Convention

 

between the Federal Republic of Germany

 

and the United States of America

 

for the Avoidance of Double Taxation

 

with respect to taxes on estates, inheritances, and gifts

 

The Federal Republic of Germany

 

and

 

the United States of America,

 

desiring to avoid double taxation with respect to taxes on

 

estates, inheritances, and gifts,

 

have agreed as follows:

 

Chapter I

 

Article 1

 

Scope

 

This Convention shall apply to

 

a) Estates of deceased persons whose domicile at their death was in one or

 

both of the Contracting States, and

 

b) Gifts of donors whose domicile at the making of a gift was in one or both

 

of the Contracting States.

 

Article 2

 

Taxes Covered

 

1. The existing taxes to which this Convention shall apply are:

 

a) In the case of the United States of America: The Federal estate tax and

 

the Federal gift tax, including the tax on generation-skipping transfers: and

 

b) In the case of the Federal Republic of Germany: the inheritance and gift

 

tax (Erbschaftsteuer und Schenkungsteuer).

 

2. This Convention shall also apply to any similar taxes on estates, inheritances,

 

and gifts which are imposed after the date of signature of the Convention in addition to, or

 

in place of, the existing taxes.

 

Chapter II

 

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Article 3

 

General Definitions

 

1. In this Convention:

 

a) the term "United States of America" when used in a geographical sense

 

means the states thereof and the District of Columbia. Such term also includes the

 

territorial sea thereof and the seabed and subsoil of the submarine areas adjacent to the

 

coast thereof, but beyond the territorial sea over which the United States of America

 

exercises sovereign rights, in accordance with international law, for the purpose of

 

exploration for and exploitation of the natural resources of such areas.

 

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b) the term "Federal Republic of Germany" when used in a geographical

 

sense means the territory in which the Basic Law for the Federal Republic of Germany is

 

in force as well as any area adjacent to the territorial waters of the Federal Republic of

 

Germany designated, in accordance with international law relating to the rights which the

 

Federal Republic of Germany may exercise with respect to the seabed and subsoil and

 

their natural resources, as domestic area for tax purposes.

 

c) the term "enterprise" means an industrial or commercial undertaking.

 

d) the term "enterprise of a Contracting State" means an enterprise carried

 

on by a person who is domiciled in a Contracting State.

 

e) the term "competent authority" means:

 

i) in the case of the United States of America, the Secretary of the Treasury

 

or his delegate, and

 

ii) in the case of the Federal Republic of Germany, the Federal Minister of

 

Finance.

 

2. As regards the application of the Convention by a Contracting State, any term

 

not defined therein shall, unless the context otherwise requires, have the meaning which it

 

has under the law of that Contracting State concerning the taxes to which the Convention

 

applies.

 

Article 4

 

Fiscal Domicile

 

1. For the purposes of this Convention, an individual has a domicile

 

a) in the United States of America, if he is a resident or citizen thereof;

 

b) in the Federal Republic of Germany, if he has his domicile (Wohnsitz) or

 

habitual abode (gewöhnlicher Aufenthalt) therein or if he is deemed for other reasons to be

 

subject to unlimited tax liability for the purposes of the German inheritance and gift tax.

 

2. Where by reason of the provisions of paragraph 1 an individual was domiciled in

 

both Contracting States, then, subject to the provisions of paragraph 3, this case shall be

 

determined in accordance with the following rules:

 

a) he shall be deemed to have been domiciled in the Contracting State in

 

which he had a permanent home available to him. If he had a permanent home available

 

to him in both Contracting States, or in neither Contracting State, the domicile shall be

 

deemed to be in the Contracting State with which his personal and economic relations

 

were closest (center of vital interests);

 

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b) if the Contracting State in which he had his center of vital interests cannot

 

be determined, the domicile shall be deemed to be in the Contracting State in which he

 

had an habitual abode;

 

c) if he had an habitual abode in both Contracting States or in neither of

 

them, the domicile shall be deemed to be in the Contracting State of which he was a

 

citizen;

 

d) if he was a citizen of both Contracting States or of neither of them, the

 

competent authorities of the Contracting States shall settle the question by mutual

 

agreement.

 

3. Where an individual, at his death or at the making of a gift, was

 

a) a citizen of one Contracting State, and not also a citizen of the other

 

Contracting State, and

 

b) by reason of the provisions of paragraph 1 domiciled in both Contracting

 

States, and

 

c) by reason of the provisions of paragraph 1 domiciled in the other

 

Contracting State for not more than ten years,

 

then the domicile of that individual and of the members of his family forming part of

 

his household and fulfilling the same requirements shall be deemed, notwithstanding the

 

provisions of paragraph 2, to be in the Contracting State of which they were citizens.

 

4. An individual who, at his death or at the making of a gift, was a resident of a

 

possession of the United States of America and who became a citizen of the United States

 

of America solely by reason of

 

a) his being a citizen of a possession, or

 

b) birth or residence within a possession,

 

shall be considered as having been neither domiciled in nor a citizen of the United

 

States of America at that time for purposes of this Convention.

 

5. For the purposes of this Convention the question whether a person other than an

 

individual was domiciled in a Contracting State shall be determined according to the law of

 

that State. Where such person is domiciled in both Contracting States, the competent

 

authorities of the Contracting States shall settle the case by mutual agreement.

 

Chapter III

 

Article 5

 

Immovable Property

 

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1. Immovable property which forms part of the estate of or of a gift made by a

 

person domiciled in a Contracting State and which is situated in the other Contracting

 

State may be taxed in that other State.

 

2. The term "immovable property" shall have the meaning which it has under the

 

law of the Contracting State in which the property in question is situated. The term shall in

 

any case include property accessory to immovable property, livestock and equipment used

 

in agriculture and forestry, rights to which the provisions of general law respecting landed

 

property apply, usufruct of immovable property, and rights to variable or fixed payments as

 

consideration for the working of, or the right to work, mineral deposits, sources, and other

 

natural resources; ships, boats, and aircraft shall not be regarded as immovable property.

 

3. The provisions of paragraphs 1 and 2 shall also apply to immovable property of

 

an enterprise and to immovable property used for the performance of independent

 

personal services.

 

Article 6

 

Business Property of a Permanent Establishment and Assets Pertaining to a Fixed Base

 

Used for the Performance of Independent Personal Services

 

1. Except for assets referred to in Articles 5 and 7, assets of an enterprise which

 

form part of the estate of or a gift made by a person domiciled in a Contracting State and

 

forming part of the business property of a permanent establishment situated in the other

 

Contracting State may be taxed in that other State.

 

2.

 

a) The term "permanent establishment" means a fixed place of business

 

through which the business of an enterprise of a Contracting State is wholly or partly

 

carried on.

 

b) A permanent establishment shall include especially:

 

a place of management;

 

a branch;

 

an office;

 

a store or other sales outlet;

 

a factory;

 

a workshop;

 

a mine, quarry, or other place of extraction of natural resources;

 

a building site or construction or assembly project which exists for

 

more than twelve months.

 

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c) Notwithstanding subparagraph a) of this paragraph, a permanent

 

establishment shall be deemed not to include one or more of the following activities:

 

the use of facilities for the purposes of storage, display, or delivery of

 

goods or merchandise belonging to the enterprise;

 

the maintenance of a stock of goods or merchandise belonging to

 

the enterprise for the purpose of storage, display, or delivery;

 

the maintenance of a stock of goods or merchandise belonging to

 

the enterprise for the purpose of processing by another enterprise;

 

the maintenance of a fixed place of business for the purpose of

 

purchasing goods or merchandise, or collecting information, for the enterprise;

 

the maintenance of a fixed place of business for the purpose of

 

advertising, for the supply of information, for scientific research, or for similar activities, if

 

they have a preparatory or auxiliary character, for the enterprise.

 

d) Even if an enterprise of a Contracting State does not have a permanent

 

establishment in the other State under subparagraphs a) to c) of this paragraph,

 

nevertheless it shall be deemed to have a permanent establishment in the latter State if it

 

is engaged in trade or business in that State through an agent who has an authority to

 

conclude contracts in the name of the enterprise and regularly exercises that authority in

 

that State, unless the exercise of authority is limited to the purchase of goods or

 

merchandise for the account of the enterprise.

 

e) An enterprise of a Contracting State shall not be deemed to have a

 

permanent establishment in the other State merely because it is engaged in trade or

 

business in that other State through a broker, general commission agent, or any other

 

agent of an independent status, where such person is acting in the ordinary course of

 

business.

 

f) The fact that a resident or a corporation of one of the Contracting States

 

controls, is controlled by, or is under common control with

 

i) a corporation of the other State or

 

ii) a corporation which is engaged in trade or business in that other

 

State (whether through a permanent establishment or otherwise)

 

shall not be taken into account in determining whether such resident or

 

corporation has a permanent establishment in that other State.

 

3. Except for assets referred to in Article 5, assets which form part of the estate of

 

or of a gift made by a person domiciled in a Contracting State and pertaining to a fixed

 

base situated in the other Contracting State used for the performance of independent

 

personal services may be taxed in that other State.

 

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Article 7

 

Ships and Aircraft

 

Ships and aircraft operated in international traffic and belonging to an enterprise

 

which form part of the estate of or of a gift made by a person domiciled in a Contracting

 

State, and movable property pertaining to the operation of such ships and aircraft, may be

 

taxed only in that State.

 

Article 8

 

Interests in Partnerships

 

An interest in a partnership which forms part of the estate of or of a gift made by a

 

person domiciled in a Contracting State, which partnership owns property described in

 

Article 5 or 6, may be taxed by the State in which such property is situated, but only to the

 

extent that the value of such interest is attributable to such property.

 

Article 9

 

Property Not Expressly Mentioned

 

Property which forms part of the estate of or of a gift made by a person domiciled in

 

a Contracting State, wherever situated, and not dealt with in Article 5, 6, 7, or 8 shall,

 

subject to paragraph 1 of Article 11, be taxable only in that State.

 

Article 10

 

Deductions and Exemptions

 

1. In the case of property which forms part of an estate of or of a gift subject to

 

taxation by a Contracting State solely in accordance with Article 5, 6, or 8, debts shall be

 

allowed as reductions of, or deductions from, the value of such property in an amount no

 

less than:

 

a) in the case of property referred to in Article 5, debts incurred for purposes

 

of the acquisition, repair, or upkeep of that property;

 

b) in the case of property referred to in Article 6, debts incurred in

 

connection with the operation of the permanent establishment or fixed base; and

 

c) in the case of an interest in a partnership referred to in Article 8, debts to

 

which subparagraphs a) or b) of this paragraph would apply if the property owned by a

 

partnership referred to in that Article were owned directly by the decedent or donor.

 

2. Property transferred to or for the use of a corporation or organization of a

 

Contracting State organized and operated exclusively for religious, charitable, scientific,

 

educational, or public purposes, or to a public body of a Contracting State to be used for

 

such purposes, shall be exempt from tax by the other Contracting State, if and to the

 

extent that such transfer of property to such corporation, organization or public body

 

a) is exempt from tax in the first-mentioned Contracting State and

 

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b) would be exempt from tax in the other Contracting State if it were made

 

to a similar corporation, organization, or public body of that other State.

 

The competent authorities of the Contracting States shall by mutual agreement

 

settle the application of this provision.

 

3. Pensions, annuities, and other amounts payable by a Contracting State, a state,

 

a Land, or their political subdivisions, or out of a public fund organized under the public

 

laws thereof, or under a plan maintained by a person resident in that State

 

a) under the Social Security laws of that State, or

 

b) as consideration for services rendered, or

 

c) as compensation for injury or damage sustained

 

shall be exempt from tax by the other Contracting State, to the extent that such

 

pension, annuity, or other amount would be exempt from tax in the first-mentioned

 

Contracting State if the decedent were a domiciliary thereof. The amounts so exempted

 

may, however, be offset against the "Versorgungsfreibetrag" according to the provisions of

 

the German inheritance and gift tax.

 

4. Property (other than community property) which passes to the spouse from a

 

decedent or donor who was domiciled in or a citizen of a Contracting State, and which may

 

be taxed by the other Contracting State solely in accordance with Article 5, 6, or 8 shall, for

 

the purpose of determining the tax of that other State, be included in the taxable base only

 

to the extent its value (after taking into account any applicable deductions) exceeds 50 per

 

cent of the value of all property included in the taxable base which may be taxed by that

 

other State. However, the foregoing sentence shall not result in:

 

a) an exclusion from the taxable base in the Federal Republic of Germany

 

of an amount in excess of the general marital deduction (Freibetrag des Ehegatten)

 

granted with respect to transfers to spouses subject to unlimited tax liability under the

 

German inheritance and gift tax;

 

b) a reduction of the tax due in the United States of America below the tax

 

that would be due by applying to the taxable base determined under that sentence the

 

rates applicable to a person domiciled in the United States of America.

 

The provisions of this paragraph shall not apply to a citizen of the United States of

 

America domiciled in the Federal Republic of Germany or a former citizen or long-term

 

resident of the United States of America referred to in subparagraph a) of paragraph 1 of

 

Article 11.

 

5. In determining the estate tax imposed by the United States of America, the

 

estate of a decedent (other than a citizen of the United States of America) who was

 

domiciled in the Federal Republic of Germany at the time of the decedent's death shall be

 

allowed a unified credit equal to the greater of:

 

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a) the amount that bears the same ratio to the credit allowed to the estate of

 

a citizen of the United States of America under the law of the United States of America as

 

the value of the part of the decedent's gross estate that at the time of the decedent's death

 

is situated in the United States of America bears to the value of the decedent's entire gross

 

estate wherever situated; or

 

b) the unified credit allowed to the estate of a nonresident not a citizen of

 

the United States of America under the law of the United States of America.

 

The amount of any unified credit otherwise allowable under this paragraph shall be

 

reduced by the amount of any credit previously allowed with respect to any gift made by

 

the decedent. For purposes of subparagraph a), the part of the decedent's gross estate

 

that is situated in the United States of America shall not exceed the part of the decedent's

 

gross estate that may be taxed by the United States of America in accordance with this

 

Convention. A credit otherwise allowable under subparagraph a) shall be allowed only if all

 

information necessary for the verification and computation of the credit is provided.

 

6. In determining the estate tax imposed by the United States of America, the value

 

of the decedent's taxable estate shall be determined by deducting from the value of the

 

gross estate an amount equal to the value of any interest in property that passes to the

 

decedent's surviving spouse (within the meaning of the law of the United States of

 

America) and that would qualify for the estate tax marital deduction under the law of the

 

United States of America if the surviving spouse were a citizen of the United States of

 

America and all applicable elections were properly made (hereinafter referred to as

 

"qualifying property"). The decedent's estate shall be entitled to such marital deduction

 

provided that:

 

a) at the time of the decedent's death, the decedent was domiciled in either

 

the Federal Republic of Germany or the United States of America;

 

b) the decedent's surviving spouse was at the time of the decedent’s death

 

domiciled in either the Federal Republic of Germany or the United States of America;

 

c) if both the decedent and the decedent's surviving spouse were domiciled

 

in the United States of America at the time of the decedent's death, one or both was a

 

citizen of the Federal Republic of Germany; and

 

d) the executor of the decedent's estate elects the benefits of this paragraph

 

and irrevocably waives the benefits of any other estate tax marital deduction that would be

 

allowed under the law of the United States of America on a United States estate tax return

 

filed for the decedent's estate by the date on which a qualified domestic trust election

 

could be made under the law of the United States of America.

 

The marital deduction allowed under this paragraph shall be equal to the lesser of the

 

value of the qualifying property or the applicable exclusion amount (within the meaning of

 

the law of the United States of America, determined without regard to any gift previously

 

made by the decedent).

 

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Chapter IV

 

Article 11

 

Credits

 

1. The provisions of this Convention shall not preclude

 

a) the United States of America from taxing in accordance with its law the estate of

 

a decedent or the gift of a donor who, at his death or at the making of the gift, was:

 

i) a citizen of the United States of America,

 

ii) domiciled (within the meaning of Article 4) in the United States of

 

America, or

 

iii) a former citizen or long-term resident whose loss of such status

 

had as one of its principal purposes the avoidance of tax (as defined under the laws of the

 

United States of America), but only for a period of ten years following such loss;

 

b) the Federal Republic of Germany from taxing in accordance with its law

 

an heir, a donee, or another beneficiary who was domiciled (within the meaning of

 

Article 4) in the Federal Republic of Germany at the time of the death of the decedent or

 

the making of the gift.

 

The preceding sentence shall not, however, apply to paragraphs 2, 3 and 4 of Article 10,

 

paragraphs 2, 3, 4 and 5 of this Article, and Article 13; or paragraphs 5 or 6 of Article 10 as

 

applied to the estates of persons other than former citizens and long-term residents

 

referred to in the preceding sentence.

 

2. Where the United States of America imposes tax by reason of the decedent's or

 

the donor's domicile therein or citizenship thereof, double taxation shall be avoided in the

 

following manner:

 

a) where the Federal Republic of Germany imposes tax with respect to

 

property in accordance with Article 5, 6, or 8, the United States of America shall credit

 

against the tax calculated according to its law with respect to such property an amount

 

equal to the tax paid to the Federal Republic of Germany with respect to such property.

 

b) in addition to any credit allowable under subparagraphs a) of this

 

paragraph, if the decedent or donor was a citizen of the United States of America and was

 

domiciled in the Federal Republic of Germany at his death or at the making of a gift, then

 

the United States of America shall allow a credit against the tax calculated according to its

 

law with respect to property other than property which the United States of America may

 

tax in accordance with Article 5, 6, or 8, an amount equal to the tax paid to the Federal

 

Republic of Germany with respect to such property.

 

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3. Where the Federal Republic of Germany imposes tax by reason of the domicile

 

therein of the decedent, donor, heir, donee, or other beneficiary, double taxation shall be

 

avoided in the following manner:

 

a) where the United States of America imposes tax with respect to property

 

in accordance with Article 5, 6, or 8, the Federal Republic of Germany shall credit against

 

the tax calculated according to its law with respect to such property an amount equal to the

 

tax paid to the United States of America with respect to such property.

 

b) in addition to any credit allowable under subparagraph a) of this

 

paragraph, if the decedent or donor was domiciled in the United States of America and the

 

heir, donee, or other beneficiary was domiciled in the Federal Republic of Germany at the

 

time of the death of the decedent or the making of the gift, then the Federal Republic of

 

Germany shall allow a credit against the tax calculated according to its law with respect to

 

property other than property which the Federal Republic of Germany may tax in

 

accordance with Article 5, 6, or 8, an amount equal to the tax paid to the United States of

 

America with respect to such property.

 

4. The credits allowed by the Federal Republic of Germany according to the

 

provisions of paragraph 3 shall include taxes levied by political subdivisions of the United

 

States of America. Where a credit is not allowable for such taxes according to the

 

provisions of paragraph 3, the competent authorities may consult for the purpose of

 

avoiding double taxation pursuant to Article 13.

 

5. In order to avoid double taxation, each Contracting State shall, in allowing credits

 

under paragraphs, 2, 3, and 4, take into account in an appropriate way:

 

a) any tax imposed by the other Contracting State upon a prior gift of

 

property made by the decedent, if such property is included in the estate subject to

 

taxation by the first- mentioned State;

 

b) any credit allowed by the other Contracting State for estate or gift taxes

 

paid upon prior taxable events.

 

Difficulties and doubts arising in the application of this provision shall be resolved

 

by the competent authorities under Article 13.

 

6. Any credits allowed under this Article shall not exceed the part of the tax of a

 

Contracting State, as computed before the credit is given, which is attributable to the

 

property in respect of which a credit is allowable under this Article.

 

7. Any claim for credit or for refund of tax founded on the provisions of this Article

 

may be made until one year after the final determination (administrative or judicial) and

 

payment of tax for which any credit under this Article is claimed, provided that the

 

determination and payment are made within ten years of the date of death of the decedent

 

or of the date of the making of the gift by the donor. The competent authorities may by

 

mutual agreement extend the ten-year time limit if circumstances beyond the control of the

 

taxpayer prevent the determination within such period of the taxes which are the subject of

 

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the claim for credit or for refund. Any refund based solely on the provisions of this

 

Convention shall be made without payment of interest on the amount so refunded.

 

Article 12

 

Estates and Trusts

 

1. The provisions of this Convention shall not preclude either Contracting State

 

from applying its rules governing the recognition of a taxable event, with respect to

 

transfers of property to and from an estate or trust.

 

2. Where differences in the laws of the Contracting States give rise to taxation at

 

different times of transfers of property to and from an estate or trust, the competent

 

authorities may discuss the case under Article 13 with a view to avoiding hardship,

 

provided that the difference in timing of taxation does not exceed five years.

 

3. In a case where a transfer of property to an estate or trust results in no taxable

 

transfer at such time under the German inheritance and gift tax, the beneficiary of the

 

estate or trust may elect within five years after such transfer to be subject to all German

 

taxation (including income taxation) as if a taxable transfer had occurred to him at the time

 

of such transfer.

 

Article 13

 

Mutual Agreement Procedure

 

1. Any person who considers that the actions of one or both of the Contracting

 

States result or will result for him in taxation not in accordance with this Convention may,

 

notwithstanding the remedies provided by the laws of those Contracting States, present

 

his case to the competent authorities of either Contracting State. Such presentation must

 

be made within one year after a claim for exemption, credit, or refund under this

 

Convention has been finally settled or rejected.

 

2. The competent authority shall endeavor, if the objection appears to it to be

 

justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by

 

mutual agreement with the competent authority of the other Contracting State, with a view

 

to the avoidance of taxation not in accordance with the Convention.

 

3. The competent authorities of the Contracting States shall endeavor to resolve by

 

mutual agreement any difficulties or doubts arising as to the interpretation or application of

 

the Convention. They may also consult together for the elimination of double taxation in

 

cases not provided for in the Convention.

 

4. The competent authorities of the Contracting States may communicate with each

 

other directly for the purpose of reaching an agreement in the sense of this Article. When it

 

seems advisable for the purpose of reaching an agreement, the competent authorities may

 

meet together for an oral exchange of opinions.

 

5. In the event that the competent authorities reach such an agreement, taxes shall

 

be imposed and, notwithstanding any procedural rule (including statutes of limitations)

 

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applicable under the law of either Contracting State, refund or credit of taxes shall be

 

allowed by the Contracting States in accordance with such agreement.

 

Article 14

 

Exchange of Information

 

1. The competent authorities of the Contracting States shall exchange such

 

information as is necessary for the carrying out of this Convention or of the domestic laws

 

of the Contracting States concerning taxes covered by this Convention insofar as the

 

taxation thereunder is not contrary to this Convention. The exchange of information is not

 

restricted by Article 1. Any information received by a Contracting State shall be treated as

 

secret in the same manner as information obtained under the domestic laws of that State

 

and shall be disclosed only to persons or authorities (including courts and administrative

 

bodies) involved in the assessment or collection of, the enforcement or prosecution in

 

respect of, or the determination of appeals in relation to, the taxes which are the subject of

 

the Convention. Such persons or authorities shall use the information only for such

 

purposes. These persons or authorities may disclose the information in public court

 

proceedings or in judicial decisions.

 

2. In no case shall the provisions of paragraph 1 be construed so as to impose on a

 

Contracting State the obligation:

 

a) to carry out administrative measures at variance with the laws and

 

administrative practice of that or of the other Contracting State;

 

b) to supply particulars which are not obtainable under the laws or in the

 

normal course of the administration of that or of the other Contracting State;

 

c) to supply information which would disclose any trade, business,

 

industrial, commercial, or professional secret or trade process, or information the

 

disclosure of which would be contrary to public policy (ordre public).

 

3. If information is requested by a Contracting State in accordance with this Article,

 

the other Contracting State shall obtain the information to which the request relates

 

(including depositions of witnesses and copies of relevant documents) in the same manner

 

and to the same extent as if the tax of the requesting State were the tax of the other State

 

and were being imposed by that other State.

 

4. If by reason of Article 7 or 9 any property would, without regard to paragraph 1 of

 

Article 11, be taxable only in the Contracting State in which the decedent or donor was

 

domiciled and tax due in that State is not paid, then the competent authorities may agree

 

that tax will be imposed with respect to such property in the other Contracting State

 

notwithstanding Article 7 or 9.

 

Article 15

 

Members of Diplomatic Missions or Consular Posts

 

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1. Nothing in this Convention shall affect the fiscal privileges of members of

 

diplomatic missions or consular posts under the general rules of international law or under

 

the provisions of special agreements.

 

2. This Convention shall not apply to officials of international organizations or

 

members of a diplomatic mission or a consular post of a third State, who were established

 

in a Contracting State and were not treated as being domiciled in either Contracting State

 

in respect of taxes on estates, inheritances, or gifts, as the case may be.

 

Article 16

 

Land Berlin

 

This Convention shall also apply to Land Berlin, provided that the Government of

 

the Federal Republic of Germany does not make a contrary declaration to the Government

 

of the United States of America within three months of the date of entry into force of this

 

Convention.

 

Chapter V

 

Article 17

 

Entry Into Force

 

1. This Convention shall be subject to ratification in accordance with the applicable

 

procedures of each Contracting State and instruments of ratification shall be exchanged at

 

Washington as soon as possible.

 

2. This Convention shall enter into force upon the exchange of instruments of

 

ratification and its provisions shall apply generally to estates of persons dying and gifts

 

made on or after January 1, 1979.

 

3. In addition, in the case of estates of persons having died on or after January 1,

 

1974 and before January 1, 1979, the competent authorities of the Contracting States may

 

consult together with a view to eliminating double taxation not avoided by internal relief

 

measures. To this purpose they may, under the provisions of Article 13, allow taxes of one

 

Contracting State to be credited against taxes of the other Contracting State

 

notwithstanding differences of internal rules regarding situs and domicile.

 

Article 18

 

Termination

 

This Convention shall remain in force until terminated by one of the Contracting

 

States. Either Contracting State may terminate this Convention, through diplomatic

 

channels, at any time after three years from the date on which this Convention enters into

 

force provided that at least six months prior notice has been given. In such event the

 

Convention will not apply to estates of persons dying after or gifts made after the

 

December 31 next following the expiration of the six-month period.

 

 

 

 

Wichtiger Hinweis: Dieser Artikel dient nur der ersten Information und stellt keine Rechtsberatung dar, da diese nur unter Berücksichtigung aller Umstände des konkreten Einzelfalls möglich ist. Für Aktualität und Richtigkeit übernehmen wir keine Gewähr.

  

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2009 © Jan-Hendrik Frank (Rechtsanwalt und Fachanwalt für Erbrecht)