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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) Royalty that originates in a Contracting State and is paid to a person residing in the other Contracting State can be taxed in this other State provided the recipient is the beneficial owner of the royalties.

(2) The expression "royalties" used in this Article means compensation of every type that is made for the use or for the right to use copyright  of a literary, artistic or scientific nature, inclusive of cinematographic films, recordings on tape or recording on radio or television, any patent, trademark, design, or model plans, secret formulae or processes, or for the use or the right to use of industrial, commercial, or scientific equipments or for the information of industrial, commercial, or scientific experience.

(3) The provisions of this Article are also applicable to payments made for technical services offered if these services are in connection with the marketing of merchandise or equipments or the licensing of rights or the communication of information to which paragraph (2) applies.

(4) Paragraph (1) does not apply if the beneficial owner entitled to receive royalty is resident in one Contracting State and carries out commercial activity through a permanent establishment or performs independent personal services through a fixed place of business in the other Contracting State from where the royalty originates and the rights or the assets for which the royalty is to be paid in fact belongs to such permanent establishment or to fixed base. In such a case Article 7 or Article 14 shall be applied.

(5) Royalty shall be deemed to originate from one Contracting State if the debtor is this State itself, a political sub-division, a local authority, a person resident in this State. However, if the person paying the royalty, whether or not he is a resident of a Contracting State, has a permanent establishment or a fixed base in connection with which the liability to pay the royalties was incurred, and such royalties are borne by such permanent establishment or fixed base, then such royalties shall be deemed to arise in the State in which the permanent establishment or fixed base is situated.

(6) 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 royalties, having regard to the use, right, or information for which they are 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.