Germany Double Tax Agreements
The specific provisions for border workers are contained in the following double taxation conventions: this page provides information on German double taxation conventions and other country-by-country publications on double taxation conventions. You can view the original texts via our German website. 19. In reference to Article 23, paragraph 1 (double taxation relief): the “general principle” of Article 23, paragraph 1, involves circumventing double taxation by allowing a credit for taxes collected on income collected in the Federal Republic of Germany, as defined by the basic rules in force in the United States as amended by the Convention. While the details and credit limits in this paragraph may change if the provisions of U.S. law change, these amendments must retain a credit for German taxes collected on income that the Federal Republic of Germany may tax under the convention. In addition to double taxation agreements on income and capital taxes, there are also special double taxation agreements for inheritance and gift taxes as well as vehicle tax. There are also agreements for legal assistance, administrative assistance and information exchange. The exchange of information between tax authorities is particularly important for the detection and fight against tax evasion and evasion and to ensure good taxation. Where there is a double taxation agreement (TD), double taxation is generally avoided by exempting foreign income with increase. Foreign income tax can only be cross-referenced with German income tax if a tax credit is granted in the applicable DTT or if there is no DTT. A tax credit is only possible up to the amount of German tax on specific foreign income. (6) Nothing in the Convention should be interpreted in such a way that the Federal Republic of Germany levies its taxes on the amounts contained in the income of a federal citizen residing in the Federal Republic of Germany under paragraphs 4, 5 and 7 of the “External Taxation Act”.
Where such taxation results in double taxation, the competent authorities consult the elimination of this double taxation in accordance with Article 25, paragraph 3 (procedure of mutual agreement).