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. The problems of double taxation have long been recognized and, with the increasing integration of economies into a global economy, countries have taken several steps to reduce the problem of double taxation. Only one country can offer tax credits for foreign taxes paid or total exemptions from the taxation of income from foreign sources. 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. Treaties have also been negotiated between states to address the problem of double taxation. One of the most important of these agreements was the international tax treaty that the United States and the United Kingdom concluded in 1946. It has served as a model for several other tax treaties. Under the U.S.-U.K. tax treaty, for example, tax exemptions, tax credits paid and reduction or offsetting total tax rates are used to reduce double taxation. Within the United States, many states have worked to prevent taxation from reaching unprofitable levels for income from multinational sources.
The requirement that a company or individual pay two separate taxes on the same property for the same purpose and during the same period. Sub-Chapter C of the Internal Revenue Code, the federal government applies double corporate taxation by taxing corporate profits and profits distributed to the company`s shareholders through dividends. The Federal Department of Finance assumes no responsibility for errors or omissions in the texts of the contract made available here. The officially published versions in the Bundesgesetzblatt are still the relevant texts. 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. 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. Double taxation occurs when the same transaction or source of income is subject to two or more tax authorities. This can be done within a single country if independent government entities have the power to tax a single transaction or source of income, or may follow when different sovereign states collect separate taxes, in which case it is called international double taxation.