Document ID: chunk:federal_register_of_legislation:C2004A00692:schedule:25a:p1
Version: federal_register_of_legislation:C2004A00692
Segment Type: schedule
Provision Reference: sch 25A (pt 1/3)
Character Range: 52442–55236

Schedule 25A—Second Finnish protocol

Note: See section 3.

PROTOCOL TO AMEND THE AGREEMENT BETWEEN AUSTRALIA AND FINLAND FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME

THE GOVERNMENT OF AUSTRALIA AND THE GOVERNMENT OF FINLAND,

DESIRING to conclude a Protocol to amend the Agreement between Australia and Finland for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, signed at Canberra on 12 September 1984,

HAVE AGREED as follows:

Article I

Sub‑paragraph (b) of paragraph (1) of Article 2 of the Agreement shall be deleted and replaced by the following:

       "(b) in Finland:

           (i) the state income taxes;

           (ii) the corporate income tax;

           (iii) the communal tax,

           (iv) the church tax;

           (v) the tax withheld at source from interest; and

           (vi) the tax withheld at source from non‑residents' income."

Article II

Article 10 of the Agreement shall be deleted and replaced by the following:

    "Article 10
    Dividends

    (1) Dividends paid by a company which is a resident of one of the Contracting States for the purposes of its tax, being dividends to which a resident of the other Contracting State is beneficially entitled, shall be taxable only in that other State.

    (2) Notwithstanding the provisions of paragraph (1), dividends, other than dividends that are paid out of profits that have borne the normal rate of company tax, may also be taxed in the Contracting State of which the company paying the dividends is a resident for the purposes of its tax, and according to the law of that Contracting State, but the tax so charged shall not exceed 15 per cent of the gross amount of the dividends. If the relevant existing law in either Contracting State changes after the date of signature of this Agreement, other than in minor respects so as not to affect its general character, the Contracting States shall consult with each other with a view to agreeing to any amendment of this paragraph that may be appropriate.

    (3) For the purposes of paragraph (2), profits have borne the normal rate of company tax:

           (a) in Australia, to the extent to which the dividends have been fully "franked" in accordance with its tax; and

           (b) in Finland, where they have been subject to the corporate income tax.

    (4) The term "dividends" as used in this Article means income from shares and other income assimilated to income from shares by the taxation law of the Contracting State of which the company making the distribution is a resident for the purposes of its tax.

    (5) The provisions of paragraphs (1) and (2) shall not apply if the person beneficially entitled to