White earnings
White income is income that is not taxed in any of the countries in question in a specific cross-border situation , although it would be taxable in a comparable domestic situation .
White earnings often arise from qualification conflicts . This can occur, for example, when the state of residence looks certain income as corporate profits for which the double taxation agreement the establishment State assigns the right of taxation, while the permanent establishment state this income as dividends look for which the State of residence has the right to tax. In order to prevent the creation of white income in these cases, there are so-called subject-to-tax clauses in recent double taxation agreements .
White income can also arise if a double taxation agreement assigns the right to tax to one of the two states, but this state cannot tax that income under its national tax laws. This can happen if someone is resident abroad and receives income from Germany that is not listed in the catalog of § 49 EStG , although the double taxation agreement assigns the taxation right to the source country Germany.
For years, German development workers deployed abroad had to " generally not pay taxes anywhere on their wages ".
In the case of multinational corporations, tax discrepancies are used to generate white income through hybrid structures, for example through the complex nesting of hybrid companies . The OECD has been trying for 2014 increasingly with recommendations to the national tax authorities to curb such tax loopholes.
Individual evidence
- ↑ BFH, judgment of December 17, 2003 , Az. I R 14/02, full text.
- ↑ BMF December 5, 2013, IV C 3 - S 2300/08/10007: 004
- ↑ Stein, Gabriele: Recommendations of the OECD on hybrid designs. In: PricewaterhouseCoopers , October 29, 2014, accessed January 11, 2017
