The federal law signed by the President ratifies the Protocol regarding alterations to the Agreement between the Russian Federation and the Federal Republic of Germany regarding the avoidance of double taxation in relation to income and property taxes from the 29th May 1996 and the relevant Protocol of the 29th May 1996, signed in Wiesbaden on the 15th October 2007.
The protocol concerns the correction of the boundary sum of capital investments necessary for the lower tax dividend band to be applied, in connection with the Federal Republic of Germany’s adoption of a new currency (the euro).
In addition to that, the term “dividend” is extended to denote income earned from participation in share investment funds.
The changes introduced in the Protocol will also increase the efficiency of the exchange of tax information in order to counteract its misuse in the payment of tax.