Tax exemption on the basis of double taxation agreements and the partial exemption

(1) The distributed and deemed-distributed income is to be excluded from the basis of assessment of the German tax, in the investor's assessment, insofar as it includes income originating from a foreign state for which the Federal Republic of Germany has, under a double taxation agreement, waived the exercise of its right of taxation. The tax exemption under the first sentence is excluded where the special investment fund's respective income was not subject to actual taxation in the foreign state from which it originates. The first and second sentences do not apply to income under section 20(1) nos. 1 and 3 of the Income Tax Act. The third sentence does not apply to income under section 20(1) no. 1 of the Income Tax Act from a company within the meaning of section 26 no. 6, second sentence, insofar as 1. the investor satisfies the personal conditions for an exemption under the double taxation agreement, and 2. the holding in the capital of the company mathematically attributable to the investor's special investment units satisfies the conditions for an exemption under the double taxation agreement.
(2) (repealed)
(3) The partial exemption under section 20 applies accordingly to distributed or deemed-distributed income originating from distributions of investment funds, advance lump sums or profits from the disposal of investment units.