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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The 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.
The provisions of paragraph 1 shall likewise apply in respect of remuneration paid, under a development assistance programme of a Contracting State, a land, a political sub-division or a local authority thereof, out of funds exclusively supplied by that State, land, political sub-division or local authority, to a specialist or volunteer seconded to the other Contracting State with the consent of that other State.
In this Agreement, unless the context otherwise requires: Whereas the annexed agreement between the Government of the Republic of India and the Government of the German Democratic Republic for the avoidance of double taxation with respect draa taxes on income and on capital has come into force on the 24th November,on the notification by both the Contracting States to each other of the approval of the agreement under their laws in accordance with article 31 of the said agreement; Now, therefore, in exercise of the powers conferred by section 44A of the Wealth-tax Act, 27 ofand section 90 of the Income-tax Act, 43 ofthe Undia Government hereby directs that all the provisions of the said agreement shall be given effect to in the Union of India.
Gains derived by a resident of a Contracting State from the alienation of immovable property situated in the other Contracting State may be taxed in that other State. Royalties and fees for technical services shall be deemed to arise in a Contracting State when the payer is that State itself, a political sub-division, germanh local authority or a resident of that State.
The provisions of the Agreement shall apply: All other elements of capital of germanj resident of a Contracting State shall be taxable only in that State. This Agreement shall continue in effect indefinitely but either of the Contracting States may, on or before the thirtieth day of June, in any calendar year beginning after the expiration of a period of five years from the date of its entry into force, give the other Contracting State, through diplomatic channels, written notice of termination and, in geramny event, this Agreement shall cease to have effect: The fact that a company which is a resident of a Contracting State controls or is controlled by a company which inddia a resident of the other Contracting State or which carries on business in that other State whether through a permanent establishment or otherwiseshall not of itself constitute either company a permanent establishment of the other.
Royalties and fees for technical services arising in a Contracting State and paid to a resident germay the other Contracting State may be taxed in that other State. The gernany of an enterprise of a Contracting State shall be taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein.
Any agreement reached shall be implemented notwithstanding any time limits in the domestic law of the Contracting States.
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.
As regards the application of the Agreement by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning which it has for the purposes of the law of that State concerning the taxes to which the Agreement applies. Any agreement reached shall be implemented notwithstanding any time limits in the national laws of the Contracting States.
Some of these countries are: There shall be exempted from taxes on capital any shareholding the dividends of which are exempted or, if paid, would be exempted, according to the immediately foregoing sentence.
Notwithstanding the preceding provisions of this article, remuneration derived in respect of an employment exercised aboard a ship or aircraft operated in international traffic may be taxed in the Contracting State of which the enterprise operating the ship or aircraft is a resident.
What the agreements basically says that is your paying tax already once and hence, you should not be taxed again. For the purposes of the preceding paragraphs, the profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to the contrary. The Contracting States undertake to lend assistance and support to each other, in the collection of the taxes to which this Agreement relates, in the cases where the taxes are definitely due according to the laws of the State making the request.
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.
The term “fees for technical services” as used in this article means payments of any amount to any person other than payments to an employee of a person making payments, in consideration for the services of a managerial, technical or consultancy nature, including the provision of services of technical or other personnel.
Where, however, the person infia the royalties or fees for technical services, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the liability to pay the royalties or fees for technical services was incurred, and such royalties or fees for technical services are borne by such permanent establishment inia fixed base, then such royalties or fees for technical services shall be deemed to arise in the State in which the permanent establishment or fixed base is situated.
The fact that a company which is a resident of a Dtaaa State controls or is controlled by a company which is a resident of the other Contracting State, or which carries on business in that other Contracting State whether through a permanent establishment or otherwiseshall not of itself constitute either company a permanent establishment of the other. Notwithstanding the provisions of paragraph 2,– a. Agreement between the Government ijdia Republic of the India and the Government of the German Democratic Republic for the avoidance of double taxation with respect dta taxes on income and on capital.
Directors’ fees and similar payments derived by a resident of a Contracting State in his capacity as a member of the Board of Directors of a company which is a resident of the other Contracting State may be taxed in that other State.
List of countries with whom India has Double Taxation Avoidance Agreement (DTAA)
For the purposes of this Agreement, unless the context otherwise requires: The taxation on a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourably levied in that other State than the taxation levied on enterprises of that other State carrying on the same activities in the same circumstances and under the same conditions. Since the past year, our medical bills have skyrocketed due to some major health issues.
There shall be regarded as taxes on income and on capital all taxes imposed on total income, on total capital, or on elements of income or of capital, including taxes on gains from the alienation of movable germqny immovable property, and the pay roll tax. An individual who visits a Contracting State at the invitation of that State or of a university, college, school, museum or other cultural institution of that State gerany under an official programme of cultural exchange for a period not exceeding two years solely for the purpose of teaching, giving lectures or carrying out research at such institution and who is, or was immediately before that visit, a resident of the other Contracting State shall be exempt from tax in the first-mentioned State on his remuneration for such activity during the period of the first year from the date of his arrival and in the next year the exemption will be only in respect of remuneration derived by him from outside that State.
Double Taxation Avoidance Agreement – DTAA
This Agreement shall enter into force upon the exchange of notes notifying the approval or ratification of the Agreement in accordance with the laws in force.
In such a case, the provisions of article 7 or article 15, as the case may be, shall apply. 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 an express provision to the contrary is made in this Agreement. Gains from the alienation of ships or aircraft operated in international traffic or movable property pertaining to the operation of such ships or aircraft shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.
This Agreement shall apply also to any identical or substantially similar taxes which are imposed after the date of signature of this Agreement in addition to, or in place of, the existing taxes. Tax relief under this method can be claimed in the country of residence Exemption: Please note that the list of countries with whom we have a DTAA keeps changing depending on the government’s policies that keep changing from time to time.
What is DTAA here?
Ships, boats and aircraft shall not be regarded as immovable property. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Agreement. Comprehensive Agreements Agreement for avoidance of double taxation and prevention of fiscal evasion with Australia Whereas the annexed Agreement between the Government of the Republic of India and the.
In the determination of the profits of a permanent establishment, there shall be allowed as deductions, expenses which are incurred for the purposes of the business of the permanent establishment including executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere, and according to the domestic law of the Contracting State in which the permanent establishment is situated.
No profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise. Subject to the provisions of articles 17, 18, 19, 20, 21 and 22, salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State.
This provision shall not be construed as preventing a Contracting State from charging the profits of a permanent establishment which a company of the other Contracting State has in the first-mentioned State at a rate of tax which is higher than that imposed on the profits of a similar company of the first-mentioned Contracting State, nor as being in conflict with the provisions of paragraph 3 of Article 7 of this Agreement. The term “permanent establishment” includes especially: Nothing contained in this article shall be construed as obliging a Contracting State to grant to persons not resident in that State any per sonal allowances, reliefs, reductions and deductions for taxation purposes which are by law available only to persons who are so resident.