ARTICLE 2

Taxes Covered

(1) This Agreement shall apply to taxes on income and on capital imposed on behalf of a Contracting State or a political subdivision or a local authority 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 taxes to which the Agreement shall apply are:

• (a) in Yugoslavia:
  • (i) the tax on income (porez iz dohotka);
  • (ii) the tax on a worker's personal income (porez iz licnog dohotka radnika);
  • (iii) the tax on personal income from agricultural activity (porez iz licnog dohotka od poljoprivedne delatnosti);
  • (iv) the tax on personal income from economic activity (porez iz licnog dohotka od privredne delatnosti);
  • (v) the tax on personal income from professional activity (porez iz licnog dohotka od profesionalne delatnosti);
  • (vi) the tax on royalties from copyrights, patents and technical innovations (porez iz naknada od autorskih prava, patenata i tehnickih unapredjenja);
  • (vii) the tax on revenue deriving from capital and capital rights (porez na prihod od imovine i imovinskih prava);
  • (viii) the tax on capital (porez na imovinu);
  • (ix) the tax on total revenue of citizens (porez na ukupan prihod gradjana);
  • (x) the tax on income of a foreign person engaged in economic and professional activities (porez iz dohotka stranog lica od privredne i profesionalne delatnosti);
  • (xi) the tax on profit obtained by a foreign person from his investments in a domestic organisation of associated labour (porez na dobit stranog lica po osnovu ulaganja sredstava u doma'cu organizaciju udruzenog rada);
  • (xii) the tax on revenue from transportation activity of a foreign person not having his agency in the territory of the Socialist Federal Republic of Yugoslavia (porez na prihod ostvaren od prevoznicke delatnosti stranog lica koje nema predstavnistvo na teritoriji Socijalisticke Federativne Republike Jugoslavije);
• (hereinafter referred to as "Yugoslav tax");
• (b) in the Federal Republic of Germany:
  • (i) the income tax (Einkommensteuer);
  • (ii) the corporation tax (Körperschaftsteuer);
  • (iii) the capital tax (Vermögensteuer); and
  • (iv) the trade tax (Gewerbesteuer);
• (hereinafter referred to as "German tax").

(4) The Agreement shall also apply to any identical or substantially similar taxes which are imposed after the date of signature of the Agreement in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify each other of any substantial changes which have been made in their respective taxation laws.