Agreement between the Republic of Austria and the (former) Kingdom of Greece for the avoidance of double taxation with respect to taxes on income and on capital
Preamble
The Republic of Austria and the Kingdom of Greece, desiring to avoid double taxation with respect to taxes on income and on capital, have agreed as follows.
Article 1 – Persons covered
This Agreement applies to persons who are residents of one or both Contracting States.
Article 2 – Taxes covered
This applies to taxes on income and capital, levied on behalf of a Contracting State or its political subdivisions or local authorities, irrespective of the manner in which they are imposed. The currently listed taxes include, in particular:
Austria: income tax; corporation tax; contribution from income for housing and family allowances; trade tax, including payroll tax; capital tax; supervisory board levy; real estate tax; levy on assets excluded from inheritance tax; and the levy on site value for undeveloped land.
Greece: income tax of individuals; income tax of legal persons; and the agricultural insurance contribution.
This also applies to any identical or substantially similar taxes that are introduced after the date of signature. The competent authorities of the Contracting States shall notify each other annually of any significant changes to their tax legislation.
Article 3 – General definitions
Defines the terms “a Contracting State” and “the other Contracting State,” “person,” “company,” “enterprise of a Contracting State,” “competent authority” (Austria: Federal Minister of Finance; Greece: Ministry of Finance or its authorized representative). Undefined terms have the meaning under the law of the State applying the Agreement, with reference to taxes covered.
Article 4 – Resident
Defines the term “resident of a Contracting State” and establishes tie‑breaker rules for cases in which an individual is considered a resident of both States (permanent home, centre of vital interests, habitual abode, nationality, mutual agreement). Also addresses the issue of dual residence of persons other than individuals.
Article 5 – Permanent establishment
Defines the term “permanent establishment” (PE) and provides examples (place of management, branch, office, factory, workshop, mine/quarry/other extraction site) and exclusions (storage, display, delivery, auxiliary activities). Addresses cases of dependent and independent agents; control relationships do not of themselves create a PE.
Article 6 – Income from immovable property
Income derived by a resident of a Contracting State from immovable property (including agriculture/forestry) situated in the other State may be taxed in that other State. “Immovable property” has the meaning under the law of the State where the property is situated.
Article 7 – Business profits
Profits of an enterprise situated in a Contracting State are taxable only in that State unless the enterprise conducts business in the other State through a PE situated therein; only so much of the profits as are attributable to the PE may be taxed in the other State. Authorizes arm’s length attribution and corresponding adjustments.
Article 8 – Shipping and air transport
Profits from the operation of ships or aircraft in international traffic are taxable only in the State in which the place of effective management of the enterprise is situated.
Article 9 – Associated enterprises
Arm’s length principle applies to dealings between associated enterprises; corresponding adjustments permitted.
Article 10 – Dividends
Dividends paid by a company situated in one State to a resident situated in the other State may be taxed in that other State. They may also be taxed in the source State according to its law, but if the beneficial owner is a resident of the other State, the tax so charged shall not exceed a specified percentage of the gross amount (per domestic implementation). Does not affect taxation of the company’s profits. PE‑connected shareholdings are treated under Article 7.
Article 11 – Interest
Interest arising in one State and paid to a resident of the other State may be taxed in that other State; it may also be taxed in the source State subject to percentage limits when the recipient is the beneficial owner. Defines “interest” and provides for arm’s length adjustments; PE‑connected debt is covered by Article 7.
Article 12 – Royalties
Royalties arising in one State and paid to a resident of the other State may be taxed in that other State; they may also be taxed in the source State subject to percentage limits when the recipient is the beneficial owner. Defines “royalties”; PE‑connected rights are covered by Article 7.
Article 13 – Capital gains
Gains derived from the alienation of immovable property may be taxed in the Contracting State in which the property is situated.
Gains from the alienation of movable property forming part of the business property of a permanent establishment — including gains from the alienation of the permanent establishment itself — may be taxed in the Contracting State in which the permanent establishment is situated.
Gains from the alienation of ships or aircraft operated in international traffic, or of movable property pertaining to the operation of such ships or aircraft, are taxable only in the Contracting State in which the place of effective management of the enterprise is situated.
All other gains are taxable only in the Contracting State of which the alienator is a resident.
Article 14 – Independent personal services
Income derived by an individual who is a resident of a Contracting State from professional services or other independent activities is taxable only in that State, unless the individual has a fixed base regularly available to them in the other Contracting State for the purpose of performing those activities. In that case, the other State may tax the portion of the income that is attributable to that fixed base.
Article 15 – Dependent personal services
Salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of employment are taxable only in that State unless the employment is exercised in the other State; in that case the remuneration may be taxed in the other dstate. Provides for the standard 183‑day rule, employer residence and PE‑borne remuneration conditions.
Articles 16–21 – Directors’ fees; Artistes and sportsmen; Pensions; Government service; Students; Other income
Allocates taxing rights in accordance with OECD‑type provisions: directors’ fees (State of company residency), artists/sportsmen (State of performance), private pensions (residence State, subject to rules), government remuneration (paying State, with exceptions), students/trainees (exempt under conditions), other income (residence State, with source State rights in certain cases).
Article 22 – Capital
Capital represented by immovable property may be taxed in the Contracting State in which the property is situated.
Capital represented by movable property forming part of the business property of a permanent establishment may be taxed in the Contracting State in which the permanent establishment is situated.
Capital of ships or aircraft operated in international traffic, and movable property pertaining to their operation, is taxable only in the Contracting State in which the place of effective management of the enterprise is situated.
All other elements of capital are taxable only in the Contracting State of which the person is a resident.
Article 23 – Elimination of double taxation
Provides methods to eliminate double taxation (exemption or credit), as specified by each State’s law and the Agreement.
Article 24 – Non‑discrimination
Nationals and enterprises of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith that is more burdensome than the taxation and connected requirements to which nationals and enterprises of that other State in the same circumstances are or may be subjected.
Article 25 – Mutual agreement procedure
Provides for MAP to resolve cases of taxation not in accordance with the Agreement; competent authorities shall endeavour to resolve difficulties and doubts and may communicate directly.
Article 26 – Exchange of information
The competent authorities of the Contracting States shall exchange such information as is necessary for the administration and enforcement of the Agreement or the domestic laws of the Contracting States concerning taxes covered by the Agreement. Such exchange of information shall be subject to the confidentiality provisions and limitations that: prohibit administrative measures that are contrary to the laws or administrative practices of the requested State;prevent the supply of information that is not obtainable under the laws or in the normal course of the administration or enforcement of the laws of that State; and protect against the disclosure of trade, business, industrial, commercial, or professional secrets, or information the disclosure of which would be contrary to public policy.
Article 27 – Diplomatic and consular officials
Preserves fiscal privileges under general rules of international law or special agreements.
Article 28 – Entry into force
Subject to ratification; instruments to be exchanged in Athens. Applies: – In Austria: for the assessment year beginning on 1 January of the calendar year in which the exchange of instruments took place (and following years); for Article 8 (shipping/air transport), for the assessment year 1960 and following. – In Greece: to income derived on or after the first day of the calendar year in which the exchange took place (and following years); for Article 8, to income in 1960 and following years.
Article 29 – Termination
The Agreement shall remain in force indefinitely. Either Contracting State may terminate the Agreement by delivering a diplomatic note of termination at least six months prior to the end of a calendar year. Upon termination, the Agreement shall cease to apply as specified for each Contracting State.
Signatures and ratification
Concluded in Vienna on 22 September 1970 in Greek, German and English, all texts being equally authentic; in case of doubt the English text prevails. Ratified at Vienna on 1 April 1971; instruments exchanged on 5 January 1972; entered into force on that date. Signatories include President Jonas; Chancellor Kreisky; Ministers Androsch and Kirchschläger (Austria); for Greece: K. A. Triantafyllakos.