Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT ACT (No. 3) 1986No. 112, 1986 - SCHEDULE 2

SCHEDULE 2
Section 39
SCHEDULE TO BE ADDED AT END OF THE INCOME TAX (INTERNATIONAL AGREEMENTS) ACT
1953

"SCHEDULE 27
Section 3
AGREEMENT
BETWEEN
AUSTRALIA
AND
THE REPUBLIC OF AUSTRIA
FOR
THE AVOIDANCE OF DOUBLE TAXATION
AND
THE PREVENTION OF FISCAL EVASION
WITH RESPECT TO TAXES ON INCOME
Australia and the Republic of Austria,
Desiring to conclude an Agreement for the avoidance of double taxation and the
prevention of fiscal evasion with respect to taxes on income,
Have agreed as follows:
CHAPTER I
SCOPE OF THE AGREEMENT
ARTICLE 1
Personal Scope
This Agreement shall apply to persons who are residents of one or both of the
Contracting States.

ARTICLE 2
Taxes Covered

(1) The existing taxes to which this Agreement shall apply are:

   (a)  in the case of Australia:
the income tax imposed under the federal law of the Commonwealth of Australia,
including the additional tax upon the undistributed amount of the
distributable income of a private company and the tax known as the resource
rent tax;

   (b)  in the case of Austria:

        (i)    the income tax (die Einkommensteuer);

        (ii)   the corporation tax (die K;auorperschaftsteuer);

        (iii)  the tax on interest yields (die Zinsertragsteuer);

        (iv)   the directors tax (die Aufsichtsratsabgabe); and

        (v)    the tax on commercial and industrial enterprises, including the
               tax levied on the sum of wages (die Gewerbesteuer
               einschliesslich der Lohnsummensteuer).

(2) This Agreement shall also apply to any identical or substantially similar
taxes which are imposed under the federal law of the Commonwealth of Australia
or the law of the Republic of Austria after the date of signature of this
Agreement in addition to, or in place of, the existing taxes. As soon as
possible after the end of each calendar year, the competent authority of each
Contracting State shall notify the competent authority of the other
Contracting State of any substantial changes which have been made in the laws
of his State relating to the taxes to which this Agreement applies.

CHAPTER II
DEFINITIONS
ARTICLE 3
General Definitions

(1) In this Agreement, unless the context otherwise requires:

   (a)  the term 'Australia', when used in a geographical sense, excludes all
        external territories other than:

        (i)    the Territory of Norfolk Island;

        (ii)   the Territory of Christmas Island;

        (iii)  the Territory of Cocos (Keeling) Islands;

        (iv)   the Territory of Ashmore and Cartier Islands;

        (v)    the Territory of Heard and McDonald Islands; and

        (vi)   the Coral Sea Islands Territory,
and includes any area adjacent to the territorial limits of Australia
(including the Territories specified in sub-paragraphs (i) to (vi) inclusive)
in respect of which there is for the time being in force, consistently with
international law, a law of Australia dealing with the exploitation of any of
the natural resources of the sea-bed and subsoil of the continental shelf;

   (b)  the term 'Austria' means the Republic of Austria;

   (c)  the terms 'Contracting State', 'one of the Contracting States' and
        'other Contracting State' mean Australia or Austria, as the context
        requires;

   (d)  the term 'person' includes an individual, a company and any other body
        of persons;

   (e)  the term 'company' means any body corporate or any entity which is
        treated as a company or body corporate for tax purposes;

   (f)  the terms 'enterprise of one of the Contracting States' and
        'enterprise of the other Contracting State' mean an enterprise carried
        on by a resident of Australia or an enterprise carried on by a
        resident of Austria, as the context requires;

   (g)  the term 'tax' means Australian tax or Austrian tax, as the context
        requires;

   (h)  the term 'Australian tax' means tax imposed by Australia, being tax to
        which this Agreement applies by virtue of Article 2;

        (i)    the term 'Austrian tax' means tax imposed by Austria, being tax
               to which this Agreement applies by virtue of Article 2;

   (j)  the term 'competent authority' means, in the case of Australia, the
        Commissioner of Taxation or his authorized representative and, in the
        case of Austria, the Federal Minister of Finance.

(2) In this Agreement, the terms 'Australian tax' and 'Austrian tax' do not
include any penalty or interest imposed under the law of either Contracting
State relating to the taxes to which this Agreement applies by virtue of
Article 2.

(3) In the application of this Agreement by a Contracting State, any term not
defined in this Agreement shall, unless the context otherwise requires, have
the meaning which it has under the laws of that State from time to time in
force relating to the taxes to which this Agreement applies.

ARTICLE 4
Residence

(1) For the purposes of this Agreement, a person is a resident of one of the
Contracting States:

   (a)  in the case of Australia, if the person is a resident of Australia for
        the purposes of Australian tax; and

   (b)  in the case of Austria, if the person is subject to unlimited tax
        liability under Austrian law.

(2) A person is not a resident of a Contracting State for the purposes of this
Agreement if he is liable to tax in that State in respect only of income from
sources in that State.

(3) Where by reason of the preceding provisions of this Article an individual
is a resident of both Contracting States, then his status shall be determined
in accordance with the following rules:

   (a)  he shall be deemed to be a resident solely of the Contracting State in
        which he has a permanent home available to him;

   (b)  if he has a permanent home available to him in both Contracting
        States, or if he does not have a permanent home available to him in
        either of them, he shall be deemed to be a resident solely of the
        Contracting State with which his personal and economic relations are
        the closer.

(4) Where by reason of the provisions of paragraph (1), a person other than an
individual is a resident of both Contracting States, then it shall be deemed
to be a resident solely of the Contracting State in which its place of
effective management is situated.

ARTICLE 5
Permanent Establishment

(1) For the purposes of this Agreement, the term 'permanent establishment', in
relation to an enterprise, means a fixed place of business through which the
business of the enterprise is wholly or partly carried on.

(2) The term 'permanent establishment' shall include especially:

   (a)  a place of management;

   (b)  a branch;

   (c)  an office;

   (d)  a factory;

   (e)  a workshop;

   (f)  a mine, an oil or gas well, a quarry or any other place of extraction
        of natural resources;

   (g)  an agricultural, pastoral or forestry property;

   (h)  a building site or construction, installation or assembly project, or
        supervisory activities in connection with such a site or project,
        where that site or project exists, or those activities are carried on,
        for more than twelve months.

(3) An enterprise shall not be deemed to have a permanent establishment merely
by reason of:

   (a)  the use of facilities solely for the purpose of storage, display or
        delivery of goods or merchandise belonging to the enterprise;

   (b)  the maintenance of a stock of goods or merchandise belonging to the
        enterprise solely for the purpose of storage, display or delivery;

   (c)  the maintenance of a stock of goods or merchandise belonging to the
        enterprise solely for the purpose of processing by another enterprise;

   (d)  the maintenance of a fixed place of business solely for the purpose of
        purchasing goods or merchandise, or for collecting information, for
        the enterprise;

   (e)  the maintenance of a fixed place of business solely for the purpose of
        activities which have a preparatory or auxiliary character for the
        enterprise, such as advertising or scientific research.

(4) A person acting in one of the Contracting States on behalf of an
enterprise of the other Contracting State-other than an agent of an
independent status to whom paragraph (5) applies-shall be deemed to be a
permanent establishment of that enterprise in the first-mentioned State if:

   (a)  he has, and habitually exercises in that State, an authority to
        conclude contracts on behalf of the enterprise, unless his activities
        are limited to the purchase of goods or merchandise for the
        enterprise; or

   (b)  in so acting, he manufactures or substantially processes in that State
        for the enterprise goods or merchandise belonging to the enterprise,
        provided that the provisions of this sub-paragraph shall apply only in
        relation to the goods or merchandise so manufactured or processed.

(5) An enterprise of one of the Contracting States shall not be deemed to have
a permanent establishment in the other Contracting State merely because it
carries on business in that other State through a broker, general commission
agent or any other agent of an independent status, where that person is acting
in the ordinary course of his business as such a broker or agent.

(6) The fact that a company which is a resident of one of the Contracting
States controls or is controlled by a company which is a resident of the other
Contracting State, or which carries on business in that other State (whether
through a permanent establishment or otherwise), shall not of itself make
either company a permanent establishment of the other.

(7) The principles set forth in the preceding paragraphs of this Article shall
be applied in determining for the purposes of this Agreement whether there is
a permanent establishment outside both Contracting States, and whether an
enterprise, not being an enterprise of one of the Contracting States, has a
permanent establishment in one of the Contracting States.

CHAPTER III
TAXATION OF INCOME
ARTICLE 6
Income from Real Property

(1) Income from real property, including royalties and other payments in
respect of the operation of mines or quarries or of the exploitation of any
natural resource, may be taxed in the Contracting State in which the real
property, mines, quarries or natural resources are situated.

(2) Income from a lease of land and income from any other direct interest in
or over land, whether or not improved, shall be regarded as income from real
property situated where the land to which the lease or other direct interest
relates is situated.

(3) The provisions of paragraphs (1) and (2) shall also apply to the income
from real property of an enterprise and to income from real property used for
the performance of professional services.

ARTICLE 7
Business Profits

(1) The profits of an enterprise of one of the Contracting States shall be
taxable only in that State unless the enterprise carries on business in the
other Contracting State through a permanent establishment situated therein. If
the enterprise carries on business as aforesaid, the profits of the enterprise
may be taxed in the other State but only so much of them as is attributable to
that permanent establishment.

(2) Subject to the provisions of paragraph (3), where an enterprise of one of
the Contracting States carries on business in the other Contracting State
through a permanent establishment situated therein, there shall in each
Contracting State be attributed to that permanent establishment the profits
which it might be expected to make if it were a distinct and separate
enterprise engaged in the same or similar activities under the same or similar
conditions and dealing wholly independently with the enterprise of which it is
a permanent establishment or with other enterprises with which it deals.

(3) In the determination of the profits of a permanent establishment, there
shall be allowed as deductions expenses of the enterprise, being expenses
which are incurred for the purposes of the permanent establishment (including
executive and general administrative expenses so incurred) and which would be
deductible if the permanent establishment were an independent entity which
paid those expenses, whether incurred in the Contracting State in which the
permanent establishment is situated or elsewhere.

(4) No profits shall be attributed to a permanent establishment by reason of
the mere purchase by that permanent establishment of goods or merchandise for
the enterprise.

(5) Nothing in this Article shall affect the application of any law of a
Contracting State relating to the determination of the tax liability of a
person in cases where the information available to the competent authority of
that State is inadequate to determine the profits to be attributed to a
permanent establishment, provided that that law shall be applied, so far as
the information available to the competent authority permits, consistently
with the principles of this Article.

(6) Where profits include items of income which are dealt with separately in
other Articles of this Agreement, then the provisions of those Articles shall
not be affected by the provisions of this Article.

(7) Nothing in this Article shall affect the operation of any law of a
Contracting State relating to tax imposed on profits from insurance with
non-residents provided that if the relevant law in force in either Contracting
State at the date of signature of this Agreement is varied (otherwise 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.

(8) The provisions of this Article shall also apply to income derived by a
sleeping partner from participation in a sleeping partnership (stille
Gesellschaft) created under Austrian law.

(9) Where:

   (a)  a resident of Austria is beneficially entitled, whether directly or
        through one or more interposed trust estates, to a share of the
        business profits of an enterprise carried on in Australia by the
        trustee of a trust estate other than a corporate unit trust; and

   (b)  in relation to that enterprise, that trustee would, in accordance with
        the principles of Article 5, have a permanent establishment in
        Australia, the enterprise carried on by the trustee shall be deemed to
        be a business carried on in Australia by that resident through a
        permanent establishment situated therein and that share of business
        profits shall be attributed to that permanent establishment.

ARTICLE 8
Ships and Aircraft

(1) Profits from the operation of ships or aircraft derived by a resident of
one of the Contracting States shall be taxable only in that State.

(2) Notwithstanding the provisions of paragraph (1), such profits may be taxed
in the other Contracting State where they are profits from operations of ships
or aircraft confined solely to places in that other State.

(3) The provisions of pargraphs (1) and (2) shall apply in relation to the
share of the profits from the operation of ships or aircraft derived by a
resident of one of the Contracting States through participation in a pool
service, in a joint transport operating organization or in an international
operating agency.

(4) For the purposes of this Article, profits derived from the carriage by
ships or aircraft of passengers, livestock, mail, goods or merchandise shipped
in one of the Contracting States for discharge at another place in that State
shall be treated as profits from operations of ships or aircraft confined
solely to places in that State.

(5) Income derived by an enterprise of one of the Contracting States from the
alienation of ships or aircraft operated in international traffic while owned
by that enterprise or of personal property pertaining to the operation of
those ships or aircraft shall be taxable only in that State.

ARTICLE 9
Associated Enterprises

(1) Where:

   (a)  an enterprise of one of the Contracting States participates directly
        or indirectly in the management, control or capital of an enterprise
        of the other Contracting State; or

   (b)  the same persons participate directly or indirectly in the management,
        control or capital of an enterprise of one of the Contracting States
        and an enterprise of the other Contracting State, and in either case
        conditions operate between the two enterprises in their commercial or
        financial relations which differ from those which might be expected to
        operate between independent enterprises dealing wholly independently
        with one another, then any profits which, but for those conditions,
        might have been expected to accrue to one of the enterprises, but, by
        reason of those conditions, have not so accrued, may be included in
        the profits of that enterprise and taxed accordingly.

(2) Nothing in this Article shall affect the application of any law of a
Contracting State relating to the determination of the tax liability of a
person, including determinations in cases where the information available to
the competent authority of that State is inadequate to determine the income to
be attributed to an enterprise, provided that that law shall be applied, so
far as it is practicable to do so, consistently with the principles of this
Article.

(3) Where profits on which an enterprise of one of the Contracting States has
been charged to tax in that State are also included, by virtue of paragraph
(1) or (2), in the profits of an enterprise of the other Contracting State and
charged to tax in that other State, and the profits so included are profits
which might have been expected to have accrued to that enterprise of the other
State if the conditions operative between the enterprises had been those which
might have been expected to have operated between independent enterprises
dealing wholly independently with one another, then the first-mentioned State
shall make an appropriate adjustment to the amount of tax charged on those
profits in the first-mentioned State. In determining such an adjustment, due
regard shall be had to the other provisions of this Agreement and for this
purpose the competent authorities of the Contracting States shall if necessary
consult each other.

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, may be taxed in that other
State.

(2) Such dividends may 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 State, but the tax so charged shall not exceed 15 per cent
of the gross amount of the dividends.

(3) The term 'dividends' in this Article means income from shares and other
income assimilated to income from shares by the law, relating to tax, of the
Contracting State of which the company making the distribution is a resident
for the purposes of its tax.

(4) The provisions of paragraph (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.

(5) 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 resident of Austria for the
purposes of Austrian tax.

(6) Nothing in this Agreement shall be construed as preventing Australia from
imposing, under a federal law, tax on the income of a company that is a
resident of Austria in addition to the taxes referred to in Article 2 in
relation to Australia which are payable by a company which is a resident of
Australia, provided that any such additional tax shall not exceed 15 per cent
of the amount by which the taxable income of the first-mentioned company of a
year of income exceeds the tax payable on that taxable income to Australia.
Any tax payable to Australia on the undistributed profits of a company which
is a resident of Austria shall be calculated as if that company were not
liable to the additional tax referred to in this paragraph and had paid
dividends of such amount that tax equal to the amount of that additional tax
would have been payable on the dividends in accordance with paragraph (2) of
this Article.

ARTICLE 11
Interest

(1) Interest arising in one of the Contracting States, being interest to which
a resident of the other Contracting State is beneficially entitled, may be
taxed in that other State.

(2) Such interest may be taxed in the Contracting State in which it arises,
and according to the law of that State, but the tax so charged shall not
exceed 10 per cent of the gross amount of the interest.

(3) The term 'interest' in this Article includes interest from Government
securities or from bonds or debentures, whether or not secured by mortgage and
whether or not carrying a right to participate in profits, and interest from
any other form of indebtedness as well as all other income assimilated to
income from money lent by the law, relating to tax, of the Contracting State
in which the income arises.

(4) The provisions of paragraph (2) shall not apply if the person beneficially
entitled to the interest, being a resident of one of the Contracting States,
carries on business in the other Contracting State, in which the interest
arises, through a permanent establishment situated therein, or performs in
that other State independent personal services from a fixed base situated
therein, and the indebtedness in respect of which the interest is paid is
effectively connected with such permanent establishment or fixed base. In such
a case, the provisions of Article 7 or Article 14, as the case may be, shall
apply.

(5) Interest shall be deemed to arise in a Contracting State when the payer is
that State itself or a political subdivision or local authority of that State
or a person who is a resident of that State for the purposes of its tax.
Where, however, the person paying the interest, whether he is a resident of
one of the Contracting States or not, has in one of the Contracting States or
outside both Contracting States a permanent establishment or fixed base in
connection with which the indebtedness on which the interest is paid was
incurred, and such interest is borne by such permanent establishment or fixed
base, then such interest shall be deemed to arise in the State in which the
permanent establishment or fixed base is situated.

(6) Where, owing to a special relationship between the payer and the person
beneficially entitled to the interest, or between both of them and some other
person, the amount of the interest paid, having regard to the indebtedness for
which it is paid, exceeds the amount which might have been expected to have
been agreed upon by the payer and the person so entitled in the absence of
such relationship, the provisions of this Article shall apply only to the
last-mentioned amount. In that case, the excess part of the amount of the
interest paid shall remain taxable according to the law, relating to tax, of
each Contracting State, but subject to the other provisions of this Agreement.

ARTICLE 12
Royalties

(1) Royalties arising in one of the Contracting States, being royalties to
which a resident of the other Contracting State is beneficially entitled, may
be taxed in that other State.

(2) Such royalties may be taxed in the Contracting State in which they arise,
and according to the law of that State, but the tax so charged shall not
exceed 10 per cent of the gross amount of the royalties.

(3) The term 'royalties' in this Article means payments or credits, whether
periodical or not, and however described or computed, to the extent to which
they are made as consideration for:

   (a)  the use of, or the right to use, any copyright, patent, design or
        model, plan, secret formula or process, trademark, or other like
        property or right;

   (b)  the use of, or the right to use, any industrial, commercial or
        scientific equipment;

   (c)  the supply of scientific, technical, industrial or commercial
        knowledge or information;

   (d)  the supply of any assistance that is ancillary and subsidiary to, and
        is furnished as a means of enabling the application or enjoyment of,
        any such property or right as is mentioned in sub-paragraph (a), any
        such equipment as is mentioned in sub-paragraph (b) or any such
        knowledge or information as is mentioned in sub-paragraph (c);

   (e)  the use of, or the right to use:

        (i)    motion picture films;

        (ii)   films or video tapes for use in connection with television; or

        (iii)  tapes for use in connection with radio broadcasting; or

   (f)  total or partial forbearance in respect of the use or supply of any
        property or right referred to in this paragraph.

(4) The provisions of paragraph (2) shall not apply if the person beneficially
entitled to the royalties, being a resident of one of the Contracting States,
carries on business in the other Contracting State, in which the royalties
arise, through a permanent establishment situated therein, or performs in that
other State independent personal services from a fixed base situated therein,
and the property or right in respect of which the royalties are paid or
credited is effectively connected with such permanent establishment or fixed
base. In such a case, the provisions of Article 7 or Article 14, as the case
may be, shall apply.

(5) Royalties shall be deemed to arise in a Contracting State when the payer
is that State itself or a political subdivision or local authority of that
State or a person who is a resident of that State for the purposes of its tax.
Where, however, the person paying the royalties, whether he is a resident of
one of the Contracting States or not, has in one of the Contracting States or
outside both Contracting States a permanent establishment or fixed base in
connection with which the liability to pay the royalties was incurred, and the
royalties are borne by the permanent establishment or fixed base, then the
royalties shall be deemed to arise in the State in which the permanent
establishment or fixed base is situated.

(6) Where, owing to a special relationship between the payer and the person
beneficially entitled to the royalties, or between both of them and some other
person, the amount of the royalties paid or credited, having regard to what
they are paid or credited for, exceeds the amount which might have been
expected to have been agreed upon by the payer and the person so entitled in
the absence of such relationship, the provisions of this Article shall apply
only to the last-mentioned amount. In that case, the excess part of the amount
of the royalties paid or credited shall remain taxable according to the law,
relating to tax, of each Contracting State, but subject to the other
provisions of this Agreement.

ARTICLE 13
Alienation of Property

(1) Income from the alienation of real property may be taxed in the
Contracting State in which that property is situated.

(2) For the purposes of this Article:

   (a)  the term 'real property' shall include:

        (i)    a lease of land or any other direct interest in or over land;

        (ii)   rights to exploit, or to explore for, natural resources; and

        (iii)  shares or comparable interests in a company, the assets of
               which consists wholly or principally of direct interests in or
               over land in one of the Contracting States or of rights to
               exploit, or to explore for, natural resources in one of the
               Contracting States;

   (b)  real property shall be deemed to be situated:

        (i)    where it consists of direct interests in or over land-in the
               Contracting State in which the land is situated;

        (ii)   where it consists of rights to exploit, or to explore for,
               natural resources-in the Contracting State in which the natural
               resources are situated or the exploration may take place; and

        (iii)  where it consists of shares or comparable interests in a
               company, the assets of which consist wholly or principally of
               direct interests in or over land in one the Contracting States
               or of rights to exploit, or to explore for, natural resources
               in one of the Contracting States-in the Contracting State in
               which the assets or the principal assets of the company are
               situated.

ARTICLE 14
Independent Personal Services

(1) Income derived by an individual who is a resident of one of the
Contracting States in respect of professional services or other independent
activities of a similar character shall be taxable only in that State unless
he has a fixed base regularly available to him in the other Contracting State
for the purpose of performing his activities. If he has such a fixed base, the
income may be taxed in the other State but only so much of it as is
attributable to activities exercised from that fixed base.

(2) The term 'professional services' includes services performed in the
exercise of independent scientific, literary, artistic, educational or
teaching activities as well as in the exercise of the independent activities
of physicians, lawyers, engineers, architects, dentists and accountants.

ARTICLE 15
Dependent Personal Services

(1) Subject to the provisions of Articles 16, 18, and 19, salaries, wages and
other similar remuneration derived by an individual who is a resident of one
of the Contracting States in respect of an employment shall be taxable only in
that State unless the employment is exercised in the other Contracting State.
If the employment is so exercised, such remuneration as is derived from that
exercise may be taxed in that other State.

(2) Notwithstanding the provisions of paragraph (1), remuneration derived by
an individual who is a resident of one of the Contracting States in respect of
an employment exercised in the other Contracting State shall be taxable only
in the first-mentioned State if:

   (a)  the recipient is present in that other State for a period or periods
        not exceeding in the aggregate 183 days in the year of income or the
        taxable year, as the case may be, of that other State;

   (b)  the remuneration is paid by, or on behalf of, an employer who is not a
        resident of that other State;

   (c)  the remuneration is not deductible in determining taxable profits of a
        permanent establishment or a fixed base which the employer has in that
        other State; and

   (d)  the remuneration is, or upon the application of this Article will be,
        subject to tax in the first-mentioned State.

(3) Notwithstanding the preceding provisions of this Article, remuneration in
respect of an employment exercised aboard a ship or aircraft operated in
international traffic by a resident of one of the Contracting States may be
taxed in that State.

ARTICLE 16
Directors' Fees
Directors' fees and similar payments derived by a resident of one of the
Contracting States in his capacity as a member of the board of directors of a
company which is a resident of the other Contracting State may be taxed in
that other State.

ARTICLE 17
Entertainers

(1) Notwithstanding the provisions of Articles 14 and 15, income derived by
entertainers (such as theatrical, motion picture, radio or television artistes
and musicians and athletes) from their personal activities as such may be
taxed in the Contracting State in which these activities are exercised.

(2) Where income in respect of the personal activities of an entertainer as
such accrues not to that entertainer but to another person that income may,
notwithstanding the provisions of Articles 7, 14 and 15, be taxed in the
Contracting State in which the activities of the entertainer are exercised.

ARTICLE 18
Pensions and Annuities

(1) Subject to the provisions of paragraph (2) of Article 19, pensions and
annuities paid to a resident of one of the Contracting States shall be taxable
only in that State.

(2) The term 'annuity' means a stated sum payable periodically at stated times
during life or during a specified or ascertainable period of time under an
obligation to make the payments in return for adequate and full consideration
in money or money's worth.

(3) Any alimony or other maintenance payment arising in one of the Contracting
States and paid to a resident of the other Contracting State shall be taxable
only in the first-mentioned State.

ARTICLE 19
Government Service

(1) Remuneration, other than a pension or annuity, paid by one of the
Contracting States or a political subdivision or local authority of that State
to any individual in respect of services rendered in the discharge of
governmental functions shall be taxable only in that State. However, such
remuneration shall be taxable only in the other Contracting State if the
services are rendered in that other State and the recipient is a resident of
that other State who:

   (a)  is a citizen or national of that State; or

   (b)  did not become a resident of that State solely for the purpose of
        performing the services.

(2) (a) Subject to the provisions of sub-paragraph (b), a pension paid by, or
out of funds created by, one of the Contracting States or a political
subdivision or a local authority of that State to an individual in respect of
services rendered to that State or subdivision or authority shall be taxable
only in that State.

   (b)  A pension referred to in sub-paragaph (a) shall be taxable only in the
        other Contracting State if the individual is a resident of, and a
        citizen or national of, that State.

(3) The provisions of paragraph (1) shall also apply to remuneration paid out
of public funds provided by Austria to any individual in respect of services
rendered as a member of the Austrian permanent delegation of foreign commerce
in Australia.

(4) The provisions of paragraph (1) shall not apply to remuneration in respect
of services rendered in connection with any trade or business carried on by
one of the Contracting States or a political subdivision or local authority of
that State. In such a case, the provisions of Article 15 or Article 16, as the
case may be, shall apply.

ARTICLE 20
Students
Where a student, who is a resident of one of the Contracting States or who was
a resident of that State immediately before visiting the other Contracting
State and who is temporarily present in that other State solely for the
purpose of his education, receives payments from sources outside that other
State for the purpose of his maintenance or education, those payments shall be
exempt from tax in that other State.

ARTICLE 21
Income Not Expressly Mentioned

(1) Items of income of a resident of one of the Contracting States which are
not expressly mentioned in the foregoing Articles of this Agreement shall be
taxable only in that State.

(2) However, any such income derived by a resident of one of the Contracting
States from sources in the other Contracting State may also be taxed in that
other State.

(3) The provisions of paragraph (1) shall not apply to income derived by a
resident of one of the Contracting States where that income is effectively
connected with a permanent establishment or fixed base situated in the other
Contracting State. In such a case, the provisions of Article 7 or Article 14,
as the case may be, shall apply.

ARTICLE 22
Source of Income

(1) Income derived by a resident of Austria which, under any one or more of
Articles 6 to 8, Articles 10 to 19 and Article 21, may be taxed in Australia
shall for the purposes of the law of Australia relating to Australian tax be
deemed to be income from sources in Australia.

(2) Income derived by a resident of Australia which, under any one or more of
Articles 6 to 8, Articles 10 to 19 and Article 21, may be taxed in Austria
shall for the purposes of paragraph (1) of Article 23 and of the law of
Australia relating to Australian tax be deemed to be income from sources in
Austria.

CHAPTER IV
METHODS OF ELIMINATION OF DOUBLE TAXATION
ARTICLE 23

(1) Subject to the provisions of the law of Australia from time to time in
force which relate to the allowance of a credit against Australian tax of tax
paid in a country outside Australia (which shall not affect the general
principle hereof), Austrian tax paid under the law of Austria and in
accordance with this Agreement, whether directly or by deduction, in respect
of income derived by a person who is a resident of Australia from sources in
Austria (not including, in the case of a dividend, tax paid in respect of the
profits out of which the dividend is paid) shall be allowed as a credit
against Australian tax payable in respect of that income.

(2) For the purposes of paragraph (1), the term 'Austrian tax' shall include
the tax on commercial and industrial enterprises, referred to in sub-paragraph
(b) (v) of paragraph (1) of Article 2, only where it is levied on a basis
other than capital or the sum of wages.

(3) In the case of a resident of Austria double taxation shall be avoided as
follows:

   (a)  where a resident of Austria derives income which in accordance with
        the provisions of this Agreement may be taxed in Australia, Austria
        shall, subject to the provisions of sub-paragraphs (b) and (c), exempt
        such income from tax;

   (b)  where a resident of Austria derives items of income which, in
        accordance with the provisions of paragraph (2) of Article 10, 11 or
        12, paragraph (1) of Article 13 (in regard only to income from the
        alienation of real property as defined in sub-paragraph (2) (a) (iii)
        of that Article) or paragraph (2) of Article 21, may be taxed in
        Australia, Austria shall allow as a deduction from the tax on the
        income of that resident an amount equal to the tax paid in Australia.
        Such deduction shall not, however, exceed that part of the tax as
        computed before the deduction is given, which is attributable to such
        items of income derived in Australia; and

   (c)  where in accordance with any provision of this Agreement income
        derived by a resident of Austria, is exempt from tax in Austria, may
        nevertheless, in calculating the amount of tax on the remaining income
        of that resident, take into account the exempted income.

(4) If, in an agreement for the avoidance of double taxation that is made,
after the date of signature of this Agreement, between Australia and a third
State, being a State that is a member of the Organization for Economic
Co-operation and Development, Australia agrees to limit the rate of tax:

   (a)  on dividends paid by a company which is a resident of Australia for
        the purposes of Australian tax to which a company that is a resident
        of the third State is entitled, to a rate less than that provided in
        paragraph (2) of Article 10;

   (b)  on interest arising in Australia to which a resident of the third
        State is entitled, to a rate less that that provided in paragraph (2)
        of Article 11; or

   (c)  on royalties arising in Australia to which a resident of the third
        State is entitled, to a rate less that that provided in paragraph (2)
        of Article 12, the Government of Australia shall immediately inform
        the Government of Austria in writing through the diplomatic channel
        and shall enter into negotiations with the Government of Austria to
        review the relevant provision or provisions in order to provide the
        same treatment for Austria as that provided for the third State.

CHAPTER V
SPECIAL PROVISIONS
ARTICLE 24
Mutual Agreement Procedure

(1) Where a resident of one of the Contracting States considers that the
actions of the competent authority of one or both of the Contracting States
result or will result for him in taxation not in accordance with this
Agreement he may, notwithstanding the remedies provided by the national laws
of those States, present his case to the competent authority of the
Contracting State of which he is a resident. The case must be presented within
three years from the first notification of the action giving rise to taxation
not in accordance with this Agreement.

(2) The competent authority shall endeavour, if the claim appears to it to be
justified and if it is not itself able to arrive at an appropriate solution,
to resolve the case with the competent authority of the other Contracting
State, with a view to the avoidance of taxation not in accordance with this
Agreement. The solution so reached shall be implemented notwithstanding any
time limits in the national laws of the Contracting States.

(3) The competent authorities of the Contracting States shall jointly
endeavour to resolve any difficulties or doubts arising as to the application
of this Agreement.

(4) The competent authorities of the Contracting States may communicate with
each other directly for the purpose of giving effect to the provisions of this
Agreement.

ARTICLE 25
Exchange of Information

(1) The competent authorities of the Contracting States shall exchange such
information as is necessary for the carrying out of this Agreement or of the
domestic laws of the Contracting States concerning the taxes to which this
Agreement applies insofar as the taxation thereunder is not contrary to this
Agreement. The exchange of information is not restricted by Article 1. Any
information received by the competent authority of a Contracting State shall
be treated as secret in the same manner as information obtained under the
domestic laws of that State and shall be disclosed only to persons or
authorities (including courts and administrative bodies) concerned with the
assessment or collection of, enforcement or prosecution in respect of, or the
determination of appeals in relation to, the taxes to which this Agreement
applies and shall be used only for such purposes.

(2) In no case shall the provisions of paragraph (1) be construed so as to
impose on the competent authority of a Contracting State the obligation:

   (a)  to carry out administrative measures at variance with the laws or the
        administrative practice of that or of the other Contracting State;

   (b)  to supply particulars which are not obtainable under the laws or in
        the normal course of the administration of that or of the other
        Contracting State; or

   (c)  to supply information which would disclose any trade, business,
        industrial, commercial or professional secret or trade process, or to
        supply information the disclosure of which would be contrary to public
        policy.

ARTICLE 26
Diplomatic and Consular Officials
Nothing in this Agreement shall affect diplomatic or consular privileges under
the general rules of international law or under the provisions of special
international agreements.

CHAPTER VI
FINAL PROVISIONS
ARTICLE 27
Entry into force
This Agreement shall enter into force on the first day of the third month next
following that in which the Contracting States exchange notes through the
diplomatic channel notifying each other that the last of such constitutional
processes has been completed as are necessary to give this Agreement the force
of law in Australia and in Austria, as the case may be, and thereupon this
Agreement shall have effect:

   (a)  in Australia:

        (i)    in respect of withholding tax on income that is derived by a
               non-resident, in relation to income derived on or after 1
               January in the calendar year next following that in which the
               Agreement enters into force; and

        (ii)   in respect of other Australian tax, in relation to income of
               any year of income beginning on or after 1 July in the calendar
               year next following that in which the Agreement enters into
               force;

   (b)  in Austria:

        (i)    in respect of tax withheld at the source on amounts paid on or
               after 1 January in the calendar year next following that in
               which the Agreement enters into force; and

        (ii)   in respect of other Austrian tax for taxable years beginning on
               or after 1 January in the calendar year next following that in
               which the Agreement enters into force.

ARTICLE 28
Termination
This Agreement shall continue in effect indefinitely, but either of the
Contracting States may, on or before 30 June in any calendar year beginning
after the expiration of 5 years from the date of its entry into force, give to
the other Contracting State through the diplomatic channel written notice of
termination and, in that event, this Agreement shall cease to be effective:

   (a)  in Australia:

        (i)    in respect of withholding tax on income that is derived by a
               non-resident, in relation to income derived on or after 1
               January in the calendar year next following that in which the
               notice of termination is given;

        (ii)   in respect of other Australian tax, in relation to income of
               any year of income beginning on or after 1 July in the calendar
               year next following that in which the notice of termination is
               given;

   (b)  in Austria:

        (i)    in respect of tax withheld at the source on amounts paid on or
               after 1 January in the calendar year next following that in
               which the notice of termination is given; and

        (ii)   in respect of other Austrian tax for taxable years beginning on
               or after 1 January in the calendar year next following that in
               which the notice of termination is given.

IN WITNESS WHEREOF the undersigned, duly authorised thereto, have signed this
Agreement.
DONE in duplicate in Vienna this eighth day of July One thousand nine hundred
and eighty-six, in the English and German languages, both texts being equally
authentic.

       J. R. KELSO                             Dr. E. BAUER
      FOR AUSTRALIA                   FOR THE REPUBLIC OF AUSTRIA".