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Act No. 214 of 1991 as made
An Act to amend the Income Tax (International Agreements) Act 1953
Administered by: Treasury
Date of Assent 24 Dec 1991
Date of repeal 10 Mar 2016
Repealed by Amending Acts 1990 to 1999 Repeal Act 2016
 

INCOME TAX (INTERNATIONAL AGREEMENTS) AMENDMENT ACT (No. 2) 1991 No. 214, 1991

INCOME TAX (INTERNATIONAL AGREEMENTS) AMENDMENT ACT (No. 2) 1991 No. 214 of 1991 - LONG TITLE

An Act to amend the Income Tax (International Agreements) Act 1953

INCOME TAX (INTERNATIONAL AGREEMENTS) AMENDMENT ACT (No. 2) 1991 No. 214 of 1991 - SECT 1
Short title etc.

(Assented to 24 December 1991)
1. (1) This Act may be cited as the Income Tax (International Agreements) Amendment Act (No. 2) 1991.
(2) In this Act, "Principal Act" means the Income Tax (International Agreements) Act 1953.*1*

(Minister's second reading speech made in-
House of Representatives on 10 October 1991
Senate on 12 November 1991)
*1* No. 82, 1953, as amended. For previous amendments, see No. 25, 1958; No. 88, 1959; Nos. 19 and 29, 1960; No. 71, 1963; No. 112, 1964; No. 105, 1965; No. 17, 1966; Nos. 39 and 86, 1967; No. 3, 1968; No. 24, 1969; No. 48, 1972; Nos. 11 and 216, 1973; No. 129, 1974; No. 119, 1975; Nos. 52, 55 and 143, 1976; No. 134, 1977; No. 87, 1978; Nos. 23 and 127, 1980; Nos. 28, 110, 143 and 154, 1981; Nos. 51 and 57, 1983; Nos. 123 and 125, 1984; Nos. 168 and 173, 1985; Nos. 49, 51 and 112, 1986; No. 165, 1989; No. 121, 1990; and Nos. 5 and 96, 1991.

INCOME TAX (INTERNATIONAL AGREEMENTS) AMENDMENT ACT (No. 2) 1991 No. 214 of 1991 - SECT 2
Commencement

2. This Act commences on the day on which it receives the Royal Assent.

INCOME TAX (INTERNATIONAL AGREEMENTS) AMENDMENT ACT (No. 2) 1991 No. 214 of 1991 - SECT 3
Interpretation

3. Section 3 of the Principal Act is amended by inserting in subsection (1) the following definitions:
"'the Indian agreement' means the Agreement between the Government of Australia and the Government of the Republic of India for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, being the agreement a copy of which in the English language is set out in Schedule 35;
'the Polish agreement' means the Agreement between Australia and the Republic of Poland for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, being the agreement a copy of which in the English language is set out in Schedule 36;".

INCOME TAX (INTERNATIONAL AGREEMENTS) AMENDMENT ACT (No. 2) 1991 No. 214 of 1991 - SECT 4

4. Before section 16 of the Principal Act the following sections are inserted:
Agreement with the Republic of India
"11Z. Subject to this Act, on and after the date of entry into force of the Indian agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have the force of law according to their tenor.

Agreement with the Republic of Poland
"11ZA. (1) Subject to this Act, on and after the date of entry into force of the Polish agreement, the provisions of the agreement, so far as those provisions affect Australian tax, have the force of law according to their tenor.
"(2) The provisions of the Polish agreement do not have the effect of subjecting to Australian tax any interest or royalties paid by a resident of Australia to a resident of Poland that, apart from that agreement, would not be subject to Australian tax.".

INCOME TAX (INTERNATIONAL AGREEMENTS) AMENDMENT ACT (No. 2) 1991 No. 214 of 1991 - SECT 5
Schedules 35 and 36

5. The Principal Act is amended by adding at the end the Schedules set out in the Schedule to this Act.

INCOME TAX (INTERNATIONAL AGREEMENTS) AMENDMENT ACT (No. 2) 1991 No. 214 of 1991 - SCHEDULE

SCHEDULE Section 5
SCHEDULES TO BE ADDED AT THE END OF THE PRINCIPAL ACT
"SCHEDULE 35 Section 3
AGREEMENT
BETWEEN
THE GOVERNMENT OF AUSTRALIA
AND
THE GOVERNMENT OF THE REPUBLIC OF INDIA
FOR
THE AVOIDANCE OF DOUBLE TAXATION
AND
THE PREVENTION OF FISCAL EVASION
WITH RESPECT TO TAXES ON INCOME
The Government of Australia and the Government of the Republic of India,
Desiring to conclude an Agreement for the avoidance of double
taxation and the prevention of fiscal evasion with respect to

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taxes on income,
Have agreed as follows:
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 Australia:
the income tax, and the resource rent tax in respect of
offshore projects relating to exploration for or exploitation
of petroleum resources, imposed under the federal law of the
Commonwealth of Australia;
(b) in India:
(i) the income tax including any surcharge thereon; and
(ii) the surtax imposed on chargeable profits of companies.
(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 India after the date of signature of this Agreement in
addition to, or in place of, the existing taxes. The competent
authorities of the Contracting States shall notify each other
of any substantial changes which have been made in the laws of
their respective States relating to the taxes to which this
Agreement applies.
ARTICLE 3
General Definitions
(1) For the purposes of 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 Island 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 subparagraphs
(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 seabed and subsoil of the continental shelf;
(b) the term "India" means the territory of India and
includes the territorial sea and the air space above it, as well
as any other maritime zone in which India has sovereign rights,
other rights and jurisdictions, according to the Indian law and
in accordance with international law;
(c) the terms "Contracting State", "one of the
Contracting States" and "other Contracting State" mean, as
the context requires, Australia or India, the Governments of
which have concluded this Agreement;
(d) the term "person" includes an individual, a company,
any other body of persons and any other entity which is treated
as a taxable unit for tax purposes;
(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 India, as the context
requires;
(g) the term "tax" means Australian tax or Indian tax, as
the context requires;
(h) the term:
(i) "Australian tax" means tax imposed by Australia; and
(ii) "Indian tax" means tax imposed by India,
being tax to which this Agreement applies by virtue of Article
2, but neither term includes any amount which represents a
penalty or fine or interest imposed under the law of either
Contracting State relating to its tax;
(i) the term "competent authority" means, in the case of
Australia, the Commissioner of Taxation or an authorised
representative of the Commissioner and, in the case of India,
the Central Government in the Ministry of Finance (Department
of Revenue) or their authorised representative; and
(j) the term "year of income", in relation to Indian tax,
means "previous year" as defined in the Income-tax Act, 1961.

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(2) 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 if the person is a resident of
that Contracting State for the purposes of its tax. However, a
person is not a resident of a Contracting State for the
purposes of this Agreement if the person is liable to tax in
that State in respect only of income from sources in that State.
(2) Where, by reason of the provisions of paragraph (1), an
individual is a resident of both Contracting States, then the
status of that person shall be determined in accordance with
the following rules:
(a) the person shall be deemed to be a resident solely of
the Contracting State in which a permanent home is available to
the person;
(b) if a permanent home is available to the person in both
Contracting States, or in neither of them, the person shall be
deemed to be a resident solely of the Contracting State with
which the person's personal and economic relations are closer
(centre of vital interests).
For the purposes of this paragraph, an individual's citizenship
of a Contracting State as well as that person's habitual abode
shall be factors in determining the degree of the person's
personal and economic relations with that Contracting State.
(3) 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" means a fixed place of business through which
the business of an 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) a warehouse in relation to a person providing storage
facilities for others;
(h) a farm, plantation or other place where agricultural,
pastoral, forestry or plantation activities are carried on;
(i) premises used as a sales outlet or for receiving or
soliciting orders;
(j) an installation or structure, or plant or equipment, used
for the exploration for or exploitation of natural resources;
(k) a building site or construction, installation or
assembly project, or supervisory activities in connection with
such a site or project, where thatsite or project exists or
those activities are carried on (whether separately or together
with other sites, projects or activities) for more than 6 months.
(3) An enterprise shall be deemed to have a permanent
establishment in one of the Contracting States and to carry on
business through that permanent establishment if:
(a) substantial equipment is being used in that State by,
for or under contract with the enterprise;
(b) it carries on activities in that State in connection with
the exploration for or exploitation of natural resources in
that State; or
(c) it furnishes services, including managerial services and
those mentioned in subparagraphs (3) (h) to (k) of Article 12
but not those services in respect of which payments or credits
that are royalties as defined in Article 12 are made, within one
of the Contracting States through employees or other personnel,
but only if those services are furnished within that State:
(i) for a period or periods aggregating more than 90 days
within any 12 month period; or
(ii) for another enterprise if both enterprises are within
either of the relationships described in subparagraphs (1) (a)
and (b) of Article 9.

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(4) 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
or display 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
or display;
(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 of
collecting information, for the enterprise; or
(e) the maintenance of a fixed place of business solely for
the purpose of advertising, for the supply of information, for
scientific research, or for similar activities which have a
preparatory or auxiliary character, for the enterprise.
However, the preceding provisions of this paragraph shall not
apply where an enterprise of one of the Contracting States
maintains in the other Contracting State a fixed place of
business for any purpose other than those specified in this paragraph.
(5) 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 (6) applies -
shall be deemed to be a permanent establishment of that
enterprise in the firstmentioned State if:
(a) the person has, and habitually exercises in that State,
an authority to conclude contracts on behalf of the enterprise,
unless the person's activities are limited to the purchase of
goods or merchandise for the enterprise;
(b) the person has no such authority, but habitually
maintains in that State a stock of goods or merchandise from
which the person regularly delivers goods or merchandise on
behalf of the enterprise;
(c) the person habitually secures orders in that State,
wholly or principally for the enterprise itself or for the
enterprise and other enterprises controlling, or controlled by
or subject to the same common control as, that enterprise; or
(d) in so acting, the person manufactures or processes in
that State for the enterprise goods or merchandise belonging to
the enterprise.
(6) 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 the person's business as such a
broker or agent. However, when the activities of such a broker
or agent are carried on wholly or principally on behalf of that
enterprise itself or on behalf of that enterprise and other
enterprises controlling, or controlled by or subject to the
same common control as, that enterprise, the person will not be
considered a broker or agent of an independent status within the
meaning of this paragraph.
(7) 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.
(8) The principles set forth in the preceding paragraphs of
this Article shall be applied in determining for the purposes
of paragraph (5) of Article 11 and paragraph (5) of Article 12
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.

ARTICLE 6
Income from Real Property (Immovable Property)
(1) Income from
real property may be taxed in the Contracting State in which
that property is situated.
(2) For the purposes of this Article, the term "real property":
(a) in the case of Australia, has the meaning which it has
under the laws of Australia and shall include:
(i) a lease of land and any other interest in or over land,
whether improved or not; and
(ii) a right to receive variable or fixed payments either as
consideration for the working of or the right to work or
explore for, or in respect of the exploitation of, mineral or

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other deposits, oil or gas wells, quarries or other places of
extraction or exploitation of natural resources; and
(b) in the case of India, means such property which,
according to the laws of India, is immovable property and shall include:
(i) property accessory to immovable property;
(ii) rights to which the provisions of the general law
respecting landed property apply; and
(iii) usufruct of immovable property and rights to receive
variable or fixed payments either as consideration for the
working of or the right to work or explore for, or in respect of
exploitation of, mineral or other deposits, oil or gas wells,
quarries or other places of extraction or exploitation of
natural resources.
(3) A lease of land, any other interest in or over land and any
rights or property referred to in any of the subparagraphs of
paragraph (2) shall be regarded as situated where the land,
mineral or other deposits, oil or gas wells, quarries, natural
resources or property, as the case may be, are situated or
where the exploration may take place.
(4) The provisions of paragraph (1) shall apply to income
derived from the direct use, letting or use in any other form
of real property.
(5) The provisions of paragraphs (1), (3) and (4) shall also
apply to the income from real property of an enterprise and to
income from real property used for the performance of
independent personal 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:
(a) that permanent establishment; or
(b) sales within that other Contracting State of goods or
merchandise of the same or a similar kind as those sold, or
other business activities of the same or a similar kind as
those carried on, through 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, in
accordance with and subject to the limitations of the law
relating to tax in the Contracting State in which the permanent
establishment is situated, expenses of the enterprise, being
expenses which are incurred for the purposes of the business of
the permanent establishment (including executive and general
administrative expenses so incurred), 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) Where the correct amount of profits attributable to a
permanent establishment is incapable of determination by the
taxation authority of one of the Contracting States or the
ascertaining thereof by that authority presents exceptional
difficulties, nothing in this Article shall affect the
application of any law of that State relating to the
determination of the tax liability of a person, provided that
the law shall be applied, so far as the information available
to that authority permits, in accordance with the principles of
this Article.
(6) For the purposes of the preceding paragraphs of this
Article, the profits to be attributed to the permanent
establishment shall be determined by the same method year by
year unless there is good and sufficient reason to the contrary.
(7) 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

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provisions of this Article.
(8) Nothing in this Article shall affect the operation of any
law of a Contracting State relating to tax imposed on profits
from insurance with nonresidents 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.
(9) Where:
(a) a resident of one of the Contracting States 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 the other Contracting State by the
trustee of a trust estate other than a trust estate which is
treated in that other State as a company for tax purposes; and
(b) in relation to that enterprise, that trustee would, in
accordance with the principles of Article 5, have a permanent
establishment in that other Contracting State,
the enterprise carried on by the trustee shall be deemed to be
a business carried on in that other Contracting State 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, including
interest on funds connected with that operation, 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 the operations of ships or aircraft confined
solely to places in that other State.
(3) The provisions of paragraphs (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 organisation 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 a Contracting State 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.
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 taxation 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

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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
firstmentioned State shall make an appropriate adjustment to
the amount of tax charged on those profits in the
firstmentioned 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 also 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 which is subjected to the same taxation
treatment as income from shares by the laws of the Contracting
State of which the company making the distribution is a
resident for the purposes of its tax.
(4) The provisions of paragraphs (1) and (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 a resident
of India for the purposes of Indian tax.
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 also 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 15 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, but does not include interest
referred to in paragraph (1) of Article 8.
(4) The provisions of paragraphs (1) and (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 the person is a resident of
one of the Contracting States or not, has in one of the

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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 lastmentioned 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 also 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:
(a) in the case of:
(i) royalties referred to in subparagraph (3) (b);
(ii) payments or credits for services referred to in
subparagraph (3) (d), subject to subparagraphs (3) (h) to (l),
that are ancillary and subsidiary to the application or
enjoyment of equipment for which payments or credits are made
under subparagraph (3) (b); or
(iii) royalties referred to in subparagraph (3) (f) that
relate to equipment mentioned in subparagraph (3) (b):
10 percent of the gross amount of the royalties; and
(b) in the case of other royalties:
(i) during the first 5 years of income for which this
Agreement has effect:
(A) where the payer is the Government or a political
subdivision of that State or a public sector company: 15
percent of the gross amount of the royalties; and
(B) in all other cases: 20 percent of the gross amount of
the royalties; and
(ii) during all subsequent years of income: 15 percent 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 rendering of any technical or consultancy services
(including those of technical or other personnel) which are
ancillary and subsidiary to the application or enjoyment of any
such property or right as is mentioned in subparagraph (a), any
such equipment as is mentioned in subparagraph (b) or any such
knowledge or information as is mentioned in subparagraph (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;
(f) total or partial forbearance in respect of the use or
supply of any property or right referred to in subparagraphs (a)
to (e); or
(g) the rendering of any services (including those of
technical or other personnel) which make available technical
knowledge, experience, skill, knowhow or processes or consist
of the development and transfer of a technical plan or design;
but that term does not include payments or credits relating to
services mentioned in subparagraphs (d) and (g) that are made:
(h) for services that are ancillary and subsidiary, and
inextricably and essentially linked, to a sale of property;
(i) for services that are ancillary and subsidiary to the
rental of ships, aircraft, containers or other equipment used

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in connection with the operation of ships or aircraft in
international traffic;
(j) for teaching in or by an educational institution;
(k) for services for the personal use of the individual or
individuals making the payments or credits; or
(l) to an employee of the person making the payments or
credits or to any individual or firm of individuals (other than
a company) for professional services as defined in Article 14.
(4) The provisions of paragraphs (1) and (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, right or services in
respect of which the royalties are paid or credited are
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 the person 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 lastmentioned 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 or gains derived by a resident of one of the
Contracting States from the alienation of real property referred
to in Article 6 and, as provided in that Article, situated in
the other Contracting State may be taxed in that other State.
(2) Income or gains derived from the alienation of property,
other than real property referred to in Article 6, that forms
part of the business property of a permanent establishment
which an enterprise of one of the Contracting States has in the
other Contracting State or pertains to a fixed base available to
a resident of the firstmentioned State in that other State for
the purpose of performing independent personal services,
including income or gains from the alienation of such a
permanent establishment (alone or with the whole enterprise) or
of such a fixed base, may be taxed in that other State.
(3) Income or gains derived from the alienation of ships or
aircraft operated in international traffic, or of property
other than real property referred to in Article 6 pertaining to
the operation of those ships or aircraft, shall be taxable only
in the Contracting State of which the enterprise which operated
those ships or aircraft is a resident.
(4) Income or gains derived from the alienation of shares or
comparable interests in a company, the assets of which consist
wholly or principally of real property referred to in Article 6
and, as provided in that Article, situated in one of the
Contracting States, may be taxed in that State.
(5) Income or gains derived from the alienation of shares or
comparable interests in a company, other than those referred to
in paragraph (4), may be taxed in the Contracting State of
which the company is a resident.
(6) Nothing in this Agreement affects the application of a law
of a Contracting State relating to the taxation of gains of a
capital nature derived from the alienation of property other
than that to which any of paragraphs (1), (2), (3), (4) and (5) apply.
ARTICLE 14
Independent Personal Services

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(1) Income derived by an individual or a firm of individuals
(other than a company) 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:
(a) the individual or firm has a fixed base regularly
available to the individual or firm in the other Contracting
State for the purpose of performing the individual's or the
firm's activities, in which case the income may be taxed in
that other State but only so much of it as is attributable to
activities exercised from that fixed base; or
(b) the stay by the individual or, in the case of a firm, by
one or more members of the firm (alone or together) in the
other Contracting State is for a period or periods amounting to
or exceeding 183 days in a year of income, in which case only
so much of the income as is derived from the activities of the
individual, that member or those members, as the case may be, in
that other State may be taxed in that other State.
(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, surgeons,
lawyers, engineers, architects, dentists and accountants.
ARTICLE 15
Dependent Personal Services
(1) Subject to the provisions of Articles 16, 17, 18, 19 and
20, 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
firstmentioned State if:
(a) the recipient is present in that other State for a
period or periods not exceeding in the aggregate 183 days in a
year of income 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; and
(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.
(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 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 residents of one of the Contracting States as
entertainers, such as theatre, motion picture, radio or
television artistes, musicians and athletes, from their personal
activities as such exercised in the other Contracting State,
may be taxed in that other State.
(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.
(3) Notwithstanding the provisions of paragraph (1), income
derived by an entertainer who is a resident of one of the
Contracting States, from the entertainer's personal activities
as such exercised in the other Contracting State, shall be
taxable only in the firstmentioned Contracting State if the
activities in the other Contracting State are supported wholly
or substantially from the public funds of the firstmentioned
Contracting State, including any of its political subdivisions
or local authorities.
(4) Notwithstanding the provisions of paragraph (2) and
Articles 7, 14 and 15, where income in respect of personal

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activities exercised by an entertainer in the entertainer's
capacity as such in one of the Contracting States accrues not
to the entertainer but to another person, that income shall be
taxable only in the other Contracting State if that other
person is supported wholly or substantially from the public
funds of that other State, including any of its political
subdivisions or local authorities.

ARTICLE 18
Pensions and Annuities
(1) Pensions (not including pensions referred to in Article 19)
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.
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 of that State; or
(b) did not become a resident of that State solely for the
purpose of performing the services.
(2) Any pension paid by, or out of funds created by, one of the
Contracting States or a political subdivision or a local
authority thereof to an individual in respect of services
rendered to that State or subdivision or authority shall be
taxable only in that State. However, such pension shall be
taxable only in the other Contracting State if the recipient is
a resident and a citizen of that other State.
(3) The provisions of Articles 15, 16 and 18 shall apply, as
appropriate in the circumstances, to remuneration and pensions
in respect of services rendered in connection with a business
carried on by one of the Contracting States or a political
subdivision or local authority thereof.
ARTICLE 20
Professors and Teachers
(1) Where a professor or teacher who is a resident of one of
the Contracting States visits the other Contracting State for a
period not exceeding two years for the purpose of teaching or
carrying out advanced study or research at a university,
college, school or other educational institution, any
remuneration that person receives for such teaching, advanced
study or research shall be exempt from tax in that other State
to the extent to which such remuneration is, or upon the
application of this Article will be, subject to tax in the
firstmentioned State.
(2) This Article shall not apply to remuneration which a
professor or teacher receives for conducting research if the
research is undertaken primarily for the private benefit of a
specific person or persons.
ARTICLE 21
Students and Trainees
Where a student or trainee, 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 the student's or trainee's education or training,
receives payments from sources outside that other State for the
purpose of the student's or trainee's maintenance, education or
training, those payments shall be exempt from tax in that other
State.
ARTICLE 22
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

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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 23
Source of Income
(1) Income, profits or gains derived by a resident of one of
the Contracting States which, under any one or more of Articles
6 to 8, Articles 10 to 20 and Article 22 may be taxed in the
other Contracting State, shall for the purposes of the law of
that other State relating to its tax be deemed to be income
from sources in that other State.
(2) Income, profits or gains derived by a resident of one of
the Contracting States which, under any one or more of Articles
6 to 8, Articles 10 to 20 and Article 22 may be taxed in the
other Contracting State, shall for the purposes of Article 24
and of the law of the firstmentioned State relating to its tax
be deemed to be income from sources in that other State.
ARTICLE 24
Methods of Elimination of Double Taxation
(1) (a) 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), Indian tax paid under the law of India 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 India shall be allowed as
a credit against Australian tax payable in respect of that income.
(b) Where a company which is a resident of India and is not a
resident of Australia for the purposes of Australian tax pays a
dividend to a company which is a resident of Australia and
which controls directly or indirectly not less than 10 per cent
of the voting power of the firstmentioned company, the credit
referred to in subparagraph (a) shall include the Indian tax
paid by that firstmentioned company in respect of that portion
of its profits out of which the dividend is paid.
(2) In paragraph (1), Indian tax paid shall include:
(a) subject to subparagraph (b), an amount equivalent to the
amount of any Indian tax forgone which, under the law of India
relating to Indian tax and in accordance with this Agreement,
would have been payable as Indian tax on income but for an
exemption from, or reduction of, Indian tax on that income in
accordance with:
(i) section 10 (4), 10 (15) (iv), 10A, 10B, 80hhc, 80hhd or
80I of the Income-tax Act, 1961, insofar as those provisions
were in force on, and have not been modified since, the date of
signature of this Agreement, or have been modified only in
minor respects so as not to affect their general character; or
(ii) any other provision which may subsequently be made
granting an exemption from or reduction of Indian tax which the
Treasurer of Australia and the Minister of Finance of India
agree from time to time in letters exchanged for this purpose
to be of a substantially similar character, if that provision
has not been modified thereafter or has been modified only in
minor respects so as not to affect its general character; and
(b) in the case of interest derived by a resident of
Australia which is exempted from Indian tax under the
provisions referred to in subparagraph (a), the amount which
would have been payable as Indian tax if the interest had not
been so exempt and if the tax referred to in paragraph (2) of
Article 11 did not exceed 10 per cent of the gross amount of the interest.
(3) Paragraph (2) shall apply only in relation to income
derived in any of the first 10 years of income in relation to
which this Agreement has effect under subparagraph (1) (a) (ii)
of Article 28 or in any later year of income that may be agreed
by the Contracting States in letters exchanged for this purpose.
(4) In the case of India, double taxation shall be avoided as follows:
(a) the amount of Australian tax paid under the laws of
Australia and in accordance with the provisions of this
Agreement, whether directly or by deduction, by a resident of
India in respect of income from sources within Australia which
has been subjected to tax both in India and Australia shall be
allowed as a credit against the Indian tax payable in respect
of such income but in an amount not exceeding that proportion
of Indian tax which such income bears to the entire income
chargeable to Indian tax; and
(b) for the purposes of the credit referred to in
subparagraph (a) above, where the resident of India is a
company by which surtax is payable, the credit to be allowed
against Indian tax shall be allowed in the first instance

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against the income tax payable by the company in India and, as
to the balance, if any, against the surtax payable by it in India.
(5) Where a resident of one of the Contracting States derives
income which, in accordance with the provisions of this
Agreement shall be taxable only in the other Contracting State,
the firstmentioned State may take that income into account in
calculating the amount of its tax payable on the remaining
income of that resident.
ARTICLE 25
Mutual Agreement Procedure
(1) Where a person who is a resident of one of the Contracting
States considers that the actions of the taxation authority of
one or both of the Contracting States result or will result for
the person in taxation not in accordance with this Agreement,
the person may, notwithstanding the remedies provided by the
national laws of those States, present a case to the competent
authority of the Contracting State of which the person 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 26
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, or for the prevention of evasion or avoidance of, or
fraud in relation to, such taxes. 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. They may
disclose the information in public court proceedings or in
judicial decisions.
(2) The competent authorities may, through consultation, develop
appropriate conditions, methods and techniques concerning the
matters in respect of which such exchange of information shall
be made. The exchange of information shall be either on a
routine basis or on request with reference to particular cases,
or both. The competent authorities of the Contracting States may
agree from time to time on the list of the information which
shall be furnished on a routine basis.
(3) 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 information which is not obtainable under the
laws or in the normal course of the administration of that or
of the other Contracting State;
(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 27
Diplomatic and Consular Officials
Nothing in this Agreement shall affect the fiscal privileges
of diplomatic or consular officials under the general rules of
international law or under the provisions of special international
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agreements.
ARTICLE 28
Entry into Force
(1) This Agreement shall enter into force on the date on which
the Contracting States exchange notes through the diplomatic
channel notifying each other that the last of such things has
been done as is necessary to give this Agreement the force of
law in Australia and in India, 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 nonresident, in relation to income derived on or after 1
July 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, profits or gains 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 India, in respect of income, profits or gains arising
in any year of income beginning on or after 1 April in the
calendar year next following that in which the Agreement enters
into force.
(2) The Agreement made between the Government of Australia and
the Government of the Republic of India for the Avoidance of
Double Taxation of Income derived from International Air
Transport signed at Canberra on 31 May 1983 (in this Article
called "the 1983 Agreement") shall cease to have effect with
respect to taxes to which this Agreement applies when the
provisions of this Agreement become effective in accordance with
paragraph (1).
(3) The 1983 Agreement shall terminate on the expiration of the
last date on which it has effect in accordance with the
foregoing provisions of this Article.
ARTICLE 29
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 nonresident, in relation to income derived on or after 1
July in the calendar year next following that in which the
notice of termination is given; and
(ii) in respect of other Australian tax, in relation to
income, profits or gains 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 India, in respect of income, profits or gains arising
in any year of income beginning on or after 1 April 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 at CANBERRA this TWENTY-FIFTH day of JULY
One thousand nine hundred and ninety-one, in the English and
Hindi languages, both texts being equally authentic, the
English text to be the operative one in any case of doubt.

FOR THE GOVERNMENT OF FOR THE GOVERNMENT OF
AUSTRALIA: THE REPUBLIC OF INDIA:
JOHN KERIN AKBAR MIRZA KHALEELI
"SCHEDULE 36 Section 3
AGREEMENT
BETWEEN
AUSTRALIA
AND
THE REPUBLIC OF POLAND
FOR
THE AVOIDANCE OF DOUBLE TAXATION
AND
THE PREVENTION OF FISCAL EVASION
WITH RESPECT TO TAXES ON INCOME
Australia and the Republic of Poland,
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:
ARTICLE 1

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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 Australia:
the income tax, and the resource rent tax in respect of offshore
projects relating to exploration for or exploitation of
petroleum resources, imposed under the federal law of the
Commonwealth of Australia;
(b) in Poland:
(i) the income tax (podatek dochodowy);
(ii) the tax on wages and salaries (podatek od wynagrodzen);
(iii the equalisation tax (podatek wyrownawczy);
(iv) the corporate tax (podatek dochodowy od osob prawnych);
and
(v) the agricultural tax (podatek rolny).
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 under the law of the
Republic of Poland after the date of signature of this
Agreement in addition to, or in place of, the existing taxes.
The competent authorities of the Contracting States shall
notify each other of any substantial changes which have been
made in the laws of their respective States relating to taxes on
income within a reasonable period of time after such changes.
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 Island 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 this
subparagraph) 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 seabed and subsoil of the continental shelf;
(b) the term "Poland" means the territory of the Republic
of Poland, including any area outside its territorial sea
within which under the laws of Poland and in accordance with
international law the sovereign rights of Poland with respect to
the seabed and its subsoil and their natural resources may be
exercised;
(c) the terms "Contracting State", "one of the Contracting
States" and "other Contracting State" mean Australia or
Poland, 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 Poland, as the context
requires;
(g) the term "tax" means Australian tax or Polish 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 "Polish tax" means tax imposed by Poland,
being tax to which this Agreement applies by virtue of Article
2;
(j) the term "international traffic" means any transport by
a ship or aircraft except where the ship or aircraft is
operated solely between places within one of the Contracting
States;
(k) the term "competent authority" means, in the case of
Australia, the Commissioner of Taxation or an authorised
representative of the Commissioner and, in the case of Poland,
the Minister of Finance or an authorised representative of the
Minister.

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2. In this Agreement, the terms "Australian tax" and "Polish
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 relating to the taxes to which this
Agreement applies, in force at the time of that application.
ARTICLE 4
Residence
1. For the purposes of this Agreement, a person is a resident of
one of the Contracting States if the person is a resident of
that Contracting State for the purposes of its tax.
2. A person is not a resident of a Contracting State for the
purposes of this Agreement if the person 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 a
person, being an individual, is a resident of both Contracting
States, then the status of the person shall be determined in
accordance with the following rules:
(a) the person shall be deemed to be a resident solely of
the Contracting State in which a permanent home is available to
the person;
(b) if a permanent home is available to the person in both
Contracting States, or in neither of them, the person shall be
deemed to be a resident solely of the Contracting State in
which the person has an habitual abode;
(c) if the person has an habitual abode in both Contracting
States or in neither of them, the person shall be deemed to be a
resident solely of the Contracting State with which the
person's economic and personal 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" means a fixed place of business through which
the business of an 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 a construction, installation or
assembly project, which exists for more than 12 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; or
(b) the maintenance of a stock of goods or merchandise
belonging to the enterprise solely for the purpose of storage,
display or delivery; or
(c) the maintenance of a stock of goods or merchandise
belonging to the enterprise solely for the purpose of
processing by another enterprise; or
(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; or
(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; or
(f) the maintenance of a fixed place of business solely for
any combination of activities mentioned in subparagraphs (a) to
(e) if the overall activity of the fixed place of business
resulting from this combination is of a preparatory or
auxiliary character.
4. An enterprise shall be deemed to have a permanent
establishment in one of the Contracting States and to carry on
business through that permanent establishment if:

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(a) it carries on supervisory activities in that State for
more than 12 months in connection with a building site, or a
construction, installation or assembly project, which is being
undertaken in that State by another enterprise; or
(b) substantial equipment is used in that State for more
than 12 months by, for or under contract with the enterprise.
5. 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 6 applies - shall
be deemed to be a permanent establishment of that enterprise
in the firstmentioned State if:
(a) the person has, and habitually exercises in that State,
an authority to conclude contracts on behalf of the enterprise,
unless the person's activities are limited to the purchase of
goods or merchandise for the enterprise; or
(b) in so acting, the person manufactures or processes in
that State for the enterprise goods or merchandise belonging to
the enterprise.

6. 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 person who is a broker, general
commission agent or any other agent of an independent status
and is acting in the ordinary course of the person's business
as such a broker or agent.
7. 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.
ARTICLE 6
Income from Real Property
1. Income from real property may be taxed in the Contracting
State in which the real property is situated.
2. In this Article, the term "real property", in relation to
one of the Contracting States, has the meaning which it has
under the laws of that State and includes:
(a) a lease of land and any other interest in or over land
including a right to explore for mineral, oil or gas deposits or
other natural resources, and a right to mine such deposits or
resources; and
(b) a right to receive variable or fixed payments either as
consideration for the exploitation of or the right to explore
for or exploit, or in respect of the exploitation of, mineral,
oil or gas deposits, quarries or other places of extraction or
exploitation of natural resources.
Ships and aircraft shall not be regarded as real property.
3. Any interest or right referred to in paragraph 2 shall be
regarded as situated where the land, mineral, oil or gas
deposits, quarries or natural resources, as the case may be,
are situated or where the exploration may take place.
4. The provisions of paragraphs 1 and 3 shall also apply to
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

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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 nonresidents 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. Where:
(a) a resident of one of the Contracting States 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 the other Contracting State by the
trustee of a trust estate other than a trust estate which is
treated as a company for tax purposes; and
(b) in relation to that enterprise, that trustee would, in
accordance with the principles of Article 5, have a permanent
establishment in that other State,
the enterprise carried on by the trustee shall be deemed to be
a business carried on in the other State 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 in
international traffic 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 paragraphs 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 organisation 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 a Contracting State 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.
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

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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
firstmentioned State shall make an appropriate adjustment to the
amount of tax charged on those profits in the firstmentioned
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 or other rights to participate in profits and not
relating to debt claims, as well as other income which is
subjected to the same taxation treatment as income from shares
by the laws of the State of which the company making the
distribution is a resident.
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 professional 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 14, as the case may be, shall apply.
5. Where a company which is a resident of one of the
Contracting States derives profits, income or gains from the
other Contracting State, that other State may not impose any tax
on the dividends paid by the company, except insofar as such
dividends are beneficially owned by a resident of that other
State or insofar as the holding in respect of which the
dividends are paid is effectively connected with a permanent
establishment or a fixed base situated in that other State, nor
subject the company's undistributed profits to tax, even if the
dividends paid or the undistributed profits consist wholly or
partly of profits, income or gains arising in that other State.
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.

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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 professional 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 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 the person is a resident of
one of the Contracting States or not, has in one of the
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 lastmentioned 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; or
(b) the use of, or the right to use, any industrial,
commercial or scientific equipment; or
(c) the supply of scientific, technical, industrial or
commercial knowledge or information; or
(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 subparagraph (a), any such equipment as is
mentioned in subparagraph (b) or any such knowledge or
information as is mentioned in subparagraph (c); or
(e) the use of, or the right to use:
(i) motion picture films; or
(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 professional 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 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

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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 the person is a resident
of one of the Contracting States or not, has in one of the
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 lastmentioned 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 or gains derived by a resident of one of the
Contracting States from the alienation of real property
referred to in Article 6 and, as provided in that Article,
situated in the other Contracting State may be taxed in that
other State.
2. Income or gains from the alienation of property, other than
real property referred to in Article 6, that forms part of the
business property of a permanent establishment which an
enterprise of one of the Contracting States has in the other
Contracting State or pertains to a fixed base available to a
resident of the firstmentioned State in that other State for the
purpose of performing independent professional services,
including income or gains from the alienation of such a
permanent establishment (alone or with the whole enterprise) or
of such a fixed base, may be taxed in that other State.
3. Income or gains from the alienation of ships or aircraft
operated in international traffic, or of property other than
real property referred to in Article 6 pertaining to the
operation of those ships or aircraft, shall be taxable only in
the Contracting State of which the enterprise which operated
those ships or aircraft is a resident.
4. Income or gains derived by a resident of one of the
Contracting States from the alienation of shares or comparable
interests in a company, the assets of which consist wholly or
principally of real property in the other Contracting State of
a kind referred to in Article 6, may be taxed in that other
State.
5. Nothing in this Agreement affects the application of a law
of a Contracting State relating to the taxation of gains of a
capital nature derived from the alienation of property other
than that to which any of paragraphs 1, 2, 3 and 4 apply.
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 a fixed base is regularly
available to the individual in the other Contracting State for
the purpose of performing the individual's activities. If such
a fixed base is available to the individual, 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, 19 and 21,
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.

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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
firstmentioned 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 of that other State; and
(b) the remuneration is paid by, or on behalf of, an
employer who is not a resident of that other State; and
(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.
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 person who
is a resident of one of the Contracting States in the person's
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.
3. Notwithstanding the provisions of paragraphs 1 and 2, income
derived in respect of the activities referred to in paragraph 1
within the framework of a cultural or sports exchange program
agreed to by the Governments of the Contracting States shall be
exempted from tax in the Contracting State in which these
activities are exercised.
ARTICLE 18
Pensions and Annuities
1. Pensions (including government 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 firstmentioned
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 of that State; or
(b) did not become a resident of that State solely for the
purpose of performing the services.
2. 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 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

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present in that other State solely for the purpose of his or
her education, receives payments from sources outside that other
State for the purpose of his or her maintenance or education,
those payments shall be exempt from tax in that other State.
ARTICLE 21
Professors and Teachers
1. Where a professor or teacher who is a resident of a
Contracting State visits the other Contracting State for a
period not exceeding two years for the purpose of teaching or
carrying out advanced study or research at a university,
college, school or other educational institution in that other
State, any remuneration the person receives for such teaching,
advanced study or research shall be exempt from tax in that
other State to the extent to which that remuneration is, or upon
the application of this Article will be, subject to tax in the
firstmentioned State.
2. This Article shall not apply to remuneration which a
professor or teacher receives for conducting research if the
research is undertaken primarily for the private benefit of a
specific person or persons.
ARTICLE 22
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
but, to the extent that those items are derived from sources in
the other Contracting State, they may also be taxed in that
other State.
2. 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. ln such a case, the provisions of Article 7 or Article
14, as the case may be, shall apply.

ARTICLE 23
Source of Income
Income, profits or gains derived by a resident of one of the
Contracting States which, under any one or more of Articles 6 to
8, 10 to 19 and 22, may be taxed in the other Contracting State
shall, for the purposes of Article 24 and of the law of each
Contracting State relating to its tax, be deemed to be income
from sources in that other State.
ARTICLE 24
Methods of Elimination of Double Taxation
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), Polish tax paid under the law of Poland 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 Poland shall be allowed
as a credit against Australian tax payable in respect of that
income.
2. Where a company which is a resident of Poland and is not a
resident of Australia for the purposes of Australian tax pays a
dividend to a company which is a resident of Australia and which
controls directly or indirectly not less than 10 per cent of
the voting power of the firstmentioned company, the credit
referred to in paragraph 1 shall include the Polish tax paid by
that firstmentioned company in respect of that portion of its
profits out of which the dividend is paid.
3. Where a resident of Poland derives income which under this
Agreement may be taxed in Australia, Poland shall deduct from
the Polish tax payable in respect of that income an amount
equal to the Australian tax paid in respect of that income.
Such deduction shall not, however, exceed the Polish tax,
computed before the deduction is made, payable in respect of
that income.
ARTICLE 25
Mutual Agreement Procedure
1. Where a person who is 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
the person in taxation not in accordance with this Agreement,
the person may, notwithstanding the remedies provided by the
national laws of those States, present a case to the competent
authority of the Contracting State of which the person is a
resident. The case must be presented within 3 years from the
first notification of the action giving rise to taxation not in

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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 26
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 in
so far 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; or
(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 27
Diplomatic and Consular Officials
Nothing in this Agreement shall affect the fiscal privileges
of diplomatic or consular officials under the general rules of
international law or under the provisions of special
international agreements.
ARTICLE 28
Entry into Force
1. This Agreement shall be ratified and the instruments of
ratification shall be exchanged at Warsaw.
2. This Agreement shall enter into force on the date of the
exchange of instruments of ratification and its provisions shall
have effect:
(a) in respect of withholding tax imposed by a Contracting
State on income that is derived by a nonresident of that State,
in relation to income derived on or after 1 January; and
(b) in respect of other tax, in relation to profits, income
or gains of any year of income beginning:
(i) in the case of Australia, on or after 1 July; and
(ii) in the case of Poland, on or after 1 January,
in the calendar year next following that in which the exchange
of instruments of ratification takes place.
ARTICLE 29
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 respect of withholding tax imposed by a Contracting
State on income that is derived by a nonresident of that State,
in relation to income derived on or after 1 January; and
(b) in respect of other tax, in relation to profits, income
or gains, of any year of income beginning:
(i) in the case of Australia, on 1 July; and
(ii) in the case of Poland, on 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 at CANBERRA, this SEVENTH day of MAY, One
thousand nine hundred and ninety-one in the English and Polish
languages both texts being equally authentic.

FOR AUSTRALIA: FOR THE REPUBLIC OF POLAND
GARETH EVANS KRZYSZTOF SKUBISZEWSKI