As per the Article 11 of the double taxation avoidance agreement (DTAA) between India and Germany, the interest income earned in India by a. Get comprehensive agreements & Tax information exchange agreement between different countries & India to know how Non-resident can claim tax benefits. Double Taxation Avoidance Agreement – DTAA, fiscal evasion, prevention. Taxation Avoidance Agreement (DTAA) with Government of the Republic of India.
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Gains from the alienation of egrmany of the capital stock of a company the property of which consists directly or indirectly principally of immovable property situated in a Contracting State may be taxed in that State. The term “dividends” as used in this article means income from shares or other rights, not being debt-claims, participating in profits, as well as income from other corporate rights which is subjected to the same taxation treatment as income from shares by the laws of the State of which the company making the distribution is a resident.
Any pension paid by, or out of, funds created by a Contracting State or a political sub-division or a local authority thereof to an individual in respect of services rendered to that State or sub-division or authority shall be taxable only in that State.
Subject to the provisions of paragraph 3, where an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of infia it is a permanent establishment.
Therefore, the exemption specified in proviso to Section 17 2 may not be available to you.
The term shall gemany any case include property accessory to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of general law respecting landed property apply, usufruct of immovable property and rights to variable or fixed payments as consideration for the working of, or the right to work, mineral deposits, sources and other natural resources ships, boats and aircraft shall not be regarded as immovable property; g.
Have foreign income and filing taxes in India? You should know the list of DTAA countries, simply because, you can avoid paying taxes twice. The laws in force in either of the Contracting States shall continue to govern the taxation of income and capital in the respective Contracting States except where express provision to the contrary is made in this Agreement. Any agreement reached shall be implemented notwithstanding any time limits in the national laws germaby the Hermany States.
However, such interest may also be taxed in the Contracting State in which it arises and according to germajy laws of that State, but germang the recipient is the beneficial owner of the interest, the tax so charged shall not exceed 15 per cent. Subject to the provisions of paragraph 2, items of income of a resident of a Contracting State, wherever arising, which are not expressly dealt with in the foregoing articles of this Agreement, shall be taxable only in that Contracting State.
How NRIs can claim benefits under DTAA
Read more on retirement. However, such interest may also be taxed in the Contracting State in which it arises and according to the laws of that State, but if the recipient is the beneficial owner of nidia interest, the tax so charged shall not exceed 10 per cent.
The provisions of sub-paragraph c shall apply for the first 12 fiscal years for which this Agreement is effective. They may also consult together for the elimination of double taxation in cases not provided for in this Agreement. For the purposes of this ctaa, interest on the funds connected with the operation of aircraft in international traffic shall be regarded as profits derived from the operation of such aircraft, and the provisions germahy article 12 shall not apply in relation to such interest.
Gold, Equities Or Debt: A student undia business apprentice who is or was a resident of one of the Contracting States immediately before visiting the other Contracting State and who is present in that other Ibdia solely for the purpose of his education or training, shall be exempt from tax in that other State on: Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or of movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, including such gains from the alienation of such a permanent establishment alone or with the whole enterprise or of such fixed base, may be taxed in that other State.
Where a resident of the Republic of India derives income or owns capital germqny, in accordance with the provisions of this Agreement, may be taxed in the Federal Republic of Germany, the Republic of India shall allow as a deduction from the tax on such income of that resident an amount equal to the income-tax paid in the Federal Republic of Germany, whether directly or by deduction, and as a deduction from the tax on such capital of that resident an germsny equal to the capital tax paid in the Federal Republic of Germany.
Tax queries: NRI in Germany has to pay dual tax on India income – The Economic Times
This article shall not apply to income from research if such research is undertaken primarily for the private benefit of a specific person or persons. If the place of effective management of a shipping enterprise is aboard a ship, then it shall be deemed to be situated in the Contracting State in which the home harbour of the ship is situated, or, if there is no such home harbour, in the Contracting State of which the operator of the ship is a resident.
In such case the provisions of Article 7 or Article 14, as the case may be, shall apply. Vermogensteuer property-tax hereinafter referred to as “German Democratic Republic tax”. File all GST returns for your clients with automated data reconciliation – No download required.
Upon the entry into force of this Agreement the Agreement between the Government of the Federal Republic of Germany and the Government of India for the Avoidance of Double Taxation of income signed on 18th March,and the Protocol amending the Agreement between the Government of the Federal Republic of Germany and the Government of India for the Avoidance of Double Taxation of Income signed on 28th June,along with the Exchange of Notes of the same date shall expire and shall cease to have effect as from the date on which the provisions of this Agreement commence to have effect.
The exchange of information or documents shall be either on a routine basis or on a request with reference to particular cases or both. Notwithstanding the provisions of Articles 7, 14 and 15, income derived by a resident of a Contracting State as an entertainer, such as a theatre, motion picture, radio or television artiste, or a musician, or as a sportsperson, from his personal activities as such exercised in the other Contracting State, may be taxed in that other State.
The Double Tax Avoidance Agreement is a treaty that is signed by two countries. The competent authority shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at an appropriate solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to avoidance of taxation not in accordance with the Agreement.
As per the Article 11 of the double taxation avoidance agreement DTAA between India and Germany, the interest income earned in India by a resident of Germany is taxable in both the countries viz. The Governments of the Contracting States shall notify to each other that the legal requirements for the entry into force of this Agreement have been complied with.
The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident, through a permanent establishment situated therein or performs in that other State independent personal services from a fixed base situated therein, and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment or fixed base.
I would like to know whether I can claim income tax exemption on up to Rs 15, towards expenses ineia incurred by us from the total medical allowance received from the company, and if so under what section of the Income tax Act.
The Government of the Republic dgaa India and the Government of the German Democratic Republic; Desiring to promote economic co-operation between the two States through an Agreement for the avoidance of double taxation with respect to taxes on income and on capital; Have agreed as follows: In the Republic of India: Invest in best performing Mutual funds for building long term wealth.
If this is not proved, only the credit procedure as per sub-paragraph b shall apply.
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In the German Democratic Republic: The DTAA carried out by India with different countries fixes a specific rate at which TDS has to be deducted on income paid to residents of that country. The term “annuity” means a stated sum payable periodically at stated times during life or during a specified or ascertainable period of time, under an obligation to make the payments in return for adequate and full consideration in money or money’s worth.
Clause v of the first proviso to section 17 2 excludes from the definition of perquisite, any sum paid by the employer in respect of any expenditure actually incurred by the employee on his medical treatment or treatment of any member of his family, provided that such sum does not exceed Rs 15, in the previous year.
This Agreement is concluded for unlimited duration but either Contracting State may terminate the Agreement by giving written notice after five years from the day of its entry into force, so however, that at least six months remain before the end of the calendar year in which the notice is given. Further, as per the Article 23 of the said DTAA, the credit in respect of taxes paid in India on the interest income shall be allowed against the taxes payable in Germany.
Such persons or authorities shall use the information only for such purposes. In the Federal Republic of Germany: The existing taxes to which this Agreement shall apply are in particular: The Agreement shall also apply to any identical or substantially similar taxes which are imposed by either Contracting State after the date of signature of the present Agreement in addition to, or in place of, the taxes referred to in paragraph 1.
Where, by reason of special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of royalties or fees for technical services paid exceeds the amount which would have been paid in the absence of such relationship, the provisions of this article shall apply only to the last-mentioned amount.
Nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which nationals of that other State in the same circumstances and under the same conditions are or may be subjected.
My son works in Germany and he has an NRI status. Capital represented by immovable property referred to in article 6, owned by a resident of a Contracting State and situated in the other Contracting State, may be taxed in that other State.