The term “international tax law” means legislation that regulates the tax treatment of foreign-related matters. They include, for example, the assessment of residence and management, the treatment of dividend payments across national borders and the migration of taxpayers to low-tax countries. The most important legal bases of this international tax law are distributed across various laws and regulations. Double taxation agreements concluded by the Federal Republic of Germany with other states also play an important role.
International tax law is a special field of national legislation. The individual legal bases of international tax law are intended to ensure, among other things, that a double taxation of income is avoided. At the same time, the legislator wants to ensure with certain regulations that the German tax substrate (for example, companies and real estate) is also taxed where the entrepreneur has benefited from the local infrastructure.
Numerous regulations are distributed through national tax laws, such as the Income and Corporate Tax Act. Special standards with exclusive reference to cross-border situations can be found in the Foreign Tax Act (AStG). Double taxation agreements also have a majority international character, but at the same time provide for national taxation rights.
National legal bases of international tax law are distributed over almost all tax laws. They differ from EU law in that they are not necessarily the transposition of a directive, but have been introduced by the German legislature as protectionist measures. Either the tax claim of the Treasury or the assets or the tax burden of the taxpayer is protected.
Examples of national laws governing international issues are:
This article does not replace tax or legal advice in an individual case. Facts, current law, jurisdiction, documentation and implementation remain decisive.