ARTICLE 2

Taxes Covered

1. The existing taxes to which this Convention shall apply are:

a) In the United States:

aa) the federal income taxes imposed by the Internal Revenue Code (but excluding the accumulated earnings tax, the personal holding company tax, and social security taxes); and

bb) the excise tax imposed on insurance premiums paid to foreign insurers (hereinafter referred to as “United States tax”).

This Convention shall, however, apply to the excise tax imposed on insurance premiums paid to foreign insurers only to the extent that the risks covered by such premiums are not reinsured with a person not entitled to the benefits of this or any other convention that provides exemption from such tax.

b) In the Federal Republic of Germany:

aa) the income tax (Einkommensteuer);

bb) the corporation tax (Körperschaftsteuer); cc) the trade tax (Gewerbesteuer); and dd) the capital tax (Vermögensteuer) (hereinafter referred to as “German tax").

2. This Convention shall apply also to any identical or substantially similar taxes that are imposed after the date of signature of this Convention in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify each other of any significant changes that have been made in their taxation laws.