taxci_en
 

Germany Royalties

Last updated: 03-11-2006

Treaty

Germany

Article

Royalties

Signed

June 16, 1959

In Force

 

Article 15
     (1) Where a person domiciled in one of the Contracting States derives from the other State income from royalties or other remuneration paid as consideration for the use of or for the right to use copyrights, patents, registered designs, manufacturing processes, trade marks, or similar rights (other than rights pertaining to the exploitation of natural resources), such income shall be subject to taxation by the State of domicile.
     (2) The provisions of paragraph (1) shall also apply to income derived from the alienation of the rights referred to therein.
     (3) Rentals and like payments for the hire of cinematograph films, for the use of industrial, commercial or scientific equipment or for industrial information shall be treated as royalties.
     (4) The provisions of paragraphs (1) and (2) shall not apply where a person domiciled in one of the Contracting States has a permanent establishment in the other State and realizes the income through that establishment. In this case the income shall be subject to taxation by the latter State.

 The above information is the wording of the article dealing with the withholding tax on royalties of the tax treaty between The Netherlands and Germany.  Please note that the ultimate withholding tax rate may differ from the treaty rate, for instance as consequence of domestic anti-abuse legislation, provisions of the treaty protocol, etc. Before you use this information we therefore strongly recommend that you consult us to determine the accurate withholding tax rate for your specific situation. If you require our follow up, you can contact us via e-mail or call us at our offices: Ph. + 31 (10) 2010466.