Withholding Taxes - change of treaty

Slovenia signed a treaty with Australia in September 2024; now, the royalty tax is 10% instead of 30%. However, I am still being deducted 30%. Do I have to do anything or is this an automatic process? Thank you.

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Interesting note! You might get lucky! Hopefully @BenLeong will look into it. Gg for Slovenia

I also read that new negotiations are planned with Bulgaria, Colombia, Croatia, Cyprus, Estonia, Latvia and Lithuania. These countries add to the current program which includes Portugal, Slovenia, Greece and Luxembourg.
But that news announced in november 2022. No new information on negotiations for those countries :upside_down_face:

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Yes, it seems these negotiations take years. Slovenia was in the process for a very long time too. But, fortunately it’s finally signed. :slight_smile:

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Hi @dreamypixel - and thanks for the tag, @Eduard_1337!

I’ll check with our tax team to find out more about this. There can often be a lag between the signing of a new tax treaty, and the time when that treaty comes into force (after a new treaty progresses through parliament in each country). I’ll let you know when I have more information :slight_smile:

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Update: It looks like this one hasn’t come into force yet, but it is marked as beginning to apply from 1 January next year.

No action is needed on your part, as we’ll update our tax systems with the new treaty rates.

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Thank you for the information. So it takes almost 1.5 year from signing to actually using it?

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I found this: Australia: New double tax treaty with Slovenia and foreign resident CGT withholding amendments | DLA Piper

“These amendments are intended to apply to acquisitions made on or after 1 January 2025 (at the latest).”

Doesn’t this mean that it should be applied from 1.1.2025? Or is it really from 1.1.2026?

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Hi @gljivec! Based on the most recent information from our Tax team, the 2026 date is correct.

It looks like the article above was published after the treaty was introduced to parliament, but before that process had concluded.