UK, Austria sign new tax treaty

The United Kingdom and Austrian governments on October 23 signed a new tax treaty.

The treaty, which is not in force, would replace a 1970 treaty and later protocols agreed to by the two nations.

The treaty aims to eliminate double taxation but at the same time not create opportunities for reduced taxation through tax avoidance or evasion. It addresses withholding on dividends, interest, and royalties and adds a “principal purposes” test to curtail tax treaty shopping.