India free trade deal ends double-taxation irritant
Australia’s new free trade agreement with India has ended a decade-long tax dispute between the two countries, stopping liabilities to the Australian Taxation Office on profits earned by Indian companies for services performed by overseas-based employees.
As part of a side agreement to the main deal announced on April 2 by Prime Minister Scott Morrison and Trade Minister Dan Tehan, Australia has committed to changing domestic tax law to stop the practice of taxing Indian-based companies on net profits linked to payments from Australian clients.
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