signed a treaty for the avoidance of double taxation
in 1982. The agreement provides the legal framework for the taxation of income
and property taxes
applicable to the tax residents
of the two states. Finnish businessmen operating a company in Germany
can benefit from the provisions of the treaty
related to the taxation of corporate income
. Businessmen and other persons interested in the provisions of the Germany – Finland double tax agreement (DTA)
can address to our German law firm
for legal assistance.
Taxes under the German – Finnish DTA
The main subject of the German – Finnish DTA
refers to the taxes
which are applicable to the tax residents
of a country performing taxable activities
in the other country. In this sense, the representatives of the two states have agreed upon a set of taxes
In Finland, the local authorities will apply the next taxes to the German tax residents:
• the state income;
• capital tax;
• the municipal income tax;
• the church tax.
Finnish natural persons
and legal entities
operating taxable activities in Germany
are imposed under the following taxation scheme
• the income tax;
• the property tax;
• the business tax.
is applicable to similar taxes
available in the two jurisdictions, but the differences may appear from the legislation available in each state. In the situation in which one of the contracting states may impose a new tax
, it is compulsory for its representatives to announce the modification to the relevant authorities in the other state. Our German law firm
can provide more details on the way in which the above mentioned taxes
are imposed here.
Taxation applicable to immovable property in Germany
According to the provisions of the treaty, the income obtained from an immovable property in Germany will be taxed in Germany. Article 6 prescribes that immovable property includes establishments set up in agriculture and forestry.
The taxation is also applicable in the situation in which the immovable property is rented.