The Australian Taxation Office (ATO) has published the synthesized text of the 1982 income tax treaty with South Korea as impacted by the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI). The synthesized text was prepared on the basis of the reservations and notifications (MLI positions) provided by Australia and South Korea on the date of deposit of their MLI ratification instruments. The sole purpose of the text is to facilitate the understanding of the application of the MLI to the Agreement and it does not constitute a source of law. The authentic legal texts of the Agreement and the MLI take precedence and remain the legal texts applicable.
The MLI applies for the 1982 Australia-South Korea tax treaty:
- with respect to taxes withheld at source on amounts paid or credited to non-residents, where the event giving rise to such taxes occurs on or after 1 January 2021; and
- with respect to all other taxes levied by each Contracting State, for taxes levied with respect to taxable periods beginning on or after 1 March 2021.
Notwithstanding the above, Article 16 of the MLI (Mutual Agreement Procedure) applies in respect of a case presented to the competent authority of a Contracting State on or after 1 September 2020, except for cases that were not eligible to be presented as of that date under the treaty prior to its modification by the MLI, without regard to the taxable period to which the case relates.
Click the following link for the ATO's webpage on the BEPS MLI for more information.