Double Taxation Agreement Germany Belgium

The agreements with Germany, Luxembourg and the Netherlands have been extended until 31 August 2020. This page provides information on German double taxation conventions and other country-specific publications on double taxation conventions. You can view the original texts via our German website. Travel restrictions imposed by COVID 19 will run the risk of their labour income becoming fully taxable in their country of residence. Reciprocal agreements with France, Germany, Luxembourg and the Netherlands protect border workers from the tax disadvantages of working at home. Workdays from home are treated as working days in the country where the person would normally have worked. This means that, despite working from home, income from work can continue to be taxable in a normal state of employment. Through its tax law, Germany intends to avoid both double taxation and double non-taxation of individuals and businesses. Everyone must pay their fair share of the tax in their place of residence or in the place where they operate. Belgium`s previous agreements with France, Germany, Luxembourg and the Netherlands to prevent border workers from being affected by the COVID 19 pandemic have been extended until 31 August. The days a person worked at home during the COVID 19 pandemic are considered days spent in the country where the worker would normally have worked under certain circumstances. International tax law includes all legal provisions that include foreign-related tax matters. These include internal tax laws in Germany, such as the Income Tax Act and the Tax Law, as well as double taxation agreements that Germany has entered into with other countries.

Where there is a double taxation agreement (TD), double taxation is generally avoided by exempting foreign income with increase. Foreign income tax can only be cross-referenced with German income tax if a tax credit is granted in the applicable DTT or if there is no DTT.