This Convention shall remain in force until terminated by one of the Contracting States. Either Contracting State may terminate the Convention, through diplomatic channels, by giving notice of termination at least six months before the end of any calendar year beginning after the expiry of five years from the date of entry into force of the Convention. In such event, the Convention shall cease to have effect:
a) in the United Kingdom:
aa) in respect of income tax and capital gains tax, for any year of assessment beginning on or after 6 April in the calendar year next following that in which the notice is given;
bb) in respect of corporation tax, for any financial year beginning on or after 1 April in the calendar year next following that in which the notice is given;
cc) in respect of taxes withheld at source, to income derived on or after 1 January in the calendar year next following that in which the notice is given.
b) in Germany:
aa) in the case of taxes withheld at source, in respect of amounts paid on or after 1 January of the calendar year next following that in which notice of termination is given;
bb) in the case of other taxes, in respect of taxes levied for periods beginning on or after 1 January of the calendar year next following that in which notice of termination is given;
Notice of termination shall be regarded as having been giving by a Contracting State on the date of receipt of such notice by the other Contracting State.
Done in duplicate at London on 30th March 2010 in the English and German languages, both texts being equally authoritative.
For the United Kingdom of Great Britain and Northern Ireland: Stephen Timms MP Financial Secretary to the Treasury
For the Federal Republic of Germany: His Excellency Georg Boomgarden
German Ambassador to the United Kingdom
### Protocol to the Convention between The United Kingdom of Great Britain and Northern Ireland and The Federal Republic of Germany for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and on Capital signed on 30 March 2010
The United Kingdom of Great Britain and Northern Ireland and the Federal Republic of Germany and the have in addition to the Convention of 30 March 2010 for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and on Capital agreed on the following provisions, which shall form an integral part of the said Convention:
### 1. With reference to Article 10 (Dividends)
The term ‘pension scheme’ means:
a) in the case of the United Kingdom, pension schemes (other than a social security scheme) registered under Part 4 of the Finance Act 2004, including pension funds or pension schemes arranged through insurance companies and unit trusts where the unit holders are exclusively pension schemes.
b) in the case of Germany, a ‘Altersvorsorgeeinrichtung’ that is established and regulated as such under the laws of Germany;
The competent authorities may agree to include in the above, pension schemes of identical or substantially similar economic or legal nature which are introduced by way of statute or legislation in either State after the date of signature of the Convention.
### 2. With reference to Articles 10 (Dividends) and 11 (Interest):
Notwithstanding the provisions of Articles 10 and 11 of this Convention, dividends and interest may be taxed in the Contracting States in which they arise, and according to the law of that State,
a) if they are derived from rights or debt claims carrying a right to participate in profits, including income derived by a silent partner (‘stiller Gesellschafter’) from his participation as such, or from a loan with an interest rate linked to borrower’s profit (‘partiarisches Darlehen’) or from profit sharing bonds (‘Gewinnobligationen’) within the meaning of the tax law of Germany and
b) under the condition that they are deductible in the determination of profits of the debtor of such income.
### 3. With reference to Articles 10 (Dividends), 11 (Interest) and 12 (Royalties) :
Where an enterprise of Germany derives income from the United Kingdom, and that income is attributable to a permanent establishment which that enterprise has in a third jurisdiction, the tax benefits that would otherwise apply under the other provisions of the Convention will not apply to that income if the combined tax that is actually paid with respect to such income in Germany and in the third jurisdiction is less than 60 per cent of the tax that would have been payable in Germany if the income were earned in Germany by the enterprise and were not attributable to the permanent establishment in the third jurisdiction. Any dividends, interest or royalties to which the provisions of this paragraph apply shall be subject to tax at a rate that shall not exceed 15 per cent of the gross amount thereof. Any other income to which the provisions of this paragraph apply will be subject to tax under the provisions of the domestic law of the United Kingdom, notwithstanding any other provision of the Convention. The provisions of this paragraph shall not apply if:
a) in the case of royalties, the royalties are received as compensation for the use of, or the right to use, intangible property produced or developed by the permanent establishment itself; or
b) in the case of any other income, the income derived from the United Kingdom is derived in connection with, or is incidental to, the active conduct of a trade or business carried on by the permanent establishment in the third jurisdiction (other than the business of making, managing or simply holding investments for the person’s own account, unless these activities are banking or securities activities carried on by a bank or registered securities dealer).
### 4. With reference to Article 27 (Exchange of Information):
If personal data are exchanged under the Convention, the following additional provisions shall apply:
a) A competent authority which receives information under the provisions of Article 27 shall, on request, inform the competent authority of the other Contracting State about the way in which that information was used and the results which were achieved.
b) A competent authority which supplies information under the provisions of Article 27 shall take all steps to ensure that the information is accurate, and that it is necessary for and commensurate with the purposes for which it is supplied. If a competent authority discovers that it has supplied inaccurate information, or information which should not have been supplied under the provision of the Article, it shall inform the competent authority of the other Contracting State of this without delay. The competent authority shall correct or delete that information, as appropriate.
c) Upon application the person concerned shall be informed of the exchanged information in respect of him and of the use to which such information is to be put. There shall be no obligation to furnish this information if on balance it turns out that there is an overriding public interest in withholding it. In all other respects, the right of the person concerned to be informed of the existing data relating to him shall be governed by the domestic law of the Contracting State in whose sovereign territory the application for the information is made.
d) Information exchanged under the provisions of the Article shall in any case be deleted as soon as it is no longer required for the purposes for which it was supplied.
e) The competent authorities shall keep records of the supply and receipt of information exchanged under the provision of Article 27.
f) The Contracting States shall protect information exchanged under the provisions of Article 27 against unauthorized access, alteration or disclosure.
### 5. With reference to Article 29 (Procedural Rules for Taxation at Source):
Trustees or managers of investment schemes or managing partners of partnerships established in a Contracting State may submit a claim on behalf of the investors in the scheme or partners of the partnership relating to the benefits afforded by the provisions of the Convention to the extent that these investors or partners are entitled to those benefits. The admission of any claim in whole or in part by the other Contracting State may be made subject to such conditions as that other Contracting State thinks proper to impose.
The acceptance of a claim from the trustee, the manager or the managing partner extinguishes the right of the underlying investor or partner to make a claim for the same relief.
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