Law On Tax Measures To Encourage Private Investment In Developing Countries

Original Language Title: Gesetz über steuerliche Maßnahmen zur Förderung von privaten Kapitalanlagen in Entwicklungsländern

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Law on tax measures to promote private capital investments in developing countries (Development country-specific tax law-DeweLStG)

unofficial table of contents

dewaxStG

date of delivery: 23.12.1963

Full quote:

" Development country-specific law in the version of the announcement of the 21. May 1979 (BGBl. 564), as last amended by Article 81 of the Regulation of 25 June 2008. November 2003 (BGBl. I p. 2304) "

:Reacted by Bek. v. 21.5.1979 I 564,
last modified by Art. 81 V v. 25.11.2003 I 2304

See Notes

Footnote

(+ + + Text credits: 29.8.1980 + + +)
(+ + +)
For details Application § 11 + + +)

First Section
Income Tax

Non-official Table of contents

§ 1 Tax-free reserve for investments in developing countries

(1) taxable persons with funds from a domestic establishment whose profit is determined in accordance with § 4 (1) or § 5 of the Income Tax Act, Capital investments in developing countries can form a reserve to the detriment of domestic operations. The reserve may be used on investments
1.in group 1 developing countries 100 from the Hundred
and
2. in developing countries of group 240 of the

do not exceed the cost of acquisition or production of the capital assets. The reserve shall be resolved at the latest by the sixth marketing year following the sixth year of education and shall be increased in a profit-increasing manner
1.
on investments in developing countries in the group 1yearly with at least one twelfth,
2.
at Capital investments in developing countries in Group 2,
a)
for which the Federal Ministry for Economic Affairs Cooperation and development, in agreement with the Federal Ministry of Economics and Labour, on the basis of evidence from the taxable person, confirmed that they were carried out in companies that are particularly effective in employment, and thus , to counteract unemployment in developing countries, each year with at least one twelfth; the conditions at the end of the fourth to the formation of the reserve are decisive for the assessment of the effectiveness of employment the following marketing years,
b)
in the remaining cases each year, with at least one
the formation and dissolution of the reserve in the accounts can be followed.(2) In the case of investments in developing countries in Group 2, in which the Federal Ministry of Economic Affairs and Labour, in agreement with the Federal Ministry for Economic Cooperation and Development, takes into account the concerns of the In the case of developing countries, the special eligibility for raw material or energy cooperation has been confirmed, paragraph 1 shall apply with the proviso that the reserve shall be up to 60 per cent of the acquisition or energy policy. the production costs of the investments may be formed and, at the latest, from the sixth marketing year following their formation, to be resolved annually with at least one twelfth.(3) Capital investments in developing countries within the meaning of paragraphs 1 and 2 are
1.
participations in Capital companies in developing countries acquired on the occasion of the foundation or a capital increase,
2.
Loans to capital companies in developing countries in connection with the establishment or substantial expansion of the enterprise, if the contractual agreements are: style="font-weight:normal; font-style:normal; text-decoration:none; ">
a)
the claim for repayment of the loans before the expiration of three years after the daring devotion against The granting of company rights to the capital company is or
b)
the loans before the expiry of six years since the devotion neither wholly nor in part (a) and
aa)
directly or indirectly at the time of the granting of the loan indirectly, at least 15 per cent, in the case of loans to capital companies which have the sole or almost exclusive exploitation of mineral resources, at least 5 per cent of the total, in the capital of the recipient's capital company, or
bb)
for the loans in place of interest, only a shareholding in profit is granted, or
cc)
by the offeree capital company at least until the expiration of six years since the devotion of the loan to a not insignificant part economic goods under Use of industrial property rights, copyrights, plans, designs, processes or commercial experiences and knowledge of the Darlehnsgeber, manufactured or sold under a trademark of the Darlehnsgeber.
3.
Deposits in personnel companies in developing countries for the purpose of setting up or a significant expansion of the company and
4.
Operating assets of a taxable person's establishment or establishment in developing countries for the purpose of setting up or a substantial extension ,
if the company, the establishment or the establishment in developing countries exclusively or almost exclusively
the manufacture or supply of goods other than weapons or
the extraction of natural resources or
far as it is not in the establishment or operation of installations used for tourism, or in the leasing and leasing of economic goods, including the release of the use of commercial services, of rights, plans, patterns, procedures, experience and knowledge, or
is the subject of the operation of a agriculture and forestry
. In so far as the effects of industrial services on the operation of merchant ships or aircraft are in international traffic, the Federal Ministry for Economic Cooperation and Development shall be subject to agreement with the The Federal Ministry of Transport, Building and Housing, or the body designated by them, confirms the development policy and transport-policy eligibility of the capital investment. For loans, the reserve is granted subject to the condition that
1.
in the case of the sentence 1 (2) (2) (c) a the loan request is brought in due time against the granting of company rights and
2.
in the case of the first sentence of sentence 2 (b), the loans are not prematurely
Investments in developing countries within the meaning of the first sentence of sentence 1 (1) to (3) are also favoured if they are made by the taxable person not directly, but in such a way that
1.
the taxable shares in a capital company with headquarters and management in a Developing country acquires if the taxable person's participation in this capital company comprises more than one quarter of the capital and the capital company
a)
only involved in other capital companies or in partnerships in developing countries or
b)
a separate activity within the meaning of the first sentence of the last sentence and in connection with this activity participations in other corporations or partnerships in Developing countries, and
2.
the funds spent on the acquisition of equity by the capital company within two years of the (
) Theof the reserve is only allowed during the marketing year in which the funds which are the subject of the investment investment, the company, the operation or the establishment in developing countries. The date of delivery within the meaning of this Act shall be the date on which the company, establishment or establishment within the meaning of the first sentence of paragraph 3 may, for the first time, dispose of the funds which are the object of the capital investment.(5) In the assessment of the reserve, the capital investments shall be taken into account only in so far as the funds supplied in the abuseable assets of the fixed assets or in the assets of a commercial establishment of the land or the land or the assets of the assets are not The right or in the assets of the stock (raw, auxiliary and operating materials as well as semi-finished or finished products) or to the end of the second marketing year following the introduction of the following marketing year for purchase or manufacture of these assets. However, the assets of the assets are to be taken into account only in so far as the company, the holding or the establishment in developing countries at the end of the marketing year, which is the marketing year of the supply of the funds in respect of the stock of assets held by the stock at the end of the marketing year preceding the marketing year of the supply of the funds, there is a surplus.(6) In the case of capital investments in credit institutions and insurance undertakings in developing countries, in which the Federal Ministry of Economic Affairs and Labour, in agreement with the Federal Ministry for Economic Cooperation and Development, the In the assessment of the reserve, it is also possible to take into account the part of the funds supplied which, until the end of the second, follows the supply to the developing country. Financial year for the granting of loans for a period of at least six years to undertakings in developing countries for the financing of operational investments or for the acquisition of holdings in undertakings in developing countries which: the conditions set out in the last sentence of the first sentence of paragraph 3 shall be fulfilled, shall be used, or deposited with the State Bank of the developing country in accordance with the laws of the developing country, or shall be lodged.(7) Paragraphs 1 to 6 shall apply in the case of an equity-related legal relationship with undertakings in developing countries whose legal order does not allow capital investments within the meaning of the first sentence of paragraph 3, sentence 1, no. 1 to 4.

footnote

(+ + + § 1 Paragraph 7 and 8: For use, see Section 11 (4) Sentence 1 F. from 1981-12-22 + + +) Non-official table of contents

§ 2 Tax-free reserve for participations in capital companies in developing countries which are acquired by the development company

(1) taxable persons with funds of a domestic establishment whose profit is determined in accordance with § 4 (1) or § 5 of the Income Tax Law, The German Association for Economic Cooperation (Development Company) with limited liability shall acquire participations in capital companies in developing countries in which the conditions of § 1 (3) sentence 1 last In the marketing year of the acquisition at the expense of the profit of the domestic holding, a reserve can be formed. Section 1 (1) sentence 2 and 4 shall apply accordingly. The reserve shall be dissoled at the latest by the sixth marketing year following the sixth year of education, with at least one-sixth of the increase in the number of winners.(2) Non-official table of contents

§ 3 Special provisions for capital investments by contributions in kind

(1) Capital assets within the meaning of Section 1 (3), which are provided by If they have been acquired or are in existence, even if they were to be valued at a higher value in accordance with § 6 of the Income Tax Act, the value in the balance sheet can be shown in the balance sheet with which the specified economic goods are to be found. at the time of their expel from the operating assets of the domestic holding, they would have been subject to the rules on the determination of the tax profit (carrying amount). The same applies to participations in capital companies within the meaning of § 1 (3) sentence 4 No. 1, which have been acquired through contributions in kind, on condition that the condition of § 1 para. 3 sentence 4 no. 2 is fulfilled. The difference between the carrying amount and the partial value of the capital investments referred to in Article 1 (3) (1) (3) and (4) in developing countries with which there is an agreement to avoid double taxation shall be subject to the conditions laid down in Article 1 (3) (3) and (4) of the Treaty. shall, at the time of their leaving, remain out of the operating assets of the domestic holding in the determination of the profit. The discounted rate of the sentence 3 shall be granted on condition that the goods supplied shall be in the developing country for at least three years after their supply in the civil society, the establishment or the establishment, in the case of one by the Conditions in the developing country shall remain in the form of a conversion of the civil society, the holding or the establishment into a capital company in that capital company.(2) For the purposes of applying paragraph 1, the reserve shall be based on the carrying amount of the goods in question.(3) In accordance with the provisions of paragraph 1, in so far as the company, the holding or the establishment within the meaning of the first sentence of section 1 (3) has been supplied to the assets of the fixed assets, it shall be subject to the conditions laid down in paragraph 1 of this Article.(4) Paragraphs 1 to 3 shall apply in accordance with the provisions of Section 1 (7).

Footnote

(+ + + § 3 para. 4: For application, see Section 11 (4) sentence 1 F. from 1981-12-22 + + +) unofficial table of contents

§ 4 special provisions for certain transformations or divestitures

(1) If investments are made in accordance with § 1 (3) sentence 1 nos. 3 and 4 as a result of the In the case of the conversion of the civil society, the holding or the establishment in the developing country into a capital company as a result of the conversion of the personal company, the holding or the establishment into a capital company, the taxable person may in the Economic year of conversion from the cost of the acquisition or production of movable assets of the fixed assets acquired or produced in that marketing year to the amount of the profit or loss . In so far as the taxable person has not made the deduction in accordance with the first sentence, he may, in the marketing year of the conversion, form a reserve which reduces the tax profit. In this case, the provisions of Section 6b (3) to (5), with the exception of paragraph 4 (2) of the Income Tax Law, shall be applied in accordance with the proviso that the reserve shall only cover the cost of the purchase or production of the movable assets of the fixed assets may be transferred.(2) Paragraph 1 shall apply mutatily, to the extent that, in the case of investments within the meaning of Article 1 (3), first sentence, no. 1, 3 and 4 and § 2
1.
as a result of the divestment of an establishment or an establishment or shares in a capital company as a result of the conditions in the developing country, a A person holding company, an establishment or an establishment in the developing country, or
2.
as a result of the introduction of an establishment, an establishment or shares in a capital company or a partnership in a capital company within the meaning of Section 1 (3) Sentence 4 (1)
a profit-making company in the country of the country. Sentence 1 shall apply in the cases referred to in Article 1 (7).(3) If the taxable person has made a deduction in accordance with paragraph 1 or paragraph 2 or has formed a reserve, the provisions of section 34 (1) sentence 1 and 2 of the Income Tax Act shall apply to the person responsible for the conversion, sale or transfer of the income tax.

Footnote

(+ + + § 4 (2) sentence 1 no. 2: For application, see § 11 paragraph 2 F. from 1981-12-22 + + +)
(+ + + § 4 para. 2 sentence 2: For application see Section 11 (4) sentence 1 F. from 1981-12-22 + + +) Non-official table of contents

§ 5 Abolition of tax breaks

(1) Became capital investments within the meaning of Section 1 (3) or participations within the meaning of § 2 in accordance with § 6 of the Income Tax Act with the lower partial value, a reserve formed in accordance with § 1 or § 2 shall be the economic year of the approach of the lower partial value in the amount of the share, which is the difference between the value, with to which the capital investment has been scheduled so far, and the lower partial value, to dissolve prematurely in a more prematurely manner. Sentence 1 shall not apply to the extent that, in the case of loans within the meaning of Article 1 (3), first sentence, point 2 (b), the lower part of the loan has been made exclusively with regard to the non-interest rate of the loans. By way of derogation from Article 1 (1) (3), a reserve for loans within the meaning of Article 1 (3) (1) (2) (b) shall be disburdened from the sixth annual marketing year to its education at an annual level of the amount or partial amount; which corresponds to the share of the repayment in the relevant marketing year at the nominal amount of the loan given; however, the reserve shall be at least the following marketing year for the sixth year following its formation, with at least those referred to in Article 1 (1) sentence 3. To dissolve partial amounts in a profit-making manner.(2) If holdings in developing countries are sold or transferred to private assets in developing countries within the meaning of Article 1 (3), first sentence, No. 1 or No 2 (a) or (2) (a) or (2), the reserve shall be in the marketing year of the divestiment or Transfer to the private property in proportion to the share of the capital investment transferred or transferred into the private assets to the total capital investment to be resolved prematurely in a way that is at the same time increasing. The same applies if
1.
shares in capital companies within the meaning of section 1 (3) sentence 4 no. 1 or is sold or transferred to private assets by such corporations or
2.
in the case of investments in the sense of the § § 1 (3) on the operating assets of the company, the holding or the establishment (s)
a)
The assets or stocks or participations within the meaning of § 1 (6), which have been taken into account in the assessment of the reserve, are sold, or in the private property or transferred to a country not belonging to the developing countries, or
b)
Loans as defined in Section 1 (6) of the loan repaid or resigned or transferred to private assets or to an establishment or establishment in a country that is not part of the developing world, or
c)
amounts that are in accordance with Section 1 (6), deposited with the State Bank of the developing country, shall be repaid,
without the company, the holding or the holding of the holding in the case of the letter 'abis' at the end of the period referred to in or for the following marketing years to a corresponding extent, replacement goods purchased or produced, in the case of the letter bbis to the end of the marketing year following the repayment, assignment or transfer of the loans in the following years: New loans within the meaning of Section 1 (6) shall be granted.
Are assets of the fixed assets or stocks or participations within the meaning of Section 1 (6), which are taken into account in the assessment of the reserve. , from a developing country of Group 1 to a developing country in Group 2, the second sentence of paragraph 2 shall apply, on condition that the part of the reserve resulting from the transferred assets shall be six-tenths, in the case of compliance with the provisions of the The requirements of § 1 para. 2 to four tenths prematurely are to be resolved in a prematurely increasing manner. In the case of a conversion into a capital company of a partnership, establishment or establishment in developing countries, as a result of the conditions in the developing country, the premature increase in profits of the reserve is no longer necessary. in the amount of the amount or partial amount corresponding to the ratio between the taxable person's participation in that capital company and its share in the person holding company, the holding or the establishment prior to the conversion. A provision within the meaning of Section 4 (2) sentence 1 no. 2 does not lead to a premature increase in the profits of the reserve. In the cases provided for in the fourth sentence, the reserve shall be resolved prematurely in the appropriate application of the first sentence if, in the case of the capital company, one of the facts referred to in the second sentence of 2 (2) (a) to (c) is carried out without the need for: the conditions set out in the second sentence of sentence 2 of the last half-sentence shall be met by the capital company. The same applies in the case of the introduction of an establishment or a holding company or of shares in a personal company in a capital company within the meaning of Article 1 (3) sentence 4 (1) (b).(3) The company, the establishment or the establishment in developing countries no longer fulfils the condition of the last subparagraph of § 1 (3) sentence 1 or becomes the seat or management of a capital company within the meaning of section 1 (3) sentence 4 No 1 transferred to a country which is not a member of the developing countries, the full amount of the reserve formed in accordance with § 1 or § 2 shall be disburdened in the full amount of the profit.(4) Paragraphs 1 to 3 shall apply in the cases referred to in Article 1 (7).

Footnote

(+ + + § 5 (2) sentence 2 No. 1, sentence 5 and below). Sentence 7: For use, see § 11 paragraph 2 F. from 1981-12-22 + + +)
(+ + + § 5 para. 4: For application see § 11 (3) sentence 1 F. from 1981-12-22 + + +) unofficial Table of Contents

§ 6 Developing Countries

(1) Developing countries within the meaning of this Act are the following countries and territories:
Group 1
Ethiopia, Afghanistan, Bangladesh, Benin, Bhutan, Botswana, Burundi, Gambia, Guinea, Haiti, Yemen (Arab Republic), Democratic People's Republic of Yemen, Cape Verde, Comoros, Laotian Democratic People's Republic, Lesotho, Malawi, Maldives, Mali, Nepal, Niger, Obervolta, Rwanda, Samoa, Somalia, Sudan, Tanzania, Chad, Uganda, Central African Empire.
Group 2:
Egypt, Equatorial Guinea, Algeria, Angola, Antigua, Argentina, Bahamas, Bahrain, Barbados, Burma, Bolivia, Brazil, Brunei, Chile, People's Republic of China, Costa Rica, Dominica, Dominican Republic, Djibouti, Ecuador, Ivory Coast, Fiji, Gabon, Ghana, Grenada, Greece, Guatemala, Guinea-Bissau, Guyana, Honduras, India, Indonesia, Iraq, Iran, Iceland, Israel, Jamaica, Jordan, Yugoslavia, United Republic of Cameroon, Qatar, Kenya, Colombia, People's Republic Congo, Republic of Korea, Kuwait, Lebanon, Lebanon, Liberia, Libyan Arab Jamahiriya, Madagascar, Malaysia, Malta, Morocco, Mauritania, Mauritius, Mexico, Mozambique, Nauru, Nicaragua, Nigeria, Oman, Pakistan, Panama, Papua New Guinea, Paraguay, Peru, Philippines, Portugal (excluding non-European territories), Romania, Solomon Islands, El Salvador, Zambia, Sao Tome and Principe, Saudi Arabia, Senegal, Seychelles, Sierra Leone, Singapore, Spain (excluding non-European territories), Sri Lanka, St. Christoph-Nevis-Anguilla, St. Lucia, St. Vincent, Suriname, Swaziland, Syria, Taiwan, Thailand, Togo, Tonga, Trinidad and Tobago, Turkey, Tunisia, Tuvalu, Uruguay, Venezuela, United Arab Emirates, Socialist Republic of Vietnam, Zaire, Cyprus.(2) Developing countries of Group 2 within the meaning of this Act are also non-European countries, which are in accordance with the provisions of the 31.

Footnote

(+ + + § 6 para. 2: For the application, see footnote). § 11 paragraph 3 F. from 1981-12-22 + + +)

Second section
Business tax and wealth tax

Non-official table of contents

§ 7

(1) The provisions of § § 1 to 6 shall also apply to the determination of the business income pursuant to § 7 of the Industrial tax law.(2) If a reserve has been formed in accordance with § 1 or § 2, it shall be deducted from the determination of the unit value of the commercial establishment at the same level as that in the tax balance sheet for the last balance sheet date prior to the date for the determination of the Unit value of the commercial operation has been designated.(3) Where the capital investment has been carried out in the framework of an agricultural and forestry operation, paragraph 2 shall be applied in accordance with the determination of the total assets of the holder of that agricultural and forestry holding. name="BJNR010130963BJNG000300306 " />

Third Section
Final Provisions

Non-Official Table of Contents

§ 8 Empowerment

The Federal Ministry of Finance is hereby authorized to disclose the text of this Act in the version in force with a new date, under new heading and in new paragraph sequence, and in so doing to inconsistencies in the wording of the text. remove. Non-official table of contents

§ 9 Statistics

(1) The use of the tax-free reserves in accordance with § § 1 and 7 will be carried out by the Statistical Office. Federal Office of the Federal Statistical Office.(2) In order to carry out these federal statistics, the taxable persons who use the tax-free reserves shall, after the end of the respective marketing year at the request of the Federal Statistical Office, on the basis of an officially prescribed form. Information about
1.
Type and height, and the purpose of the capital asset,
2.
Asset and,
3.
Number of permanent jobs created by the investment asset in the asset and Apprenticeships,
4.
The amount of the participation of other companies in the company in the investment country where the capital investment has taken place.
(3) Financial authorities inform the Federal Statistical Office annually of the addresses of the taxable persons who have used tax-free reserves in accordance with § § 1 and 7.(4) Federal statistics shall be carried out for the marketing year, which shall be in accordance with the 31. December 1978. Non-official table of contents

§ 10 Berlin clause

This law shall also apply in the Land of Berlin in accordance with the provisions of Section 12 (1) of the Third Transfer Act. Non-official table of contents

§ 11 Scope

(1) The above version of this law is subject to paragraphs 2 to 4 to apply capital investments that are in accordance with the 31. December 1978 and before 1. and on investments made in accordance with 31 January 1982. December 1981, but demonstrably in compliance with one of the 30. The Commission has made a legally binding commitment to this effect in July 1981.(2) The provisions of § 4 (2) sentence 1 no. 2 and § 5 (2) sentence 2 no. 1, sentence 5 and sentence 7 shall also apply to capital investments which are prior to the 1. The report was adopted on 15 January 1979.(3) In the case of investments in developing countries within the meaning of section 6 (2), the provisions of this law shall apply only to the extent that the capital investments are made after the independence of these countries has been achieved.(4) The provisions of § 1 (7) and (8), § 2 (2), § 3 (4), § 4 (2) sentence 2 and § 5 (4) in the version of the announcement of the 21. May 1979 (BGBl. 564) shall be applied last for the marketing year preceding the marketing year for which Section 15a of the Income Tax Act is to be applied for the first time. The provision of section 7 (2) sentence 2 is to be applied last time to the valuation date which precedes the marketing year for which § 15a of the Income Tax Act is to be applied for the first time.