301/1999 Coll.
The COMMUNICATION FROM the
Ministry of Foreign Affairs
Ministry of Foreign Affairs says that on 1 May 2004. October 1998 was in
Prague signed an agreement between the Government of the Czech Republic and the Government of India
Republic on the avoidance of double taxation and prevention of tax leakage in the field
taxes on income and on capital.
With the Treaty, its assent, Parliament of the Czech Republic and the President of the
the Treaty was ratified by the Republic.
Treaty has entered into force, pursuant to article 30, paragraph. 2 of 27 December.
September 1999. In accordance with paragraph 4 of the same article the day begins to perform
This agreement, relations between the Czech Republic and India
the Republic will cease to carry out the contract between the Government of the Czechoslovak
Socialist Republic and the Government of India for the avoidance of double taxation and the
prevent tax leakage in the field of taxes on income, signed at New Delhi
27 June. in January 1986, the renowned under no. 77/1987 Coll.
The Czech version of the Treaty shall be designated at the same time. In the English version of the Treaty,
for its interpretation of the applicable, can be consulted on the Ministry of
Foreign Affairs and the Ministry of finance.
CONTRACT
between the Government of the Czech Republic and the Government of the Republic of India for the avoidance of
double taxation and prevent tax leakage in the field of taxes on income and
property
The Government of the Czech Republic and the Government of the Republic of India,
Desiring to conclude a Convention for the avoidance of double taxation and the prevention of
tax leakage in the field of taxes on income and capital with the aim of promoting
the economic cooperation between the two countries,
have agreed as follows:
Article 1
The person, to which the Treaty applies
This agreement shall apply to persons who are residents of one or
both of the Contracting States.
Article 2
The taxes to which the Agreement applies
1. this Agreement shall apply to taxes on income and on capital imposed by the
on behalf of each Contracting State or of its lower administrative departments
or local authorities, whether it is a way of selecting any.
2. taxes on income and on capital all taxes shall be levied from the
total income, total assets or parts of income or assets,
including taxes on gains from the alienation of movable or immovable property, taxes
of the total volume of wages or salaries paid by enterprises as well as taxes on
the increment property.
3. The current tax, to which the contract relates, in particular:
and) in India:
(i) the income tax, including any surcharges to her; and
(ii) the tax on the total assets;
(hereinafter referred to as "the Indian tax");
(b)) in the Czech Republic:
(i) the income tax on natural persons;
(ii) the tax on income of legal persons;
(iii) tax on immovable property;
(hereinafter referred to as "Czech tax").
4. the contract will also cover any taxes the same or
the principle of this kind, which will be stored after the signing of the Treaty in addition to the
or instead of the current taxes referred to in paragraph 3. The competent authorities of
the Contracting States shall notify each other of significant changes that will be
made in their respective taxation laws.
Article 3 of the
General definition
1. for the purposes of this agreement, if the link does not require a different interpretation:
and the term "India") refers to the territory of India and includes the territorial sea and the
the airspace above it, as well as any other seaside zone, where
India exercises sovereign rights, other rights and jurisdiction, in accordance with the
the legislation of India and in accordance with international law, including the
The United Nations Convention on the law of the sea;
(b)), the term "Czech Republic" refers to the territory of the Czech Republic, which the
they are, according to the Czech legislation and in accordance with international
the law, carried on the sovereign rights of the Czech Republic;
(c)), the term "person" includes a natural person, company, firm, Association of persons, and
any other rightholder, considered a tax body according to
the applicable tax laws in the respective Contracting State;
(d)), the expression "company" refers to any legal entity or bearer
rights which, for the purposes of taxation under the legal person;
e the terms "enterprise of one) of a Contracting State" and "enterprise of the other Contracting
the State "refer to, according to the context, the firm run by resident
one Contracting State and enterprise operated by a resident of the other
of a Contracting State;
(f)), the term "international traffic" means any transport by boat or
the plane operated by an undertaking which is a resident of one of the Contracting
State, except when the ship or aircraft is operated solely between
places in the other Contracting State;
(g)) the term "competent authority" means:
(i) in India, the Central Government Ministry of Finance (Department of revenue)
or his authorised representative;
(ii) in the Czech Republic the Minister of finance or his authorised representative;
(h)), the term "national" means:
(i) any natural person who is a citizen of a Contracting
State;
(ii) any legal person, company or association established by the personal
According to the legislation in force in a Contracting State;
I), the term "fiscal year" means:
(i) in the case of India "the previous" year, as defined by
section 3 of the income tax Act, 1961;
(ii) in the case of the Czech Republic calendar year;
j the term "tax") indicates, according to the context, the Czech tax or Indian
the tax, but does not include any amount payable by reason of any
non-payment or omission in relation to the taxes to which this agreement
applies or which represents a penalty or fine imposed for these
taxes;
the expressions "one) Contracting State" and "the other Contracting State",
According to the context, the Czech Republic or the Republic of India.
2. As regards the implementation of the Treaty, a Contracting State, each expression,
that it is not defined, so important, that it is in accordance with the legal
the laws of this State governing the taxes to which the Agreement
If the link does not require a different interpretation.
Article 4 of the
A resident of the
1. The term "resident of a Contracting State" means for the purposes of this
of the Treaty, any person who, under the legislation of that State,
subject to taxation in that State by reason of his residence, the Standing
residence, place of management or any other similar criteria. This
the statement, however, does not include any person who is subjected to taxation in this
State only because of income from sources in that State or property There
located.
2. If the individual is in accordance with the provisions of paragraph 1 of the resident
both of the Contracting States, the position of the specified in the following way:
and) it is assumed that this person is a resident of the State in which the
Standing flat; If he has a permanent apartment in both States, it is assumed, that is
a resident of the State, which has closer personal and economic relations
(Centre of vital interests);
(b)) if it cannot be determined where the State has this person Center
their vital interests, or if it does not have a permanent apartment in any State,
It is assumed that he is a resident of the State in which it is usually
staying;
(c)) If this person usually resides in both States, or in any
of them, it is assumed that he is a resident of the State of which he is a
National;
(d)) If this person is a national of both States or of any
of them, the competent authorities of the Contracting States shall adapt this question mutual
the agreement.
3. If a person other than a natural person is, under the provisions of paragraph 1,
a resident of both Contracting States, it is assumed that he is a resident of the
the State in which is situated the place of leadership. If
cannot be determined, the State in which is situated the place of actual
leadership, adjusts the competent authorities of the Contracting States, this question of mutual
the agreement.
Article 5
Permanent establishment
1. The term "permanent establishment" for the purposes of this Treaty indicates the Permanent
place to do business, through which is wholly or partly
performed activities of the undertaking.
2. The term "permanent establishment" includes especially:
and instead of keeping);
(b)) race;
(c))
;
d) factory
;
e) a workshop;
(f)) mine, the site of diesel or gas, Quarry or any other place where
the benefits of natural resources;
g) selling point;
h) warehouse, with regard to a person providing storage facilities for other; and
I) farm, plantation or other place, where they are carried out in the agricultural,
forestry, plantážní or related activities.
3. A building site or construction, Assembly or installation project or supervision with
This creates a permanent place of business, linked only if such construction,
project or supervision takes longer than six months.
4. Notwithstanding the preceding provisions of this article, it is assumed that
the term "permanent establishment" shall not include:
and) device, which is used only for the purpose of storage or display
goods belonging to the enterprise;
(b) the supply of goods belonging to the enterprise), which is kept only for the purpose of
storage or display;
(c) the supply of goods belonging to the enterprise), which is kept only for the purpose of
the processing of another undertaking;
(d) the permanent place for business), which is maintained only for the purpose of purchasing
goods, or collecting information for the enterprise;
e) permanent place for business, which is kept only for the purpose of
carry out any other activity that has for undertaking the preparatory or
auxiliary character;
(f) a permanent place for business), which is maintained only for the performance of
any connection of the activities referred to in points (a) to (e))), if
the total activity of the permanent place of business resulting from this
the connection is of a preparatory or auxiliary character.
5. Notwithstanding the provisions of paragraphs 1 and 2, a person-other than
independent representative, to whom paragraph 7 applies-is acting in a
a Contracting State on behalf of the enterprise of the other Contracting State, it shall be deemed that the
This enterprise has a permanent establishment in the first mentioned Contracting State in
relation to all of the activities that the person performs for the company, if the
This person:
and) has and usually uses in this state the permission allows
to enter into contracts on behalf of the enterprise, unless the activities of such person are not
limited to the activities listed in paragraph 4 which, if they were
carried out through a permanent place of business, would not based
from this permanent place of business a permanent establishment under the
the provisions of this paragraph; or
(b)) does not have such privileges, but usually keeps in the first mentioned State
supply of goods, of which regularly supplies goods on behalf of the company.
6. Notwithstanding the preceding provisions of this article, it is assumed that
the undertaking of a single State, with the exception of premiums, has a permanent
the establishment in the other Contracting State if it collects premiums on the territory of the
This other State or insures risks situated there,
by a person other than an independent agent, on which the
subject to paragraph 7.
7. He considered that the enterprise has a permanent establishment in a Contracting State
just because in this State shall exercise its activities through
broker, General Agent, or any other independent
the representative, if such persons are acting in the framework of its regular activities. However,
If the activities of such an agent are entirely or almost entirely
devoted to the interests of the company, it will not be considered for representative
an independent within the meaning of this paragraph.
8. the fact that a company which is a resident of one of the Contracting
State controls or is controlled by a company which is a resident of the other
Contracting State or that in this latter State performs its activities
(whether through a permanent establishment or otherwise), does not make itself from
either this company a permanent establishment of the other company.
Article 6 of the
Income from immovable property
1. the revenue, which is receiving a resident of one Contracting State of the immovable
property (including income from agriculture or forestry) situated in the
the other Contracting State may also be taxed in that other State.
2. The term "immovable property" is of such importance that it under the
the legislation of the Contracting State in which the assets are located.
The term includes in any case the accessories of immovable property, live
and dead inventory used in agriculture and forestry, rights to which
the provisions of civil law relating to property, the right to
the enjoyment of immovable property and rights to variable or fixed payments for the
grit or přivolení to the unfair advantage of mineral deposits, sources and other
natural resources; ships, boats, aircraft and motor vehicles
not be regarded as immovable property.
3. The provisions of paragraph 1 shall apply to income received from the direct use,
lease or any other manner of use of the immovable property.
4. The provisions of paragraphs 1 and 3 shall also apply to the income from immovable
the assets of the undertaking and to income from immovable property used for
the exercise of an independent profession.
Article 7
The profits of enterprises
1. Profits of an undertaking of a single State is subject to tax only in that
State if the undertaking does not operate in the other Contracting State
through the permanent establishment, which is located there. If
the enterprise carries out its activities in this way, they can be business profits
also taxed in the other State but only to the extent to which the
It can be attributed to that permanent establishment.
2. If an enterprise of one Contracting State carries on its activities in
the other Contracting State through a permanent establishment that is there
positioned, attach, subject to the provisions of paragraph 3, each
a Contracting State a permanent establishment, the profits of which would be able to
so if it were a separate enterprise carries 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 the permanent establishment shall be allowed to deduct the costs of
incurred for the objectives pursued by the permanent establishment, including the expenses of management and
General administrative expenses, whether incurred in this way originated in the State in
where the permanent establishment is situated, or elsewhere, in accordance with the
the provisions and subject to the limitations of the tax laws of this State.
4. no permanent establishment, the profits on the basis of nepřičtou of the fact that
only buy goods for the company.
5. The profits to be attributed to a permanent establishment, for the purpose of
the preceding paragraphs shall each year, in the same way, if the
There are sufficient grounds for a different procedure.
6. where profits include the part of the income of which is dealt with separately
in the other articles of this agreement, the provisions of those articles shall not affect the
the provisions of this article.
Article 8 of the
Shipping and air transport
1. the Profits that accrue to the undertaking of one Contracting State from the operation of
ships or aircraft in international traffic, shall be subject to taxation only in this
State.
2. the Profits that accrue to the transport company which is a resident of one
of a Contracting State from the use, maintenance or rental of containers (including
trailers and other equipment for the transport of containers) used for the
carriage of goods in international traffic, shall be subject to taxation only in this
Contracting State, if the containers are not only used on the territory of the
the other Contracting State.
3. Interest on funds directly connected with the operation of ships or aircraft in the
international transport shall, for the purposes of this article be construed as profits, which
arise from the operation of such ships or aircraft, and the provisions of article
11 shall not apply in respect of such interest.
4. The provisions of paragraph 1 shall also apply to profits from the participation in the pool,
the joint operation or an international operating organisation.
Article 9
Associated enterprises
If
and the firm one) of a Contracting State participates directly or indirectly in the
the management, control or capital of an undertaking, the other Contracting State, or
(b)) the same persons involved directly or indirectly in the management, control or
the assets of the undertaking and the undertaking of one Contracting State in the other Contracting State
and if in these cases are both enterprises in their commercial or
financial relations are bound by the conditions, which have negotiated or they were
stored and which differ from those which would have been agreed between the
independent enterprises, can any profits which would, but for those
the conditions were docíleny one of the businesses, but due to these
the conditions of the docíleny not, be included in the profits of that enterprise and
subsequently taxed.
Article 10
Dividends
1. Dividends paid by a company which is a resident of one
of a Contracting State, a resident of the other Contracting State may be taxed in the
This second State.
2. However, such dividends may also be taxed in the Contracting State,
which is a company that is paid, a resident, and according to the laws
legislation of that State, but if the beneficial owner of the dividends is
a resident of the other Contracting State, the tax so imposed shall not exceed 10
per cent of the gross amount of the dividends. This paragraph shall not affect the taxation of profits
the company, of which the dividends are paid.
3. The term "dividends" as used in this article refers to income from shares
or other rights, with the exception of the claims, with a share of the profits, as well as
income from other rights which is subjected to the same tax regime
as income from shares by the laws of the State of which the company
that rozdílí profit, a resident.
4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of
the dividend, which is a resident of a Contracting State, carries on in the
the second Contracting State of which he is a resident company paying
dividends, industrial or commercial activity through a fixed
the establishment, which is located there, or performs in that other State
independent of the profession of a permanent base there and if the participation, for the
the dividend paid is actually binds to this permanent establishment
or a permanent base. In such a case, the provisions of article 7
or article 14, depending on what matters.
5. where a company which is a resident of a Contracting State,
achieves profits or income from the other Contracting State,
the second State to tax dividends paid by the company, unless such
dividends are paid to a resident of the other State, or that the participation,
for which the dividends paid are actually tied to a permanent establishment
or a permanent base, which is located in the latter State, nor
to submit to the retained profits of the company profits tax
the company, even if the dividends paid or the undistributed profits
pozůstávají wholly or partly of profits or income with a source in the
This second State.
Article 11
Interest
1. the interest having a source in a Contracting State and paid to the resident company
of the other Contracting State may be taxed in that other State.
2. However, such interest may also be taxed in the Contracting State in which the
they have a source, and according to the laws of that State, but if the
beneficial owner of the interest is a resident of the other Contracting State, the tax
This stored shall not exceed 10 per cent of the gross amount of the interest.
3. Notwithstanding the provisions of paragraph 2 interest will be featured in the source
a Contracting State shall be exempt from tax in that Contracting State,
If they actually owned or sickness and sickness in connection with
loan or a loan granted or guaranteed by:
and, lower administrative) by Government Department or local Office of the second
of a Contracting State; or
(b))
(i) in the case of India Reserve Bank of India, Industrial Finance
corporations, Industrial Development Bank of India, India, Export-Import
the Bank of India, the National Bank, the Development Bank building India for small
business and Industrial credit and Investment Corporation India (ICICI);
and
(ii) in the case of the Czech Republic the Czech National Bank, the Czech export
the Bank, the export guarantee and insurance company and the Consolidation
the Bank; or
(c) any other institution), as may be agreed from time to time between
the competent authorities of the Contracting States.
4. The term "interest" as used in this article refers to income from debt claims
of any kind, whether secured or unsecured lien on the
real estate and whether or not carrying a right to participate, in the debtor's profits, and
in particular, income from government securities and income from bonds or
debentures, including premiums and prizes attaching to such a valuable
securities, bonds or debentures. Finance charge imposed for late payment shall
not be regarded as interest for the purpose of this article.
5. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of
interest, which is a resident of a Contracting State, carries on in the other
the Contracting State in which they have interest, the source of industrial or commercial
activity through a fixed establishment which is located there, or
exercises in this second State independent of the profession of a permanent base there
and if the claim from which the interest is paid,
actually binds to the permanent establishment or a permanent base. In such a
If the provisions of article 7 or article 14, depending on
What matters.
6. It is envisaged that interest have a source in a Contracting State, if the
the payer is that State itself, a lower administrative unit, a local authority or
a resident of this State. However, if the payer of interest, whether or not
a resident of a Contracting State, has in a Contracting State a permanent
place of business or permanent base in connection with which the indebtedness, of the
which are interest paid, and such interest shall be charged to such permanent
the establishment or permanent base, it is assumed that such interest have
a source in the Contracting State in which the permanent establishment or a permanent
the base is located.
7. If the amount of interest that are relevant to the claim, which are
paid, exceeds, due to the special relationship between the payer and the
the beneficial owner or between both of them and some other person,
the amount that would be the scheme of the Bill is the beneficial owner, if
There was no such relationship, the provisions of this article shall apply only to that
latter amount. The amount of the payments which it exceeds, in
this case taxed in accordance with the legislation of each Contracting
State, with reference to the other provisions of this Treaty.
Article 12
Royalties and fees for technical services
1. the royalties or fees for technical services having a source in
one resident of a Contracting State and paid to the other Contracting State
may be taxed in that other State.
2. These royalties or fees for technical services may, however,
also be taxed in the Contracting State in which the source of, and in accordance with the
the legislation of that State, but if the beneficial owner of
the royalties or fees for technical services is a resident of
the other Contracting State, the tax so imposed shall not exceed 10 per cent of the gross
the amount of the royalties or fees for technical services.
3. a) the term "royalties" as used in this article refers to the payments
of any kind received as a compensation for the use of, or the right to use
any copyright for literary, artistic or
scientific, including cinematograph films and films or recordings for
television or radio broadcasting, any patent, trade
mark, design or model, plan, secret formula or production
procedure or any industrial, commercial or scientific
device or information relating to experience gained in the
the field of industrial, commercial or scientific.
(b)), the term "fees for technical services" as used in this article refers to
payments of any kind received as a substitute for proof of any
managerial, technical or consultancy services, including the provision of
services of technical or other personnel, but does not include payments for
the services referred to in articles 14 and 15 of this Treaty.
4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of
the royalties or fees for technical services, which is
a resident of a Contracting State, carries on in the other Contracting State,
in which the royalties or fees for technical services
source, industrial or commercial activity through a fixed
the establishment, which is located there, or performs in that other State
independent of the profession of a permanent base located there, and if a right or
assets, which give the establishment of license fees or charges
technical services, to actually make this a permanent establishment or a permanent
the base. In such a case, the provisions of article 7 or article
14, depending on what matters.
5. It is assumed that the royalties or fees for technical
services have a source in a Contracting State when the payer is that State
alone, lower administrative unit, a local authority or a resident of that State.
However, if the payer of the royalties or fees for technical
services, whether it is or is not a resident of a Contracting State, has in the
a Contracting State a permanent establishment or a permanent base in connection with which
established the obligation to pay the royalties or fees for technical
services, and such royalties or fees for technical services are going
borne by such permanent establishment or a permanent base, it is assumed that
these royalties or fees for technical services are the source of the
that the Contracting State in which the permanent establishment or fixed base
located.
6. If the amount of the royalties or fees for technical
services relating to the use, right or information for which they are
paid, exceeds, due to the special relationship between the payer and the
the beneficial owner or between both of them and some other person,
the amount that would be the scheme of the Bill is the beneficial owner, if
There was no such relationship, the provisions of this article shall apply only to that
latter amount. The amount of the payments which it exceeds, in
this case taxed in accordance with the legislation of each Contracting
State, with reference to the other provisions of this Treaty.
Article 13 of the
Profits from the disposal of assets
1. the profits that receives the resident of a Contracting State from the alienation of one
immovable property referred to in article 6, which is located in the second
a Contracting State may also be taxed in that other State.
2. Gains from the alienation of movable property forming part of the operational assets
the permanent establishment which an enterprise of one Contracting State has in the other
Contracting State or movable property, which belongs to the permanent base
that is a resident of a Contracting State in the other Contracting State for the
the purpose of the exercise of an independent profession, including gains from disposal of such
a permanent establishment (alone or together with the whole enterprise) or of such a
Permanent foundations, may also be taxed in that other State.
3. Profits of an enterprise of a Contracting State receives the transfer boat or
aircraft operated in international traffic, or movable property,
that is used for the operation of such ships or aircraft, shall be subject to taxation
just in this State.
4. Gains from the alienation of shares in the share capital of the company, whose
the property consists directly or indirectly principally of immovable property
located in a Contracting State, may be taxed in that State.
5. Gains from the alienation of shares in the company, other than those that are
referred to in paragraph 4, which is a resident of a Contracting State, may be
taxed in that State.
6. Gains from the alienation of any property other than that referred to in
paragraphs 1, 2, 3, 4 and 5, shall be subject to taxation in the Contracting State,
which the alienator is a resident.
Article 14
Independent of the profession
1. the revenue, which is receiving a resident of one Contracting State of a free
profession or other activities of an independent character, shall be subject to
tax only in that State except in the following cases, when such
income may also be taxed in the other Contracting State:
and if you want this) the resident regularly available in the other Contracting
the State of a permanent base for the purpose of carrying out its activities; in such a
the case of just such a part of the income which is attributable to that fixed base;
may be taxed in that other State; or
(b)) if his stay in the other State for one or more periods
equal to or exceeding in the aggregate 183 days in any 12-month
period commencing or ending in the tax year; in such a
If just a portion of the revenue derived from its activities
carried out in the latter 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
the independent activities of physicians, lawyers, engineers, architects, surgeons,
dentists and accountants.
Article 15
Employment
1. a salaries, wages and other similar remuneration, which draws a resident one
of a Contracting State by reason of employment, shall, subject to the provisions of the
articles 16, 18, 19, 20 and 21 of the taxation only in that State unless the employment
It is not exercised in the other Contracting State. If there is a job
may be exercised, such remuneration received from taxed in this
the second State.
2. Remuneration which a resident of one Contracting State receives due
employment exercised in the other Contracting State, shall be subject to whatever
the provisions of paragraph 1, the tax only in the first mentioned State if
all of the following conditions are met:
and the recipient is resident in) the second State for one or more periods
not exceeding in the aggregate 183 days in any 12-month period
beginning or ending in the tax year, and
(b)) the rewards are paid by the employer or employers, who
is not a resident of the other State, and
(c)) do not go to the debit rewards a permanent establishment or a permanent base, which has
employer in the second State.
3. Notwithstanding the preceding provisions of this article may be rewards
received by reason of the employment exercised aboard a ship or aircraft
operated in international traffic by the enterprise of a Contracting State are taxed in
This state.
4. The term "employer" referred to in paragraph 2 (a). (b) includes a person)
who has the right to work and that the responsibility and the risk of
associated with carrying out the work.
Article 16
Royalties
Royalties and similar payments, which is receiving the resident of one of the Contracting
the State as a member of the Management Board of the company which is a resident of the other
a Contracting State may also be taxed in that other State.
Article 17
Artists and athletes
1. the revenue, which is receiving a resident of one Contracting State as to the
the public acting artist, such as a theatre, film, radio or
television artist, or a musician, or as an athlete of such personally
the activities performed in the other Contracting State, may be, regardless of the
the provisions of articles 14 and 15, be taxed in that other State.
2. If the income from the activities carried out by the artist personally, or
athlete do artists or athletes, but to another person,
This revenue may be, notwithstanding the provisions of articles 7, 14 and 15
taxed in the Contracting State in which the activities of the artist or
the athletes performed.
3. The provisions of paragraphs 1 and 2 shall not apply to income from activities
performed by an artist or an athlete in one Contracting State, if the
a visit to this State is mainly financed by the public funds of the other
Contracting State or its lower administrative department or the local authority.
In this case, is subject to income taxation in the Contracting State of which the
is an artist or athlete.
Article 18
Pension
Pensions and other similar salaries paid by the resident of a Contracting State by reason of the
past employment shall, subject to the provisions of article 19, paragraph. 2
tax only in that State.
Article 19
Public function
1.
and Remuneration other than pensions) paid by one Contracting State or lower
the Administrative Department or local authority of that State, of a natural person for
Service prokazované that State or body or authority shall be subject to
tax only in that State.
(b) However, Such remuneration shall be subject to) the taxation in the other Contracting State,
If the services are demonstrated in this State and any natural person who
It is a resident of this State:
(i) is a national of that State; or
(ii) did not become a resident of this State only because of the proof of the
services.
2.
and pensions paid by one) any Contracting State or by the lower administrative
Department or local authority of that State, or paid from the funds, which
set up the physical person for services of proven that State or Department
or the Office are subject to tax only in that State.
(b) However, Such pension shall be subject to) the taxation 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 in respect of services
proven in the context of the industrial or commercial activities carried out by the
any Contracting State or an administrative department or the local
the authority of this State.
Article 20 of the
Students and apprentices
1. A Student or an apprentice who is or was a resident of one of the Contracting
the State immediately prior to his arrival in the other Contracting State and
staying in the latter Contracting State solely for the purpose of its
education or training, in the latter State shall be exempt from the
taxation, in addition to grants, loans and scholarships, also from:
and payments made to him by a person), which is resident outside of this second
the State, in order to cover the cost of his food, education or training; and
(b) remuneration from employment) in this second State and from the amount of
not exceeding the amount that is exempt from taxation under the legal
the laws of the other Contracting State for each tax year, if the
such employment is directly related to his studies or is exercised in
the purpose of the payment of the cost of its nutrition.
2. the benefit of this article shall be granted only for such period of time,
that is a reasonable or ordinarily required for their education or
carry out the training, but in no event will have no natural person
the benefits of this article for more than seven consecutive years from the date of
her first arrival in that other Contracting State.
Article 21
Professors, teachers and researchers
1. A professor or teacher who is a resident of one of the contractual or
the State immediately prior to his arrival in the other Contracting State for the
the purpose of teaching or participating in research, or both, on the
University, College, school or other recognised institution in this
the second Contracting State, it will be in this latter State exempted from taxation of
any remuneration for such teaching or research for a period of
not exceeding two years from the date of his first arrival in this second
State.
2. This article shall not apply to income from research if such
research is primarily performed in the private benefit of a specific person or
persons.
3. The expression "recognized institution" refers to the institution for the purposes of paragraph 1,
which is recognised in this regard to the competent authority of the State concerned.
Article 22 of the
Other revenue
1. Part of the income of a resident of one Contracting State, whether they are a source of
anywhere that is not addressed in the previous articles of this Treaty,
are subject to tax 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 article 6 (1). 2, if
the recipient of such income, which is a resident of a Contracting State,
exercised in the other Contracting State, industrial or commercial activity
through the permanent establishment, which is located there, or performing
in this latter State independent of the profession of a permanent base located there
and if the right or property in respect of which the income is paid is effectively
attaching to such permanent establishment or a permanent base. In this case,
the provisions of article 7 or article 14, depending on what kind of case
It is.
3. where a resident of a Contracting State receives revenue from sources on the
the territory of the other Contracting State, in the form of winnings from lotteries, crossword puzzles, betting
at the races, including horse racing, card games and other games
any kind or free games or betting of any form
or type in anything, such income may, notwithstanding the provisions
paragraph 1, be taxed in the other Contracting State.
Article 23
Property
1. property represented by immovable property referred to in article 6, which
custom resident of one Contracting State and which is located in the second
a Contracting State may be taxed in that other State.
2. property represented by movable property forming part of the operational
property of the permanent establishment which an enterprise of one Contracting State has in the
the second Contracting State or movable property, which belongs to the Permanent
the base, which is a resident of a Contracting State in the other Contracting
State in order to exercise an independent profession, may also be taxed
in the latter State.
3. property represented by ships or aircraft operated in
international traffic, or movable property, that serves to operate the
such ships or aircraft, shall be subject to taxation in the Contracting State of which the
It is a resident company operating such ships, aircraft or assets.
4. All other parts of the property are subject to the Contracting State resident
tax only in that State.
Article 24
The exclusion of double taxation
1. Taxation of income and assets in the relevant Contracting States shall continue to
governed by the legislation in force in each Contracting State, if the
the contract does not include different provisions.
2. In the case of India double taxation will be eliminated as follows:
If a resident of India is receiving income, or own property, that can
be in accordance with the provisions of this Treaty, taxed in the Czech Republic,
India allows to reduce the income tax or the property of a resident of the
amount equal to the tax paid in the Czech Republic, either directly or
by deduction at source. This amount, however, shall not exceed that part of the tax calculated
before the reduction, which rather falls on income or assets,
which may be taxed in the Czech Republic.
3. In the case of the Czech Republic, double taxation will be eliminated as follows:
If a resident of the Czech Republic is receiving income, or own property,
that may be, in accordance with the provisions of this Treaty, taxed in India,
Czech Republic allow to reduce the income tax or from the assets of the
resident an amount equal to the tax paid in India. The amount of the
the tax to be reduced, however, shall not exceed that part of the tax calculated prior to its
by reducing that fairly falls on income or assets that can be
taxed in India.
4. It is assumed that the tax payable in a Contracting State and referred to in
paragraphs 2 and 3 of this article shall include the tax that would be payable
but for the tax relief provided under the legislation of a Contracting
the State intended to support economic development.
5. If, in accordance with any provision of this agreement, the income
pobíraný or property owned by a resident of a Contracting State is
exempt from taxation in that State, such State may nevertheless, in calculating the
tax amounts from the remaining income or property of such resident, take into
account the exempted income or property.
Article 25
Prohibition of discrimination
1. nationals of one Contracting State shall not be subjected in the
the second Contracting State to any taxation or any obligations with him
United, which are different or more troubling than the taxation and connected with it
the duties, which are or may be subjected to nationals
This second State, who are in the same situation. This provision shall
Notwithstanding the provisions of article 1, also apply to persons who are not
residents of one or both of the Contracting States.
2. the taxation on a permanent establishment which an enterprise of one Contracting State has in the
the second Contracting State, it will not be more detrimental in this second State than
This second state taxation of enterprises, which carry out the same activity.
This provision shall be construed as preventing one of the Contracting
of the State to tax the profits of the permanent establishment, which the company has a second
of a Contracting State in the first mentioned State tax rate, which is higher than the
the rate of tax levied on the profits of the companies mentioned for the first time
Contracting State, nor the way that is in contradiction with the provisions of article 7 (2).
3 of this contract.
3. Enterprises of one of the Contracting State, whose capital is wholly or in part,
directly or indirectly owned or controlled by one or more
residents of the other Contracting State, shall not be subjected in the first mentioned
the State of any taxation or any obligations associated with him, that
others are more troubling than taxation and or related duties, which
are or may be subjected to other similar enterprises of that first
State.
4. If you do not apply the provisions of article 9, article 11 (2). 7
or article 12(2). 6, interest, royalties and other expenses
paid by the enterprise of one Contracting State to the resident company of the other Contracting
State of the deductible for the purposes of determining the taxable profits of such
the undertaking under the same conditions as if they had been paid to a resident of the first
of the said State. Similarly, any debts of the enterprise of one Contracting State
against a resident of the other Contracting State shall, for the purposes of determining the
the taxable assets of deductible under the same conditions,
as if they were the first to have the resident company of the said State.
5. The provisions of this article shall, notwithstanding the provisions of article 2
apply to taxes of every kind and name.
Article 26 of the
Resolving cases by agreement
1. where a person considers that the actions of one or both of the Contracting
States lead or lead it to taxation, which is not in accordance with the
the provisions of this Treaty, may, notwithstanding the remedies that
under the national law of those States, present your
the case to the competent authority of the Contracting State of which he is a resident of, or
If the case falls under article 25, paragraph. 1, the Office of a Contracting State,
which he is a national. The case must be presented within three years from the
the first notification of the action of the head of taxation which is not in accordance with the
the provisions of the Treaty.
2. If the competent authority is to consider the objection as justified and
If it is not itself able to find a satisfactory solution, it will try to
case solved by mutual agreement with the competent authority of the other Contracting
the State so as to avoid taxation which is not in accordance with the Treaty.
Any agreement reached shall be implemented notwithstanding any time
the time limits in the domestic law of the Contracting States.
3. the competent authorities of the Contracting States shall endeavour to resolve by mutual
the agreement any difficulties or doubts that might arise in
the interpretation or application of the Treaty. They may also consult together for the
the purpose of the Elimination of double taxation in cases not covered by the Treaty.
4. the competent authorities of the Contracting States may come in direct contact with the purpose of
reaching an agreement in the sense of the preceding paragraphs. If, for the
the achievement of the agreement, it appears prudent to have an oral exchange of opinions, such
the Exchange may take place through a Commission consisting of representatives of the
the competent authorities of the Contracting States.
Article 27
The exchange of information
1. the competent authorities of the Contracting States shall exchange such information
(including documents), which are necessary for the implementation of the provisions of this
the Treaty or national legislation of the Contracting States, which are
apply to the taxes which are the subject of the contract, if the taxation, which
governing is not in breach of contract, in particular in order to prevent
fraud or evasion of such taxes in the area. Exchange of information is not
restricted by article 1. Any information received by a Contracting State shall be
kept a secret in the same manner as information received under
national law of that State and shall be made available to the
only to persons or authorities (including courts and administrative offices)
dealing with the vyměřováním or the collecting of taxes to which the Agreement applies,
the enforcement or prosecution in respect of those taxes or decision-making
appeals in relation to such taxes. Such persons or authorities shall use the
These information only for these purposes. May disclose this information when
public court proceedings or in legal decisions.
2. The provisions of paragraph 1 shall not in any way be interpreted so that the
a Contracting State the obligation to impose:
and perform administrative measures) that would infringe on the laws and
the administrative practice of that or of the other Contracting State;
(b)) provide the information or documents that could not be obtained on
the basis of the laws or in the normal course of the administrative procedure, or
of the other Contracting State;
(c)) provide the information or documents that would have revealed any
trade, business, industrial, commercial or professional secret or
business practice, or the information or documents, the disclosure of which would be
in contrary to public policy.
Article 28
Assistance in the collection of taxes
1. the Contracting States undertake to mutually assist in the collection of taxes on
covered by this agreement, together with interest, costs and fines
relating to these taxes, referred to in this article as "tax
the claim ".
2. the request for assistance to the competent authority of a Contracting State in the collection of tax
the claim will include confirmation of this Office that under the legislation
the laws of this State is a tax claim was finally decided.
For the purpose of this article is about the tax debt finally decided
When a Contracting State has the right, under its national law
the collection of tax debts and the taxpayer does not have the right to continue to
defend you select.
3. a request for assistance in collection of taxes payable to the taxpayer will be
implemented only if adequate assets of the taxpayer
are not available for the collection of taxes from the taxpayer in a Contracting
State, that carries out the request.
4. the amount selected by the competent authority of the Contracting State on the basis of this
the article will be sent to the competent authority of the other Contracting State. For the first time
the said Contracting State will, however, have the right to reimbursement of costs, if
Some will be, incurred in the course of the proof of such assistance, in
the scope of a bilaterally agreed between the competent authorities of both States.
5. Nothing in this article shall not be interpreted as imposing a
the Contracting State the obligation to carry out administrative measures of a different nature,
than that used in the collection of its own taxes, or such
the measures, which would be contrary to its public policy.
6. This article will begin to perform notwithstanding the provisions of article 30,
subject to the entry into force of this Treaty, the date of which will be
mutually agreed upon between the competent authorities of the Contracting States.
Article 29
Members of diplomatic missions and consular officials
Nothing in this Agreement shall not affect the fiscal privileges of members of diplomatic missions
or consular officials attributed to them on the basis of the General
the rules of international law or on the basis of the provisions of the Special
the agreements.
Article 30
Entry into force of the
1. the Contracting States shall notify each other in writing through diplomatic channels that the
the requirements of their respective legislation for this
the Treaty enters into force have been met.
2. this Treaty shall enter into force on the date of the later of the notifications referred to
in paragraph 1 of this article.
3. the provisions of this agreement will be carried out:
and) in India, in terms of revenue received or owned the property for each
tax year beginning with 1. April or later, which is followed by the calendar
the year in which the Agreement enters into force; and
(b)) in the Czech Republic:
(i) in respect of taxes withheld at source, on income paid
or attributed to a 1. January or later in the calendar year
following the year in which the Agreement enters into force;
(ii) in respect of other taxes on income and property taxes, to revenue or
property for each fiscal year beginning with 1. January or later in
the calendar year following the year in which the contract shall enter into
force.
4. On the day when the contract begins, in relations between the Czech
and the Republic of India stops to perform the contract between the Government of the Czechoslovak
Socialist Republic and the Government of India for the avoidance of double taxation and the
prevent tax leakage in the field of taxes on income, signed at New Delhi
27 June. January 1986.
Article 31
Notice of termination
This agreement shall remain in force for an indefinite period, until the
denounced by any Contracting State. Each Contracting State may
through diplomatic channels, by submitting written notification to terminate the contract,
at least six months before the end of each calendar year, beginning
After the expiry of five years from the date of entry into force of the Treaty. In such a
case, the Contract ceases to perform:
and) in India, in terms of revenue received for each of the previous year to 1.
April or later, that follows the calendar year in which it was given
testimony, and as regards the assets owned at the end of each
the previous year, novice 1. April or later,
the following is the calendar year in which the notice of termination has been given;
(b)) in the Czech Republic:
(i) in respect of taxes withheld at source, on income paid
or attributed to a 1. January or later in the calendar year
following the year in which the notice of termination has been given;
(ii) in respect of other taxes on income and property taxes, to revenue or
property for each fiscal year beginning with 1. January or later in
the calendar year following the year in which the notice of termination has been given.
On the evidence of subscribers, duly authorised thereto, have signed this Treaty.
Done in Prague on 1 May 2004. October 1998 in two original copies, each in the
Czech, hindském and English, while all three texts are
authentic. In the event of a difference between the texts will be the decisive English
the text.
For the Government of the Czech Republic:
Mgr. Ivo Svoboda in r.
the Minister of finance
For the Government of the Republic of India:
Girish Dhume in r.
extraordinary and Plenipotentiary
