PROTOCOL TO THE AGREEMENT BETWEEN THE GOVERNMENT OF THE FEDERAL REPUBLIC OF GERMANY AND THE MACEDONIAN GOVERNMENT FOR THE AVOIDANCE OF DOUBLE TAXATION WITH RESPECT TO TAXES ON INCOME AND ON CAPITAL SIGNED ON 13.07.2006
On signing the Agreement between the Government of the Federal Republic of Germany and the Macedonian Government for the Avoidance of Double Taxation with respect to Taxes on Income and on Capital, the Contracting Parties have in addition agreed on the following provisions which shall form an integral part of the said Agreement:
(1) With reference to Article 2:
Capital tax as referred to in paragraph (3)b does not include inheritance tax, gift tax and sales tax of real estate and rights.
(2) With reference to Article 7:
- (a) Where an enterprise of a Contracting Party sells goods or merchandise or carries on business in the sovereign territory of the other Contracting Party through a permanent establishment situated therein, the profits of that permanent establishment shall not be determined on the basis of the total amount received therefore by the enterprise but only on the basis of the amount which is attributable to the actual activity of the permanent establishment for such sales or business.
- (b) In the case of contracts, in particular for the survey, supply, installation or construction of industrial, commercial or scientific equipment or premises, or of public works, where the enterprise has a permanent establishment in the sovereign territory of the other Contracting Party, the profits of such permanent establishment shall not be determined on the basis of the total amount of the contract, but only on the basis of that part of the contract which is effectively carried out by the permanent establishment in the sovereign territory of the Contracting Party in which it is situated.
- Profits derived from the supply of goods to that permanent establishment or profits related to the part of the contract which is carried out in the sovereign territory of the Contracting Party in which the head office of the enterprise is situated shall be taxable only in sovereign territory of that Contracting Party.
- (c) Payments received as a consideration for technical services, including studies or surveys of a scientific, geological or technical nature, or for engineering contracts including blue prints related thereto, or for consultancy or supervisory services shall be deemed to be payments to which the provisions of Article 7 or Article 14 of the Agreement apply.
(3) With reference to Articles 10 and 11:
Notwithstanding the provisions of Article 10 and 11 of this Agreement, dividends and interest may be taxed in the sovereign territory of the Contracting Party in which they arise, and according to the law of the state of that Contracting Party:
- (a) if they are derived from rights or debt claims carrying a right to participate in profits, including income derived by a silent partner ("stiller Gesellschafter") from his participation as such, or from a loan with an interest rate linked to borrower's profit ("partiarisches Darlehen") or from profit sharing bonds ("Gewinnobligationen") within the meaning of the German tax law and
- (b) under the condition that they are deductible in the determination of profits of the debtor of such income.
(4) With reference to Article 19:
The provisions of paragraph (1) shall likewise apply in respect of remuneration paid, under a development assistance programme of the state of a Contracting Party, on the German side also of one of its Länder or of one of its political subdivisions, or a local authority thereof, out of funds exclusively supplied by that Contracting Party, on the German side also by one of its Länder or one of its political subdivisions, or local authority thereof, to a specialist or volunteer seconded to the sovereign territory of the other Contracting Party with the consent of that Contracting Party.
The provisions of paragraphs (1) and (2) shall likewise apply in respect of remuneration paid by Goethe-Institute or the German Academic Exchange Service ("Deutscher Akademischer Austauschdienst") of the Federal Republic of Germany. Corresponding treatment of the remuneration of other comparable institutions of the Contracting Parties may be arranged by the competent authorities by mutual agreement. If such remuneration is not taxed in the State where the institution was founded, the provisions of Article 15 shall apply.
(5) With reference to Article 26:
If in accordance with domestic law personal data are exchanged under this Agreement, the following additional provisions shall apply subject to the legal provisions in effect for the state of each Contracting Party:
- (a) The receiving agency may use such data only for the stated purpose and shall be subject to the conditions prescribed by the supplying agency.
- (b) The receiving agency shall on request inform the supplying agency about the use of the supplied data and the results achieved thereby.
- (c) Personal data may be supplied only to the responsible agencies. Any subsequent supply to other agencies may be effected only with the prior approval of the supplying agency.
- (d) The supplying agency shall be obliged to ensure that the data to be supplied are accurate and that they are necessary for and proportionate to the purpose for which they are supplied. Any bans on data supply prescribed under applicable domestic law shall be observed. If it emerges that inaccurate data or data which should not have been supplied have been supplied, the receiving agency shall be informed of this without delay. That agency shall be obliged to correct or erase such data.
- (e) Upon application the person concerned shall be informed of the supplied data relating to him and of the use to which such data are to be put. There shall be no obligation to furnish this information if on balance it turns out that the public interest in withholding it outweighs the interest of the person concerned in receiving it. In all other respects, the right of the person concerned to be informed of the existing data relating to him shall be governed by the domestic law of the Contracting Party in whose sovereign territory the application for the information is made.
- (f) The receiving agency shall bear liability in accordance with its domestic laws if supplied information has been revealed to an unauthorised person and any other person concerned suffers unlawful damage as a result of supply under the exchange of data pursuant to this Agreement. In relation to the damaged person, the receiving agency may not plead to its discharge that the damage had been caused by the supplying Contracting Party.
- (g) If the domestic law of the supplying agency provides for special provisions for the erasing of the personal data supplied, that agency shall inform the receiving agency accordingly. Irrespective of such law, supplied personal data shall be erased once they are no longer required for the purpose for which they were supplied.
- (h) The supplying and the receiving agencies shall be obliged to keep official records of the supply and receipt of personal data.
- (i) The supplying and the receiving agencies shall be obliged to take effective measures to protect the personal data supplied against unauthorised access, unauthorised alteration and unauthorised disclosure.