International tax law comprises all legal provisions that include taxation issues relating to foreign countries. This includes domestic German tax legislation such as the Income Tax Act and the Fiscal Code, as well as double taxation agreements that Germany has concluded with other countries.
With its tax law, Germany aims to prevent both the double taxation and the double non-taxation of individuals and companies. Everyone has to pay their fair share of tax – in their place of residence or where they conduct their business activities.
Double taxation agreements distribute taxation rights among countries. They do not, however, create new revenue claims. Rather, where competing revenue claims exist, they allocate the taxation right to only one of the countries involved, in order to prevent double taxation.
As well as double taxation agreements with respect to taxes on income and on capital, special double taxation agreements also exist for inheritance and gift tax and for motor vehicle tax. There are also agreements with respect to legal and administrative assistance and exchange of information. The exchange of information among tax authorities is a particularly important element in detecting and combating tax evasion and tax avoidance and in making sure that the correct taxation can be imposed.
The German Finance Ministry assumes no responsibility or liability for any errors or omissions in the agreement texts provided here. The versions officially published in the Federal Law Gazette (Bundesgesetzblatt) are always the authoritative texts.
The responsibilities of the Federal Central Tax Office (Bundeszentralamt für Steuern) include tasks with an international dimension. The website of the Federal Central Tax Office includes a “Mutual Agreement Procedures” section which provides further details, including country-specific information, regarding the tax-related tasks that are primarily international in nature.