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India free trade deal ends double-taxation irritant

Tom McIlroy
Tom McIlroyCanberra Bureau Chief

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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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Tom McIlroy is the Financial Review’s Canberra bureau chief based in the press gallery at Parliament House. He was previously the AFR’s political correspondent. Connect with Tom on Twitter. Email Tom at thomas.mcilroy@afr.com

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    Original URL: https://www.afr.com/policy/tax-and-super/india-free-trade-deal-ends-double-taxation-irritant-20220417-p5ae2n