Adjustment to tax on certain payments or credits paid to Indian firms

This consultation process has now been completed. Submissions available
Consultation Type
Exposure Draft

Key Documents

On 2 April 2022, in connection with the Australia‑India Economic Cooperation and Trade Agreement (AI‑ECTA), Australia agreed to amend Australia’s domestic taxation law to stop the taxation of income of non‑resident Indian firms providing technical services remotely to Australian customers. Australia and India agreed that this outcome would be implemented in a similar time period as the AI‑ECTA. The side letters on taxation exchanged between Australia and India are available on DFAT’s website.  

The Government has released draft legislation to implement the agreement reached between Australia and India on taxation.

The draft legislation proposes that the amendments will commence on the later of the day of Royal Assent and the day the AI‑ECTA enters into force for Australia. However, the amendments will not commence at all if the AI‑ECTA does not enter into force.

The Government welcomes comments or feedback from stakeholders on the draft legislation and draft explanatory memorandum.


5 submissions were received for this consultation, including 2 confidential submissions.

Deloitte - pdf 144.38 KB
EY - pdf 73.58 KB
KPMG - pdf 122.28 KB