Australian Tax Treaties

Icelandic Convention  

CONVENTION BETWEEN AUSTRALIA AND ICELAND FOR THE ELIMINATION OF DOUBLE TAXATION WITH RESPECT TO TAXES ON INCOME AND THE PREVENTION OF TAX EVASION AND AVOIDANCE  

CHAPTER II - DEFINITIONS  

ARTICLE 3   General Definitions  

1.    
For the purposes of this Convention, unless the context otherwise requires:

(a)    the term " Australia " , when used in a geographical sense, excludes all external territories other than:

(i) the Territory of Norfolk Island;

(ii) the Territory of Christmas Island;

(iii) the Territory of Cocos (Keeling) Islands;

(iv) the Territory of Ashmore and Cartier Islands;

(v) the Territory of Heard Island and McDonald Islands; and

(vi) the Coral Sea Islands Territory;

and includes any area adjacent to the territorial limits of Australia (including the Territories specified in this subparagraph) in respect of which there is for the time being in force, consistently with international law, a law of Australia dealing with the exploration for or exploitation of any of the natural resources of the exclusive economic zone or the seabed and subsoil of the continental shelf;

(b)    the term " Iceland " means Iceland and, when used in a geographical sense, means the territory of Iceland, including its territorial sea, and any area beyond the territorial sea within which Iceland, in accordance with international law, exercises jurisdiction or sovereign rights with respect to the sea bed, its subsoil and its superjacent waters, and their natural resources;

(c)    the term " business " includes the performance of professional services and of other activities of an independent character;

(d)    the term " company " means any body corporate or any entity that is treated as a company or body corporate for tax purposes;

(e)    the term " competent authority " means:

(i) in Australia, the Commissioner of Taxation or an authorised representative of the Commissioner; and

(ii) in Iceland, the Minister of Finance or the Minister ' s authorised representative;

(f)    the term " enterprise " applies to the carrying on of any business;

(g)    the terms " enterprise of a Contracting State " and " enterprise of the other Contracting State " mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State;

(h)    the term " international traffic " means any transport by a ship or aircraft except when such transport is solely between places in a Contracting State and the enterprise that operates the ship or aircraft is not an enterprise of that State;

(i)    the term " national " , in relation to a Contracting State, means:

(i) any individual possessing the nationality or citizenship of that Contracting State; and

(ii) any legal person, company, partnership or association deriving its status as such from the laws in force in that Contracting State;

(j)    the term " person " includes an individual, a company and any other body of persons;

(k)    the term " tax " means Australian tax or Icelandic tax as the context requires, but does not include any penalty or interest imposed under the law of either Contracting State relating to its tax;

(l)    the term " recognised pension fund " of a Contracting State means an entity or arrangement established in that State that is treated as a separate person under the taxation laws of that State or, in the case of Australia, an Australian superannuation fund for the purposes of Australian tax or, in the case of Iceland, an Icelandic pension fund according to the income tax law of Iceland, and:

(i) that is established and operated exclusively or almost exclusively to administer or provide retirement benefits and ancillary or incidental benefits to individuals and that is regulated as such by that State or one of its political subdivisions or local authorities; or

(ii) that is established and operated exclusively or almost exclusively to invest funds for the benefit of entities or arrangements referred to in subsubparagraph (i) or, in the case of Australia, to invest such funds, or the complying superannuation assets or segregated exempt assets of a life insurance company that is a resident of Australia, or any combination thereof;

(m)    the term " recognised stock exchange " means:

(i) the Australian Securities Exchange and any other Australian stock exchange recognised as such under Australian law;

(ii) Nasdaq Iceland and any other Icelandic stock exchange recognised as such under Icelandic law; and

(iii) any other stock exchange agreed upon by the competent authorities.

2.    
As regards the application of the Convention at any time by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning that it has at that time under the law of that State for the purposes of the taxes to which the Convention applies, any meaning under the applicable tax laws of that State prevailing over a meaning given to the term under other laws of that State.