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When it comes to international trade and business transactions, it’s important to understand the agreements between two countries in terms of taxation. One such agreement is the Double Tax Agreement (DTA) between Australia and Greece.

The DTA between Australia and Greece was signed on 7 November 1994 and entered into force on 28 December 1995. The agreement outlines the rules for how tax will be assessed, collected and enforced between the two countries in order to avoid double taxation.

The DTA applies to Australian residents who receive income from Greece and Greek residents who receive income from Australia. It applies to different types of income such as dividends, interest, royalties, and capital gains. For example, if an Australian company has a subsidiary in Greece, the DTA ensures that the company won’t be taxed twice on the profits it earns in Greece and repatriates to Australia.

Under the DTA, the taxation of income is allocated between the two countries based on specific criteria. For instance, if a Greek resident earns income from performing services in Australia, the income will be taxed in Australia if the individual spends more than 183 days in Australia in a 12-month period. If the individual spends less than 183 days in Australia, the income will generally be taxed in Greece.

The DTA also contains provisions for the exchange of information between the tax authorities of the two countries. This helps to prevent tax evasion and ensures that both countries can enforce their tax laws effectively.

Overall, the DTA between Australia and Greece provides greater certainty and transparency for businesses and individuals conducting cross-border transactions between the two countries. It helps to ensure that they are not subject to double taxation and makes it easier for them to comply with the tax laws of both countries.

In conclusion, if you are conducting business between Australia and Greece, it’s important to understand the DTA and how it impacts your tax liability. A tax professional can help you navigate the rules and ensure that you are in compliance with the tax laws of both countries.