Australia and Japan agree on new tax treaty
Australia and Japan on Friday announced they have reached an agreement on a new income tax treaty which is expected to boost trade and investment between the two countries.
By Agencies |
COOLUM: Australia and Japan on Friday announced they have reached an agreement on a new income tax treaty which is expected to boost trade and investment between the two countries.
The pact, which will replace an existing 1969 agreement, will substantially reduce the withholding taxes imposed on dividends, interest and royalties paid, Australian Treasurer Peter Costello said.
Costello told a joint press conference with Japanese Finance Minister Koji Omi in the north Australian town of Coolum that the new treaty was expected to improve investment flows between the countries.
"In particular, it will eliminate withholding taxes on certain inter-company dividends and certain interest," Costello said in a statement. "This will provide long-term benefits for business, making it cheaper for Australian and Japanese business enterprises to obtain intellectual property, equity and finance for expansion."
Costello and Omi were meeting on the sidelines of the APEC Finance Ministers Meeting in Coolum, Queensland.
The talks come ahead of the major Asia Pacific Economic Cooperation (APEC) meeting which will be held in Sydney in September.
The new tax agreement must be approved by the Australian and Japanese parliaments before it comes into force.
The pact, which will replace an existing 1969 agreement, will substantially reduce the withholding taxes imposed on dividends, interest and royalties paid, Australian Treasurer Peter Costello said.
Costello told a joint press conference with Japanese Finance Minister Koji Omi in the north Australian town of Coolum that the new treaty was expected to improve investment flows between the countries.
"In particular, it will eliminate withholding taxes on certain inter-company dividends and certain interest," Costello said in a statement. "This will provide long-term benefits for business, making it cheaper for Australian and Japanese business enterprises to obtain intellectual property, equity and finance for expansion."
Costello and Omi were meeting on the sidelines of the APEC Finance Ministers Meeting in Coolum, Queensland.
The talks come ahead of the major Asia Pacific Economic Cooperation (APEC) meeting which will be held in Sydney in September.
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The new tax agreement must be approved by the Australian and Japanese parliaments before it comes into force.
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