StartInternat. Tax LawTax Treaty

Tax Treaty

Tax Treaties and their correct application play an important role in the day-to-day consultancy practice in international tax law. Their content and the interpretation of the bilateral provisions made in these are subject to the constant influence of the OECD, the national legislator - such as in the form of Treaty Overrides - and, in particular, the jurisdiction. As tax law specialists and tax advisers (international tax law consultants), we advise clients on all questions regarding tax treaties and solve conflicts with the tax offices and tax investigation departments.

In the international movement of goods and services and, first and foremost in the internet-based new economy, the avoidance of additional (double) tax burdens forms an essential factor for our clients’ competitiveness. Even though most tax treaties are based on the OECD model agreement, every tax treaty is different. Therefore, the essential elements of the tax treaties and their mode of operation is to be explained “in a nutshell” as seen from a German perspective. This, of course, includes the ways in which double taxation can be avoided.

Focus on agreements to avoid double taxation

Aim and purpose of tax treaty

When is there a risk of double taxation?

How is double taxation avoided via a tax treaty?

Avoidance of double taxation (white income)

How can double taxation be avoided if there is no tax treaty?

Legal advice in international tax law

Within increasingly international structures, it is certainly difficult for the layperson to determine in which countries he/she has relevant points for taxation and in which of these countries he/she has his/her tax residence. Moreover, this qualification usually results in a number of legal consequences which have to be considered. If the qualification of residence is not made, this can result in serious consequences since, in this case, the tax liabilities in a country might perhaps not be identified and can lead to tax or even tax law investigation proceedings. Moreover, the right allocation of taxation rights and the application of the correct method (consideration or exemption) regularly cause problems in practice and it is also prone to errors which, in turn, has direct effects on the tax to be assessed in Germany. If the fiscal administration is of the opinion that the tax assessed in Germany is too low, this can open the gate to criminal tax law with all its related unpleasant consequences.

Because of our long-standing experience in international tax law we regularly advice clients in international questions of tax and company law. Moreover, our qualified and experienced international tax law lawyers/tax advisers/tax law specialists also speak the common foreign languages. If necessary, we also resolve conflicts with the tax offices and tax investigation departments abroad. 

 

LHP: Attorneys at Law, Tax Law Specialists, Tax Advisers PartmbB

Cologne

An der Pauluskirche 3-5, 50677 Cologne,
Telephone: +49 221 39 09 770

Zurich

Tödistrasse 53, CH-8027 Zurich,
Telephone: +41 44 212 3535