Germany Double Tax Agreements

Posted On Tuesday, September 21, 2021

In the meantime, the Federal Republic of Germany has concluded double taxation and/or tax conventions with more than 100 countries. The list of all agreements is available on the websites of the Federal Ministry of Finance. (q) The competent authorities of the Contracting States may amend or supplement such provisions and procedures, to the extent necessary, in order to more effectively implement the intention set out in Article 25, paragraph 5, to eliminate double taxation. Through its tax legislation, Germany wants to avoid both double taxation and double non-taxation of goods and companies. Everyone must control their fair share of where they live or where they do their business. In the case of a double taxation agreement (DTT), double taxation is generally avoided by exempting foreign income with progression. Foreign taxes can only be deducted from German income tax if the DTT provides for a tax credit or if there is no DTT. A tax credit is only possible up to the level of German income tax on concrete foreign income. Double taxation treaties allocate taxation rights among countries. However, they do not create new revenue rights.

On the contrary, where there are competing revenue rights, they distribute the taxing duty to only one of the countries concerned in order to avoid double taxation. 3. The competent authorities of the States Parties shall endeavour to eliminate, by mutual agreement, any difficulty or doubt arising from the interpretation or application of this Convention. . . .