Low tax country

In the global Tax competition The states try to stimulate investments in their own country through favorable tax framework conditions. In order to avoid tax havens in particular, the - Foreign Tax Act defines low-tax countries. If the income tax for a natural person with an income of € 77,000 is more than a third lower than in Germany in another country, a person resident there (who has emigrated to there) is still subject to the extended restricted in Germany for a period of ten years Tax liability (Section 2 AStG), if she was subject to unlimited taxation for at least five years in the last ten years before the end of unlimited tax liability.