Die Befreiung ausländischer Diplomaten von deutscher Besteuerung

The article explains the legal foundations for the exemption of foreign diplomatic agents from German taxation and its practical implementation. The complexity of the issue arises from the necessity to harmonize two separate fields of law – national fiscal law and international law. The article gives a review of the differentiations of the topic and connected problems, thereby concentrating on law of diplomatic agents.After outlining the relevant legal sources and the rationale behind them the author presents the legal foundations and legal consequences of the tax exemption as well as its disadvantages based on the Vienna Agreement about Diplomatic Relations (WÜD). Subsequently the author deals with the doctrine of the exterritoriality of the Supreme tax court and the question of the dogmatic classification of the predominantly international tax exemption for diplomatic agents and offers its own fiscal suggestions for a solution.The article continues with a further differentiation of the topic, outlining the individual tax types to which the tax exemption for the diplomatic personnel refers. In this context the article explores reciprocal tax exemption as well as its practical use considering the need for coordination and deals with the regulation of rebate sales taxes.The review of the topic is concluded by a short discussion of the Double Taxation Convention, the taxation of the mission as real estate and the particularity of the Vienna Agreement about Consular Relations (WÜK).In conclusion it remains to be stressed, that national fiscal law should be revised systematically and abiding to international law, and the practice of tax exemption has to measure up to the reasoning behind it, which is to grant the diplomats independence and freedom.