The Federal Republic of Germany and Trinidad and Tobago,
Have agreed at the Signing at Port-of-Spain on April 4th, 1973 of the Agreement between the two States for the Avoidance of Double Taxation with Respect to Taxes on Income and for the Encouragement of International Trade and Investment upon the following provisions which shall form an integral part of the said Agreement.
(1) With reference to Articles 6 to 21:
- (a) where, under any provision of Articles 6 to 21 of the Agreement, income derived from a Contracting State, except interest to which paragraph (3) of Article 11 applies, is relieved from tax in that State and, under the law in force in the other Contracting State, such income is subject to tax by reference to the amount thereof which is remitted to or received in that other State, then the relief to be allowed under this Agreement in the first-mentioned State shall apply only to so much of the income as is remitted to or received in the other State;
- (b) the provisions of Articles 6 to 21 of the Agreement shall apply to any item of income derived from the Federal Republic of Germany by a company or partnership which is a resident of Trinidad and Tobago more than 25 per cent of the capital of which is held, directly or indirectly, by persons who are not residents of Trinidad and Tobago, only if the company or partnership proves that the income of such company or partnership is subject to Trinidad and Tobago tax and the tax appropriate thereon is equal to the Trinidad and Tobago tax payable on such income under general Trinidad and Tobago tax law.
(2) With reference to Article 7:
If an enterprise of a Contracting State, which has a permanent establishment in the other Contracting State, sells goods or merchandise of the same or similar kind as those sold by the permanent establishment, or renders services of the same or similar kind as those rendered by the permanent establishment, the profits of such activities may be attributed to the permanent establishment unless the enterprise proves that such sales or services are not attributable to the activity of the permanent establishment.
(3) With reference to Article 11:
Any provision of Trinidad and Tobago law having the effect or requiring interest paid to be treated as a distribution by the Trinidad and Tobago corporation shall apply to interest paid to a resident of the Federal Republic of Germany only to the extent that the tax payer is unable to demonstrate to the satisfaction of the taxing authorities of Trinidad and Tobago that the investment giving rise to the interest (and its denomination as indebtedness) did not have as its purpose the avoidance of Trinidad and Tobago tax.
(4) With reference to paragraph (4) of Article 14:
Where, owing to a special relationship between the payer and the recipient or between both of them and some other person, the amount of payments made exceeds the amount which would have been agreed upon by the payer and the recipient in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In that case, the excess part of the payment shall remain taxable according to the law of each Contracting State, due regard being had to the other provisions of this Agreement.
(5) With reference to Article 22:
Notwithstanding the provisions of sub-paragraph (a) of paragraph (1), the provisions of sub-paragraph (b) of paragraph (1) shall likewise apply:
- (a) to the profits of a permanent establishment, or to gains referred to in paragraph (2) of Article 13 of the Agreement, provided that the resident of the Federal Republic of Germany concerned is unable to prove that the receipts of the permanent establishment are derived exclusively or almost exclusively from producing or selling tangible property, mining, giving technical advice or rendering engineering services, or doing banking or insurance business, within Trinidad and Tobago;
- (b) to dividends paid by, and to the shareholding in, a company if, but for this Agreement, under German tax law there would not be allowed as a credit in addition to any Trinidad and Tobago tax on dividends the Trinidad and Tobago corporation tax payable in respect of its profits, if any, by such company.