Tax on foreign income

104 posts in this topic

16 minutes ago, NG1010 said:

But the double taxation agreement says this in Article X:

‚Capital gains arising from the sale, exchange or transfer of a capital asset, whether movable or immovable, may be taxed in the territory in which the capital asset is situtated at the time of such sale, exchange or transfer. For this purpose the situs of the shares of a company shall be deemed to be in the territory where the company is incorporated.‘

https://mea.gov.in/bilateral-documents.htm?dtl/6036/Agreement+for+avoidance+of+Double+Taxation

 

what am I missing? Please advise?

 

You are looking at the old DTA from 1959.

Look at the new one from 1996: https://www.bundesfinanzministerium.de/Content/DE/Standardartikel/Themen/Steuern/Internationales_Steuerrecht/Staatenbezogene_Informationen/Laender_A_Z/Indien/1996-05-06-Indien-Abkommen-DBA-Gesetz.pdf?__blob=publicationFile&v=3

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17 minutes ago, PandaMunich said:

Ah, thanks!

Even this one says in Article 13 on Capital Gains something similar, right?

65C065B7-B76D-4CAE-8728-9739F501AC87.jpe

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1 hour ago, NG1010 said:

Ah, thanks!

Even this one says in Article 13 on Capital Gains something similar, right?

65C065B7-B76D-4CAE-8728-9739F501AC87.jpe

 

And now please read article 23 (1) b.) iv) of the DTA, that's a tax credit clause.

 

--> You have to declare the profit you made selling stock in an Indian company, i.e. of one that is resident in India (residency is defined in article 4 of the DTA), in your German tax return.

The avoidance of double taxation will in this instance be done by reducing the German tax on the profit you made selling the Indian stock by the Indian tax you already paid on it.

 

--> you always have to declare your entire Indian capital income in your German tax return.

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Understood, thanks a lot. Declaring the income was not a question at all, but just wanted to understand if it will be only for Progression purposes or really tax / difference in tax to be paid.

Clear now :-)

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