43/1996 Coll.
The COMMUNICATION FROM the
Ministry of Foreign Affairs
Ministry of Foreign Affairs says that the 2 July. December 1994 was
a treaty is signed between the Czech Republic and the Republic of Finland
avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on
income.
With the Treaty, its assent, Parliament of the Czech Republic and the President of the
the Republic has ratified it.
This agreement on the basis of its article 27, paragraph 1. 2 came into force
on 12 March 2005. December 1995. Pursuant to paragraph 3 of the same article shall cease
apply to the contract between the Government of the Czechoslovak Socialist Republic and the
the Government of the Republic of Finland for the avoidance of double taxation and prevention of fiscal
evasion with respect to taxes on income and on capital, signed at Helsinki, 31.
January 1975, proclaimed under no. 134/1976 Coll., concerning the taxes to which
This agreement applies in accordance with the provisions of paragraph 2. Their
the validity of the Treaty of 1975 occurs on the last day, when this agreement
will be in effect in accordance with the preceding provisions of this paragraph.
English translation of the Treaty shall be designated at the same time. In the English version, which
for its interpretation of the applicable, can be consulted at the Ministry of
Foreign Affairs and the Ministry of finance.
CONTRACT
between the Czech Republic and the Republic of Finland for the avoidance of double taxation
and the prevention of fiscal evasion with respect to taxes on income
The Government of the United Kingdom and the Government of the Republic of Finland,
Desiring to conclude an agreement on avoidance of double taxation and the prevention of
fiscal evasion with respect to taxes on income,
have agreed as follows:
Article 1
The person to which the contract relates
This agreement shall apply to persons who are resident or established in
one or both of the Contracting States (residents).
Article 2
The tax, to which the contract relates
1. this Agreement shall apply to taxes on income imposed on behalf of each
of the Contracting States, or of his lower administrative departments or local
authorities, irrespective of the method of selecting any.
2. the following shall be regarded as taxes on income all taxes levied on the total
income or part of income, including taxes on profits from the alienation of movable
or immovable property and taxes on the increment property also.
3. Current taxes, to which the contract relates are:
a) in Finland:
(i) the State income tax (valtion tuloverot; de statliga
inkomstskatterna);
(ii) income tax yhteisöjen tulovero; the corporations (skatten för inkomst
samfund);
(iii) the communal tax (kunnallisvero; kommunalskatten);
(iv) the church tax (kirkollisvero; kyrkoskatten);
(v) the withholding tax at source on interest (korkotulon lähdevero; källskatten pa
ränteinkomst); and
(vi) the withholding tax at the source of the income of non-residents (rajoitetusti
verovelvollisen lähdevero; källskatten för begränsat skattskyldig);
(hereinafter referred to as "Finnish tax");
(b)) in the Czech Republic:
(i) the tax on income of individuals;
(ii) the tax on income of legal persons;
(hereinafter referred to as "Czech tax").
4. this Agreement shall also apply to the taxes of the same or
of a similar kind, that will be stored after the signature of this agreement, in addition to
or instead of the current taxes. The competent authorities of the Contracting States shall mutually
shall notify substantial changes that will be made in their respective
tax laws.
Article 3
General definitions
1. for the purposes of this agreement, unless the context requires a different interpretation:
and) the term "Finland" means the Republic of Finland and, when used in
geographical importance, indicates the territory in which the tax laws apply
The Republic of Finland;
(b)), the term "Czech Republic" means the territory in which the tax applies
the laws of the United States;
(c)) the term "person" includes an individual, a company and any other
an Association of persons;
(d)) the term "company" means the entity or rights holders
considered, for the purposes of taxation under the legal person;
(e)) the terms "enterprise of a Contracting State" and "enterprise of the other Contracting
State "means the enterprise carried on by a resident of a Contracting State
or undertaking operated by a resident of the other Contracting State;
f) the term "national" means:
(i) any natural person who is a citizen of a Contracting
State,
(ii) any legal person, partnership or association established
According to the law in force in a Contracting State;
(g)) the term "international traffic" means any transport
undertaken by boat or plane, which is operated by an undertaking
of a Contracting State, except when the ship or aircraft is
operated only between places in the other Contracting State;
h) the term "competent authority" means:
(i) in Finland, the Ministry of finance, its authorised representative or the
the authority which is designated by the Ministry of finance as the competent authority;
(ii) in the Czech Republic the Minister of finance or his authorised representative.
2. each expression that is not otherwise defined will have for the application of this
the Treaty, a Contracting State the importance which it has under the law of that State,
covered by the taxes covered by this agreement, unless the context
does not require a different interpretation.
Article 4
A resident of the
1. for the purposes of this agreement, the term "resident of a Contracting State"
indicates any person who, under the law of that State, subject to the
that State taxation because of their place of residence, permanent residence, place of
leadership, the place of establishment (registration) or any other similar
criteria. The State party itself, its lower administrative department and the local authority and the
statutory authority are deemed to be a resident of that State. This expression
does not include a person who is subject to tax in that Contracting State
only for reasons of income from sources in that State.
2. If the individual is under the provisions of paragraph 1, a resident in the
both of the Contracting States, its position will be addressed to the following
follows:
and it is assumed that) this person is resident in the State in which the
He has a permanent home; If he has a permanent home in both States, it is assumed that
It is resident in the State, which has a strong personal and economic
relations (Centre of vital interests);
(b)) if it cannot be determined which state the person Center
their vital interests, or if it does not have a permanent home in any State
It is assumed that it is resident in the State in which it is usually
resides;
(c)) If this person usually resides in both States, or in any
of them, it is assumed that it is resident in the State of which he is a
National;
d) if that person is a national of both States or of any
of them, the competent authorities of the Contracting States shall adjust the question by mutual
by the agreement.
3. If a person other than an individual is subject to the provisions of paragraph 1,
a resident of both Contracting States, the competent authorities of the adjusted
States the question by mutual agreement the mode of application of the Treaty and provides for the
for such a person.
Article 5
Permanent establishment
1. For the purposes of this agreement, the term "permanent establishment" means a permanent
equipment for the business, in which the undertaking carries out entirely or partly
their activity.
2. the term "permanent establishment" includes especially:
and instead of keeping);
(b)) race;
(c));
(d) a factory;)
e) a workshop; and
f) mine, the site of diesel or gas, a quarry or any other place where the benefits
natural resources.
3. the term "permanent establishment" also includes:
a building site or construction), Assembly or installation project or supervision
above them, but only if this building, project or supervision for more than
12 months;
(b)) the provision of services, including consultancy and managerial services
the enterprise through employees or other personnel
employed by the enterprise for such purpose, but only where the activities of the
such as to insist on the territory of the other Contracting State for a period
or more periods exceeding in the aggregate more than 12 months in any
the 18-month period.
4. Notwithstanding the preceding provisions of this article, it is assumed
the term "permanent establishment" shall not include:
and) device that is used only for storage, display or delivery
goods belonging to the enterprise;
(b)) the supply of goods belonging to the enterprise solely for the purpose
storage, display or delivery;
(c)) the supply of goods belonging to the enterprise solely for the purpose
the processing of another undertaking;
d) durable equipment for the business, which is solely for the purpose
purchase of goods, or collecting information for the enterprise;
e) durable equipment for the business, which for the company only for the
the purpose of other activities which have a preparatory or auxiliary for the enterprise
character;
f) permanent device for business, solely for the performance of
any combination of activities mentioned in subparagraphs (a) to (e))), if
the total activity of durable equipment, which is the result of this connection,
has a preparatory or auxiliary character
.
5. If, notwithstanding the provisions of paragraphs 1 and 2, a person-other than
an independent representative, to whom paragraph 6 applies-is acting in a
a Contracting State on behalf of the company and has available and usually uses the full
the power that allows it to enter into contracts on behalf of the company, it is considered that the
This enterprise has a permanent establishment in that State in respect of all
the activities that the person performs for the enterprise if the activities of this
people are not limited to the activities listed in paragraph 4 which, if
were carried out through permanent facilities were not based on
the existence of a permanent establishment under the provisions of this paragraph.
6. Not considered that the enterprise has a permanent establishment in a Contracting State
just because in this State, carries on business through a
a broker, General Commission agent or any other agent of an independent,
If these persons are acting within their proper operation.
7. the fact that a company which is resident in a Contracting
State, controlled by the company or is controlled by a company which is
a resident of the other Contracting State, or which carries on there
activity (whether through a permanent establishment or otherwise), will not make itself
about myself from any of this company a permanent establishment of the other
the company.
Article 6
Income from immovable property
1. Income derived by a resident of a Contracting State from immovable
property (including income from agriculture or forestry) situated in the second
a Contracting State may be taxed in that other State.
2.
and) the term "immovable property" is subject to the provisions of subparagraphs (b) and (c)))
such importance according to the laws of the Contracting State in which that
the property is located.
(b)), the term "immovable property" includes in any case the building,
accessories of immovable property, alive and dead inventory to be used in the
Agriculture and forestry, rights to which the provisions of the civil
rights related to lands, the right to the enjoyment of immovable property and
rights to variable or fixed salaries for mining or consent to
mining of mineral deposits, sources and other natural resources.
c) ships and aircraft will not be regarded as immovable property.
3. The provisions of paragraph 1 shall apply to income from the direct use, letting, or
any other manner of use of immovable property.
4. where the ownership of shares or other rights in a company entitles the
the owner of such shares or rights to use immovable property held by
companies may be the income from the direct use, rent or other
the use of such right taxed in the Contracting State in which it is
immovable property is located.
5. The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property
the assets of the company and to income from immovable property used for the performance of
an independent profession.
Article 7
The profits of enterprises
1. The profits of an enterprise of a Contracting State shall be taxable only in that
State if the undertaking does not pursue its activities in the other Contracting State
through a permanent establishment that is located there. If
the enterprise carries on business in this way, the profits of the enterprise may be
taxed in that other State, but only to the extent that it is
can be attributed to that permanent establishment.
2. If an enterprise of a Contracting State, carries on business in the
the other Contracting State through a permanent establishment that is there
placed, attach, subject to the provisions of paragraph 3 in any
Contracting State of such permanent establishment profits which could
so if it were a separate enterprise carried out the same or
similar activities under the same or similar conditions and was completely
independent contact with the enterprise of which it is a permanent establishment.
3. when calculating the profits of a permanent establishment shall be allowed to deduct the costs of
the company spent on the objectives pursued by the permanent establishment, including
Executive and general administrative expenses, whether incurred as follows
incurred in the State in which the permanent establishment is situated or elsewhere.
4. no permanent establishment of nepřičtou gains based on the fact that
only goods for the company.
5. where profits include receipts, which are dealt with separately in the
the other articles of this agreement, the provisions of those articles shall not affect the
the provisions of this article.
Article 8
Shipping and air transport
1. The profits of an enterprise of a Contracting State from the operation of ships or
aircraft in international traffic shall be taxable only in that State.
2. The provisions of paragraph 1 shall also apply to profits from the participation in a pool,
the joint operation or an international operating organization.
Article 9
Associated enterprises
1. If the
and the company) of a Contracting State participates directly or indirectly in the
management, control or capital of an undertaking of the other Contracting State, or
(b)) the same persons participate directly or indirectly in the management, control or
the assets of the enterprise of a Contracting State and enterprise of the other Contracting
State,
and if in these cases are both enterprises in their commercial or
financial relations terms that agree or they were
stored and which differ from those which would have been agreed upon between the
companies independent, can any profits which would, but for those
conditions have been accrued to one of the enterprises, but due to these
conditions were not achieved, be included in the profits of this business and
subsequently taxed.
2. where a Contracting State includes in the profits of the enterprise of that State-and
Subsequently, the tax-gains that enterprise of the other Contracting State has been
taxed in that other State and the profits are included for the first time as follows
said the State considered the gains that would have accrued to the undertaking
the first-mentioned State if the conditions agreed between the two companies were
What would have been agreed between independent undertakings, modifies the second
State, mutatis mutandis, the amount of tax it has stored from those profits, if this
the second State it considers such an adjustment to be justified. To establish this
editing, due account is taken of other provisions of this agreement, and
If necessary, the competent authorities of the Contracting States to this end
advise each other.
3. A Contracting State does not adjust the profits of the enterprise in the circumstances referred to in
paragraph 1, after expiry of the period set by its national laws,
provisions and in no case after the expiration of six years from the end of the year in which
reached this State enterprise profits which would be subject to such
editing.
4. The provisions of paragraphs 2 and 3 shall not apply in the case of fraud, deliberate
negligence or carelessness.
Article 10
Dividends
1. dividends paid by a company which is resident in the same
Contracting State, to a person who is resident in the other Contracting State,
may be taxed in that other State. However, such dividends may be
also be taxed in the Contracting State in which it is a company that is
paid is a resident and according to the laws of that State, but the
If the recipient is the beneficial owner of the dividends the tax so determined
shall not exceed:
and 5% of the gross amount) of the dividends if the recipient is a company (other than
personal company), which directly owns at least 25% of the assets
the company paying the dividends;
b) 15% of the gross amount of the dividends in all other cases.
2. Notwithstanding the provisions of paragraph 1, as long as the natural person who
is a resident of Finland shall be entitled to compensation of the tax on dividends paid to
a company which is a resident of Finland shall be subject to dividends paid by
a resident of the United States by a company which is a resident of Finland,
only taxation in the Czech Republic, if the recipient is the beneficial owner
dividends.
3. the competent authorities of the Contracting States shall by mutual agreement settle the mode
the application of paragraphs 1 and 2. The provisions of this paragraph shall not affect the taxation of the
the profits of the company, which is used for payment of dividends.
4. Notwithstanding the provisions of paragraph 1, the amount of dividends to be paid
a company which is a resident of the United States, the Finnish Fund for
industrial cooperation Ltd (Finnfund)., of which Czech tax will be due,
will be determined by subtracting the amount equal to the amount of dividends that
are reinvested in the Czech Republic during the calendar year in
which such dividends are paid, from the gross amount of the dividends.
5. the term "dividends" as used in this article means income from shares
or other rights, with the exception of receivables, with a share of the profits, as well as
revenue from the company's rights, which are pursuant to the tax provisions of the country
where is the company that rozdílí profit, residence, built on the
shall be assimilated to income from shares.
6. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of
of the dividends, being a resident in a Contracting State, carries on business in the
the other Contracting State in which the resident company paying
dividends, industrial or commercial activity through a fixed
the establishment, which is located there, or performs in that other State
independent profession through a permanent base located there and
If the participation, for which the dividends are paid is effectively connected to
such permanent establishment or to the permanent base. In this case,
provisions of article 7 or article 14, depending on which case
it comes.
7. Where a company which is resident in a Contracting State,
achieves profits or income from the other Contracting State, that
the second State to tax dividends paid by the company, unless such
dividends are paid to a resident of that other State or to participate,
for which the dividends are paid, actually belongs to the permanent establishment
or a permanent base, which is located in that other State, nor
subject to the company's retained profits tax on retained profits, even
When dividends paid or the undistributed profits consists wholly or
partly of profits or income realised in that other State.
Article 11
Interest
1. interest arising in a Contracting State by a resident of
of the other Contracting State shall be taxable only in that other State,
If the resident is the beneficial owner of the interest.
2. The term "interest" as used in this article means income from debt-claims
any kind of secured and not secured the right to
real estate or having or not carrying a right to participate in profits
of the debtor, and in particular, income from government securities and income from
bonds or debentures, including premiums and fees associated with those
securities, bonds or debentures. Penalties for late payment shall
not be regarded as interest for the purpose of this article.
3. The provisions of paragraph 1 shall not apply if the beneficial owner of
interest, which is resident in a Contracting State, carries on business in the other
the Contracting State in which they have interest, industrial or commercial source
activity through a permanent establishment situated therein, or
independent profession through a permanent base located there and
If the claim from which the interest is actually paid, it binds to
such permanent establishment or to the permanent base. In this case,
provisions of article 7 or article 14, depending on which case
it comes.
4. It is assumed that interest rates have a source in a Contracting State,
If the payer is a resident of that State. If, however, the person paying
the interest, whether he is a resident of a Contracting State or not, has in a Contracting
State a permanent establishment or a fixed base, in whose context
to debt, from which are paid interest, and such interest shall be charged to
such permanent establishment or fixed base, then such source
of interest will be considered by the State in which the permanent establishment or a permanent
the base is located.
5. If the amount of interest that are applicable to the claim from which they are
paid exceeds the due to the special relationship between the
the payer and the beneficial owner of the interest, or that one or the other keeps the
with a third party, the amount which would have been had given the payer with the actual
owner, if it wasn't for such a relationship, the provisions of this
article just on this latter amount. The amount of the salaries that it
exceeds, in this case, will be taxed in accordance with the legislation of each
a Contracting State with regard to the other provisions of this Treaty.
Article 12
License fees
1. Royalties arising in a Contracting State paid to
a resident of the other Contracting State may be taxed in that other
State.
2. However, such royalties, except payments referred
in subparagraph (a)), paragraph 3, may also be taxed in the Contracting State in
where is their source, and in accordance with the legislation of that State,
However, if the recipient is the beneficial owner of the royalties, the amount
the tax thus determined shall not exceed:
a) 1% of the gross amount of the royalties in cases of payments referred to in
(b)), paragraph 3;
(b)) 5% of the gross amount of the royalties in cases of payments referred to in
subparagraph (c)), paragraph 3;
c) 10% of the gross amount of the royalties in cases of payments referred to in
(d)) and paragraph 3 (e)).
The competent authorities of the Contracting States shall by mutual agreement settle the mode
the application of these restrictions.
3. the term "royalties" as used in this article means payments
of any kind received as a consideration:
and for the use of, or for the) right to use copyright to literary,
artistic or scientific, including cinematograph films and films or
recordings for television or radio broadcasting;
(b)) for financial lease facility;
(c)) for operational equipment or for the use of, or the right to use
computer programs;
(d)) for the use of, or the right to use any patent, trade mark, design,
or model, plan, secret formula or manufacturing process;
e) for information relating to experience gained in the field of
industrial, commercial or scientific.
4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of
of the royalties, being a resident in a Contracting State,
carries on in the other Contracting State in which the royalties
source, industrial or commercial activity through a fixed
the establishment, which is located there, or performs independent profession
through a permanent base located there, and if the right or
assets that give the emergence of royalty actually bind to
such permanent establishment or fixed base. In this case, shall apply
the provisions of article 7 or article 14, depending on what matters.
5. It is assumed that the licence fees to arise in a Contracting State,
If the payer is a resident of that State. However, if the payer
the royalties, whether he is or is not a resident in any Contracting
State, has in a Contracting State a permanent establishment or a fixed base in
connection with which the obligation to pay license fees was that go to
borne by a permanent establishment or a fixed base, it is assumed that these
license fees are to arise in the Contracting State in which the Permanent
the establishment or the fixed base is situated.
6. If the amount of the license fees that are related to the use,
right or information for which they are paid, exceeds the due
the special relationship between the payer and the beneficial owner,
or that one or the other, it maintains with the third party, the amount which would have been
the payer is the beneficial owner had given, if it wasn't for such relationships,
the provisions of this article shall apply only to the latter
amount. The amount of the salaries that it exceeds, in this case will be taxed
According to the legislation of each Contracting State, taking into account
the other provisions of this agreement.
Article 13
Gains from the alienation of property
1. the Profits that accrue to a resident of a Contracting State from the alienation of
immovable property referred to in paragraph 2 of article 6, which is located in
the other Contracting State, may be taxed in that other State.
2. Gains arising to a resident of a Contracting State from the alienation of shares
or other rights in a company whose Fortune consists largely of
immovable property situated in the other Contracting State, may be
taxed in that other State.
3. Gains from the alienation of movable property forming part of the business property of a
a permanent establishment which an enterprise of a Contracting State in the other
Contracting State or of movable property belonging to the permanent base
by a resident of a Contracting State has in the other Contracting State to the
the performance of an independent profession, including such profits realised from
the alienation of such a permanent establishment (alone or together with the whole enterprise)
or such a permanent base, may be taxed in that other State.
4. Gains enterprise of a Contracting State from the alienation of ships or
aircraft operated in international traffic, or movable property,
that serves the operation of such ships or aircraft, shall be taxable only in the
This state.
5. Gains from the alienation of property, other than that referred to in the previous
paragraphs of this article, shall be taxable only in the Contracting State in
which the alienator is a resident.
Article 14
An independent profession
1. Income derived by a resident of a Contracting State receives from the free
the profession or other independent activities of a similar character shall be subject to
taxable only in that State except in the following cases, when they can be
the income taxed in the other Contracting State:
and) if the fixed base regularly available in the other
a Contracting State for the purpose of conducting its activities; in this case,
just a portion of the revenue that is attributable to that fixed base may
be taxed in that other State; or
b) if his stay in the other State for a period or periods
exceeding in the aggregate 183 days in any 12-month period; in
this case just a portion of the revenue resulting from its activities
carried on in that other State, may be taxed in that other
State.
2. The expression "liberal profession" includes especially independent activity
scientific, literary, artistic, educational or teaching, as well as
separate the activities of physicians, lawyers, engineers, architects, dentists and
accounting experts.
Article 15
Employment
1. a salaries, wages and other similar remuneration derived by a resident of a Contracting
the State is receiving due to employment, shall, subject to the provisions of
articles 16, 18, 19 and 20 taxable only in that State unless the employment is not
exercised in the other Contracting State. If there is a job to be exercised,
Rewards can be received for them taxed in that other State.
2. remuneration which a resident of a Contracting State is receiving because of the
employment exercised in the other Contracting State, shall be subject to whatever
the provisions of paragraph 1, taxable only in the first-mentioned State, if:
and the recipient is resident in) other State for a period or multiple periods
shall not exceed in the aggregate 183 days in any 12-month period, and
(b)) the rewards are paid by the employer or by the employer, that
is not a resident of the other State, and
(c) the remuneration is not borne by) a permanent establishment or a fixed base, which has
employer in the other State.
3. Notwithstanding the preceding provisions of this article may be rewards
received because of employment exercised aboard a ship or aircraft
operated in international traffic by a resident of a Contracting State
taxed in that State.
Article 16
Royalties
Directors ' fees and other similar remuneration, which a resident of a Contracting State
he receives as a member of the management board or other similar body of a company,
which is resident in the other Contracting State, may be taxed in that
the second State.
Article 17
Artists and athletes
1. Income derived by a resident of a Contracting State as to the public
entertainer, such as a theatre, film, radio or television
an artist or a musician, or as an athlete of such personally
activities in the other Contracting State, may be, regardless of the
the provisions of articles 14 and 15 of the taxed in that other State.
2. If the income from the activities carried out by the artist in person or
athlete accrues not to that artist or athlete himself, but other
the person may be those revenues regardless of the provisions of articles 7, 14 and 15
taxed in the Contracting State in which an artist or an athlete performs
their activity.
3. The provisions of paragraphs 1 and 2 shall not apply to income derived from activities
carried on in a Contracting State by the artist or sportsman, if
his visit to that State is wholly or substantially paid from the
public funds of the other Contracting State or of its lower administrative
the Department or a local authority or a statutory body of that State. In
this case, the income is taxed in accordance with the provisions of article 7,
Article 14 or article 15, depending on what matters.
Article 18
Pensions and annuities
1. Pensions and other similar salaries paid by reason of past employment
a resident of a Contracting State shall, subject to the provisions of
paragraph 2 of article 19 taxation only in that State.
2. Pensions and other benefits, whether recurring or one-time, paid
According to the social security laws of a Contracting State or the
the basis of the public system of organized one Contracting State for
social security purposes, or any annuity arising in this
State may be, notwithstanding the provisions of paragraph 1, and subject to the
the provisions of paragraph 2 of article 19 of the taxed in that State.
3. the term "annuity" as used in this article means a set amount
paid repeatedly within the deadlines set for life or for a specified
or determinable period of time based on the commitment to provide these salaries
for adequate and full consideration in money or money ocenitelnou
(otherwise than in the form of services provided).
Article 19
Public function
1.
and, other than Remuneration) pension, paid by a Contracting State or a lower one
the administrative unit, a local authority or a statutory body of that State
the physical person for services rendered to that State, Administrative Department,
authority or body shall be taxable only in that State.
(b) However, Such remuneration) are subject to taxation only in the Contracting State in which the
is a natural person is a resident if the services are rendered in that
the State of a natural person:
(i) is a national of that State; or
(ii) did not become a resident of this State for the provision of
These services.
2.
and Pensions paid by) either directly or from the funds, which has set up a
Contracting State or lower administrative unit, a local authority or a statutory
authority of that State, of a natural person for services rendered to that State,
the Administrative Department, authority or body shall be taxable only in that
State.
(b) However, Such pension) are subject to taxation only in the other Contracting State,
If the individual is a resident of, and a national of that
State.
3. the provisions of articles 15, 16 and 18 shall apply to remuneration and pensions for services
proven in the context of industrial or commercial activities carried out by
any Contracting State or a political subdivision, a local authority
or statutory authority of that State.
Article 20
Students
1. the salaries that the student, or an apprentice or business, technical, agricultural
or forestry trainee, who is or was immediately before the
arriving in a Contracting State a resident of the other Contracting State
and that is present in the first-mentioned State solely for the purpose of study or
training, to cover the costs of nutrition, study or training, shall not be
taxed in that State provided that such salaries are
paid from sources outside that State.
2. A Student at a university or other Institute of higher education in one
Contracting State or an apprentice or business, technical, agricultural or
forestry trainee, who is or was immediately before their arrival
in a Contracting State a resident of the other Contracting State and who
is present in the other Contracting State for a continuous period not exceeding
183 days, you will not be taxed in that other State on remuneration for services
provided in that State, provided that these services are
exercised in connection with his studies or training and the remuneration
make up earnings necessary for his necessary sustenance.
Article 21
Other income
1. the income of a person who is resident in a Contracting State, whether they are
source anywhere, which are not dealt with in the foregoing articles of this
of the Treaty, shall be taxable only in that State.
2. The provisions of paragraph 1 shall not apply to income, other than income from
immovable property, which is defined in paragraph 2 of article 6, if the
the recipient of such income, being a resident in a Contracting State,
industrial or commercial activity exercised in the other Contracting State
through a permanent establishment located there or exercises in this
other State independent of the profession from a permanent base located there and
If the right or property in respect of which the income is paid, are actually
connected with such permanent establishment or fixed base. In such a
If the provisions of article 7 or article 14, depending on
What matters.
Article 22
Elimination of double taxation
1. In Finland, double taxation will be avoided as follows:
and If a resident of Finland) derives income which in accordance with the
the provisions of this Treaty, taxed in the Czech Republic, Finland shall allow a
subject to the provisions of subparagraph (b)) to reduce the amount of such income taxes
such a person an amount equal to the tax paid in the Czech Republic.
The amount of the tax is to be reduced, however, shall not exceed a percentage of tax
income calculated before the reduction attributable to the revenues
may be taxed in the Czech Republic.
b) dividends paid by a company which is resident in the United
Republic, a company which is resident in Finland and controls directly
at least 10% of the voting shares of the company paying the
the dividends will be exempt from Finnish tax.
(c)) the natural person who is a resident in the Czech Republic and is also
considered according to Finnish tax laws relating to Finnish tax
listed in article 2 for the resident in Finland, could be taxed without
regardless of the other provisions of this Treaty in Finland. However, Finland shall allow the
reduce the Finnish tax on the Czech tax paid on income in accordance with
the provisions of subparagraph (a)). The provisions of this subparagraph shall apply only to
nationals of Finland.
(d)) if the income a person resident in Finland is in conformity with any
the provisions of this agreement, be exempt from tax in Finland, Finland still
may in calculating the tax on other income, take into account such person
exempt income.
2. In the Czech Republic, double taxation will be avoided as follows:
Czech Republic may, when depositing taxes its residents included in the
base from which to impose such a tax, the revenue that can be
According to the provisions of the articles of this Treaty also taxed in Finland, but
enables to reduce the amount of tax calculated on the basis of the amount of such
equal to the tax paid in Finland. The amount of the tax is to be reduced,
However, such part shall not exceed the Czech tax calculated prior to its reduction,
that fairly falls on revenue that may be according to the provisions of this
the contract taxed in Finland.
Article 23
Prohibition of discrimination
1. nationals of a Contracting State shall not be subjected in the
the other Contracting State to any taxation or duties associated with him,
which is other or more burdensome than the taxation and connected requirements
which are or may be subjected by nationals of this second
State who are in the same situation. This provision shall, notwithstanding the
the provisions of article 1, also apply to persons who are not residents
one or both of the Contracting States.
2. the taxation on a permanent establishment which an enterprise of a Contracting State has in the
the other Contracting State, that other State will not be less favourable than
taxation of enterprises of that other State carrying out the same activities.
This provision shall not be construed as an obligation of a Contracting State,
admitting to residents of the other Contracting State personal credits, discounts and
the tax reduction because of the status or family obligations, which
It grants to its own residents.
3. If you will apply the provisions of paragraph 1 of article 9, paragraph
5 of article 11, or paragraph 6 of article 12, interest, royalties, and
other expenses paid by the enterprise of a Contracting State to a person who is
a resident of the other Contracting State, the deductible for purposes of determining
taxable profits of this business under the same conditions as if they were
paid to a person who is a resident of the first-mentioned State.
4. enterprises of a Contracting State, the capital of which is wholly or partly,
directly or indirectly owned or controlled by a person or persons,
that are resident in the other Contracting State, shall not be subjected in the first-
the said Contracting State to any taxation or duties with him
United, which is other or more burdensome than the taxation and connected with it
the obligations to which they are or may be subject to other similar businesses
the first-mentioned State.
5. the provisions of this article shall, notwithstanding the provisions of article 2 of
apply to taxes of every kind and name.
Article 24
Case resolution agreement
1. where a resident of a Contracting State considers that the measures
one or both of the Contracting States result or will result for him in taxation,
that is not in accordance with the provisions of this Treaty, may, independently of the
appeals, which provides the national law of the
States, present your case to the competent authority of the Contracting State of which the
is a resident or, if the case comes under paragraph 1 of article 23,
the Office of the Contracting State of which he is a national. The case must be
presented within three years from the first notification of the action which leads to
taxation, which is not in accordance with the provisions of this agreement.
2. If the competent authority of the objection to be justified and
If it is not itself able to find a satisfactory solution, it will try to
case decided by agreement with the competent authority of the other Contracting State,
in order to avoid taxation which is not in conformity with this agreement. In
the case that the Contracting States agree to the tax refund will be stored and
or the tax credits allowed by a Contracting State in accordance with this agreement.
The agreement reached will be made without regard to the time limits under national
the laws of the Contracting States.
3. the competent authorities of the Contracting States shall endeavour to resolve by agreement
problems or concerns that may arise in the interpretation or
the application of this agreement. They may also consult in order to avoid
double taxation in cases not covered by the contract.
4. the competent authorities of the Contracting States may come in direct contact with a view to
reaching an agreement in the sense of the preceding paragraphs. If oral
Exchange of views appears to be effective for the achievement of the agreement, can such exchange
opinions to take place through the Commission, composed of representatives of
the competent authorities of the Contracting States.
Article 25
The exchange of information
1. the competent authorities of the Contracting States shall exchange information
relevant to the application of the provisions of this Treaty or national
the legislation of the States parties, which shall apply to the taxes which are the
the subject of this agreement, if the taxation thereunder is not contrary to
This agreement. Exchange of information is not restricted by article 1. All
information received by a Contracting State will be kept confidential in the same
manner as information received under its national law
the State and will be disclosed only to persons or authorities (including courts and
administrative offices), dealing with the charge of the assessment or collection of taxes, on the
covered by this contract, criminal prosecution in case of such taxes
or decisions on appeals. Such persons or authorities
such information shall be used only for such purposes. May apply these
the information in public court proceedings or in legal decisions.
2. The provisions of paragraph 1 shall not be in any way interpreted as
store a Contracting State the obligation:
and enforce management measures) that would violate the law or
the administrative practice of that or of the other Contracting State;
(b)) to divulge information that could not be obtained on the basis of the legal
regulations or in a normal administrative procedure of this or of the other Contracting
State;
(c)) to divulge information which would have revealed the commercial, economic,
industrial, commercial or professional secret or trade process, or
information the disclosure of which would be contrary to public policy.
Article 26
Members of diplomatic missions and consular posts
Nothing in this Agreement shall affect the fiscal privileges of members of diplomatic missions
or consular posts under the General rules of international law
or on the basis of the provisions of special agreements.
Article 27
Entry into force
1. the Governments of the Contracting States shall notify each other, that it has satisfied the constitutional
requirements for the entry into force of this Treaty.
2. this Treaty shall enter into force 15 days after the date of the later notification
within the meaning of paragraph 1 and its provisions shall apply to both
Contracting States:
and) with regard to taxes withheld at source, on income paid to 1.
January or later in the calendar year following the year in which the
The Treaty enters into force.
(b)) in respect of other taxes on income, to taxes levied for each tax
year starting 1. January or later of the calendar year following the
year in which the Agreement enters into force.
3. the contract between the Government of the Czechoslovak Socialist Republic and the Government
The Republic of Finland for the avoidance of double taxation and the prevention of fiscal evasion
in the field of taxes on income and on capital, signed at Helsinki, 31. January
1975 (hereinafter referred to as the "Treaty of 1975"), shall cease to apply in respect of
the taxes covered by this agreement in accordance with the provisions of
of paragraph 2. Termination of the agreement of 1975 occurs most
the day on which this agreement will be in effect in accordance with the preceding
the provisions of this paragraph.
Article 28
Notice of termination
This agreement shall remain in force until denounced by one
Contracting State. Each State party may terminate the contract in writing
through diplomatic channels, at least six months before the end of each
the calendar year beginning after the expiry of five years from the date of entry into
into force of this agreement. In this case, the contract ceases to
to apply:
and) with regard to taxes withheld at source, on income paid to 1.
January or later in the calendar year following the year in which the
given notice of termination;
(b)) in respect of other taxes on income, to taxes levied for each tax
year starting on 1 July. January or later of the calendar year following the
the year in which the notice of termination has been given.
In witness whereof, the duly authorised thereto, have signed this agreement.
Given in duplicate in Prague on 2. December 1994 in English
language.
For the Government of the United States: for the Government of the Republic of Finland:
Jan Klak in r. Esko Rajakoski in r.
