International Tax Agreements Amendment Act (No. 1) 2002 (59 of 2002)

Schedule 2   Protocol to the Convention with the United States

International Tax Agreements Act 1953

4   At the end of section 17A

Add:(5) Section 128B of the Assessment Act (which deals with liability for withholding tax) does not apply to the payment of a royalty as defined in subsection 6(1) of that Act if:

(a) the royalty is paid to a person who is a resident of a Contracting State or territory (other than Australia) for the purposes of an agreement; and

(b) the agreement does not treat the amount paid as a royalty.