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.
Low tax country
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