Law regulations in selected countries regarding tax exemption or/and deduction from social benefits of payments made under the

Law regulations in selected countries regarding tax exemption or/and deduction from social benefits of payments made under the German Forced Labour Compensation Programme

*Country*	*Tax exemption*	*Deduction from social benefits*	*Source*
Argentina	YES	NO	Art.18 of the German - Argentinean double taxation agreement (statement from Argentinean embassy of 01.02.01) is in force; Argentinean income tax law is not applicable
Australia	YES	NO	"Compensation payments under the German Forced Labour Compensation Programme and the Holocaust Victim Assets Programme received by Australian residents, who suffered as a result of injustices committed during the Nazi regime, are exempt from tax in Australia." (According to the Taxation Laws Amendment Act No.1 2003, Income Tax Assessment Act 1997)) Letter from the Australian Taxation Office
Belarus	YES	NO	Confirmation (refer to fax of 08.05.01 from German embassy in Minsk): Tax exemption for payments confirmed by enactment of president, 5.5.01
Belgium	YES	NO	Letter of Belgian government to IOM (11.12.00); Belgian finance ministry refers to Art.19 IV (analog) of German - Belgian double taxation agreement
Czech Republic	YES	?	Art. 586/1992 of § 4g of the income tax law compensation for property loss are tax free (letter of German-Czech Foundation “Fund of the Future” of 3 March 2005)
Croatia	YES	NO	Source not specified
Canada	YES	NO	Confirmation from Customs and Revenue Agency (of 31.01.00) § 81 "Income Tax Act"
Denmark	YES	NO	"According to the Danish assessment law (ligningsloven) section 7 T, payments, etc., made by states , foundations, organizations etc, are to be tax free, if they are made as a result of infringement by nazis against persons during the second world war." Letter from the Danish Ministry of Foreign Affairs to IOM Regional Office for Baltic and Nordic States (11/15/2000)
Finland	YES	NO	According to Finnish law special approval necessary; but will be granted; telephone statement from Finnish social ministry that payments from German Foundation will not be deducted from social benefits (statement from embassy of 23.01 + 24.04.01)
France	YES	Not decided	Art. 14 II No. 2 German - French double taxation agreement applicable.(statement of 07.02.01). statement concerning social benefits is outstanding
Estonia	YES	NO	Does not fall under Art.6 I+II Income tax law (refer to verbal note of 21.06.01)
Hungary	YES	NO	Source not specified
Italy	YES	NO	Source not specified
Poland	YES	NO	In accordance to a Polish law dated 21st September 2000 on tax and charges exemption for the compensations paid for the persecutions done by the Nazi Germany and on not including them into income (official gazette announcing current legislation Dz. U. No 93. position 1028), compensations paid to the victims and their heirs for the Nazi persecutions during World War II, including those referring to the slave and forced labour, are free of taxes and charges. These compensations are not included into incomes from which health insurance premium and other charges could be deducted. According to the rules of the above mentioned law, Foundation for Polish-German Reconciliation is also exempted from the taxes of the amounts given for the compensations.
Netherlands	YES	NO	"Law of payments to victims of war" and letters from various ministries concerned to the parliament of 1.9.2000 is confirmed (statement from embassy of 31.01.01)
Serbia and Montenegro	YES	NO	"In compliance with Article 88, paragraph 3, item 8 of the Law on Basis of Tax System("The Official Gazette of the RFY" N? 30/96 and 53/99), the income tax paid by the nationals does not refer to income earned through compensating for material and non-material losses." Letter from the Federal Ministry for Finance to IOM Office in Belgrade, FRY (02/14/2001)
Slovenia	YES	?	Message of the Finance Ministry of Slovenia to the German Ministry for Foreign Affairs in April 2005
Switzerland	YES	NO	Confirmation of Swiss tax administration (29.01.01; Az:DB-024.1g/Wm) and Swiss tax conference (5.4.01): Art. 24 g) National law of indirect national tax and Art. 7 IV i) National law of harmonization of direct tax
United States	YES	NO	Tax exemption law of 2001 settles tax exemption, amendment concerning deduction from social benefits is planned. For the moment Rev.Ruling 56-518 of 1996 and German - American double taxation agreement is applicable (concerning this agreement tax exemption is granted)Sec. 803 states that there is no federal or income tax on restitution received by victims of the Nazi regime or their heirs. Eligible individuals should, however, consult a certified accountant for professional advice.
United Kingdom	YES	NO	Confirmation from Foreign&Commonwealth Office of 05.06.01: § 51 "Taxation of Chargeable Gains Act"

International Organization for Migration (IOM)
German Forced Labour Compensation Programme
17 Route des Morillons * C.P. 71 * CH-1211 Geneva 19 * Switzerland
Hotline: +41 22 5928230 * Email: compensation@iom.int
Internet: http://www.compensation-for-forced-labour.org