Germany has 95 tax agreements in force as reported in its response to the Peer Review questionnaire. Four of those agreements1, comply with the minimum standard.
Germany signed the MLI in 2017 and deposited its instrument of ratification on 18 December 2020, listing 14 of its agreements in force at that time. The MLI entered into force for Germany on 1 April 2021.The agreements modified by the MLI come into compliance with the minimum standard once the provisions of the MLI take effect.
Germany reserved the right to delay the entry into effect of the provisions of the MLI until Germany has completed its internal procedures for this purpose with respect to each of its listed agreements.2 Germany has not yet notified that it completed its internal procedures for the entry into effect of the MLI with respect to any of its agreements.
Germany has not listed its agreements under the MLI with Albania, Argentina, Armenia, Belgium, Belarus, Bulgaria, Bosnia-Herzegovina, Canada, China (People's Republic of), Costa Rica, Côte d’Ivoire, Denmark, Egypt, Estonia3, Georgia, Iceland, India, Indonesia, Ireland, Israel, Jamaica, Kazakhstan, Kenya, Korea, Latvia, Liberia, Liechtenstein4, Lithuania, Malaysia, Mauritius, Mexico, Mongolia, Montenegro, Morocco, Namibia, New Zealand, the Netherlands, North Macedonia, Norway, Pakistan, Poland, Portugal, the Russian Federation, Serbia, Slovenia, South Africa, Sri Lanka, Sweden, Switzerland, Thailand, Tunisia, Ukraine, United Arab Emirates5, the United Kingdom, Uruguay, Viet Nam and Zambia. These agreements will therefore not, at this stage, be modified under the MLI. Albania, Armenia, Bosnia-Herzegovina, China (People's Republic of), Côte d'Ivoire, Egypt, India, Jamaica, Kazakhstan, Liechtenstein6, Lithuania, Malaysia, Mauritius, Mexico, Morocco, Namibia, the Netherlands, New Zealand, North Macedonia, Pakistan, Portugal, Serbia, Singapore, Tunisia, Ukraine, United Arab Emirates7, and Uruguay have listed their agreement with Germany under the MLI.
Germany has signed a bilateral complying instrument with respect to its agreements with Cyprus*, Denmark, Estonia8, Ireland, Liechtenstein9, the Netherlands and the United Kingdom.10
Germany indicated in its response to the Peer Review questionnaire that steps have been taken (other than under the MLI) to implement the minimum standard in its agreement with Argentina, Belgium, Bolivia*, Bulgaria, Canada, China (People's Republic of), Costa Rica, Ecuador*, Egypt, Iceland, India, Indonesia, Iran*, Israel, Kazakhstan, Kenya, Korea, Kosovo*, Kuwait*, Latvia, Liberia, Lithuania, Mauritius11, Mexico12, Mongolia, Morocco, Namibia, New Zealand, Norway, Pakistan, Poland, Portugal, the Russian Federation, Serbia, Slovenia, South Africa, Sri Lanka, Sweden, Switzerland, Thailand, Trinidad and Tobago, Tunisia, Ukraine, Uruguay and Viet Nam.13
Germany indicated in its response to the Peer Review questionnaire that the agreements with Bosnia-Herzegovina, Montenegro and Zambia do not give rise to material treaty-shopping concerns for Germany, noting the application of German domestic anti-abuse provisions such as Section 42 of the German Fiscal Code (GAAR) or in Section 50d para. 3 of the German Income Tax Act (anti-conduit rule), which permits the proportionate denial of tax treaty benefits to companies with non-eligible shareholders. Germany further indicated that the agreements with Armenia, Belarus, Georgia, Malaysia, North Macedonia and the United Arab Emirates14 do not give rise to material treaty-shopping concerns for Germany, because they contain a general reservation for the application of domestic anti-abuse provisions such as the two sections mentioned above and the CFC-legislation.
Germany is implementing the minimum standard through the inclusion of the preamble statement and the PPT.15