The 4th amendment to the Double Tax Treaty between Germany and France has now come into effect. Most of its provisions indeed became applicable on January 1, 2016.

The decree n°2016-35 publishing the 4th amendment to the Double Tax Treaty between Germany and France was issued on January 21, 2016.

The main changes to the existing rules are the following:

• The gains coming from the sale of shares of real estate companies become taxable in the State where the properties are located;

• The competent authority procedure is significantly improved: the 2 States are expected to reach an agreement on the case at hand within 3 years. Otherwise, the taxpayer bearing a double taxation may submit the dispute to arbitration;

• The assistance in the collection of taxes clause is drastically amended, extending the powers given to the State where the taxpayer is a resident to collect the taxes due in the other State;

• The exit tax provisions, applicable when an individual resident of a Contracting State becomes resident of the other State, are also modified;

• The situation of the retired individuals, who were former frontier workers, is simplified and clarified: their pensions are now taxable in the State where they are resident;

• The provisions specifically applicable to the revenues earned by artists, sportsmen and models are specified.

Read more :  http://www.legifrance.gouv.fr/eli/decret/2016/1/22/MAEJ1600918D/jo