ARTICLE 21
Limitation of Benefits
(1) Notwithstanding the application of the other Articles of the Agreement, with respect to taxation in the Federal Republic of Germany only the following residents of the United Arab Emirates may invoke Articles 7, 8, 10 to 15 and 19:
- (a) the Federal and the local governments of the United Arab Emirates;
- (b) a government institution of the United Arab Emirates as defined in sub-paragraph (c) of paragraph (2) of Article 4;
- (c) a company provided that such company can prove that at least 75 percent of its capital is beneficially owned by the United Arab Emirates and/or by a government institution of the United Arab Emirates and give substantial evidence that the remaining capital is beneficially owned by individuals being residents of the United Arab Emirates and that the company is controlled by the aforementioned residents.
(2) Notwithstanding the provisions of paragraph (1), also the following residents of the United Arab Emirates may invoke Articles 8, 10 and 11:
- (a) an individual;
- (b) a company provided that such company can give substantial evidence that its capital is beneficially owned exclusively by the United Arab Emirates and/or by a government institution of the United Arab Emirates and/or by individuals being residents of the United Arab Emirates and the company is controlled by the aforementioned residents.
(3) A further prerequisite for relief from German taxes under paragraphs (1) and (2) is that the company resident in the United Arab Emirates proves that it was not a principal purpose of the company or of the conduct of its business or of the acquisition or maintenance by it of the shareholding or other property from which the income in question is derived to obtain any of such benefits to the advantage of a person who is not a resident of the United Arab Emirates.
(4) A further prerequisite for relief from German taxes under paragraphs (1) and (2) is that the company has to prove that more than 50 percent of its gross income is not used, directly or indirectly, to meet liabilities (including liabilities for interest or royalties) to persons not entitled to benefits of this Agreement.
(5) The provisions of paragraphs (1) and (2) do not apply to the State, the Lander, any political subdivision or local authority thereof and government institutions as defined in sub-paragraph (c) of paragraph (2) of Article 4.