When expanding internationally, it is crucial to structure cross-border transactions efficiently, leveraging the benefits of Double Tax Agreements to reduce your overall tax burden on international business activities.

Double Tax Agreements are formal bilateral agreements which are designed to prevent double taxation and fiscal evasion, and foster international cooperation. Double Tax Agreements provide you with a level of security about the taxation of certain international transactions by allocating tax rights between the relevant jurisdictions. Australia has Double Tax Agreements with over 40 jurisdictions.

Double Taxation Agreements are essential to optimising your global tax position as they can provide a number of benefits including credits for foreign taxes paid, clarity on tax residency, and reduced withholding tax rates.

Withholding taxes can apply to interest, dividends, royalties and other cross-border payments, varying between countries. This makes them a significant area to navigate in cross-border transactions.