Deutschland unterzeichnet Änderungsprotokolle zu DBAs mit Österreich und der Schweiz

On the sidelines of the meeting of German-speaking finance ministers on August 21, 2023, Germany signed amending protocols to the double taxation agreements (DTAs) with Austria and Switzerland. In addition to incorporating some points from the Multilateral Instrument (MLI) of the OECD BEPS project, the updated agreement with Austria focuses on a revision of the cross-border commuter regulations. The agreement with Switzerland focuses on adapting the protocol to the MLI and developments in the OECD Model Tax Convention.

The DTA amendment protocols implement, among other things, treaty-related measures of the BEPS project in the bilateral relationship between Germany and the two contracting states. In both documents, the preamble is adapted based on Article 6 of the Multilateral Instrument (MLI) and now includes the purpose of avoiding opportunities for non-taxation or low taxation. In addition, the extensive amendment protocol to the DTA with Switzerland, which has now been signed, introduces, among other things, a so-called principal purpose test and the obligation to make counter-adjustments to profit adjustments for affiliated companies. In addition, the method article of the DTA Switzerland makes it clear that a DTA exemption, in particular of profits from permanent establishments, does not prevent the levying of a supplementary tax as part of the global minimum tax. 

As part of the revision of the cross-border commuter regulations of the German-Austrian DTA, the two states have decided that people already meet the status of cross-border commuters if they work in the border zone and have their main residence there. Daily commuting across the border is no longer a requirement. Unlike the other innovations in the DTA, this regulation will apply from January 1, 2024.

There is no timetable yet for the legislative procedures required for domestic implementation. The amending protocols will enter into force on the day the instruments of ratification are exchanged. The amending protocols will generally be applied from 1 January of the following calendar year and, depending on how the procedure progresses, will probably not apply until 1 January 2025 at the earliest. 

The protocol amending the agreement with Austria is available on the BMF website. 

You can access the minutes directly here. 

The protocol amending the agreement with Switzerland is available on the website of the Federal Finance Directorate. 

You can access the minutes directly here.