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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.


The Federal Republic of Germany and the Russian Federation have, on the occasion of signing of the Agreement between both the States for the avoidance of double taxation in the area of income and capital on 29th May, 1996 in Moscow have agreed upon the following provisions that constitutes a part of the Agreement:

(1) Ad Article 2:

There is an understanding that this Agreement shall be applied to taxes listed in Article 2 that are levied at the national, regional or local levels.

(2) Ad Article 7:

  • (a) Only such profits may be attributed to a construction activity or an assembly in one Contracting State in which the permanent business is situated which is a result of this activity itself. Profits that result from supply of goods by principal permanent establishment or some other permanent establishment of the enterprise or by a third person connected to this activity or independent there from cannot be attributed to the construction activity or the assembly project.
  • (b) Income of a person resident in one Contracting State that are attributed to services in the fields of planning, engineering, construction or research as well as technical services that the person performs in this Contracting State and is connected to a permanent establishment maintained in the other Contracting State will not be  attributed to that permanent establishment.

(3) Ad the Articles 7 and 9:

It is agreed that interest paid out by a company resident in one Contracting State, in which a person resident in the other Contracting State has an interest, independent of the fact whether this interest is paid to a bank or to another person, and regardless of the term of the loan for the determination of taxable profits of this corporation in the first-mentioned State, is fully deductible. However, this deduction shall not exceed that amount that independent enterprises would agree upon with one another under similar conditions. Similarly the same applies to the costs of advertising. This provision shall apply also to interest and cost of advertisement paid by a permanent establishment.

*(4) Ad Article 10:

The term "dividends" shall also mean disbursements regarding fund units in an investment asset and also, on the part of the Federal Republic of Germany, income derived by a silent partner from his or her holding as a silent partner.

(5) Ad Articles 10 and 11:

Notwithstanding of the provisions of Article 1, income that originates from out of one Contracting State may be taxed according to the laws of that State, provided,

  • (a) it is based on the rights and debt-claims with profit-sharing (inclusive of income of a silent partner in respect of  its holding or the income form loan with profit  participation in accordance to the tax laws of Federal Republic of Germany), and
  • (b) in determining the profits of a debtor, this income is deductible.

(6) Ad Article 15:

There exists an understanding that regardless of the provisions of Article 15, remuneration that is paid from out of public funds of the Federal Republic of Germany to a worker of Goethe Institute or German Academic Exchange Service deputed to the Russian Federation may be taxed only in the Federal Republic of Germany. If such remuneration is not taxed there, in that event, Article 15 applies. The competent authorities may agree to a similar application of the present provision regarding remuneration that is made to persons who are delegated by similar institutions of the Contracting States. The preceding provisions shall apply similarly to remuneration paid in connection with relief programs of the Federal Republic of Germany, one of its states, political subdivisions, or local authorities exclusively from the funds of the Federal Republic of Germany or the relevant state, political subdivision, or local authority to persons who have been delegated to the Russian Federation, providing that such programs have been agreed upon with the relevant Russian authorities on a government, administrative, or autonomous local level.

(7) Ad Article 25:

  • (a) Both the Contracting States have agreed that an application of Article 24 takes place also with taxes that is not included under Article 2, and that any problems hereto are to be resolved according to the process mentioned under article 25.
  • (b) Each Contracting State shall create a procedure to ensure that with respect to income which in accordance to the provisions of Articles 10, 11 and 12 is not subject to any tax or is subject to a reduced tax only in the source State, the payment can be made without or only with the tax deduction which is provided for in the Agreement. If with respect to payments made as aforesaid a higher tax has been withheld than provided for in this Agreement, the difference shall be refunded within one year of receipt of the necessary application.