Other international agreements
Apart from Australia's traditional tax treaties, Australia enters into other international agreements relating to tax. Each of these separate agreements contains provisions that have an effect on the Australian tax liability of residents and non-residents.
The airline profits agreements are limited to tax treaties dealing only with the cross-border taxation of airline profits. Australia has airline profits agreements with the following countries published on the ATO Legal Database:
The Organisation for Economic Cooperation and Development (OECD) has proposed a process whereby revenue authorities in various countries and jurisdictions can commit to eliminate harmful tax practices.
The taxation information exchange agreement is a legal framework that allows information relating to a participating partner to be given to a tax authority of another country.
The Petroleum (Timor Sea) Treaty (the Timor Sea Treaty) was established with East Timor to provide a comprehensive regulatory framework covering a range of matters, including:
- the development and production of petroleum and related resources
- the protection of the marine environment
- the employment of foreign nationals
- surveillance, security, search and rescue
- air traffic services, and
- the application of tax and criminal law.
A Taxation Code has been developed and forms Annex G of the Petroleum (Timor Sea) Treaty.
A person who has earned income for performing work or services in the Joint Petroleum Development Area (as defined in the Timor Sea Treaty) on or after 1 July 2004, and who needs to prepare an income tax return, should read the Timor Sea Treaty - Joint Petroleum Development Area instructions.
If you earn foreign employment income which we do not tax because of an international tax treaty and it also comes under the exempt foreign employment income and approved overseas projects provisions, it is not taken into account when calculating tax on other non-exempt income.
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For more information on the role of tax treaties with other international tax authorities, visit the International tax agreements page which provides information about international tax agreements for non-resident and resident Australian taxpayers. It includes general information on tax treaties, other international tax arrangements and superannuation bilateral agreements.
The government is continually reviewing international tax arrangements. For information on how potential international legislative changes may affect you, visit the New legislation page.
If you need help in applying this information to your own situation, contact us by phone.