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Copyright and Other Royalties Paid by German Scientology to Church of Scientology International are Tax-Exempt: Decision of the German Federal Tax Office, January 2003, in German, with English translation

FEDERAL OFFICE              Postal address: 53221 Bonn

FOR                            House address: 53225 Bonn-Beuel

FINANCES Friedhofstr. 1

                            Telephone: (0228) 406-0

                              Telefax: (0228) 406-2661

                       File number:

                        - please note in case of questions -

                        St II 4 - 084/046108-00516/99

                               27 Jan 2003



Wilhelm Blumel


Bayerstr. 13


80335 M nchenchen


as the person empowered to receive remunerations on behalf of the creditor


      C E R T I F I C A T E O F E X E M P T I O N


      per art. 50d Sect 2, sent. 1 Income Tax Law (ITL)


Based on the application of 31 Dec 1998 for exemption from withholding

tax from inland revenue per art. 50a sect. 4 Income Tax Law under the

Double Taxation Convention (DTC)


Federal Republic of Germany - United States of America

the following certificate is issued:


The Exemption is granted.


The Debtor of the remunerations is entitled to refrain from payment of

withholding tax.


Subject of the Exemption:


Remunerations for the use or the right of use of copyrights and/or

similar services. The Exemption ensues per article 28 sect 1. lit.


The Exemption is applicable to remunerations that are being paid

in the time period from 1 Jan 1994 to 31 Dec 2005.

Creditor of Remunerations: Debtor of Remunerations:

Church of Scientology Scientology Kirche

International             Bayern e.V.

6331 Hollywood Blvd. Farberstr. 5

USA Los Angeles, CA 90028               90402 Nurnberg

This Certificate is issued under the proviso of revocation (art. 131 Tax





Page 2 of the Certificate of 27 Jan 2003,

File no. St II 4 - 084/046108-00516/99

     Per your information tax amounts were already withheld for

      the past time period and paid to the tax office, the

      reimbursement of which is now being applied for. Please

      submit the tax attest of the debtor of remunerations (art.

      50a sect. 5, sent. 7 Income Tax Law, see attached draft).

      With respect to the reimbursement a separate order will be



      Take note:

      Hereby also your application of 30 Dec 2002 to issue a

      certificate of exemption is moot.


Your contractual partner has received an official copy of this



The exemption applies only to the extent that the stated revenues

are factually attributable to the creditor of the remunerations according

to inland tax law. This prerequisite is examined by the Federal Office

for Finances (FOfF) in the realm of the processing of the application

only in exceptional cases and only in the case of specific indicators.

The finding whether revenue subject to withholding tax duty in the

meaning of art. 50a sect. 4 Income Tax Law does exist and which person

these have to be attributed to is incumbent upon the local tax office

of the debtor of the remuneration. The FofF is only competent for the

relief from this withholding tax on the basis of the Double Tax

Convention (art. 5 sect 1 fig. 2 Tax Office Administration Act).


As far as changes become known that have an effect on the claim for

exemption (e.g. the abandonment of the residence of creditor of the

remunerations in the said DTC contracting state), these have to be

communicated to the FofF immediately. Tax sums the withholding of

which is refrained from illegitimately, will be demanded additionally

by the tax office of the debtor of remunerations or will be assessed

by way of a liability assessment on the debtor of remunerations.


The tax debtor status of the receipiant of the services for purposes of

VAT (art. 13b VAT Law) remains untouched by this certificate.


This certificate is to be well preserved as evidence; the regulations

on the preservation of documents per art. 147 Tax Code apply. Existing

duties for record keeping and filing of returns in relation to the

Debtor of remunerations remain untouched (art. 73d and 73e of the Income

Tax Law).




               This writing was mechanically produced

                  and does not require a signature.


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