18/11/2017

LATEST NEWS

Australia and Germany sign new tax treaty

  • Tuesday, 17 November 2015 11:58

Australia and Germany have signed a new treaty on tax in the first step towards growing trade and investment between the nations and improving the integrity of the tax system by clamping down on multinational tax evasion.

The deal was signed in Berlin by Finance Minister Mathias Cormann and his German counterpart Wolfgang Schäuble and replaces a double taxation agreement that has existed between the countries since 1972.

The deal preceded the arrival in Berlin of Prime Minister Malcolm Turnbull on Friday.

Mr Turnbull and German Chancellor Angela Merkel will release the recommendations of the Australia-Germany Advisory Group in Berlin on Friday night, Australian time. The group was established a year ago when Dr Merkel visited Australia for the Group of 20 leaders' summit.

The recommendations include suggestions to improve economic and cultural ties between the world's fourth and 12th largest economies.

Investment, trade, the arts, security, people links, and science and innovation are all canvassed as areas for greater collaboration.

Senator Cormann said the new double taxation agreement will facilitate this by reducing the rates of withholding tax "helping to create a more favourable bilateral investment environment and making it cheaper for Australian businesses to access foreign capital and technology".

There will also be new arbitration rules and other changes to prevent double taxation that can deter business investment.
Progress on BEPS

Significantly, the new treaty puts into effect recommendations from the G20 and Organisation for Economic Co-operation and Development on base erosion and profit shifting (BEPS), an area in which Australia has taken the lead in moving with its own proposals but which will not be effective until there is widespread global action.

Progress on the implementation of BEPS laws will be discussed at the G20 in Turkey which Mr Turnbull and Senator Cormann will attend after leaving Berlin.

The new tax treaty will come into force as soon as the Parliaments of both countries have passed the requisite legislation.

Senator Cormann said he would legislate "as soon as practicable".

The German deal, which mirrors to some extent a recent agreement between Australia and Switzerland to share tax information, is part of a growing link between Canberra and Berlin.

July saw the first meeting of the high-powered Germany-Australia Advisory Group, which includes Mr Cormann, National Australia Bank chairman Michael Chaney, Siemens Australia CEO Jeff Connolly, Peter Jennings of the Australian Strategic Policy Institute, Nicholas Milton, conductor of the Canberra Symphony Orchestra, Australian National University professor Brian Schmidt, Australia's ambassador to Germany David Richie and Lucy Turnbull, president of the German-Australian Chamber of Industry and Commerce.

According to official figures, there are over 300 partnerships and co-operations between Australian and German universities, with Germany ranked as Australia's third most important research partner.

Germany is also the second-largest source country in Europe for students after the UK. Two-way trade in goods amounted to $13 billion in 2012-13, with services at $2.5 billion. German investment in Australia was $18.5 billion.

     by Phillip Coorey /Jacob Greber

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15

Iranian Voices Slam Donald Trump’s Reported Visa Ban as ‘Shameful’

Iranian Voices Slam Donald Trump’s Reported Visa Ban as ‘Shameful’

 TEHRAN, Iran — President Donald Trump provoked an angry backlash from Iranian voices after reports he would block visas for citizens of seven Middle Eastern and African countries and temporarily...

Read more

These are the world's most powerful passports

These are the world's most powerful passports

Germany takes the lead with a visa-free score of 157. Singapore overtakes South Korea and becomes the highest ranked Asian passport, with a visa free score of 156, coming second...

Read more

Curtailment of 30,000 student visas each year sparks row

Curtailment of 30,000 student visas each year sparks row

More than 30,000 non-EU students a year have had their visas curtailed by the Home Office in the past three years, figures obtained by BBC News show. And 410 educational establishments...

Read more

Calls for inquiry after evidence for UK student deportations ‘comprehensively demolished’

Calls for inquiry after evidence for UK student deportations ‘comprehensively demolished’

The Home Office is facing calls to launch a parliamentary inquiry into Theresa May’s immigration policies after a tribunal found thousands of foreign students may have been unfairly deported. The UK’s...

Read more

Americans and Canadians might need visas for Europe

Americans and Canadians might need visas for Europe

Be prepared! You might need a visa for your next European holiday or business trip. The European Union is considering requiring Americans and Canadians to apply for visas, even if they...

Read more

EU chokes on US visa dispute

EU chokes on US visa dispute

Bulgaria and Romania want the EU to impose visas on US nationals. It probably won’t happen. But EU officials’ attempts to “wiggle” out of the situation haven’t gone down well. The...

Read more

Turkey moves closer to EU visa-free travel

Turkey moves closer to EU visa-free travel

Turkey is moving closer to being granted visa-free travel to the European Union. It could be in force by the end of June.   The bloc’s executive, the EU Commission, has said...

Read more

EU might require visas for U.S. and Canadian visitors

EU might require visas for U.S. and Canadian visitors

Visa-free travel throughout the EU’s Schengen region may be coming to an end.Currently, Americans and Canadians only need a passport to visit the EU while visitors from other countries like...

Read more

Italian PM in Tehran with large delegation

Italian PM in Tehran with large delegation

Italy’s Prime Minister Matteo Renzi is in Iran for a two-day visit at the head of a large delegation to upgrade relations which have been warming following a nuclear agreement...

Read more

Germany, Turkey to Intensify Illegal Immigration Fight

Germany, Turkey to Intensify Illegal Immigration Fight

Merkel has refused to restrict asylum conditions and has sought to persuade Turkey to crack down on people smuggling BERLIN—Germany and Turkey on Friday pledged to intensify efforts to fight...

Read more

Iranian citizens fear US visa waiver bill: ‘It’s just unfair’

Iranian citizens fear US visa waiver bill: ‘It’s just unfair’

Iranian citizens who have ties to the United States are anxious about a new bill that would no longer allow them to be part of the visa waiver programme. If...

Read more

Iranian dual citizens fight new US visa rules

Iranian dual citizens fight new US visa rules

Dual citizens from Iraq, Iran, Syria and Sudan are protesting against a new US programme that restricts their travel.Neysun Rouhani and his wife live in the UK. He's a concert...

Read more

Germany should invest more to help euro zone grow - Commission

Germany should invest more to help euro zone grow - Commission

Nov 26 Germany and the Netherlands, which have big current account surpluses, should invest more to help boost economic growth and inflation in the whole euro zone, the European Commission...

Read more

Italy is land of opportunity for Goldman Sachs

Italy is land of opportunity for Goldman Sachs

The US investment banking group’s SICAV has already risen through the ranks in size of assets, from 43rd to 18th, currently at just over $50bn, while GSAM as a whole...

Read more

560 Egyptian child migrants reach Italian shore: Minister of immigration

560 Egyptian child migrants reach Italian shore: Minister of immigration

Italy is reportedly providing residence for the children as well as shelters where they are learning crafts A boat carrying no less than 560 Egyptian child migrants reached Italian shores...

Read more