Which documents are required to benefit from a double taxation agreement?
August 12, 2022 | 120,00 EUR | answered by Yvonne Schreiber
Dear tax advisor,
I have a question regarding double taxation agreements. My name is Wilhelm Kohlstein and I am a German citizen living and working in the United States. In my current situation, I am being taxed in both the US and Germany, leading to double taxation. I have already researched some information about double taxation agreements and learned that these agreements are designed to avoid double taxation and only pay taxes in one of the countries involved.
My question concerns the documents needed to benefit from a double taxation agreement. I have already contacted the tax authorities in the US and Germany, but I have not been given clear information on what documents I need to submit in order to benefit from the advantages of the agreement. I am concerned that I may have overlooked or misinterpreted important documents, which could result in me continuing to be double taxed.
Could you please explain in detail what specific documents I need to benefit from a double taxation agreement? I would like to ensure that I prepare all the necessary documents correctly to avoid double taxation and optimize my tax situation.
Thank you in advance for your assistance.
Sincerely,
Wilhelm Kohlstein
Dear Mr. Kohlstein,
Thank you for your question regarding double taxation agreements. It is understandable that you are worried if you are not sure which documents you need for the application of the agreement. I will therefore explain in detail which specific documents are required in your situation.
First of all, it is important to know that double taxation agreements are usually concluded between two countries to avoid income or assets being taxed twice. In your case, as a German citizen living and working in the USA, this concerns the double taxation agreement between the USA and Germany.
To benefit from this agreement, you usually need to provide a so-called residency certificate. This certificate is used to prove that you are tax resident in one of the two countries and therefore have the right to be taxed according to the provisions of the double taxation agreement. In your case, you need to prove that you are resident in the USA.
Possible documents that you could submit as proof of residency include a certificate of residence in the USA, proof of your work there, bank statements from a US bank account, or a registration certificate from US authorities. It is important that these documents are current and meaningful to make your residency in the USA credible.
Additionally, you could also submit a tax return in the USA to disclose your income and taxes in this country. This can also help facilitate the application of the double taxation agreement.
It is advisable to consult a tax advisor specializing in international tax matters. They can assist you in selecting the right documents and ensure that you prepare all necessary documents correctly.
I hope this information helps you and wish you success in optimizing your tax situation.
Sincerely,
Yvonne Schreiber
