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Australia and Finland sign tax treaty

The Australian Treasurer and the Finnish Minister of Finance signed a new tax treaty between Australia and Finland on 20 November 2006. It will replace the existing treaty when ratified.

The new treaty will substantially reduce withholding tax on certain dividend, interest and royalty payments in line with Australia’s tax treaties with the US and UK, and more recently with France and Norway.

The new treaty will enter into force when both countries advise that they have completed their domestic requirements. Legislation for this purpose will be introduced in the Australian Parliament as soon as practicable.

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