The Australian Taxation Office (ATO) has published the synthesized text of the 1981 income tax treaty with Denmark 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 submitted to the Depositary by the respective countries. The authentic legal texts of the treaty and the MLI take precedence and remain the legal texts applicable.

The MLI applies for the 1981 Australia-Denmark 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 2020;
• with respect to all other taxes levied by Australia, for taxes levied with respect to taxable periods beginning on or after 1 July 2020; and
• with respect to all other taxes levied by Denmark, for taxes levied with respect to taxable periods beginning on or after 1 January 2021.

Notwithstanding the above, Article 16 of the MLI (Mutual Agreement Procedure) has effect for a case presented to the competent authority of a Contracting State on or after 1 January 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. Further, the provisions of Part VI (Arbitration) of the MLI have effect with respect to the treaty for cases presented to the competent authority of a Contracting State on or after 1 January 2020, and for cases presented prior to that date once required notifications to the Depository have been made and to the extent agreed by the competent authorities.

Click the following link for the ATO's webpage on the BEPS MLI for more information.