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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) Dividends paid by a company which is a resident of the Federal Republic of Germany to a resident of Yugoslavia may be taxed in the Federal Republic of Germany. However the tax so charged shall not exceed 15 per cent of the gross amount of the dividends.

This paragraph shall not affect the taxation of the company in respect of the profits out of which the dividends are paid.

(2) The term "dividends" as used in this Article means:

  • (a) dividends on shares including income from shares, "jouissance" shares or "jouissance" rights, mining shares, founders' shares or other rights, not being debt-claims, participating in profits, and
  • (b) other income which is subjected to the same taxation treatment as income from shares by the laws of the Federal Republic of Germany of which the company making the distribution is a resident, and income derived by a sleeping partner from his participation as such and distributions on certificates of an investment trust.

(3) The provisions of paragraphs (1) and (2) shall not apply if the beneficial owner of the dividends, being a resident of Yugoslavia, carries on business in the Federal Republic of Germany through a permanent establishment situated therein, or performs in the Federal Republic of Germany independent personal services from a fixed base situated therein, and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 15, as the case may be, shall apply.