Document ID: chunk:federal_register_of_legislation:C2004A00692:schedule:25a:p2
Version: federal_register_of_legislation:C2004A00692
Segment Type: schedule
Provision Reference: sch 25A (pt 2/3)
Character Range: 55002–57711

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 the dividends, being a resident of one of the Contracting States, carries on business in the other Contracting State of which the company paying the dividends is a resident, through a permanent establishment situated therein or performs in that other State independent personal services from a fixed base situated therein, and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment or fixed base. In any such case the provisions of Article 7 or Article 14, as the case may be, shall apply.

    (6) Dividends paid by a company which is a resident of one of the Contracting States, being dividends to which a person who is not a resident of the other Contracting State is beneficially entitled, shall be exempt from tax in that other State except insofar as the holding in respect of which the dividends are paid is effectively connected with a permanent establishment or fixed base situated in that other State. Provided that this paragraph shall not apply in relation to dividends paid by any company which is a resident of Australia for the purposes of Australian tax and which is also a resident of Finland for the purposes of Finnish tax."

Article III

The opening lines and sub‑paragraphs (a) and (b) of paragraph (2) of Article 23 of the Agreement shall be deleted and replaced by the following:

    "(2) Subject to the provisions of Finnish law regarding the elimination of international double taxation (which shall not affect the general principle hereof), double taxation shall be eliminated in Finland as follows:

           (a) where a resident of Finland derives income which, in accordance with the provisions of this Agreement, may be taxed in Australia, Finland shall, subject to the provisions of sub‑paragraph (b), allow as a deduction from the Finnish tax of that person, an amount equal to the Australian tax paid under Australian law and in accordance with the Agreement, as computed by reference to the same income by reference to which the Finnish tax is computed;

           (b) dividends paid by a company being a resident of Australia to a company which is a resident of Finland and which controls directly at least 10 per cent of the voting power in the company paying the dividends shall be exempt from Finnish tax."

Article IV

Sub‑paragraph (i) of paragraph (a) of the Protocol to the Agreement shall be deleted.

Article V

(1) The Contracting States shall notify each other that