Double Taxation Agreement Eur Lex

This Convention shall not affect the performance of broader obligations with respect to the elimination of double taxation in the event of a correction of the profits of related enterprises arising either from other conventions to which the States Parties are or become parties or from the domestic law of the States Parties. Where measures taken by one or more countries give rise to taxation which does not comply with the DBA (in particular double taxation), the taxable person concerned may request a mutual agreement procedure. In Germany, the Bundeszentralamt für Steuern (BZSt) is the competent authority for the implementation of these procedures. If all the conditions are met, the countries concerned shall endeavour to resolve the tax dispute by mutual agreement. This generally avoids double taxation. Once the request has been received, the BZSt verifies that the conditions for the implementation of a mutual agreement procedure are met. The transnational part of a mutual agreement procedure shall only be implemented if the request is admissible and duly reasoned and if no satisfactory solution can be found in Germany. 1. If, within two years of the date on which the case was first submitted to one of the competent authorities in accordance with Article 6 (1), the competent authorities concerned do not reach an agreement eliminating the double taxation referred to in Article 6, they shall set up an Advisory Committee to deliver their opinion on the elimination of the double taxation concerned. The competence of the BZST with regard to mutual agreement procedures, arbitration procedures and ABS tax agreements play an important role in promoting the efficiency of cross-border trade by improving taxpayers` security with regard to their international transactions. By concluding a tax convention, the States Parties agree to allocate taxing rights among themselves in order to eliminate double taxation and thus promote economic activity and growth. Tax treaties should not create opportunities for non-taxation or at a reduced rate through the purchase of contracts or other abusive strategies that only thwart the purpose of such agreements and undermine the tax revenues of States parties.

The European Commission fully supports efforts to combat the abuse of tax treaties. The fact that the decisions of the Contracting States relating to the taxation of profits from turnover between related companies have become final shall not preclude recourse to the procedures provided for in Articles 6 and 7. The OECD publishes statistics on mutual agreement procedures in OECD member countries in the “MAGP statistics”. As a general rule, the application must be submitted within a time limit set by the DBA. If the applicable DBA does not provide for a time limit for requests, a time limit is set in the memorandum on mutual agreement procedures (subsection 2.2.3.). The BZSt is responsible for the taxation of investment funds and special assets, the tax base of special assets and information on foreign legal forms and . The legal basis for a mutual agreement procedure is the DBA concerned. Germany has concluded DTAs with more than 90 countries around the world. Most of these DTAs follow the OECD`s draft international agreement. The provisions on mutual agreement procedures are set out in Article 25 of the OECD Model Agreement. Recent SDRs often contain provisions requiring arbitration after unsuccessful settlement proceedings.

2. If the complaint appears to it to be well-founded and is unable to find a satisfactory solution itself, the competent authority shall endeavour to resolve the case by mutual agreement with the competent authority of another State Party concerned in order to eliminate double taxation on the basis of the principles set out in Article 4. . .

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