Tax reprieve for double taxation of Indian technical support

HomeInsights


Tax reprieve for double taxation of Indian technical support.

The tax system currently allows Australia to tax payments made by an Australian customer in relation to technical services provided by an Indian firm, even when the services are provided remotely.

This is due to the wording contained in the double tax agreement between Australia and India.  


Under an agreement reached in connection with the Australian/ India Economic Cooperation and Trade Agreement (AI-ECTA), these payments will no longer be taxed in Australia. The typical categories of services intended to be covered by the amendments include:

  • engineering services;
  • architectural services; and
  • computer software development.


The amendment to the tax rules is in consultation phase and not yet law. If enacted, it will apply once the amendments receive Royal Assent, assuming the AI-ECTA has been entered into force.



LET'S TALK  LET'S TALK 



6 May '25

B.I.T.E Business Conference 2025

ALL DAY CONFERENCE @ Mornington Racecourse
6 May 2025 - 8:30am - 5:30pm

In today’s fast-changing world, staying competitive means embracing new trends and technologies. At B.I.T.E. Conference 2025, you'll discover groundbreaking strategies and tools—like A.I. and robotic process automation—designed to help you navigate and succeed in the evolving business landscape.


READ MORE READ MORE
18 Dec

Mortgage brokers thrive as market share reaches new heights

Mortgage brokers have access to a broad panel of lenders, ranging from major banks to specialist lenders.


READ MORE READ MORE
17 Dec

Prepare your business for the new year with equipment finance

Equipment finance offers a flexible solution for acquiring the assets your business needs without significant upfront costs.


READ MORE READ MORE




Related News

4 Nov

Navigating Australia’s Bracket Creep: Strategies for Managing Rising Tax Liabilities

As Australia's highest marginal tax bracket impacts more individuals, a growing number of Australians face rising tax obligations due to "bracket creep," where wage growth outpaces tax rate adjustments. This trend is expected to persist, with tax-efficient strategies the backbone for financial advice to help individuals secure long-term wealth.


READ MORE READ MORE
14 Oct

Smart Financial Planning for New Parents: 9 Essential Tips to Manage Parenthood Costs

Discover 9 essential financial planning tips to help new and expecting parents manage the costs of parenthood with confidence and ease.


READ MORE READ MORE
19 Sep

Understanding the Taxable Payments Annual Report (TPAR): A Guide for Australian Businesses

The Taxable Payments Annual Report (TPAR) is a mandatory report for Australian businesses in certain industries to disclose contractor payments to the ATO by August 28 each year, ensuring accurate tax reporting.


READ MORE READ MORE