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.
ARTICLE 23
Elimination of Double Taxation
Double taxation shall be eliminated as follows:
(1) In the case of Mauritius:
- (a) Where a resident of Mauritius derives income from the Federal Republic of Germany the amount of tax on that income payable in the Federal Republic of Germany in accordance with the provisions of this Agreement may be credited against the Mauritius tax imposed on that resident,
- (b) Where a company which is a resident of the Federal Republic of Germany pays a dividend to a resident of Mauritius who controls, directly or indirectly, at least 5% of the capital of the company paying the dividend, the credit shall take into account (in addition to any German tax for which credit may be allowed under the provisions of sub-paragraph (a) of this paragraph) the German tax payable by the first-mentioned company in respect of the profits out of which such dividend is paid,
provided that any credit allowed under sub-paragraphs (a) and (b) shall not exceed the Mauritius tax (as computed before allowing any such credit), which is appropriate to the profits or income derived from sources within the Federal Republic of Germany.
(2) In the case of the Federal Republic of Germany:
- (a) Subject to the provisions of German tax law regarding credit for foreign tax, there shall be allowed as a credit against German tax payable in respect of income which, according to this Agreement, may be taxed in Mauritius, the Mauritius tax paid under the laws of Mauritius and in accordance with this Agreement.
- (b) Where in accordance with any provisions of the Agreement, income derived by a resident of the Federal Republic of Germany is exempt from tax in the Federal Republic of Germany, the Federal Republic of Germany may nevertheless in calculating the amount of tax on the remaining income of such resident, take into account the exempted income.