Double Taxation Treaties

Protecting Clients from Being Taxed Twice on the Same Income

Double Taxation Treaties (DTAs) are bilateral agreements between Australia and other countries that allocate taxing rights between the two jurisdictions. Their primary purpose is to prevent individuals and businesses from being taxed twice on the same income — once in the country where the income is earned and again in their country of residence.

Australia has DTAs with over 40 countries, including major trading partners such as the United States, the United Kingdom, Singapore, and China.

Why DTAs Matter

If you’re an Australian resident earning foreign income — or a foreign resident earning income from Australian sources — a DTA may reduce or eliminate your liability in one of the jurisdictions. These treaties also:

• Provide rules for determining tax residency

• Reduce or eliminate withholding tax on dividends, interest, and royalties

• Clarify taxing rights on pensions, employment income, and capital gains

• Include mechanisms for resolving disputes through Mutual Agreement Procedures (MAPs)

How Christopher Garlick Can Help

As a senior barrister with experience in statutory interpretation and international tax, Christopher Garlick advises clients on:

• Whether a DTA applies to their circumstances

• How to claim relief from double taxation

• The correct application of treaty provisions under Australian law

• Disputes with the ATO involving DTA interpretations

• Residency conflicts and income source disputes

Common Situations Involving DTAs

• Australian expats working overseas and being taxed on foreign salaries

• Non-residents earning rental income from Australian property

• Businesses operating in multiple countries with complex tax obligations

• Disputes over tax residency where two countries claim taxing rights