2. The term “interest” as used in this Article means income
from debt claims of every kind, whether or not secured by
mortgage, and, in particular, income from government
securities and income from bonds or debentures, including
premiums and prizes attaching to such securities, bonds or
debentures, as well as all other income that is treated as income
from money lent by the taxation law of the Contracting State in
which the income arises. Penalty charges for late payment shall
not be regarded as interest for the purposes of this Convention.
However, the term “interest” does not include income dealt with
in Article 10 (Dividends).
3. The provisions of paragraph 1 shall not apply if the
beneficial owner of the interest, being a resident of a
Contracting State, carries on business in the other Contracting
State through a permanent establishment situated therein, and
the debt claim in respect of which the interest is paid forms part
of the business property of such permanent establishment. In
such a case the provisions of Article 7 (Business Profits) shall
apply.
4. Where, by reason of a special relationship between the
payor and the beneficial owner or between both of them and
some other person, the amount of the interest, having regard to
the debt claim for which it is paid, exceeds the amount that
would have been agreed upon by the payor and the beneficial
owner in the absence of such relationship, the provisions of this
Article shall apply only to the last-mentioned amount. In such a
case the excess part of the payments shall remain taxable
according to the laws of each Contracting State, due regard
being had to the other provisions of this Convention.
5. Where a company that is a resident of a Contracting State
derives profits or income from the other Contracting State, then
that other State may not impose any tax on interest paid by the
company except insofar as such interest is paid by a permanent
establishment of such company located in that other State, or
out of income described in subparagraph b) of paragraph 9 of
Article 10 (Dividends), or insofar as such interest is paid to a
resident of that other State, or insofar as the debt claim
underlying such interest payment forms part of the business
property of a permanent establishment situated in that other
State.
6. Notwithstanding the provisions of paragraph 1, interest
that is an excess inclusion with respect to a residual interest in
a U. S. real estate mortgage investment conduit may be taxed
by the United States in accordance with its domestic law.
BGBl. 2008 II S. 611 | Included protocol entered 2007-12-28 (original publication footnote, PDF31); publication 2008-06-23; correction851 unresolved | Signed: 1989-08-29 | Gazette publication: 2008-06-23
Source form
Original official-publication PDF with native text layer; unreviewed language-separated machine transcription of that exact publication
Source scope
Exact officially published consolidation, not a privately synthesized or certified current-law text
Retrieved
2026-09-30
Text and language scope
UNREVIEWED ORIGINAL 611-PUBLICATION ONLY. Correction BGBl.2008 II S.851 is identified but its wording/incorporation is unresolved. NOT a corrected final version or current law. Printed line breaks, hyphens and PDF word spacing retained. Article14 deletion marker and Article18A conserved. Separate preamble, protocol and publication footnotes: /review/de-united-states-2008-consolidated/. No consolidation closing or signatories invented. Page references are not verified paragraph alignment.
Review status
Pending qualified human review; no wording, completeness, legal alignment or indexing approval.
Currentness
Original source edition; not a verified current-law consolidation. No current-law determination, qualified human wording/completeness review, legal alignment, or indexing approval. No exhaustive later-development check. Page links identify source pages, not verified paragraph correspondence. Original 611 publication only; Correction851 unresolved. No corrected-final-version or full-language accuracy claim. 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
Includes protocol signed 2006-06-01, entry 2007-12-28 (publication footnote4, PDF31). Separate official correction BGBl.2008 II S.851 is linked in retained BMF metadata; its wording and incorporation remain unresolved. No correction applied. 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. 2008 II S. 611 | de-united-states-2008-consolidated | BGBl. 2008 II S. 611 | Included protocol entered 2007-12-28 (original publication footnote, PDF31); publication 2008-06-23; correction851 unresolved | Signed: 1989-08-29 | Gazette publication: 2008-06-23 | Article 11 | en | Pending qualified human review; no wording, completeness, legal alignment or indexing approval. | /library/treaties/de-united-states-2008-consolidated/en/articles/article-11/
Source, edition and limits
Source edition
BGBl. 2008 II S. 611 | Included protocol entered 2007-12-28 (original publication footnote, PDF31); publication 2008-06-23; correction851 unresolved | Signed: 1989-08-29 | Gazette publication: 2008-06-23
Source form
Original official-publication PDF with native text layer; unreviewed language-separated machine transcription of that exact publication
Source scope
Exact officially published consolidation, not a privately synthesized or certified current-law text
Retrieved
2026-09-30
Text and language scope
UNREVIEWED ORIGINAL 611-PUBLICATION ONLY. Correction BGBl.2008 II S.851 is identified but its wording/incorporation is unresolved. NOT a corrected final version or current law. Printed line breaks, hyphens and PDF word spacing retained. Article14 deletion marker and Article18A conserved. Separate preamble, protocol and publication footnotes: /review/de-united-states-2008-consolidated/. No consolidation closing or signatories invented. Page references are not verified paragraph alignment.
Review status
Pending qualified human review; no wording, completeness, legal alignment or indexing approval.
Currentness
Original source edition; not a verified current-law consolidation. No current-law determination, qualified human wording/completeness review, legal alignment, or indexing approval. No exhaustive later-development check. Page links identify source pages, not verified paragraph correspondence. Original 611 publication only; Correction851 unresolved. No corrected-final-version or full-language accuracy claim. 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
Includes protocol signed 2006-06-01, entry 2007-12-28 (publication footnote4, PDF31). Separate official correction BGBl.2008 II S.851 is linked in retained BMF metadata; its wording and incorporation remain unresolved. No correction applied. 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