2628 P03t, p. 2636. DOUBLE INCOME TAX-SHIPPING PROFITS-GERMANY. FOREIGN OFFICE No. V Steu 1496 [Translation) NOTE V ERBALE Supplementing its Note Verbale No. III A 522 of March 19 last, regardi~ the exemption of American shipping companies from the corporatIon tax, the Foreign Office has the honor to inform the Em- bassy of the Unit,ed States of America that the Federal Minister of Finance has instructed the financial authorities, in the case of com- mercial companies whose seat and place of direction is in the United States of America, not to subject to the corporation tax t1'e income which comes exclusively from the operation of ships and not Lo demand a corporation tax declaration as to the above-mentioned from the North American companies which maintain in Germany a branch office, any other place of operation or a permanent representative. This instruction was issued on condition of reciprocity on the part of the United States and under the reservation that it may be recalled at any time. The said Minister has furthermore declared his readiness to grant the favored treatment accorded to North American shipping com- panies also to citizens (individual persons) of the United States of America who carry on shipping traffic to Germany, if the Government of the United States of America grants reciprocity in the same degree. The Foreign Office would be grateful to the Embassy of the United States of America. if the latter would report the above to its Govern- ment with the greatest possible despatch and obtain a statement as to the attitude of the Government toward the question of exemption from taxation of the above-described individual persons. BERLIN, September 6, 1928. To the EMBASSY OF THE UNITED STATES OF AMERICA. O('tober 8, 1\123. The American Embassy at Berlin to the German Ministry for Foreign Affairs No. 536 NOTE V ERBALE The Embassy of the United States of America presents its compli- ments to the Ministry for Foreig!l Affairs and has the honor to refer to the latter's Note Verbale No. V . Steu 1496 of September 5,1923, in which the Embassy was informed among other things that the Com- monwealth Minister of Finance had issued certain instructions not [to] subject to the corporation tax the income derived exclusively from the operation of ships by commercial companies whose seat and place of direction are in the United States of America under certain circumstances mentioned, on condition of reciprocity on the part of the United States. In a~cordance with the expressed desire of the Ministry for Foreign Affairs the contents of the note verbale under reply were communi- cated by cable to the Department of State, which has now sent a telegraphic reply.
