The agreement to avoid double taxation between Germany and the United Kingdom provides for reduced rates and a single taxation of profits from a jurisdiction. The fact that businesses and individuals in both countries are not subject to double taxation of the same income promotes bilateral relations between these two powerful states in Europe. This means that migrants from the UK may have to take into account two or three tax laws: UK tax legislation; The other country`s tax laws; Double taxation agreement between the UK and the other country. The protocol amends Article 7 (Business Profits) to align it with the most recent approach adopted by the Organisation for Economic Co-operation and Development (OECD), as outlined in its income and capital tax treaty model. Article 18 (government service) is amended and Article 30 (members of diplomatic missions and consular posts) is replaced to harmonize the taxation of public service revenues, including the income of consular officials, in accordance with Article 14, paragraph 1, point c), of the consular convention of 30 July 1956 between the Federal Republic of Germany and the United Kingdom of Great Britain and Northern Ireland. If the withdrawal agreement negotiated between the UK and the EU comes into force and an orderly Brexit comes to fruition, customs legislation will not change over the next two years. The withdrawal agreement provides for a transitional period until at least the end of 2020, during which time EU legislation will continue to apply. The withholding provisions of the previous double taxation agreement have been revised and new amendments have been introduced with respect to dividends, interest and royalties from the United Kingdom and Germany. Under the new contract, dividends no longer contain all rights, meaning that a German investment fund will now benefit from reduced rates if dividends are distributed to a British company. Tax rates for dividend distribution have also been reduced: if you come to the UK and you have a British working income taxed in your home country, you usually have to pay UK taxes. Your country of origin should give you double tax relief by providing a credit for UK taxes paid. However, if you live in a country with which the UK has a double taxation agreement, you may be entitled to a UK tax exemption if you spend less than 183 days in the UK and if you have an anonUK employer. 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. Article 23, paragraph 1, of the Convention generally avoids double taxation for German taxpayers by exempting certain types of UK income from German taxation (the exemption method), including: real estate income in the United Kingdom (Article 6); and business income from a stable establishment of a German tax company based in the United Kingdom (Article 7).