The Double Taxation Relief and International Tax Enforcement (Federal Republic of Germany) Order 2010

Statutory Instruments

2010 No. 2975

Capital Gains Tax

Corporation Tax

Income Tax

The Double Taxation Relief and International Tax Enforcement (Federal Republic of Germany) Order 2010

Made

15th December 2010

At the Court at Buckingham Palace, the 15th day of December 2010

Present,

The Queen’s Most Excellent Majesty in Council

A draft of this Order was laid before the House of Commons in accordance with section 5(2) of the Taxation (International and Other Provisions) Act 2010(1) and section 173(7) of the Finance Act 2006(2) and approved by a resolution of that House.

Accordingly Her Majesty, in the exercise of the powers conferred upon Her by section 2 of the Taxation (International and Other Provisions) Act 2010 and section 173(1) of the Finance Act 2006, by and with the advice of Her Privy Council, orders as follows—

Citation

1.  This Order may be cited as the Double Taxation Relief and International Tax Enforcement (Federal Republic of Germany) Order 2010.

Double taxation and international tax enforcement arrangements to have effect

2.  It is declared that—

(a) the arrangements specified in the Convention set out in Part 1 of the Schedule to this Order, the Protocol set out in Part 2 of that Schedule and the Joint Declaration set out in Part 3 of that Schedule have been made with the Federal Republic of Germany;

(b) the arrangements have been made with a view to affording relief from double taxation in relation to income tax, corporation tax, capital gains tax and taxes of a similar character imposed by the laws of the Federal Republic of Germany and for the purpose of assisting international tax enforcement; and

(c) it is expedient that the arrangements should have effect.

Judith Simpson

Clerk of the Privy Council

Article 2

SCHEDULE

EXPLANATORY NOTE

(This note is not part of the Order)

The Schedule to this Order contains a convention, protocol and joint declaration (“the Arrangements”) dealing with the avoidance of double taxation and prevention of fiscal evasion between the Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the Federal Republic of Germany. This Order brings the Arrangements into effect.

The Arrangements aim to eliminate the double taxation of income and gains in one country and paid to residents of the other country. This is done by allocating the taxing rights that each country has under its domestic law over the same income and gains, and/or by providing relief from double taxation. There are also specific measures which combat discriminatory tax treatment and provide for assistance in international tax enforcement.

Article 1 provides for citation.

Article 2 makes a declaration as to the effect and content of the Arrangements.

The Arrangements will enter into force on the day of exchange of the instruments of ratification. They shall have effect:

(a) in respect of income tax and capital gains tax, for any year of assessment beginning on or after 6th April in the calendar year next following the date of entry into force;

(b) in respect of corporation tax, for any financial year beginning on or after 1st April in the calendar year next following the date of entry into force;

(c) in respect of taxes withheld at source, the UK in relation to income derived, and in Germany in relation to amounts paid, on or after 1st January in the calendar year next following the date of entry into force; and

(d) in respect of other taxes, for periods beginning on or after 1st January in the calendar year next following the date of entry into force.

The date of entry into force will, in due course, be published in the London, Edinburgh and Belfast Gazettes.

A full and final Impact Assessment has not been produced for this Order as a negligible impact on the private or voluntary sectors is foreseen.

(1)

2010 c. 8.

(2)

2006 c. 25.