811.512362 Shipping/–

The German Embassy to the Department of State


The German Embassy has the honor to forward herewith to the Department of State an ordinance of the German Minister of Finance, III C 7412 of August 10 of this year, together with an English [Page 189] translation, concerning the exemption of North American Steamship Companies from the payment of the German corporation tax.


The German Minister of Finance ( Hermes ) to the Presidents of the State Finance Offices of Königsberg, Mecklenburg-Lübeck, Oldenburg, Schleswig-Holstein, Stettin, Unterelbe, and Unterweser

III C 7412

Under section 213, subdivision 8, of the Revenue Act of 1921 of the United States of America, the income derived exclusively from the operation of a ship or ships of a foreign company is exempted from the income tax if the company is subject to the laws of a foreign state which grants reciprocal rights to the United States. At the instance of the Embassy of the United States of America, I declare myself as agreeing, upon the assumption of full reciprocity and with the reservation of the right of revocation at any time, under authority of section 108, subdivision 1, of the Federal Tax Law, that in the case of companies operated for profit, whose domicile and place of management is in the United States of America, the income which is derived exclusively from the operation of ships shall not be subjected to the corporation tax. A corporation-tax return for the aforesaid income is not to be required of North American companies which maintain in this country a branch or other place of operation or a permanent representative. I request that the finance offices charged with making the assessments be notified forthwith.

If in individual cases doubt should arise, I ask that report be made thereof.

Representing the Minister:
  1. File translation revised.
  2. File translation revised.