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Isle of Man and Germany sign tax treaty

Internationaltaxreview.com, March 1, 2009. The Isle of Man and Germany have signed a bilateral tax agreement aimed at developing closer economic and taxation cooperation between the two countries.

The Isle of Man and Germany have signed a bilateral tax agreement aimed at developing closer economic and taxation cooperation between the two countries.

The pact includes a tax information exchange agreement that is based on the OECD principles of transparency and fairness to cross-border transactions.

This is the 13th such agreement that the Isle of Man has signed, 11 of which are with OECD member states.

"The Isle of Man has been committed to the OECD standards of transparency and effective exchange of information for tax purposes for over eight years, and we have worked hard to show clear evidence of those standards in action," said Allan Bell, the Isle of Man's Treasury Minister.

The agreement will enable the Isle of Man to enter into better dialogue with Germany which, traditionally, has been reluctant in the past to cooperate with small countries like Lichtenstein and Switzerland.

In a speech in October 2008, Angel Gurria, the OECD secretary-general, praised the Isle of Man for making progress in negotiating tax agreements and delivering standards.

"Effective co-operation between countries must be based on agreed standards, and those standards should be adhered to clearly by all countries wishing to attract the best investment and business," Bell added.

The two countries also signed an agreement for the avoidance of double taxation with respect to enterprises operating ships in international traffic.

Since the start of 2007, OECD countries have signed 36 bilateral information exchange agreements..

 

 

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