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ARTICLE 23
Methods for the Elimination of Double Taxation
(1)
- (a) In the case of a resident of the Federal Republic of Germany, the following income, which is taxable in the Republic of Bolivia in accordance with the provisions of this Convention, shall be excluded from the basis for the assessment of the German tax:
- (aa) Income derived from immovable property within the meaning of Article 6 and gains from the alienation of such property;
- (bb) Profits of enterprises within the meaning of Article 7 and gains covered by Article 13, paragraph (2);
- (cc) Dividends within the meaning of Article 10 paid to a company which is a resident of the Federal Republic of Germany by a company which is a resident of the Republic of Bolivia and at least 10 per cent of whose capital is held directly by the German company;
- (dd) Remuneration within the meaning of Articles 14, 15 and 18, paragraphs (1) and (2).
- The Federal Republic of Germany shall, however, retain the right to take the exempted income into account in determining the tax.
- The foregoing provisions shall apply mutatis mutandis to property of all kinds situated in the Republic of Bolivia if the income from the said property should be or should have been excluded from the basis for the assessment of the German tax.
- (b) Except where the preceding paragraph is applicable, the tax levied by the Bolivian tax authorities under Bolivian law and in accordance with this Convention shall be deducted from the income tax and corporation tax to be levied in the Federal Republic of Germany on income arising in the Republic of Bolivia. In addition, the capital tax levied by the Bolivian tax authorities under Bolivian law and in accordance with this Convention shall be deducted from the capital tax to be levied in the Federal Republic of Germany on property of all kinds situated in the Republic of Bolivia. The amount so deducted may not, however, exceed the portion of the German tax determined before such deduction which is levied on the said income or property.
- (c) For the purposes of computing the deduction referred to in the preceding paragraph, the Bolivian tax shall be deemed to amount to:
- (aa) In the case of interest within the meaning of Article 11, paragraph (3), 20 per cent of the interest;
- (bb) In the case of royalties within the meaning of Article 12, paragraph (2), 20 per cent of the royalties.
(2) In the case of a resident of the Republic of Bolivia, any type of income arising in the Federal Republic of Germany and any capital situated in the Federal Republic of Germany which may be taxed in the Federal Republic of Germany in accordance with this Convention shall be excluded from the basis on which the Bolivian tax is levied. The Republic of Bolivia nevertheless retains the right to include the items of income and capital so excluded in determining the applicable rate.