The Austrian Council of Ministers has approved the negotiation of an income tax treaty with Libya on 4 September 2024.
A tax treaty is a bilateral agreement between two countries designed to address double taxation on both passive and active income for their respective citizens. These treaties typically define the extent to which a country can tax a taxpayer’s income, capital, estate, or wealth. An income tax treaty is also referred to as a Double Tax Agreement (DTA).
Austria previously signed a treaty with Libya in 2010; however, this earlier agreement never entered into force, highlighting the importance of the current negotiations to establish a functioning framework for tax matters between the two countries.
The resulting treaty must be finalised, signed, and ratified before it can take effect.
