Tax treaties

Policy topic: $Taxation

In short

Tax treaties help prevent double taxation and tax evasion. They also foster cooperation between Australia and other countries’ tax authorities.

They are formal bilateral agreements between 2 jurisdictions. Australia has tax treaties with more than 40 jurisdictions.

Multilateral instrument

The Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting, also known as the Multilateral Instrument (MLI), entered into force for Australia in 2019.

Base erosion and profit shifting are tax planning strategies that exploit loopholes in tax rules. Corporations use these strategies to shift profits to low or no‑tax jurisdictions so they can avoid or pay less corporate tax.

The MLI enables jurisdictions to quickly modify their tax treaties to better address multinational tax avoidance and resolve tax disputes.

Announcements

13 December 2023

1 December 2023

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