchased by an enterprise shall, notwithstanding the provisions of subparagraph (d) of paragraph 3 of Article 5 of the Agreement, remain subject to the domestic legislation concerning export.
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