ARTICLE 2
Taxes Covered
(1) This Convention shall apply to taxes on income and on capital imposed on behalf of a Contracting State, of a "Land" or a political subdivision thereof, 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, taxes on the total amounts of wages or salaries paid by enterprises, as well as taxes on capital appreciation.
(3) The existing taxes to which the Convention shall apply are:
- (a) in the Italian Republic:
- (i) the individual income tax (l'imposta sul reddito delle persone fisiche);
- (ii) the corporate income tax (l'imposta sul reddito delle persone giuridiche); and
- (iii) the local income tax (l'imposta locale sui redditi);
- even if these taxes are levied by withholding at source;
- (hereinafter referred to as "Italian taxes");
- (b) in the Federal Republic of Germany:
- (i) the individual income tax (die Einkommensteuer);
- (ii) the corporate income tax (die Körperschaftsteuer);
- (iii) the capital tax (die Vermögensteuer);
- (iv) the trade tax (die Gewerbesteuer); and
- (v) the land tax (die Grundsteuer);
- (hereinafter referred to as "German taxes").
(4) The Convention shall apply also to any identical or substantially similar taxes which are imposed after the date of signature of the Convention in addition to, or in place of, the taxes mentioned in paragraph (3). The competent authorities of the Contracting States shall notify each other of substantial changes which have been made in their respective taxation laws.