ARTICLE 2
Taxes Covered
(1) This Agreement shall apply to taxes on income and on capital imposed on behalf of each Contracting State or of its Lander or local authorities, irrespective of the manner in which they are levied.
(2) There shall be regarded as taxes on income and on capital all taxes imposed on total income, on total capital, or on elements of income or of capital, including taxes on gains from the alienation of movable or immovable property, as well as taxes on capital appreciation.
(3) The existing taxes to which the Agreement shall apply are, in particular:
- (a) In the case of the Federal Republic of Germany:
- (i) The income tax (Einkommensteuer);
- (ii) The corporation tax (Körperschaftsteuer);
- (iii) The tax on capital (Vermögensteuer); and
- (iv) The business tax (Gewerbesteuer),
- including taxes supplementary to the above taxes and proportionate thereto;
- (hereinafter referred to as "German tax");
- (b) In the case of Iceland:
- (i) The State income tax (tekjuskattur til rìkisins);
- (ii) The State property tax (eignarskattur til rìkisins);
- (iii) The communal income tax (tekjuùtsvar til sveitarfélaga); and
- (iv) The communal property tax (eignarùtsvar til sveitarfélaga),
- including taxes supplementary to the above taxes and proportionate thereto;
- (hereinafter referred to as "Icelandic tax").
(4) The Agreement shall also apply to any identical or substantially similar taxes which are subsequently imposed in addition to, or in place of, the existing taxes.
(5) The provisions of this Agreement concerning the taxation of income or capital shall apply mutatis mutandis to German business tax not computed on the basis of income or capital.