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Germany - Liechtenstein Tax Treaty (as amended by 2020 protocol) — Orbitax Tax Hub

Note: This Treaty may be impacted by the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI). MLI impact on Tax Treaties is available with the Orbitax International Tax Research & Compliance Expert.



(1) Interest that comes from one Contracting State and is paid to a person resident in the other Contracting State can only be taxed in the other State.

(2) Income from rights or debt claims with profit participation including the income of a silent partner from his/her participation as silent partner or from profit participation loans and profit obligations can however also be taxed in the Contracting State from which they originate according to the laws of this State.

(3) The term "interest" used in this Article means-reserving Article 7 Paragraph (4)-income from debt claims of any kind, even if the debt claims are secured by liens on real estate or with participation in the debtor's gains and especially income from silent partnerships as well as income from public loans and from debt obligations including the therewith associated surcharges and gains from lottery loans. The term "interest" however does not include income in the sense of Article s 10. Fees for late payment are not considered interest in the sense of this Article.

(4) Paragraph (1) of this Article does not apply if the beneficial owner resident in one Contracting State exercises a business activity through a permanent establishment located in the other Contracting State from which the interest originates and the debt claim for which the interest is paid actually belongs to this permanent establishment. In this case Article 7 shall apply.

(5) Interest is deemed to originate from a Contracting State if the debtor is a person resident in this State. If the debtor owing the interest, regardless of whether the debtor is resident in a Contracting State or not, owns a permanent establishment in a Contracting State and the debt for which the interest is being paid was entered into for purposes of the permanent establishment and if the permanent establishment bears the interest, the interest is deemed to originate from the State in which the permanent establishment is located.

(6) If there exist special relationships between the debtor and the beneficial owner or between each of them and a third party and for this reason the interest, based on the principal claim, exceeds the amount that the debtor and the beneficial owner would have agreed to absent these relationships, this Article shall apply only to the latter amount. In this case, the excess amount can be taxed under the law of either Contracting State and under consideration of the other provisions of this Convention.