ARTICLE 24 　　　　　　　　　　　　Nondiscrimination 　　1. Nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith that is other or more burdensome than the taxation and connected requirements to which nationals of that other State in the same circumstances are or may be subjected. Notwithstanding the provisions of Article 1, this provision shall also apply to persons who are not residents of one or both of the Contracting States. 　　2. The taxation on a permanent establishment that an enterprise of a Contracting State has in the other Contracting State shall not be less favorably levied in that other State than the taxation levied on enterprises of that other State carrying on the same activities. This provision shall not be construed as obliging a Contracting State to grant to residents of the other Contracting State any personal allowances, reliefs, and reductions for taxation purposes on account of civil status or family responsibilities that it grants to its own residents. 　　3. Except where the provisions of paragraph 1 of Article 9 (Associated Enterprises), paragraph 4 of Article 11 (Interest), or paragraph 4 of Article 12 (Royalties) apply, interest, royalties, and other disbursements paid by an enterprise of a Contracting State to a resident of the other Contracting State shall, for purposes of determining the taxable profits of such enterprise, be deductible under the same conditions as if they had been paid to a resident of the first-mentioned State. Similarly, any debts of an enterprise of a Contracting State to a resident of the other Contracting State shall, for purposes of determining the taxable capital of such enterprise, be deductible under the same conditions as if they had been contracted to a resident of the first-mentioned State. 　　4. Enterprises of a Contracting State, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subjected in the first-mentioned State to any taxation or any requirement connected therewith that is other or more burdensome than the taxation and connected requirements to which other similar enterprises of the firstmentioned State are or may be subjected. 　　5. Nothing in this Article shall prevent a Contracting State from imposing the tax described in paragraph 8 of Article 10 (Dividends). 　　6. The provisions of this Article shall, notwithstanding the provisions of Article 2 (Taxes Covered), apply to taxes of every kind and description imposed by a Contracting State or a political subdivision or local authority thereof. ARTICLE 25 Mutual Agreement Procedure 　　1. Where a person considers that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with the provisions of this Convention, he may, irrespective of the remedies provided by the domestic law of those States, present his case to the competent authority of the Contracting State of which he is a resident or, if his case comes under paragraph 1 of Article 24 (Nondiscrimination), to that of the Contracting State of which he is a national. The case must be presented within four years from the notification of the assessment giving rise to double taxation or to taxation not in accordance with the provisions of this Convention. 　　2. The competent authority shall endeavor, if the objection appears to it to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation which is not in accordance with this Convention. Any agreement reached shall be implemented notwithstanding any time limits or other procedural limitations in the domestic law of the Contracting States. 　　3. The competent authorities of the Contracting States shall endeavor to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of this Convention. In particular the competent authorities of the Contracting States may agree 　　a) to the same attribution of income, deductions, credits, or allowances of an enterprise　of a Contracting State to its permanent establishment situated in the other Contracting State; 　　b) to the same allocation of income, deductions, credits, or allowances between associated enterprises and other persons in accordance with the principles of Article 9 (Associated Enterprises); 　　c) to the settlement of conflicting application of this Convention, including conflicts regarding 　　aa) the characterization of particular items of income; 　　bb) the characterization of persons; 　　cc) the application of source rules with respect to particular items of income,and 　　dd) to the treatment of income that is assimilated to income from shares by the taxation law of the State of source and that is treated as a different class of income in the other State; 　　d) to a common meaning of a term; 　　e) to the application of the procedural provisions of domestic law including those regarding penalties, fines, and interest, in a manner consistent with the purposes of this Convention; and 　　f) to increase the amounts referred to in Articles 17 (Artistes and Athletes) and 20 (Visiting Professors and Teachers; Students and Trainees) to reflect economic or monetary developments. 　　They may also consult together for the elimination of double taxation in cases not provided for in this Convention. 　　4. The competent authorities of the Contracting States may communicate with each other directly for purposes of reaching an agreement in the sense of the preceding paragraphs. Where the procedure relates to a particular case, the persons concerned shall be permitted to present their views to the competent authority of either or both of the Contracting States. When it seems advisable in order to reach agreement to have an oral exchange of opinions, such exchange may take place through a Commission consisting of representatives of the competent authorities of the Contracting States. 　　5. Disagreements between the Contracting States regarding the interpretation or application of this Convention shall, as far as possible, be settled by the competent authorities. If a disagreement cannot be resolved by the competent authorities it may, if both competent authorities agree, be submitted for arbitration. The procedures shall be agreed upon and shall be established between the Contracting States by notes to be exchanged through diplomatic channels. ARTICLE 26 Exchange of Information and Administrative Assistance 　　1. The competent authorities of the Contracting States shall exchange such information as is necessary for carrying out the provisions of this Convention and of the domestic law of the Contracting States concerning taxes covered by this Convention insofar as the taxation thereunder is not contrary to this Convention. The exchange of information is not restricted by Article 1 (Personal Scope). Any information received by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) involved in the assessment, collection, or administration of, the enforcement or prosecution in respect of, or the determination of appeals in relation to the taxes covered by this Convention. Such persons or authorities shall use the information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions, unless the competent authority of the Contracting State supplying the information raises an objection. 　　2. In no case shall the provisions of paragraph 1 be construed to impose on a Contracting State the obligation: 　　a) to carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State; 　　b) to supply information that is not obtainable under the laws or in the normal course of the administration of that or of the other Contracting State; 　　c) to supply information that 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. 　　3. If information is requested by a Contracting State in accordance with this Article, the other Contracting State shall obtain the information to which the request relates in the same manner and to the same extent as if the tax of the first-mentioned State were the tax of that other State and were being imposed by that other State. If specifically requested by the competent authority of a Contracting State, the competent authority of the other Contracting State shall, if possible, provide information under this Article in the form of depositions of witnesses and authenticated copies of unedited original document (including books, papers, statements, records, accounts, and writings) to the same extent such depositions and document can be obtained under the laws and administrative practices of that other State with respect to its own taxes. 　　4. Each of the Contracting States shall endeavor to collect on behalf of the other Contracting State such amounts of tax as may be necessary to ensure that relief granted by this Convention from taxation imposed by that other State does not inure to the benefit of persons not entitled thereto. 　　5. Paragraph 4 shall not impose upon either of the Contracting States the obligation to carry out administrative measures that are of a different nature from those used in the collection of its own taxes, or that would be contrary to its sovereignty, security, or public policy. 　　6. The Contracting States may, through diplomatic channels, exchange notes under which they may, subject to the provisions of this Article, exchange information for the purposes of taxes imposed by a Contracting State not referred to in Article 2 (Taxes Covered). ARTICLE 27 Exempt Organizations 　　1. Notwithstanding the provisions of Article 28 (Limitation on Benefits), a German company or organization operated exclusively for religious, charitable, scientific. educational, or public purposes shall be exempt from tax by the United States in respect of items of income, if and to the extent that 　　a) such company or organization is exempt from tax in the Federal Republic of Germany, and 　　b) such company or organization would be exempt from tax in the United States in respect of such items of income if it were organized, and carried on all its activities, in the United States. 　　2. Notwithstanding the provisions of Article 28 (Limitation on Benefits), a United States company or organization operated exclusively for religious, charitable, scientific, educational, or public purposes shall be exempt from tax by the Federal Republic of Germany in respect of items of income if and to the extent that 　　a) such company or organization is exempt from tax in the United States, and 　　b) such company or organization would be exempt from tax in the Federal Republic of Germany in respect of such items of income if it were a German company or organization and carried on all its activities in the Federal Republic of Germany. ARTICLE 28 Limitation on Benefits 　　1. A person that is a resident of a Contracting State and derives income from the other Contracting State shall be entitled, in that other Contracting State, to all the benefits of this Convention only if such person is: 　　a) an individual; 　　b) a Contracting State, or a political subdivision or local authority thereof; 　　c) engaged in the active conduct of a trade or business in the first-mentioned Contracting State (other than the business of making or managing investments, unless these activities are banking or insurance activities carried on by a bank or insurance company), and the income derived from the other Contracting State is derived in connection with, or is incidental to, that trade or business; 　　d ) a company in whose principal class of shares there is substantial and regular trading on a recognized stock exchange; 　　e) aa) a person, more than 50 percent of the beneficial interest in which (or in the case of a company, more than 50 percent of the number of shares of each class of whose shares) is owned, directly or indirectly, by persons entitled to benefits of this Convention under subparagraphs a), b), d), or f) or who are citizens of the United States; and 　　bb) a person, more than 50 percent of the gross income of which is not used, directly or indirectly, to meet liabilities (including liabilities for interest or royalties) to persons not entitled to benefits of this Convention under subparagraphs a), b), d), or f) or who are not citizens of the United States; or 　　f) a not-for-profit organization that, by virtue of that status, is generally exempt from income taxation in its Contracting State of residence, provided that more than half of the beneficiaries, members, or participants, if any, in such organization are persons that are entitled, under this Article, to the benefits of this Convention. 　　2. A person that is not entitled to the benefits of this Convention pursuant to the provisions of paragraph 1 may, nevertheless, be granted the benefits of the Convention if the competent authority of the State in which the income in question arises so determines. 　　3. For the purposes of paragraph 1, the term recognized stock exchange means: 　　a) the NASDAQ System owned by the National Association of Securities Dealers, Inc. and any stock exchange registered with the Securities and Exchange Commission as a national securities exchange for purposes of the Securities Exchange Act of 1934; 　　b) any German stock exchange on which registered dealings in shares take place; 　　c) any other stock exchange agreed upon by the competent authorities of the Contracting States. 　　4. The competent authorities of the Contracting States shall consult together with a view to developing a commonly agreed application of the provisions of this Article. The competent authorities shall, in accordance with the provisions of Article 26 (Exchange of Information and Administrative Assistance) exchange such information, as is necessary for carrying out the provisions of this Article and safe-guarding, in cases envisioned therein, the application of their domestic law. ARTICLE 29 Refund of Withholding Tax 　　1. If in one of the Contracting States the taxes on dividends, interest, royalties, or other items of income are levied by withholding at source, then the right to apply the withholding of tax at the rate provided for under the domestic law of that State is not affected by the provisions of this Convention. 　　2. The tax so withheld at source shall be refunded on application to the extent that its levying is limited by this Convention. 　　3. The period for application for a refund is four years from the end of the calendar year in which the dividends, interest, royalties, or other items of income have been received. 　　4. The Contracting State in which the income arises may require an administrative certification by the Contracting State of which the taxpayer is a resident, with respect to the fulfillment of the conditions for the unlimited tax liability in that State. 　　5. The competent authorities of the Contracting States shall implement the foregoing provisions by mutual agreement pursuant to Article 25 (Mutual Agreement Procedure). 　　6. The competent authorities of the Contracting States may establish by mutual agreement other procedures for the implementation of tax reductions provided under this Convention. ARTICLE 30 Members of Diplomatic Missions and Consular Posts 　　1. Nothing in this Convention shall affect the fiscal privileges of diplomatic agents or consular officers under the general rules of international law or under the provisions of special agreement. 　　2. To the extent that, due to such privileges, income or capital is not taxed in the receiving State, the sending State shall have the right to tax such income or capital. 　　3. Notwithstanding the provisions of Article 4 (Residence), an individual who is a member of a diplomatic mission or a consular post of a Contracting State that is situated in the other Contracting State or in a third State shall be deemed for the purposes of this Convention to be a resident of the sending State if: 　　a) in accordance with international law he is not liable to tax in the receiving State in respect of income from sources outside that State or on capital situated outside that State, and 　　b) he is liable in the sending State to the same obligations in relation to tax on his total income or on capital as are residents of that State. 　　4. This Convention shall not apply to international organizations, to organs or officials thereof, or to persons who are members of a diplomatic mission, consular post, or permanent mission of a third State, being present in a Contracting State and not liable in either Contracting State to the same obligations in respect of taxes on income or on capital as are residents. ARTICLE 31 Berlin Clause 　　This Convention shall also apply to Land Berlin, provided that the Government of the Federal Republic of Germany does not make a contrary declaration to the Government of the United States of America within three months of the date of entry into force of this Convention. ARTICLE 32 Entry into Force 　　1. This Convention shall be ratified and the instruments of ratification shall be exchanged at Washington as soon as possible. 　　2. This Convention shall enter into force on the date on which the instruments of ratification are exchanged and shall have effect in both Contracting States 　　a) in respect of taxes withheld at source as well as excise taxes imposed on insurance premiums for amounts paid or credited on or after 1 January, 1990; 　　b) in respect of other taxes on income for any taxable year (Steuerjahr) or assessment period (Veranlagungszeitraum), as the case may be, beginning on or after 1 January, 1990, but excluding any fiscal year (Wirtschaftsjahr) commencing before such date; and 　　c) in respect of taxes on capital for the taxes levied on items of capital owned on or after 1 January, 1990. 　　3.Where any greater relief from tax would have been afforded to a person entitled to the benefits of the Convention between the United States of America and the Federal Republic of Germany for the Avoidance of Double Taxation with Respect to Taxes on Income and to certain other Taxes, signed on 22 July, 1954, as amended by the Protocol signed on 17 September, 1965 ("the 1954 Convention"), under that Convention than under this Convention, the 1954 Convention shall, at the election of such person, continue to have effect in its entirety for the first assessment period, or taxable year, with respect to which the provisions of this Convention would otherwise have effect under paragraph 2 b). 　　4. Notwithstanding the foregoing provisions of this Article, the tax charged pursuant to paragraph 2 a) of Article 10 (Dividends) on dividends (within the meaning of paragraph 4 of that Article) paid or credited before 1 January, 1992, may exceed 5 percent of the gross amount of the dividends, but shall not exceed 10 percent thereof. 　　5. Notwithstanding the foregoing provisions of this Article, 　　a) the provisions of paragraph 8 of Article 10 (Dividends) shall have effect in respect of taxes levied on the dividend equivalent amount for assessment periods or taxable years beginning on or after 1 January, 1991, but excluding fiscal years commencing before such date; for purposes of the preceding sentence the dividend equivalent amount shall be treated as paid on the last day of the company's fiscal year; 　　b) the provisions of the fourth sentence of paragraph 2 a) of Article 23 (Relief from Double Taxation) shall not have effect on dividends paid by a Regulated Investment Company prior to 1 January, 1991, provided that such Regulated Investment Company was in existence on 1 October, 1988. 　　6. Notwithstanding the foregoing provisions of this Article, the following shall apply with respect to items of income described in Article 11 (Interest) and in paragraphs 4 and 5 of Article 10 (Dividends): 　　a) the 1954 Convention, and not this Convention, shall apply to interest as that term is used in the 1954 Convention, including interest derived from a "partiarisches Darlehen" or a "Gewinnobligation", paid or credited before 1 January, 1991; 　　b) income from debt obligations to which paragraph 4 of Article 10 (Dividends) applies, and income derived from a "partiarisches Darlehen" or a "Gewinnobligation" to which paragraph 5 of Article 10 (Dividends) does not apply, and that is paid or credited on or after 1 January, 1991, shall be taxable in the Contracting State in which it arises at the rates provided for in paragraphs 2 and 3 of Article 10; 　　c) income derived under a "Stille Gesellschaft", and income derived from "jouissance" shares or "jouissance" rights, to which paragraph 5 of Article 10 (Dividends) applies and that is paid or credited before 1 January, 1991 shall be taxable in the Contracting State in which it arises at a rate not exceeding 15 percent of the gross. amount; 　　d) income derived under a "Stille Gesellschaft", and income derived from "jouissance" shares or "jouissance" rights, to which paragraph 5 of Article 10 (Dividends) does not apply, shall be taxable in the Contracting State in which it arises at the rates provided for in paragraphs 2 and 3 of Article 10 if such income is paid or credited on or after 1 January, 1990; and e) the foregoing provisions of this paragraph shall not apply to income described in paragraph 6 of Article 10 (Dividends) or in paragraph 3 of Article 11 (Interest). 　　7. The 1954 Convention shall cease to have effect when the provisions of this Convention take effect in accordance with this Article. ARTICLE 33 Termination 　　This Convention shall continue in effect indefinitely but either of the Contracting States may, on or before the thirtieth day of June in any calendar year beginning after the expiration of a period of five years from the date of its entry into force, give to the other Contracting State, through diplomatic channels, written notice of termination and, in such event, this Convention shall cease to have effect 　　a) in respect of taxes withheld at source as well as excise taxes imposed on insurance premiums for amounts paid or credited on or after 1 January of the calendar year following the year in which the notice of termination is given; 　　b) in respect of other taxes on income for taxes levied for taxable years or assessment periods beginning on or after 1 January of the calendar year following the year in which the notice of termination is given (but excluding any fiscal year commencing before such date); and 　　c) in respect of taxes on capital for taxes levied on items of capital existing on or after 1 January of the calendar year following the year in which the notice of termination is given. 　　Done in duplicate at Bonn this 29th day of August 1989, in the English and German languages, both texts being equally authentic. For the For the United States of America Federal Republic of Germany (s) Vernon A. Walters (s) Dr. Hans Werner Lautenschlager (s) Theodor Waigel