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The United States and Germany agree not to tax income or dividends from investments made by certain U.S. or German pension funds specified in the agreement. Terms of the clarifying agreement will protect the interests of trust arrangements in both countries, according to a treaty document signed by the respective competent authorities. One of the provisions of the agreement clarifies that it is the employer that can claim the treaty benefits for a German contractual trust arrangement established by an employer to hold assets of the employer's simple employer-sponsored pension plan (SESP) in which the assets of the trust are treated as owned by the employer under German law.
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