ARTICLE 12 Royalties 　　1. Royalties derived and beneficially owned by a resident of a Contracting State shall be taxable only in that State. 　　2. The term "royalties" as used in this Article means payments of any kind received as a consideration for the use of, or the right to use, any copyright of a literary, artistic, or scientific work (but not including cinematographic films, or works on film, tape, or other means of reproduction for use in radio or television broadcasting); for the use of, or the right to use, any patent, trademark, design or model, plan, secret formula or process, or other like right or property; or for information concerning industrial, commercial, or scientific experience. The term "royalties" also includes gains derived from the alienation of any such right or property that are contingent on the productivity, use, or further alienation thereof. 　　3. The provisions of paragraph 1 shall not apply if the beneficial owner of the royalties, being a resident of a Contracting State, carries on business in the other Contracting State through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the royalties are paid forms part of the business property of such permanent establishment or fixed base. In such a case the provisions of Article 7 (Business Profits) or Article 14 (Independent Personal Services), as the case may be, shall apply. 　　4. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the royalties, having regard to the use, right, or information for which they are paid, exceeds the amount that would have been agreed upon by the payor and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such a case the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention. ARTICLE 13 Gains 　　1. Gains derived by a resident of a Contracting State from the alienation of immovable property referred to in Article 6 (Income from Immovable (Real) Property) and situated in the other Contracting State may be taxed in that other State. 　　2. For the purposes of this Article, the term "immovable" property situated in the other Contracting State shall include 　　a) immovable property referred to in Article 6 ( Income from Immovable (Real) Property); and 　　b) shares or comparable interests in a company that is, or is treated as, a resident of that other Contracting State, the assets of which company consist or consisted wholly or principally of immovable property situated in such other Contracting State, and an interest in a partnership, trust, or estate, to the extent that its assets consist of immovable property situated in that other Contracting State, 　　3. Gains from the alienation of immovable property forming part of the business property of a permanent establishment that an enterprise of a Contracting State has in the other Contracting State or of immovable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, including such gains from the alienation of such a permanent establishment (alone or with the whole enterprise) or of such fixed base, may be taxed in that other State. 　　4. Gains from the alienation of ships, aircraft or containers operated in international traffic or movable property pertaining to the operation of such ships, aircraft, or containers shall be taxable only in the Contacting State in which the profits of the enterprise deriving such income are taxable according to Article 8 (Shipping and Air Transport). 　　5. Gains from the alienation of any property other than that referred to in the preceding paragraphs shall be taxable only in the Contracting State of which the alienator is a resident. 　　6. In the case of an individual who was a resident of a Contacting State and who, after giving up residence in that State, has become a resident of the other Contracting State under the rules of Article 4 (Residence), paragraph 5 shall not affect the right of the first-mentioned State under its national laws to tax the individual in respect of a capital gain from the alienation of shares of any kind forming part of an interest of at least 25 percent in a company that is a resident of the first-mentioned State, provided such alienation occurs within 10 years of the date on which he gave up residence in the first-mentioned State. 　　Gains subject to tax pursuant to the preceding sentence shall be limited to gains accrued during the period the individual was resident in the first-mentioned State. The other Contracting State shall calculate the gain in the case of a subsequent alienation on the basis of the value of such shares on the date on which the individual has ceased to be a resident of the first-mentioned State but shall not be prevented from including in income any gain accrued up to this date which has not been subject to tax in that first-mentioned State. ARTICLE 14 Independent Personal Services 　　1. Income derived by an individual who is a resident of a Contracting State from the performance of personal services in an independent capacity shall be taxable only in that State, unless such services are performed in the other Contracting State and the income is attributable to a fixed base regularly available to the individual in that other State for the purpose of performing his activities. 　　2. The term "personal services in an independent capacity" includes but is not limited to independent scientific, literary, artistic, educational, or teaching, activities as well as the independent activities of physicians, lawyers, engineers, economists, architects, dentists, and accountants. ARTICLE 15 Dependent Personal Services 　　1. Subject to the provisions of Articles 16 (Directors' Fees), 17 (Artistes and Athletes), 18 (Pensions, Annuities, Alimony, and Child Support), 19 (Government Service; Social Security), and 20 (Visiting Professors and Teachers; Students and Trainees), salaries, wages, and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State, unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State. 　　2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if: 　　a) the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in the calendar year concerned; and 　　b) the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State; and 　　c) the remuneration is not borne by a permanent establishment or a fixed base that the employer has in the other State. 　　3. Notwithstanding the foregoing provisions of this Article, remuneration derived by a resident of a Contracting State in respect of an employment as a member of the regular complement of a ship or aircraft operated in international traffic may be taxed only in that State. ARTICLE 16 Directors' Fees 　　Directors' fees and other similar payments derived by a resident of a Contracting State for services rendered in the other Contracting State in his capacity as a member of the board of directors of a company that is a resident of the other Contracting State may be taxed in that other Contracting State. ARTICLE 17 Artistes and Athletes 　　1. Notwithstanding the provisions of Articles 7 (Business Profits), 14 (Independent Personal Services), and 15 (Dependent Personal Services), income derived by a resident of a Contracting State as an entertainer (such as a theater, motion picture, radio or television artiste, or a musician), or as an athlete, from his personal activities as such exercised in the other Contracting State may be taxed in that other State, except where the amount of the gross receipts derived by such entertainer or athlete, including expenses reimbursed to him or borne on his behalf, from such activities does not exceed $20,000 (twenty thousand United States dollars) or its equivalent in Deutsche mark for the calendar year concerned. 　　2. Where income in respect of activities exercised by an entertainer or an athlete in his capacity as such accrues not to the entertainer or athlete but to another person, that income of that other person may, notwithstanding the provisions of Articles 7 (Business Profits) and 14 (Independent Personal Services), be taxed in the Contracting State in which the activities of the entertainer or athlete are exercised, unless it is established that neither the entertainer or athlete nor persons related thereto participate directly or indirectly in the profits of that other person in any manner, including the accrual or receipt of deferred remuneration, bonuses, fees, dividends, partnership income, or other income or distributions. 　　3. The provisions of paragraphs 1 and 2 shall not apply to income derived from activities performed in a Contracting State by entertainers or athletes if the visit to that State is substantially supported, directly or indirectly, by public funds of the other Contracting State or a political subdivision or a local authority thereof. In such a case the income shall be taxable only in the Contracting State of which the entertainer or athlete is a resident. ARTICLE 18 Pensions, Annuities, Alimony, and Child Support 　　1. Subject to the provisions of Article 19 (Government Service; Social Security). pensions and other similar remuneration derived and beneficially owned by a resident of a Contracting State in consideration of past employment shall be taxable only in that State. 　　2. Subject to the provisions of Article 19 (Government Service; Social Security), annuities derived and beneficially owned by a resident of a Contracting State shall be taxable only in that State. The term "annuities" as used in this paragraph means a stated sum paid periodically at stated times during a specified number of years, under an obligation to make the payment in return for adequate and full consideration (other than services rendered). 　　3. Alimony paid by a resident of a Contracting State and deductible there to a resident of the other Contracting State shall be taxable only in that other State. The term "alimony" as used in this Article means periodic payment (made pursuant to a written separation agreement or a decree of divorce, separate maintenance, or compulsory support) that are taxable to the recipient under the laws of the State of which he is a resident. 　　4. Nondeductible alimony, and periodic payment for the support of a minor child (made pursuant to a written separation agreement or a decree of divorce, separate maintenance, or compulsory support), paid by a resident of a Contracting State to a resident of the other Contracting State shall be taxable only in the first-mentioned State. ARTICLE 19 Government Service; Social Security 　　1. 　　a) Wages, salaries, and similar compensation and pensions paid by the United States or by its states or political subdivisions to a natural person, other than a German national, shall be exempt from tax by the Federal Republic of Germany. 　　b) Wages, salaries, and similar compensation and pensions paid by the Federal Republic of Germany or by its Laender or by municipalities, or pensions paid by a public pension fund thereof to a natural person, other than a citizen of the United States and other than an individual who has been admitted to the United States for permanent residence therein, shall be exempt from tax by the United States. 　　c) Pensions, annuities, and other amounts paid by one of the Contracting States or by a juridical person organized under the public laws of that State as compensation for an injury or damage sustained as a result of hostilities or political persecution shall be exempt from tax by the other State. 　　d) For the purposes of this paragraph the term "pensions" includes annuities paid to a retired civilian government employee. 　　2. Social security benefits paid under the social security legislation of a Contracting State and other public pensions (not dealt with in paragraph 1) paid by a Contracting State to a resident of the other Contracting State shall he taxable only in that other Contracting State. In applying the preceding sentence, that other Contracting State shall treat such benefit or pension as though it were a social security benefit paid under the social security legislation of that other Contracting State. ARTICLE 20 Visiting Professors and Teachers; Students and Trainees 　　1. Remuneration that a professor or teacher who is a resident of a Contracting State and who is present in the other Contracting State for a period not exceeding two years for the purpose of carrying out advanced study or research or for teaching at an accredited university, college, school, or other educational institution, or a public research institution or other institution engaged in research for the public benefit, receives for such work shall be taxable only in the first-mentioned State. This Article shall not apply to income from research if such research is undertaken not in the public interest but primarily for the private benefit of a specific person or persons. The benefits provided in this paragraph shall not be granted to an individual who, during the immediately preceding period, enjoyed the benefits of paragraph 2, 3, or 4. 　　2. Payments other than compensation for personal services that a student or business apprentice (including Volont?re and Praktikanten in the Federal Republic of Germany) who is or was immediately before visiting a Contracting State a resident of the other Contracting State and who is present in the first-mentioned State for the purpose of his full-time education or training receives for the purpose of his maintenance, education, or training shall not be taxed in that State, provided that such payment arise from sources, or are remitted from, outside that State. 　　3. Payment other than compensation for personal services that a person who is or was immediately before visiting a Contracting State a resident of the other Contracting State receives as a grant, allowance, or award from a non-profit religious, charitable, scientific, literary, or educational private organization or a comparable public institution shall not be taxed in the first-mentioned State. 　　4. A student or business apprentice within the meaning of paragraph 2, or a recipient of a grant,allowance, or award within the meaning of paragraph 3, who is present in a Contracting State for a period not exceeding four years shall not be taxed in that State on any income from dependent personal services that is not in excess of $ 5,000 (five thousand United States dollars) or its equivalent in Deutsche mark per taxable year, provided that such services are performed for the purpose of supplementing funds available otherwise for maintenance, education, or training. 　　5. A resident of one of the Contracting States who is an employee of an enterprise of such State or of an organization or institution described in paragraph 3, and who is temporarily present in the other Contracting State for a period not exceeding one year solely to acquire technical, professional, or business experience from any person other than such enterprise, organization, or institution, shall be exempt from tax by that other State on compensation remitted from outside that other State for services wherever performed paid by such enterprise, organization, or institution if such compensation does not exceed $10,000 (ten thousand United States dollars) or its equivalent in Deutsche mark. ARTICLE 21 Other Income 　　1. Items of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoing Articles of this Convention shall be taxable only in that State. 　　2. The provisions of paragraph 1 shall not apply to income, other than income from immovable property as defined in paragraph 2 of Article 6 (Income from Immovable (Real) Property), if the recipient of such income, being a resident of a Contracting State, carries on business in the other Contracting State through a permanent establishment situated therein, and the right or property in respect of which the income is paid from part of the business property of the permanent establishment;or the recipient performs in that other State independent personal services from a fixed base situated therein, and the income is attributable to the fixed base. ARTICLE 22 Capital 　　1. Capital represented by immovable property referred to in Article 6 (Income from Immovable (Real) Property), owned by a resident of a Contracting State, and situated in the other Contracting State may be taxed in that other State. 　　2. Capital represented by immovable property forming part of the business property of a permanent establishment that an enterprise of a Contracting State has in the other Contracting State, or by immovable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, may be taxed in that other State. 　　3. Capital represented by ships, aircraft, or containers operated in international traffic and by immovable property pertaining to the operation of such ships, aircraft, or containers shall be taxable only in the Contracting State in which the profits of the enterprise owning such capital are taxable according to Article 8 (Shipping and Air Transport). 　　4. All other elements of capital of a resident of a Contacting State shall be taxable only in that State. 　　　　　　　　　　　　ARTICLE 23 　　　　　　　　　　Relief From Double Taxation 　　1. Tax shall be determined in the case of a resident of the United States or a citizen thereof as follows: In accordance with the provisions and subject to the limitations of the law of the United States (as it may be amended from time to time without changing the general principle hereof), the United States shall allow to a resident or citizen of the United States as a credit against the United States tax on income 　　a) the income tax paid to the Federal Republic of Germany by or on behalf of such citizen or resident; and 　　b) in the case of a United States company owning at least 10 percent of the voting shares of a company that is a resident of the Federal Republic of Germany and from which the United States company receives dividends, the income tax paid to the Federal Republic of Germany by or on behalf of the distributing company with respect to the profits out of which the dividends are paid. For the purposes of this paragraph, the taxes referred to in paragraphs 1 b) and 2 of Article 2 (Taxes Covered), other than the capital tax (Verm?gensteuer) and that portion of the trade tax (Gewerbesteuer) computed on a basis other than profits, shall be considered income taxes paid to the Federal Republic of Germany. Credits allowed solely by reason of this Article, when added to otherwise allowable credits for taxes referred to in paragraphs 1 b) and 2 of Article 2, shall not in any taxable year exceed that proportion of the United States tax on income that taxable income arising in the Federal Republic of Germany bears to total taxable income. 　　2. Tax shall be determined in the case of a resident of the Federal Republic of Germany as follows: 　　a) Except as provided in subparagraph b), there shall be excluded from the basis upon which German tax is imposed any item of income from sources within the United States and any item of capital situated within the United States that, according to this Convention, may be taxed in the United States. The Federal Republic of Germany. however retains the right to take into account in the determination of its rate of tax the items of income and capital so excluded. In the case of income from dividends the foregoing provisions shall apply only to such income from distributions of profits on corporate rights subject to tax under United States law as are paid to a company (not including partnerships) being a resident of the Federal Republic of Germany by a company being a resident of the United States at least 10 percent of the voting shares of which is owned directly by the German company. The preceding sentence shall not apply to dividends paid by a Regulated Investment Company and distributions of amounts that have been deducted when calculating for United States tax purposes the profits of the company distributing them. For the purposes of taxes on capital there shall also be excluded from the basis upon which German tax is imposed any shareholding the dividends of which, if paid, would be excluded according to the two immediately foregoing sentences, from the basis upon which German tax is imposed. 　　b) There shall be allowed as a credit against German tax on income, subject to the provisions of German tax law regarding credit for foreign tax, the United States tax paid in accordance with the law of the United States and with the provisions of this Convention on the following items of income: 　　aa) income from dividends within the meaning or Article 10 (Dividends) to which subparagraph a) does not apply; 　　bb) gains to which Article 13 (Gains) applies provided such gains are taxable in the United States by reason only of paragraph 2 b) of Article 13; 　　cc) income to which Article 16 (Directors' Fees) applies; 　　dd) income to which Article 17 (Artistes and Athletes) applies; 　　ee) income within the meaning of paragraph 1 a) of Article 19 (Government Service; Social Security) paid to a German national; 　　ff) income which would, but for Article 28 (Limitation on Benefits), remain exempt from United States tax under this Convention; and 　　gg) income to which Paragraph 21 of the Protocol applies. For the purposes of this paragraph, profits, income, or gains of a resident of the Federal Republic of Germany shall be deemed to arise from sources in the United States if they are taxed in the United States in accordance with this Convention. 　　3. Where a United States citizen is a resident of the Federal Republic of Germany: 　　a) with respect to items of income not excluded from the basis of German tax under paragraph 2 that are exempt from United States tax or that are subject to a reduced rate of United States tax when derived by a resident of the Federal Republic of Germany who is not a United States citizen, the Federal Republic of Germany shall allow as a credit against German tax, subject to the provisions of German tax law regarding credit for foreign tax, only the tax paid, if any, that the United States may impose under the provisions of this Convention, other than taxes that may be imposed solely by reason of citizenship under paragraph 1 of the Protocol; 　　b) for purposes of computing United States tax, the United States shall allow as a credit against United States tax the income tax paid to the Federal Republic of Germany after the credit referred to in subparagraph a); the credit so allowed shall not reduce that portion of the United States tax that is creditable against the German tax in accordance with subparagraph a); and 　　c) for the exclusive purpose of relieving double taxation in the United States under subparagraph b), items of income referred to in subparagraph a) shall be deemed to arise in the Federal Republic of Germany to the extent necessary to avoid double taxation of such income under subparagraph b). 　　4. Where a company that is a resident of the Federal Republic of Germany distributes income derived from sources within the United States, this Article shall not preclude the compensatory imposition of corporation tax on such distributions in accordance with the provisions of the tax law of the Federal Republic of Germany.