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Germany - Austria Tax Treaty (as amended by 2010 protocol) — Orbitax Tax Hub

Note: This Treaty may be impacted by the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI). MLI impact on Tax Treaties is available with the Orbitax International Tax Research & Compliance Expert.



(1) Royalties arising in a Contracting State and paid to a resident of the other Contracting State shall be taxable only in that other State if such resident is the beneficial owner.

(2) The term "royalties" as used in this Article means payments of any kind that are made for the use of or the right to use copyrights of literary, artistic or scientific work, including cinematograph films, patents, trademarks, designs or models, plans, secret formulas or processes or for information concerning industrial, commercial or scientific experience.

(3) The provisions of paragraph (1) shall not apply if the beneficial owner of the royalties, being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties arises, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the rights or property in respect of which the royalties are paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply.

(4) Royalties shall be deemed to arise in a Contracting State when the payer is a resident of that State. If, however, the royalty payer, regardless of whether he is a resident of the Contracting State, has in the Contracting State a permanent establishment or fixed based and if the obligation to pay such royalties was accepted for the needs of the permanent establishment or fixed base and if the permanent establishment or fixed base incurs expenses in paying the royalties, the royalty payments shall be deemed to arise in the State in which the permanent establishment or fixed base is situated.

(5) If, by reason of special relations between the payer and the beneficial owner or between each of them and some third person, the amount of the royalties with respect to volume of services underlying them exceeds the amount that would have been agreed upon by the payer and the beneficial owner in the absence of such relationships, the provisions of this Article shall apply to only the last-mentioned amount. In such a case, the excess amount may be subject to tax under the laws of each of the Contracting States and under other provisions of this Agreement.