Switch-over clause

Die Switch-over-Klausel wird neben der Subjekt-to-Tax-Klausel und Aktivitätsklausel regelmäßig in den neuen deutschen Steuerabkommen vereinbart (vgl. z. B. Schlussprotokoll Nr. 5 DBA-Venezuela 1995). Sie bewirkt, dass die Exemption method zur Vermeidung der Double taxation unter einen Vorbehalt gestellt wird.
Instead of the exemption method, the credit method is used if a different income allocation leads to a qualification conflict that cannot be resolved in the mutual agreement procedure and this qualification conflict would result in non-taxation or low taxation (reduced taxation). The change in method was agreed for the first time in the tax agreement with the USA in 1989 (see Final Protocol No. 21 DBA-USA 1989).

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