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Germany - Russia Tax Treaty (as amended by 2007 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 originating in one Contracting State and paid out to a person resident in the other Contracting State shall be taxed, if this person is the beneficiary, only in that other State.

(2) The term "interest" used in this Article means income from debt-claims of every kind, even when the claims are secured by mortgage on immovable property or on a share in the profits of a debtor and in particular, income from government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds, or debentures. Penalty charge for delayed payment is not to be treated as interest for the purpose of this Article.

(3) The provisions of paragraph (1) is not to be applied if a beneficial owner is resident in one Contracting State and carries out commercial activity or performs independent personal services through an established office in the other State in which the interest-paying enterprise is situated and the debt-claims for which the interests are to be paid in fact belong to permanent establishment or a fixed place of business. In such cases Article 7 or Article 14 is to be applied.

(4) Interest shall be deemed to arise in a Contracting State when the payer is that State itself, a political subdivision, a local authority, or a resident of that State. Where, however, the person paying the interest, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment in connection with which the indebtedness on which the interest is paid was incurred, then such interest shall be deemed to arise in the State in which the permanent establishment is situated.

(5) Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the interest, having regard to the debt-claim for which it is paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Agreement.