Are you a business owner or individual who is planning to engage in business transactions or investments between Australia and Greece? One of the first things you need to know is whether there is a double tax agreement (DTA) between the two countries.
A DTA is a bilateral agreement between two countries that aims to eliminate the double taxation of income or gains arising in one country and paid to residents of the other country. This means that if you are a resident of Australia earning income from Greece or a resident of Greece earning income from Australia, you won’t be taxed twice on the same income.
So, is there a double tax agreement between Australia and Greece? The answer is yes. The two countries signed their DTA in 1992 and it came into force on January 1, 1993. The DTA covers various types of income, including income from employment, dividends, interest, royalties, and capital gains.
Under the DTA, residents of either country are entitled to the same tax treatment as residents of the other country in terms of the taxation of income and capital gains. The DTA also includes provisions for the avoidance of double taxation on income from shipping and from air transport.
In addition, the DTA provides for the exchange of information between the tax authorities of the two countries to ensure that taxpayers are complying with their tax obligations, and to prevent tax evasion.
It’s important to note that while the DTA aims to eliminate double taxation, it does not necessarily mean that you won’t have to pay any taxes in either country. Rather, it ensures that you will not be taxed twice on the same income or gain.
If you are engaging in business or investment activities between Australia and Greece, it’s important to consult with a tax professional who can provide guidance on how the DTA applies to your specific situation. Additionally, it’s always recommended to stay up-to-date with any changes or updates to the DTA.
In conclusion, there is a double tax agreement between Australia and Greece, which provides relief from double taxation for residents of both countries. By understanding the provisions of the DTA and seeking professional advice, you can navigate the tax implications of doing business or investing between these two countries with greater ease.