a) in the Federal Republic of Germany:
the Einkommensteuer (income tax) including the Erganzungsabgabe (surcharge) thereon,
the Korperschaftsteuer (corporation tax) including the Erganzungsabgabe (surcharge) thereon,
the Vermogensteuer (capital tax), and
the Gewerbesteuer (trade tax)
(hereinafter referred to as "Federal Republic tax");
(b) in the United Kingdom of Great Britain and Northern Ireland:
the income tax (including surtax),
the corporation tax, and
the capital gains tax
(hereinafter referred to as "United Kingdom tax"). 

aa) he shall be deemed to be a resident of the territory in which he has a permanent home available to him. If he has a permanent home available to him in both territories, he shall be deemed to be a resident of the territory with which his personal and economic relations are closest (hereinafter referred to as his centre of vital interests); 
bb) if the territory in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to him in either territory, he shall be deemed to be a resident of the territory in which he has an habitual abode; 
cc) if he has an habitual abode in both territories or in neither of them, he shall be deemed to be a resident of the territory of the Contracting State of which he is a national; 
dd) if he is a national of both Contracting States or of neither of them, the taxation authorities of the Contracting States shall determine the question by mutual agreement; 

aa) a place of management;
bb) a branch;
cc) an office;
dd) a factory;
ee) a workshop;
ff) a mine, quarry or other place of extraction of natural resources;
gg) a building site or construction or assembly project which exists for more than twelve months;

aa) the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise;
bb) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery;
cc) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise;
dd) the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise, or for collecting information, for the enterprise;
ee) the maintenance of a fixed place of business solely for the purpose of advertising, for the supply of information, for scientific research or for similar activities which have a preparatory or auxiliary character, for the enterprise;

2) Where under any provision of this Convention income from a source in one of the territories is relieved from tax in that territory if it is subject to tax in the other territory, and, under the law in force in that other territory, the said income is subject to tax by reference to the amount thereof which is remitted to or received in that other territory and not by reference to the full amount thereof, then the relief to be allowed under this Convention in the first-mentioned territory shall apply only to so much of the income as is remitted to or received in the other territory.

3) In the application of the provisions of the present Convention by one of the Contracting Parties any term not otherwise defined in the present Convention shall, unless the context otherwise requires, have the meaning which it has under the laws in force in the territory of that Party relating to the taxes which are the subject of the present Convention. 

2) The share of the industrial or commercial profits of an undertaking accruing to a partner therein who is a resident of one of the territories shall likewise be subjected to tax only in that territory unless the undertaking carries on a trade or business in the other territory through a permanent establishment situated therein. If it carries on a trade or business in that other territory through a permanent establishment situated therein tax may be imposed in the other territory on the share of the profits accruing to that partner, but only on so much as represents his share of the profits attributable to the permanent establishment.

3) Where an enterprise of one of the territories carries on a trade or business in the other territory through a permanent establishment situated therein, there shall be attributed to that permanent establishment the industrial or commercial profits which it might be expected to derive in that other territory if it were an independent enterprise engaged in the same or similar activities under the same or similar conditions and dealing at arm's length with the enterprise of which it is a permanent establishment.

4) No portion of any profits arising to an enterprise of one of the territories shall be attributed to a permanent establishment situated in the other territory by reason of the mere purchase of goods or merchandise within that other territory by the enterprise. 

5) Paragraphs (1) and (2) of this Article shall not be construed as preventing one of the Contracting Parties from imposing pursuant to this Convention tax on dividends or income from immovable property derived from sources within its territory by a resident of the other territory even if such dividends or income are not attributable to a permanent establishment in the first-mentioned territory.

6) Paragraphs (1) and (2) of this Article shall likewise apply in respect of the Gewerbesteuer (trade tax) computed on a basis other than industrial or commercial profits. 

2) Paragraph (1) of this Article shall likewise apply in respect of the Gewerbesteuer (trade tax) computed on a basis other than profits. 

2) Notwithstanding the provisions of paragraph (1) of this Article Federal Republic tax on dividends paid to a company resident in the United Kingdom by a company resident in the Federal Republic at least 25 per cent of the voting shares of which are owned directly or indirectly by the former company may be charged at a rate exceeding 15 per cent but not exceeding 25 per cent if the rate of Federal Republic corporation tax on distributed profits is lower than that on undistributed profits, and the difference between those two rates is 28 per cent or more; where the difference between the two rates is 20 per cent or more but less than 28 per cent Federal Republic tax on such dividends may be charged at a rate exceeding 15 per cent but not exceeding 20 per cent 

3) Where a company which is a resident of one of the territories derives profits or income from sources within the other territory, there shall not be imposed in that other territory any form of taxation on dividends paid by the company to persons not resident in that other territory, or any tax in the nature of an undistributed profits tax on undistributed profits of the company, whether or not those profits represent, in whole or in part, profits or income so derived.

4) The term "dividends" as used in this Article means income from shares, jouissance shares or jouissance rights, mining shares, founders' shares or other rights, not being debt-claims, participating in profits, as well as income from other corporate rights assimilated to income from shares by the taxation law of the territory of which the company making the distribution is a resident; in the case of the United Kingdom, the term includes any item (other than interest or royalties exempt from the United Kingdom tax under the provisions of Article VII of this Convention) which under the law of the United Kingdom is treated as a distribution of a company; in a case of the Federal Republic the term includes income arising from participation in the capital and profits of a company resident in the Federal Republic, and the income derived by a sleeping partner from his participation as such.

5) Paragraphs (1) and (2) of this Article shall not apply where a resident of one of the territories carries on a trade or business in the other territory through a permanent establishment situated therein, and such dividends are attributable to that permanent establishment; in such event the dividends may be subjected to tax in the territory where the permanent establishment is situated.

6) If the recipient of dividends is a company and if those dividends are exempt from tax in the territory of which that company is a resident, the provisions of the second sentence of paragraph (1) and the provisions of paragraph (2) of this Article shall not apply to the dividends to the extent that they can have been paid only out of income which accrued to the company paying the dividends in a period ending twelve months or more before the said recipient acquired the shares in respect of which the dividends are paid. Provided that this paragraph shall not apply if the shares were not acquired primarily for the purpose of securing the benefit of this Article. 

2) In this Article-

a) the term "interest" includes interest on bonds, securities, notes, debentures or on any other form of indebtedness; 
b) the term "royalty" means any royalty or other amount paid as consideration for the use of, or for the privilege of using, any copyright of literary, artistic or scientific work, patent, design, model, plan, secret process or formula, trade mark or other like property, but does not include any royalty or other amount paid in respect of the operation of a mine or quarry or of any other extraction of natural resources or a rent or royalty paid in respect of cinematograph films. There shall be treated as royalties all rents and similar payments received as consideration for the use of, or the privilege of using, industrial, commercial or scientific equipment, and for the supply of information concerning industrial, commercial or scientific experience. 

4) Any payment received as consideration for the alienation of any property or rights mentioned in paragraph (2) of this Article, derived from sources within one of the territories by a resident of the other territory who is subject to tax in that other territory in respect thereof, shall be subjected to tax only in that other territory. 

5) Paragraphs (1) and (4) of this Article shall not apply where a resident of one of the territories carries on a trade or business in the other territory through a permanent establishment situated therein and such interest, royalty or other payment is attributable to that permanent establishment; in such event the interest, royalty or other payment may be subjected to tax in the territory where the permanent establishment is situated.

6) Any provision in the law of either of the territories which relates only to interest paid to a non-resident company or only to royalties so paid shall not operate so as to require interest or royalties paid to a company which is a resident of the other territory to be left out of account as a deduction in computing the taxable profits of the company paying the interest or royalties, unless the debt-claim in respect of which the interest is paid, or the right or property giving rise to the royalties, as the case may be, was created or assigned mainly for the purpose of taking advantage of this paragraph and not for bona fide commercial reasons. 

2) Capital gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of one of the territories has in the other territory or of movable property pertaining to a fixed base available to a resident of one of the territories in the other territory for the purpose of performing professional services, including such gains from the alienation of such a permanent establishment (alone or together with the whole enterprise) or of such a fixed base, may be taxed in the other territory. However, gains from the alienation of movable property of the kind referred to in paragraph (3) of Article XVI shall be taxable only in the territory in which such movable property is taxable according to the said Article.

3) Capital gains from the alienation of any property other than those mentioned in paragraphs (1) and (2) of this Article, shall be taxable only in the territory of which the alienator is a resident. Provided that this paragraph shall not affect the liability to United Kingdom tax on such gains of individuals who remain ordinarily resident in the United Kingdom and who are not subject to tax in the Federal Republic in respect of those gains. 

2) Remuneration, including pensions, paid, in respect of present or past services or work, out of public funds of the Federal Republic or its Lander or political sub-divisions thereof shall be exempt from United Kingdom tax unless the payment is made to a national of the United Kingdom who is not also a German national.

3) The provisions of paragraphs (1) and (2) of this Article shall not apply to payments in respect of services rendered or work done in connection with any trade or business carried on for purposes of profit. 

2) Any pension (other than a pension of the kind referred to in paragraph (1) of Article IX) and any annuity, derived from sources within the United Kingdom by an individual who is a resident of the Federal Republic and subject to Federal Republic tax in respect thereof, shall be subjected to tax only in the Federal Republic. 

3) The term "annuity" means a stated sum payable periodically at stated times, during life or during a specified or ascertainable period of time, under an obligation to make the payments in return for adequate and full consideration in money or money's worth. 

2) Subject to the provisions of Articles IX, X and XIII salaries, wages and other similar remuneration derived by a resident of one of the territories in respect of an employment shall be subjected to tax only in that territory unless the employment is exercised in the other territory. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other territory.

3) Notwithstanding the provisions of paragraph (2) of this Article, remuneration derived by a resident of one of the territories in respect of an employment exercised in the other territory shall be subjected to tax only in the first-mentioned territory if:

a) the recipient is present in the other territory for a period or periods not exceeding in the aggregate 183 days in the fiscal year concerned, and 
b) the remuneration is paid by or on behalf of an employer who is not a resident of the other territory, and
c) the remuneration is not deducted from the profits of a permanent establishment or a fixed base which the employer has in the other territory.

5) Notwithstanding the provisions of paragraphs (2) and (3) of this Article, remuneration for personal services performed aboard a ship or aircraft in international traffic may be taxed in the territory in which the place of effective management of the enterprise is situated.

6) Notwithstanding anything contained in this Convention, income derived by public entertainers, such is theatre, motion picture, radio or television artistes, and musicians and by athletes, from their personal activities as such, may be taxed in the territory in which these activities are exercised. 

2) The term "immovable property" shall be defined in accordance with the laws of the territory in which the property in question is situated. The term shall in any case include property accessory to immovable property, livestock and equipment of agricultural and forestry enterprises, rights to which the provisions of general law respecting landed property apply, usufruct of immovable property and rights to variable or fixed payments as consideration for the working of mineral deposits, sources and other natural resources; ships, boats and aircraft shall not be regarded as immovable property.

3) The provisions of paragraphs (1) and (2) of this Article shall apply to income derived from the direct use or from the letting of immovable property or the use in any other form of such property including income from agricultural or forestry enterprises.

4) The provisions of paragraphs (1) to (3) of this Article shall also apply to the income from immovable property of any enterprises other than agricultural or forestry enterprises and to income from immovable property used for the performance of professional services. 

2) Subject to the provisions of paragraph (1) of this Article, capital represented by assets forming part of the business property employed in a permanent establishment of an enterprise, or by assets pertaining to a fixed base used for the performance of professional services, may be taxed in the territory in which the permanent establishment or fixed base is situated. 

3) Ships and aircraft operated in international traffic and assets, other than immovable property, pertaining to the operation of such ships and aircraft may be subjected to tax only in the territory in which the place of effective management of the enterprise is situated. 

4) All other elements of capital of a resident of one of the territories may be subjected to tax only in that territory. 

2) Subject to the provisions of paragraph (3) of this Article, individuals who are residents of the United Kingdom shall be entitled to the same personal allowances, reliefs and reductions for the purposes of Federal Republic tax as German nationals not resident in the Federal Republic. 

3) Nothing in this Convention shall entitle an individual who is a resident of one of the territories and whose income from the other territory consists solely of dividends, interest or royalties (or solely of any combination thereof) to the personal allowances, reliefs and reductions of the kind referred to in this Article for the purposes of taxation in that other territory. 

a) Federal Republic tax payable under the laws of the Federal Republic and in accordance with this Convention, whether directly or by deduction, on profits, income or chargeable gains from sources within the Federal Republic (excluding in the case of a dividend, tax payable in respect of the profits out of which the dividend is paid) shall be allowed as a credit against any United Kingdom tax computed by reference to the same profits, income or chargeable gains by reference to which the Federal Republic tax is computed;
b) in the case of a dividend paid by a company which is a resident of the Federal Republic to a company which is a resident of the United Kingdom and which controls directly or indirectly at least 25 per cent of the voting power in the Federal Republic company, the credit shall take into account (in addition to any Federal Republic tax creditable under the provisions of sub-paragraph (a) of this paragraph)the Federal Republic tax payable by the company in respect of the profits out of which such dividend is paid. 

2) Tax shall be determined in the case of a resident of the Federal Republic as follows: 

a) Unless the provisions of sub-paragraph (b) below apply, there shall be excluded from the basis upon which Federal Republic tax is imposed any item of income from sources within the United Kingdom and any item of capital situated within the United Kingdom which, according to this Convention, may be taxed in the United Kingdom provided that capital gains referred to in paragraph (1) of Article VIII shall be so excluded only if they are subject to tax in the United Kingdom. The Federal Republic, however, retains the right to take into account in the determination of its rate of tax the items of income and capital so excluded. The first sentence of this sub-paragraph shall in the case of income from dividends apply only to such dividends as are paid to a company limited by shares (Kapitalgesellschaft) being a resident of the Federal Republic by a company limited by shares being a resident of the United Kingdom at least 25 per cent of the voting shares of which are owned by the first-mentioned company. There shall also be excluded from the basis upon which Federal Republic tax is imposed any participation the dividends on which are excluded, or if paid would be excluded, from the tax basis according to the foregoing sentence.
b) Subject to the provisions of German tax law regarding credit for foreign tax, there shall be allowed as a credit against Federal Republic tax on income payable in respect of the following items of income from sources within the United Kingdom: i. the United Kingdom tax payable under the laws of the United Kingdom and in accordance with this Convention on dividends not dealt with in sub-paragraph (a) above; ii. the United Kingdom tax payable under the laws of the United Kingdom and in accordance with this Convention on remuneration and pensions within the meaning Article IX paid out of any fund established in the United Kingdom to an individual who is a German national without being also a national of the United Kingdom. 

a) profits or remuneration arising from the exercise of a profession or employment in one of the territories shall be deemed to be income from sources within that territory;
b) the services of an individual whose services are wholly or mainly performed in ships or aircraft operated by a resident of one of the territories shall be deemed to be performed in that territory; and 
c) any remuneration or pension within the meaning of paragraph (1) or (2) of Article IX shall be deemed, notwithstanding the foregoing provisions of this paragraph, to be income from a source within the territory of the Contracting Party in whose territory the fund is established out of which the remuneration or pension is paid. 

2) The taxation authority shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at an appropriate solution, to resolve the case by mutual agreement with the taxation authority of the other territory, with a view to the avoidance of taxation not in accordance with the Convention. 

3) The taxation authorities of the territories shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the application of the Convention. 

4) Nothing in this Convention shall prevent tax in one of the territories from being deducted at source at the rates which would apply if this Convention were not in force. Where the income concerned is exempt from tax in such territory under the provisions of this Convention or where the amount of tax so deducted exceeds the amount of tax chargeable under the provisions of this Convention, the tax so deducted or the excess amount of tax shall be refunded upon application to be made by the recipient of such income to the tax office concerned. The refund shall be made if it is applied for within a period of three years from the day on which the income has been received or within such longer period as is permitted under the law in force in the territory concerned. 

5) The taxation authorities of the territories may communicate with each other directly for the purpose of reaching an agreement in the case of the preceding paragraphs or for the purpose of applying the provisions of the Convention. 

2) In no case shall the provisions of paragraph (1) of this Article be construed so as to impose on the taxation authority of either territory the obligation:

a) to carry out administrative measures at variance with the laws or administrative practice prevailing in either territory; 
b) to supply particulars which are not obtainable under the laws or in the normal course of the administration in that or the other territory; or 
c) to supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process, or information the disclosure of which would be contrary to public policy. 

2) The term "nationals" means- 

a) in relation to the Federal Republic, all Germans within the meaning of Article 116(1) of the Basic Law for the Federal Republic of Germany, and all legal persons, partnerships and associations deriving their status as such from the law in force in the Federal Republic;
b) in relation to the United Kingdom, all British subjects and British protected persons - i. residing in the United Kingdom or any territory to which the present Convention is extended under Article XXI or ii. deriving their status as such from connexion with the United Kingdom or any territory to which the present Convention is extended under Article XXI, and all legal persons, partnerships and associations deriving their status as such from the law in force in the United Kingdom or in any territory to which the Convention is extended under Article XXI. 

4) Enterprises of one of the territories, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other territory, shall not be subjected in the first-mentioned territory to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises of that first-mentioned territory are or may be subjected. 

5) In this Article the term "taxation" means taxes of every kind and description. 

2) The termination in respect of the Federal Republic or the United Kingdom of the present Convention under Article XXIV shall, unless otherwise expressly agreed by both Contracting Parties, terminate the application of the present Convention to any territory to which the Convention has been extended under this Article. 

2) Upon the application of this Convention to Berlin, references in the Convention to the Federal Republic shall be deemed also to be references to Land Berlin. 

2) The present Convention shall enter into force after the expiration of a month following the date on which the instruments of ratification are exchanged. 

3) Upon the entry into force of the present Convention in accordance with paragraphs(1) and (2) of this Article the foregoing provisions of the Convention shall have effect, and the provisions of the Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income signed in London on the 18th August, 1954, shall cease to have effect - 
a) in the United Kingdom:

i. as respects income tax for any year of assessment beginning on or after the 6th April, 1960;
ii. as respects surtax for any year of assessment beginning on or after the 6th April, 1959; and 
iii. as respects profits tax in respect of the following profits: aa) profits arising in any chargeable accounting period beginning on or after the 1st April, 1960; bb) profits attributable to so much of any chargeable accounting period falling partly before and partly after that date as falls after that date; cc) profits not so arising or attributable by reference to which income tax is, or but for the present Convention would be, chargeable for any year of assessment beginning on or after the 6th April, 1960;

i. in respect of the Federal Republic tax withheld from dividends for the tax from dividends paid after the day of the entry into force of the present Convention; 
ii. for the other Federal Republic taxes which are levied for the assessment period 1960 and for subsequent periods.

i. as respects income tax (including surtax) and capital gains tax, for any year of assessment beginning on or after 6th April in the calendar year next following that in which the notice is given; and 
ii. as respects corporation tax, for any financial year beginning on or after lst April in the calendar year next following that in which the notice is given;