PROTOCOL

PROTOCOL TO THE CONVENTION BETWEEN THE FEDERAL REPUBLIC OF GERMANY AND THE PEOPLE'S DEMOCRATIC REPUBLIC OF ALGERIA FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF TAX EVASION AND FRAUD WITH RESPECT TO TAXES ON INCOME AND ON CAPITAL SIGNED ON THE 12TH DAY OF NOVEMBER, OF THE YEAR 2007

At the time of the signing of the Convention between the Federal Republic of Germany and the People's Democratic Republic of Algeria for the avoidance of double taxation and prevention of tax evasion and fraud with respect to taxes on income and capital, the two Contracting States have agreed to the following provisions:

(1) Ad Article 7 of the Convention:

• (a) Where an enterprise of a Contracting State sells goods or carries on business in the other Contracting State through a permanent establishment situated therein, the profits of the permanent establishment are not calculated on the basis of the total amount received as such by the company, but solely on the basis of the amount attributable to the actual activity of the permanent establishment for such sales or for this activity.
• (b) In the case of contracts, particularly in the case of contracts pertaining to the study, supply, installation or construction of industrial, commercial, or scientific equipment or establishments or public works, where the enterprise has a permanent establishment available to it in the other Contracting State, the profits of such permanent establishment shall not be determined on the basis of the total amount of the contract, but solely on the basis of that part of the contract which is actually performed by that permanent establishment in the Contracting State where it is situated. The profits derived from the delivery of goods to the permanent establishment, and profits pertaining to that part of the contract which is carried out in the Contracting State where the place of effective management of the enterprise is located are only subject to tax in that State;
• (c) Remuneration paid for technical services, including conducting studies or surveys of a scientific, geological or technical nature, for construction contracts, that include the provision of the "blue print" pertaining to it, or for consultancy or supervisory activities, shall be considered as remuneration, to which the provisions of Article 7 of the Convention shall apply.

(2) Ad Articles 10 and 11 of the Convention:

Notwithstanding the provisions of Articles 10 and 11 of the Convention, dividends and interest shall be taxed in the Contracting State in which they arise and according to the laws of such State:

• (a) if they are derived from rights or debt claims carrying a right to participate in profits, including income that a "Stille Gesellschaft" or sleeping partner derives from his participation as such, or income from a "Partiarisches Darlehen" (from a loan with an interest rate linked to borrower's profit) or from "Gewinnobligationen" (from profit sharing bonds) within the meaning of the tax laws of the Federal Republic of Germany, and
• (b) under the condition that they are deductible in the determination of profits of the payer/debtor of the dividends or interest.

(3) Ad Article 26 of the Convention:

If, under this Convention, personal data is to be exchanged within the framework of conditions provided under the domestic laws, the following additional provisions shall apply subject to the domestic laws of each Contracting State:

• (a) The State/service receiving the personal data can only use it for the purpose indicated and under conditions prescribed by the State supplying the data.
• (b) The State receiving the personal data shall inform, upon request, the State supplying the data about the utilization of data provided and results achieved thereby.
• (c) The personal data can only be communicated to relevant authorities. They may only transmit it to other authorities after prior approval of the State/service that has disclosed it.
• (d) The State supplying the personal data shall be obliged to ensure that the data to be supplied are accurate and that they are necessary for and proportionate to the purpose for which they are supplied. The prohibitions regarding disclosure of the data as provided by the respective domestic laws must be respected. If it emerges that inaccurate data or data that should not have been supplied has been communicated, the receiving State shall be notified of this without delay. That State shall be obliged to correct or destroy the said data.
• (e) Upon application, the person concerned shall be informed of the supplied data relating to him and of the use to which such data is to be put. There shall be no obligation to furnish this information if on balance it turns out that the public interest in withholding it outweighs the interest of the person concerned in receiving it. In all other respects, the right of the person concerned to be informed of the existing data relating to him shall be governed by the domestic law of the Contracting State in whose sovereign territory the application for the information is made.
• (f) The receiving Contracting State shall bear liability in accordance with its domestic laws in relation to any person suffering unlawful damage as a result of supply under the exchange of data pursuant to this Convention. In relation to the damaged person, the receiving Contracting State may not plead to its discharge that the damage had been caused by the supplying Contracting State.
• (g) If the domestic law of the Contracting State provided for special provisions for the removal of the personal data supplied, that Contracting State shall inform the receiving Contracting State accordingly. Irrespective of such law, supplied personal data shall be erased once they are no longer required for the purpose for which they were supplied.
• (h) The supplying and the receiving Contracting States shall be obliged to keep official records of the supply and receipt of personal data.
• (i) The supplying and the receiving Contracting States shall be obliged to take effective measures to protect the personal data supplied against unauthorized access, unauthorized alteration and unauthorized disclosure.