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. This page provides information on German double taxation conventions and other country-specific publications on double taxation conventions. You can view the original texts via our German website. Through its tax law, Germany intends to avoid both double taxation and double non-taxation of individuals and businesses. Everyone must pay their fair share of the tax in their place of residence or in the place where they operate. International tax law includes all legal provisions that include foreign-related tax matters. These include internal tax laws in Germany, such as the Income Tax Act and the Tax Law, as well as double taxation agreements that Germany has entered into with other countries. The colour-coded world map shows the countries with which Germany entered into double taxation agreements on income and capital taxes on 1 January 2019, as well as legal assistance and mutual assistance agreements (including the exchange of information). It also shows the countries with which Germany is negotiating such agreements for the first time. There is also an agreement between the German Taipei Institute and the Taipei Representative Office in Berlin. Since the Federal Republic of Germany has never recognized Taiwan as a sovereign state, this agreement is not an international treaty.
However, the structure and content of the agreement is based on the OECD model convention. Hong Kong and Macao are specific administrative regions of the People`s Republic of China; Chinese general tax law does not apply to it. This means that the double taxation conventions between the Federal Republic of Germany and the People`s Republic of China do not apply to Hong Kong and Macau. The card does not contain an agreement on inheritance and donation fees or an agreement on the vehicle tax. Nor does it contain specific agreements on taxes on the income and capital of airlines and shipping companies. The map also does not contain negotiations on amending or extending existing agreements. DBAs work in a way that avoids double taxation of profits by assigning tax duties or imposing tax credits in another country. For example, when a foreign-based company makes commercial profits in Australia through a “permanent establishment” (EP), Australia has the right to apply income tax to those profits (and vice versa).