ARTICLE XVII

Elimination of Double Taxation

(1) Tax shall be determined in the case of a resident of the Kingdom of Greece as follows:

• Subject to the provisions of the Greek income tax law Federal Republic tax payable under the laws of the Federal Republic of Germany and in accordance with this Agreement, whether directly or by deduction, in respect of income from sources within the Federal Republic of Germany shall be allowed as a credit against the Greek tax payable in respect of that income.

(2) Tax shall be determined in the case of a resident of the Federal Republic of Germany as follows:

• (1) Unless the provisions of sub-paragraph (2) below apply, there shall be excluded from the basis upon which Federal Republic tax is imposed, any item of income from sources within the Kingdom of Greece and any item of capital situated within the Kingdom of Greece which, according to this Agreement, may be taxed in the Kingdom of Greece. The Federal Republic of Germany, however, retains the right to take into account in the determination of its rate of tax the items of income and capital so excluded.
• (2)
  • (a) There shall be allowed as a credit against the Federal Republic tax Payable in respect of:
    • (aa) Dividends arising in the Kingdom of Greece the Greek tax paid thereon;
    • (bb) interest arising in the Kingdom of Greece the Greek tax paid thereon, or, if such interest is exempt from Greek tax due to special provisions of the Greek law for the promotion of the economic development of the Kingdom of Greece, 10 per cent of the amount of such interest;
    • (cc) Remuneration paid out of public funds of the Kingdom of Greece to a German national who is not also a national of the Kingdom of Greece, the Greek tax paid thereon;
    • (dd) Remuneration within the meaning of Article XI par. (4) and (5) arising in the Kingdom of Greece, the Greek tax paid thereon.
  • (b) However, in the case of income from dividends paid to a company limited by shares being a resident of the Federal Republic of Germany by a company limited being a resident of the Kingdom of Greece there shall be allowed as a credit against the Federal Republic tax the amount of 30 per cent of the gross-dividends, if, but only if:
    • (aa) at least 25 per cent of the voting shares of the Greek joint-stock company are owned by the German company limited by shares and
    • (bb) the Greek joint-stock company derives its income exclusively or almost exclusively from mining, producing or selling goods or merchandise, rendering services, or doing banking or insurance business, or from dividends paid by another Greek joint stock company which itself derives its income exclusively or almost exclusively from mining, producing or selling goods or merchandise, rendering services, or doing banking or insurance business.