Status of the Double Taxation Treaties (DTT) as at January 1st, 2021
In a letter dated February 18, 2021, the Federal Ministry of Finance (BMF) announced the status of the agreements concluded with other countries to avoid double taxation (so-called double taxation treaties or DTTs) as well as the agreement negotiations as of January 1, 2021.
The purpose of these bilateral agreements is to assign the right to tax a country and to avoid double taxation in the event that several countries are generally entitled to levy taxes. Due to increasing globalization and international networking, double taxation plays an important role in practice.
In its letter, the Federal Ministry of Finance states that various agreements are to be applied retrospectively. The retrospective applicability of agreements can lead to considerable legal uncertainty. The tax offices are instructed to carry out tax assessments provisionally if it is uncertain when the agreement will come into force. In these cases, a special need for advice is likely to be required.
On the peculiarities of the with the Republic of Bosnia and Herzegovina, the Republic of Serbia, the Republic of Kosovo and Montenegro, the Republic of Moldova, the Slovak and the Czech Republic and Taiwan as well as on the special status of Hong Kong and Macau, which was concluded with the People’s Republic of China The Federal Ministry of Finance is aware of double taxation agreements.
The annex to the letter from the Federal Ministry of Finance contains the applicable agreements in the field of taxes on income and property, the applicable agreements in the field of inheritance and gift taxes, special agreements on the income and assets of shipping and aviation companies, agreements in the field of legal and Administrative assistance and the exchange of information as well as future agreements and the ongoing negotiations.
Please contact us as your experts for international tax law and double taxation treaties in case of any international tax questions. Please find further information to international tax law and double taxation treaties here on our website. In case of any questions to corporate tax law please do not hesitate to contact us.
Christian Dobner | TLI Steuerberater
