UK- Germany Double Tax agreement
A new Double Taxation Convention between the UK and Germany entered into force on 30 December 2010.
The new Convention includes a protocol which updates the exchange of information clauses to bring the Convention in line with the OECD’s model. The protocol is drafted to allow for the exchange of information necessary to prevent fraud.
There are also some other changes including a new binding arbitration clause in the event of a protracted dispute between the German and UK tax authorities.
The Convention will apply in the UK from 1 January 2011 for taxes withheld at source, from 1 April 2011 in relation to corporation tax and from 6 April 2011 in relation to income tax and capital gains tax. In Germany all the provisions of the Convention became effective on 1 January 2011.