PROTOCOL
PROTOCOL TO THE AGREEMENT BETWEEN THE FEDERAL REPUBLIC OF GERMANY AND THE REPUBLIC OF CROATIA FOR THE AVOIDANCE OF DOUBLE TAXATION AND FOR THE PREVENTION OF TAX EVASION WITH RESPECT TO TAXES ON INCOME AND ON CAPITAL, DATED THE 6TH DAY OF FEBRUARY OF THE YEAR 2006
At the time of signing this Convention between the Federal Republic of Germany and of the Republic of Croatia for the avoidance of double taxation and for the prevention of fiscal evasion with respect to taxes on income and on capital, the signatories have agreed to the following provisions, which shall form an integral part of this Convention:
(1) To Article 7:
- (a) If an enterprise of a Contracting State sells goods and merchandise or carries on a business in that State through a permanent establishment situated in the other Contracting State, then the profits of this permanent establishment shall be determined not on the basis of the total amount thus obtained by the enterprise, but only on the basis of the payment that is to be attributed to the actual sales or business activity of the permanent establishment.
- (b) Where an enterprise of Contracting State has a permanent establishment in another Contracting State, then in case of contracts particularly on designs, supplies, installations or constructions of industrial, commercial, or scientific equipments or fittings or public orders, the profits of the permanent establishment shall not be determined on the basis of the total contract price, but only on the basis of part of the contract that is actually carried out by the permanent establishment in a Contracting State, in which a permanent establishment is situated. Profits from the supply of goods to the permanent establishment or profits in connection with the part of the contract that is carried out in the Contracting State, where the place of effective management of the parent company is situated, may be taxed only in that State.
(2) To Article 11:
If a Contracting State, after this Convention enters into force, justifies or widens its right to impose taxation on the interest paid to non-residents under the laws of that State, then at the request of a Contracting State, the two Contracting States to this Convention shall take up negotiations as to how Article 11 can be adjusted.
(3) To Articles 10 & 11:
Notwithstanding the provisions of Articles 10 and 11, dividends and interest may be taxed in the Contracting State in which they originate in accordance with the laws of this State in case they:
- (a) are based on rights or debt-claims participating in the profits (including income of a silent partner based on his or her participation as a silent partner or income from profit-participating loans or profit obligations as defined by the tax laws of the Federal Republic of Germany), and
- (b) are deductible for the purpose of determining the profits of the payer of such income.
(4) To sub-paragraph (c) of paragraph (1) of Article 23:
The Contracting States agree that the area of activity mentioned in sub-paragraph (c) of paragraph (1) of Article 23 can be extended by mutual agreement of the competent authorities. In such a case, Section 8 paragraph (1), numbers 1 to 6 of the German Foreign Tax Law for activities must be complied with.
(5) To Article 26:
Insofar as under this Convention, personal data is disclosed pursuant to domestic laws, the following provisions shall apply in addition thereto, always provided the legal regulations in effect for each Contracting State are respected:
- (a) When requested, the competent authority receiving the information shall inform the competent authority disclosing the information of the use of the data disclosed and of the results obtained thereby.
- (b) The competent authority disclosing the information shall be under obligation to ensure that the data to be disclosed is accurate as well as actually required and appropriate for the purpose to be accomplished through the disclosure. In this context, any regulations regarding non-disclosure which may be in effect on the basis of domestic laws of the respective Contracting State shall be taken into consideration. In case a competent authority discovers that inaccurate data or data which were not supposed to be disclosed have been revealed, the competent authority of the other Contracting State must be notified thereof without delay. The other competent authority shall be under obligation to correct or delete the respective data.
- (c) At the request of the affected party, such person must be informed about his or her personal data that was disclosed as well as the intended purpose of such disclosure. Such requirement shall not apply in case an assessment of the specific situation determines that the public interest of not informing the affected party outweighs the right of the party to be informed of the disclosure of such personal data. The right of the affected party to receive information on his or her personal data that are kept on file is subject to the domestic laws of the Contracting State in whose jurisdiction such disclosure is requested.
- (d) In the event that a person is illegally injured as a result of disclosures within the scope of the exchange of data pursuant to the provisions of this Convention, the competent authority receiving such disclosure shall be liable in respect of such injured party pursuant to the provision of its domestic laws. With respect to the injured party, the competent authority receiving such disclosure cannot deny liability by claiming that the damage was caused by the competent authority making such disclosure.
- (e) In accordance with the domestic laws of the Contracting States, any personal data that are disclosed must be deleted as soon as they are no longer required for the purpose for which they were disclosed.
- (f) The competent authorities shall both be under obligation to document the disclosure and the receipt of personal data in their records.
- (g) The competent authorities shall be under obligation to properly protect personal data from unauthorized access, unauthorized alteration, and unauthorized disclosure.