Depending on the type of measure and instrument, an exemption of the German implementing organisations from taxes and public charges in the partner country in connection with their tasks is usually agreed in the framework agreement or, in the absence of a framework agreement, separately. In the case of direct contributions provided by the Federal Government, there is generally an exemption of material supplies from taxes and public charges in the partner country, or, if applicable, assumption of these charges by the project-executing agency. In the case of procurements in the partner country, the tax exemption may be waived if it would result in an unreasonable amount of work or if there are legal regulations to the contrary.

Exemptions are requested for all ODA support provided within the framework of German bilateral development cooperation in the recipient partner country. This includes direct taxes, VAT, import duties and any other public dues.

Most recent review: July 2021

The legal basis for ODA tax exemptions is provided by overarching framework agreements and, when necessary, additional project specific agreements under international law. Overarching Framework Agreements on Technical/Development Cooperation as well as additional project specific agreements for financial co-operation are published in the Federal Law Gazette Part II (Bundesgesetzblatt Teil II) and can be accessed online https://www.bgbl.de/. They are also registered with the UN Treaty Collection, which can be accessed online https://treaties.un.org/.