PROTOCOL
PROTOCOL TO THE AGREEMENT BETWEEN THE FEDERAL REPUBLIC OF GERMANY AND THE REPUBLIC OF CYPRUS FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME AND ON CAPITAL
The Republic of Cyprus and the Federal Republic of Germany have agreed on the following provisions to the Agreement of 18th February 2011 for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and on Capital:
(1) With reference to Articles 3, 4, 8, 13, 14 and 21:
It is understood that the "place of effective management" is the place where key management and commercial decisions that are necessary for the conduct of the entity's business are in substance made. The place of the effective management will ordinarily be the place where the most senior person or group of persons makes its decisions, the place where the actions to be taken by the entity as a whole are determined.
(2) With reference to Article 7:
In the case of partnerships, business profits include remuneration received by a partner from the partnership for activities in the service of the partnership and for the granting of loans or the provision of assets.
(3) With reference to Article 8:
Profits from the operation of ships include profits of enterprises which perform the different tasks of operating a ship for the shipping enterprises, such as crewing, technical and commercial management.
(4) With reference to Article 14:
Remuneration of crewmembers falls under paragraph (4) of this Article and the term enterprise, as used in this paragraph, means the enterprise of the employer of the crew members.
(5) With reference to Article 25:
- (5.1) The OECD Commentary on Article 26 of the Model Tax Convention on Income and on Capital in the version at the moment of entry into force of this Agreement shall be used as guidance for the application of Article 25.
- (5.2) The requesting Contracting State shall provide the following information when making a request for information under Article 25 to demonstrate the foreseeable relevance of the information to the request:
- (a) the identity of the person under examination or investigation;
- (b) a statement of the information sought including its nature and the form in which the requesting Contracting State wishes to receive the information from the requested Contracting State;
- (c) the tax purpose for which the information is sought;
- (d) grounds for believing that the information requested is held in the requested Contracting State or is in the possession or control of a person within the jurisdiction of the requested Contracting State;
- (e) to extent known, the name and address of any person believed to be in possession of the requested information;
- (f) a statement that the request is in conformity with the law and administrative practices of the requesting Contracting State, that if the requested information was within the jurisdiction of the requesting Contracting State then the competent authority of the requesting Contracting State would be able to obtain the information under the laws of the requesting Contracting State or in the normal course of administrative practice and that it is in conformity with this Agreement;
- (g) a statement that the requesting Contracting State has pursued all means available in its own territory to obtain the information, except those that would give rise to disproportionate difficulties;
- (h) where the information sought by the requesting State includes account information but the name of the account holder(s) is unknown such information may be provided by supplying identifying information such as the account number.
- (5.3) Information requested by a Contracting State shall not be provided unless the requesting State has reciprocal provisions and/or applies appropriate administrative practices for the provision of the information requested.
- *(5.4) [DELETED]
(6) It is understood that this Agreement shall not affect legal acts of the European Community.