Stellungnahme der Bundessteuerberaterkammer zu dem Entwurf der Tax Treaties, Transfer Pricing and Financial Transactions zur OECD MODEL TAX CONVENTION: Tax Treaty Treatment of Termination Payments


Dear Madam/Sir,

Please find enclosed our comments regarding the OECD MODEL TAX CONVENTION: Tax Treaty Treatment of Termination Payments.

The Federal Chamber of Tax Advisers represents the interests of more than 91.000 tax advisers in Germany vis-à-vis the Bundestag, the Bundesrat, the federal ministries, the top echelons of the civil service, the courts and the institutions of the EU and OECD.

The main duties of the Federal Chamber of Tax Advisers are to represent the entire profession at national and international level, to participate in the drafting of the laws of the profession and in consultations on tax laws and laws in all other legislative areas of the profession.

Yours sincerely

Bettina Bethge
stellv. Hauptgeschäftsführerin



OECD MODEL TAX CONVENTION: Tax Treaty Treatment  of Termination Payments


Being an obstacle for individuals, enterprises and their tax advisers in their daily practice, we welcome the OECDs tackling the problems of “Tax Treaty Treatment of Termination Payments”.

For instance in 2006 Belgium and Germany signed a supplementary agreement to their Double Tax Treaty regarding these questions.

We support every measure to prohibit double taxation and encourage mutual agreement and arbitration procedures.

Please find below our remarks.

Paragraph 2.3

We recommend adding an example to explain these payments.
What does the expression mean: “... real consideration for each such payment…”?

Paragraph 2.4

Problems regarding the allocation of payments may occur if the remuneration is paid for former management activities for the parent company and subsidiaries in different countries.

Paragraph 2.5

Adding more examples would be helpful.

Paragraph 2.6

…” The remuneration received in such a case should be considered to be derived from the State where it is reasonable to assume that the employee would have worked during the period of notice,…”
What does the expression “ reasonable to assume” mean?
We recommend adding an explanation.

Paragraph 2.9

Another example may be helpful to explain the different treatment of various types of non-competition payments.

Paragraph 2.11

As above mentioned we welcome every relief from double taxation.

Paragraph 2.12

We recommend an example to enlighten this paragraph.

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