(1) Subject to the provisions of the laws of Australia which
relate to the allowance of a credit against Australian tax of tax
paid in a country outside Australia (which shall not affect the
general principle of this Article), German tax paid under the laws
of the Federal Republic of Germany and in accordance with
this Agreement, in respect of income derived by a resident of
Australia shall be allowed as a credit against Australian tax
payable in respect of that income.
(2) Where a resident of the Federal Republic of Germany
derives income, profits or gains which, in accordance with the
provisions of this Agreement, may be taxed in Australia or is
exempt from Australian tax under paragraph 3 of Article 10,
German tax shall be determined as follows:
a) Except as provided in subparagraph c), the income, profits
or gains shall be excluded from the basis upon which Ger-
man tax is imposed. In the case of dividends, this applies
only to such dividends as are paid to a company (not includ-
ing a partnership) resident in the Federal Republic of Ger-
many by a company resident in Australia at least 10 percent
of the voting power of which is owned directly by the
company resident in the Federal Republic of Germany. The
exemption from the basis provided by the first sentence of
this subparagraph shall not apply to dividends paid by a tax
exempt company or to dividends that the distributing com-
pany may deduct for Australian tax purposes or for dividends
that are attributed under the law of the Federal Republic of
Germany to a person that is not a company resident in the
Federal Republic of Germany.
b) The Federal Republic of Germany retains the right to take into
account in the determination of its rate of tax the items of
income, profits or gains which under the provisions of this
Agreement are exempted from German tax.
c) With respect to the following items of income, there shall be
allowed as a credit against German tax on income, subject
to the provisions of German tax law regarding credit for for-
eign tax, the Australian tax paid in accordance with Australian
law and with the provisions of this Agreement on the follow-
ing items of income:
i)
dividends within the meaning of Article 10 to which sub-
paragraph a) does not apply;
ii) interest;
iii) royalties;
iv) income, profits or gains to which paragraph 4 of Article 13
applies;
v) income to which Articles 15 and 16 apply;
vi) income to which paragraphs 2 and 3 of Article 17 apply;
vii) income to which paragraph 3 of Article 20 applies.
For the purposes of application of this subparagraph c), items
of income of a resident of the Federal Republic of Germany
that, under this Agreement, may be taxed in Australia shall
be deemed to be income from sources within Australia.
d) The provisions of subparagraph a) are to be applied to profits
within the meaning of Article 7, dividends within the meaning
of Article 10 and to income, profits or gains from the alien-
ation of property within the meaning of paragraph 2 of Arti-
cle 13 only to the extent that the items of income, profits or
gains were derived from the production, processing, working
or assembling of goods and merchandise, the exploration
and extraction of natural resources, banking and insurance,
trade or the rendering of services or if the items of income,
profits or gains are economically attributable to these activi-
ties. This applies only if a business undertaking that is ade-
quately equipped for its business purpose exists, except
where profits may be taxed in Australia pursuant to para-
graph 6 of Article 7. If subparagraph a) is not to be applied,
double taxation shall be eliminated by means of a tax credit
as provided for in subparagraph c).
e) Notwithstanding subparagraph a), double taxation shall be
eliminated by a tax credit as provided for in subparagraph c), if
i)
Australia may, under the provisions of the Agreement, tax
items of income, profits or gains, or elements thereof, but
does not actually do so;
ii) after consultation, the Federal Republic of Germany
notifies Australia through diplomatic channels of items of
income, profits or gains, or elements thereof, to which it
intends to apply the provisions on tax credit under sub-
paragraph c). Double taxation is then eliminated for the
notified items of income, profits or gains, or elements
thereof, by allowing a tax credit from the first day of the
calendar year following that in which the notification was
made.
(3) If in the Contracting States items of income, profits or
gains, or elements thereof,
a) are placed, due to differences in their domestic laws, under
different provisions of this Agreement and if, as a conse-
quence of this different placement such income, profits or
gains would be subject to double taxation and this conflict
cannot be resolved by a procedure pursuant to paragraphs
2 or 3 of Article 25, the State of which the person is a resident
shall avoid such double taxation by allowing a tax credit
following the procedures laid down in this Article;
b) are placed under different provisions of this Agreement and
if, as a consequence of this different placement such income,
profits or gains would be subject to non-taxation or lower
taxation than without this conflict, the State of which the per-
son is a resident shall not be obliged to exempt such income,
profits or gains, or, in the case of lower taxation only, that
State shall allow a tax credit, following the procedures laid
down in this Article in respect of such income, profits or
gains.
de-australia-2016-base | BGBl. 2016 II S. 1114 | Signed: 2015-11-12 | Gazette publication: 2016-10-17
Source form
official-publication PDF with native text layer; reader is a machine transcription
Source scope
original implementing law, bilingual base treaty and accompanying protocol; not a current consolidated text
Retrieved
2026-09-30
Text and language scope
German and English versions are present in the source and are identified by the signing clause. Unreviewed coordinate-based machine transcription of this original source edition only. Printed line breaks, hyphens and uncertain token spacing are retained, not silently corrected. Treaty preamble, closing formula, protocol and shared signatures are separate retained assets, not part of the last article. Full supplements: /review/de-australia-2016-base/. PDF page links identify pages, not verified paragraph correspondence.
Review status
Pending human wording, completeness, source-authority, currentness, alignment and rendering review. No legal review performed.
Currentness
Original source edition; not a verified current-law consolidation. Unknown. No current-law consolidation, effective-period determination, MLI application, or complete amendment-chain verification has been performed. Original publication year is not a current applicability date. Bounded agent triage, no qualified wording/alignment/legal review. No exhaustive verification of all later 2026 developments. Matching digest proves retained source identity, not legal force.
Protocols and later instruments
The protocol printed with this agreement is separately preserved in source supplements; it has not been merged into treaty articles. Subsequent protocols, amendments, MLI effects, replacements and suspensions are unresolved. This is not a consolidated current-law instrument. Source-triage warnings: Bounded agent triage, no qualified wording/alignment/legal review. No exhaustive verification of all later 2026 developments. Matching digest proves retained source identity, not legal force.
Text language and status
en · authentic-language-transcription · machine-transcription
BGBl. 2016 II S. 1114 | de-australia-2016-base | de-australia-2016-base | BGBl. 2016 II S. 1114 | Signed: 2015-11-12 | Gazette publication: 2016-10-17 | Article 22 | en | Pending human wording, completeness, source-authority, currentness, alignment and rendering review. No legal review performed. | /library/treaties/de-australia-2016-base/en/articles/article-22/
Source, edition and limits
Source edition
de-australia-2016-base | BGBl. 2016 II S. 1114 | Signed: 2015-11-12 | Gazette publication: 2016-10-17
Source form
official-publication PDF with native text layer; reader is a machine transcription
Source scope
original implementing law, bilingual base treaty and accompanying protocol; not a current consolidated text
Retrieved
2026-09-30
Text and language scope
German and English versions are present in the source and are identified by the signing clause. Unreviewed coordinate-based machine transcription of this original source edition only. Printed line breaks, hyphens and uncertain token spacing are retained, not silently corrected. Treaty preamble, closing formula, protocol and shared signatures are separate retained assets, not part of the last article. Full supplements: /review/de-australia-2016-base/. PDF page links identify pages, not verified paragraph correspondence.
Review status
Pending human wording, completeness, source-authority, currentness, alignment and rendering review. No legal review performed.
Currentness
Original source edition; not a verified current-law consolidation. Unknown. No current-law consolidation, effective-period determination, MLI application, or complete amendment-chain verification has been performed. Original publication year is not a current applicability date. Bounded agent triage, no qualified wording/alignment/legal review. No exhaustive verification of all later 2026 developments. Matching digest proves retained source identity, not legal force.
Protocols and later instruments
The protocol printed with this agreement is separately preserved in source supplements; it has not been merged into treaty articles. Subsequent protocols, amendments, MLI effects, replacements and suspensions are unresolved. This is not a consolidated current-law instrument. Source-triage warnings: Bounded agent triage, no qualified wording/alignment/legal review. No exhaustive verification of all later 2026 developments. Matching digest proves retained source identity, not legal force.
Text language and status
en · authentic-language-transcription · machine-transcription