275/1997.
The COMMUNICATION FROM the
Ministry of Foreign Affairs
Ministry of Foreign Affairs says that the 24 October. in May 1994, has been in the
The Lisbon Treaty is signed between the Czech Republic and Portugal
Republic on the avoidance of double taxation and prevention of tax leakage in the
the scope of income tax.
With the Treaty, its assent, Parliament of the Czech Republic and the President of the
Republic has ratified it. The instruments of ratification were exchanged in Prague on
October 1, 1997.
Treaty has entered into force pursuant to its article 28, paragraph 2(a). 2 on 1 July.
October 1997.
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 Czech Republic and the Portuguese Republic for the avoidance of double
taxation and prevent tax leakage in the field of taxes on income
The Government of the Czech Republic and the Government of the Portuguese Republic,
Desiring to conclude a Convention for the avoidance of double taxation and the prevention of
tax leakage in the field of taxes on income,
have agreed as follows:
Article 1
The person, to which the Treaty applies
This agreement shall apply to persons who have their domicile or registered office in the
one or both of the Contracting States (residents).
Article 2
The taxes to which the Agreement applies
1. this Agreement shall apply to taxes on income imposed on behalf of a Contracting
State or its lower administrative departments or local authorities, whether it is
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 disposal of movable
or immovable property, taxes on the volume of salaries and wages paid by companies and
also increase taxes of the assets.
3. The current tax, to which the Treaty applies are:
and in the case of Portugal):
(i) the income tax on natural persons (Imposto sobre o Rendimento das Pessoas
Singulares-IRS);
(ii) the corporate income tax (Imposto sobre o Rendimento das
Pessoas Colectivas-IRC); and
(iii) local extra charge to income tax of legal persons (Derrama);
(hereinafter referred to as "Portuguese tax");
(b)) in the case of the Czech Republic:
(i) the income tax on natural persons; and
(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, which 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 to each other
shall notify substantial changes, which will be carried out in their respective
tax laws.
Article 3
General definition
1. for the purposes of this agreement, if the link does not require a different interpretation:
and) the term "Portugal" means the territory of the Portuguese Republic situated
on the European continent, the archipelago of the Azores and Madeira, the respective
territorial waters and any area in which, in accordance with the
the Portuguese laws and with international law, the Portuguese claims
Republic of his sovereign rights or legislation relating to the
research and the grit of natural resources the seabed and its subsoil, and with them
related water;
(b)), the term "Czech Republic" means the territory in which they apply the tax
the laws of the Czech Republic;
(c)) the expressions "one Contracting State" and "the other Contracting State" referred to in
the case of Portugal or the Czech Republic;
(d)), the term "person" includes a natural person, the company and any other
an Association of persons; and
(e)), the expression "company" refers to the legal person or the rightholder,
considered, for the purposes of taxation under the legal person;
(f) the terms "enterprise of one) of a Contracting State" and "enterprise of the other Contracting
the State "according to the situation of the enterprise run by a resident of one
Contracting State or the undertaking run by resident of the other Contracting
State;
(g)) the term "international traffic" means any transport by boat or
the plane, which is operated by an undertaking whose place of actual management
in one Contracting State, except when the ship or aircraft are
operated only between places in the other Contracting State;
h) the term "competent authority" means:
(i) in the case of Portugal, the Minister of finance, the Director of taxation
(Director-Geral das Contribuicoes e Impostos) or his authorized
representative;
(ii) in the case of the Czech Republic the Minister of finance or his authorised
representative;
I) the term "national" means:
(i) any natural person who is a citizen of a Contracting
State;
(ii) any legal person, Association, or any body established by
According to the law in force in a Contracting State.
2. Each expression, which is not otherwise defined will have for the application of this
the contract to the Contracting State the importance, which it under the law of that
the State, which regulates tax covered by this agreement, if the
the link 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"
means any person who, under the law of that State, subject to the
This state taxation by reason of their residence, the permanent residence place
management, or any other similar criteria. This term, however,
does not include a person who is subjected to taxation in that State only from
because income from sources in that State.
2. If the individual is in accordance with the provisions of paragraph 1 of the resident in
both of the Contracting States, shall be addressed to the following position
way:
and) that this person is resident in the State in which the
has a permanent apartment; If he has a permanent apartment in both States, it is assumed that the
It is resident in 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 it is resident in 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 is resident in 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 is resident in
This State in which is situated the place of leadership.
Article 5
Permanent establishment
1. For the purposes of this Treaty, the expression "permanent establishment" means a permanent
equipment for the business, in which the undertaking in whole or part
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, Quarry or any other place where the benefits
natural resources.
3. A building site, a construction, Assembly or installation project or supervision with
associated with the considered a permanent establishment only if the last longer than
twelve months.
4. Notwithstanding the preceding provisions of this article, it is assumed
the term "permanent establishment" shall not include:
and) device, which is used only for storage, display or delivery of
goods belonging to the enterprise;
(b) the supply of goods belonging to the enterprise), which is kept only for the purpose of
storage, display or delivery;
(c) the supply of goods belonging to the enterprise), which is kept only for the purpose of
the processing of another undertaking;
d) durable equipment for the business, which is kept only for the purpose of
purchase of goods, or collecting information for the enterprise;
e) durable equipment for the business, which is kept only for the purpose of
any other activities which have a preparatory or for the enterprise
auxiliary character; and
(f)) for business, durable equipment that is maintained only for the performance of
any concentration of activities referred to in (a))-e), if the
the total activity of the permanent establishment, resulting from this concentration has
a preparatory or auxiliary character.
5. If, notwithstanding the provisions of paragraphs 1 and 2, a person-other than
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 her to enter into contracts on behalf of the company, it is considered that the
This enterprise has a permanent establishment in that State in relation to 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
have been carried out through the permanent establishment, should neither constitute
the existence of a permanent establishment under the provisions of this paragraph.
6. subject to the provisions of paragraphs 4, 7 and 8 of this article, it is considered
that the enterprise of one Contracting State, which operates the activities of the Permanent
the nature of the provision of services, including consultancy or
management in the other Contracting State through its own
employees or other workers hired by the enterprise for such purpose,
It has a permanent establishment in that other State, but only if the activities of the
such a character there over one or more periods exceeding in
the total of 12 months in the patnáctiměsíčním period.
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 other independent agent,
If these persons are acting within their proper operation.
8. the fact that a company which is a resident of one Contracting
the State controls the company, or is controlled by a company which is a
a resident in the other Contracting State, or which carries out his
activity (whether through a permanent establishment or otherwise), it does not make herself
about myself from any of this company a permanent establishment of the other
the company.
Article 6
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 second
a Contracting State may be taxed in that other State.
2. The term "immovable property" has such a meaning is according to the laws of the
the Contracting State in which the property concerned is located. The statement includes, in
any case, accessories of immovable property, alive and dead inventory
used in agriculture and forestry, rights to which the provisions of the
the civil law relating to land, buildings, the right to the enjoyment of
of immovable property and rights to variable or fixed salaries for unfair advantage
or a přivolení to the unfair advantage of mineral deposits, sources and other
natural resources; ships and aircraft shall not be regarded as immovable property.
3. The provisions of paragraph 1 apply to the income from the direct use, letting, or
any other use of 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 performance of
an independent profession.
5. The foregoing provisions shall also apply to income from movable property,
which according to the tax laws of the Contracting State in which the
property is located, belongs to income from immovable property.
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
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 one Contracting State carries on its activities in
the other Contracting State through a permanent establishment that is there
placed, attach, subject to the provisions of paragraph 3 in any
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
the firm spent on the objectives pursued by the permanent establishment, including
expenses management and general administrative expenses so incurred, whether
incurred in the State in which the permanent establishment is situated or elsewhere.
4. If in a Contracting State to provide for the normal profits, which
to be attributed to a permanent establishment on the basis of allocation of the total
the profits of the enterprise to its various parts, the provisions of paragraph 2 shall not preclude the
This article, so that Contracting State the profits to be
taxed, this normal distribution; the method of distribution of profits must
However, be such that the result was in accordance with the principles laid down in the
This article.
5. A permanent establishment is nepřičtou no gains on the basis of the fact that
only buy goods for the company.
6. 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.
7. where profits include revenue, 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. Profits from the operation of ships or aircraft in international traffic
subject to taxation in the Contracting State in which the registered office is located
the actual management of the undertaking.
2. where the registered office of the actual management of shipping is on board
the ship, it is considered that are located in the Contracting State in which it is located
the home port of the ship, or, if there is no such home harbour, in the
the Contracting State in which the operator of the ship is a resident.
3. 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
1. If the
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 directly or indirectly involved in the management, control or
the assets of the undertaking and the undertaking of one Contracting State in the other Contracting
the State,
and if in these cases are both enterprises in their commercial or
financial relations are bound by terms that agree or they were
stored and which differ from those which would have been agreed between the
companies independent, 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.
2. where a Contracting State includes in the profits of the enterprise of that State--
and subsequently, the tax-gains, from which the company was the other Contracting
the State taxed in that other State and the profits so included are profits,
they are first mentioned by the State considered the gains that would have been
docíleny undertaking first State, if the conditions agreed between the
businesses have been such, what would have been agreed between independent undertakings,
the second State may adjust the amount of tax imposed on the appropriately of these profits in the
This state. In determining such adjustment, due account shall be taken of the other
the provisions of this Treaty and, if necessary, the competent authorities of the Contracting
States shall to this end consult each other.
Article 10
Dividends
1. Dividends paid by a company which is resident in the same
Contracting State, a resident of the other Contracting State, may be taxed
in the latter State.
2. However, such dividends may also be taxed in the Contracting State, in the
which is a company that is paid, a resident, and according to the laws
legislation of that State, but if the recipient is the beneficial owner
dividends, the tax thus determined shall not exceed 15% of the gross amount of the dividends.
This paragraph shall not affect the taxation of the profits of the company, from which they are
dividends are paid.
3. Notwithstanding the provisions of paragraph 2, if the beneficial owner of
dividends is a company that, after a continuous period of two years
prior to the payment of dividends owns directly at least 25% of the basic
capital of the company paying the dividends, the tax thus determined
shall not exceed, in respect of dividends received after 31 December 2006. December 1996, 10%
the gross amount of the dividends.
4. The term "dividends" as used in this article refers to income from shares,
profit participation certificates or rights or other rights of the founders, with
the exception of the claims, with a share of the profits, as well as income from other rights
the company, which are subjected to the same taxation as income from
shares under the tax legislation of the State where it is a company that
rozdílí profit, a resident. The term also includes profits due under the
agreement on the participation in the profits.
5. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of
the dividend, which is resident in a Contracting State, carries on in the
the second 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 of the profession through a permanent base located there, and
If the participation, for which the dividends paid, actually binds to the
This permanent establishment or that fixed base. In this case,
the provisions of article 7 or article 14, depending on what kind of case
It is.
6. Where a company which is resident in one 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, actually belongs to the 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, and
When dividends paid or the undistributed profits wholly or pozůstávají
partly of profits or income realised in the latter State.
Article 11
Interest
1. the interest having a source in one Contracting State, which receives a resident
the other Contracting State, may be taxed in that other State.
2. However, such interest may also be taxed in the Contracting State, in the
where is their source, according to the legislation of that State,
However, if the recipient is the beneficial owner of the interest, the tax as follows
charged shall not exceed 10% of the gross amount of the interest.
3. Notwithstanding the provisions of paragraph 2 interest that they have in one source
a Contracting State shall be exempt from tax in that State:
and if the debtor of such interest) is the Government of that State or of its local
the Office; or
(b)) if pays interest to the Government of the other Contracting State or of its
the local authority or other institution (including financial institutions) in the
connection with them supported by funding under the agreement between the Governments of the
of the Contracting States; or
(c)) for loans, or loans granted to:
(i) in the case of the Czech Republic
-The Czech National Bank,
-The consolidation Bank; and
(ii) in the case of Portugal,
-Caixa Geral de Depositos group,
Banco Nacional Ultramarino-(BNU),
-Banco de Fomento e Exterior (BFE)
-Banco Borges & Irmao, and
-ICEP-Investimentos, Comércio e Turismo de Portugal.
4. The term "interest" as used in this article refers to income from debt claims
any kind of secured and non-secured lien on the
the property or having or not the 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 these
securities, bonds or debentures. The late charge is
not be regarded as interest for the purpose of this article.
5. The provisions of paragraphs 1, 2 and 3 shall not apply if the beneficial
owner of the interest, which is resident in one Contracting State, carries on in the
the second Contracting State in which they have interest, industrial or source
business through a permanent establishment that is there
located, or independent profession through a permanent base there
and if the claim from which the interest is paid,
actually binds to that permanent establishment or that fixed base. In
such a case, the provisions of article 7 or article 14, as
of this, about what matters.
6. It is envisaged that interest to the source in one Contracting State,
If the payer is that State itself, its lower administrative department, local
authority or 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
place of business or permanent basis, in the context of the debt occurred,
from which the interest is paid, and such interest shall be charged to such permanent
the establishment or permanent base, then a source of such interest will be
considered to be the State in which the permanent establishment or fixed base
located.
7. If the amount of interest that are relevant to the claim, which 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, maintain
with a third party, the amount which would have been had given the payer with the actual
owner, if it wasn't for such relationship, the provisions of this
article just on this latter amount. The amount of the remuneration, which
beyond, 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. Royalty source in one Contracting State paid
resident of the other Contracting State may be taxed in that other
State.
2. However, Such royalties may also be taxed in the Contracting
the State, which is the source of, and in accordance with the law
in this State, but if the recipient is the beneficial owner of the license
the fees, the amount of tax thus determined shall not exceed 10% of the gross amount of
license fees.
3. The term "royalties" as used in this article refers to the payments
of any kind received as a compensation for the use of, or for the provision of
the right to the use of copyright to 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
equipment, or for information relating to experience gained in the
the field of industrial, commercial or scientific.
4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of
royalties, who is resident in one Contracting State,
exercised 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 professions
through a permanent base located there, and if a right or
the assets that give rise to the license fees actually bind to the
This permanent establishment or a permanent base. In this case,
the provisions of article 7 or article 14, depending on what matters.
5. It is assumed that the licence fees have a source in a Contracting State,
If the payer is that State itself, its administrative unit, a local authority
or a resident of that State. However, if the payer of royalties,
whether or not resident in a Contracting State, has in a Contracting
State a permanent establishment or a permanent base in connection with which it was
the obligation to pay the license fees, which shall be charged to the permanent establishment
or a permanent base, it is assumed that these license fees are
a source in the Contracting State in which the permanent establishment or a permanent
the base is located.
6. If the amount of license fees that apply to the use,
the right or information for which they are paid, exceeds the due
the special relationship between the payer and the beneficial owner or
that one and the other with a third party, the amount which would have been
scheme of the Bill is the beneficial owner, if it wasn't for such relations,
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
other provisions of this Treaty.
Article 13
Profits from the disposal of assets
1. the Profits that accrue to the resident company 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 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
the resident of one Contracting State has in the other Contracting State to the
the performance of an independent profession, including such profits realised from
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.
3. Gains from the alienation of ships or aircraft operated in international
transport or movable property, that serves the operation of such ships or
aircraft shall be subject to taxation in the Contracting State in which it is placed.
the effective centre of management of a business.
4. Gains from the alienation of property other than that referred to in paragraphs 1, 2 and 3
subject to taxation in the Contracting State in which the alienator is a resident.
Article 14
Independent of the profession
1. the income that a person resident in one Contracting State receives
from a free profession or other independent activities of a similar
nature, are subject to tax only in that State, if the recipient does not have
usually available in the other Contracting State a permanent base for the purpose of
the performance of these activities. If it has a permanent
base, may be taxed in the other income Contracting State, but only
to the extent that is attributable to that fixed base.
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, which a resident of one of the Contracting
the State is receiving due to 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
exercised, the rewards can be received for them taxed in this second
State.
2. Remuneration which a resident of a Contracting State shall receive 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:
and the recipient is resident in) the second State for one or more periods, which
shall not exceed in the aggregate 183 days in any 12-month period; and
(b)) the rewards are paid by the employer or employers, who
is not resident in 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, be taxed in a Contracting State, in the
where is located the actual management of the undertaking.
Article 16
Royalties
Royalties and similar rewards, which a resident of a Contracting State receives
as a member of the Board of directors or any similar body of a company which
It is resident in the other Contracting State, may be taxed in that other
State.
Article 17
Artists and athletes
1. the revenue, which is receiving a resident of a Contracting State as to the public
rising artist, such as a theatre, film, radio or television
an 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 this artists or athletes, 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 the artist or athlete exercised
their activity.
3. The revenue referred to in this article shall, notwithstanding the provisions
paragraphs 1 and 2 of this article, exempt from tax in a Contracting State, in the
which artist or athlete exercised their activity, provided that the
This activity is largely paid for out of public funds of this
State or of the other State or the activity is exercised on the basis of the
cultural agreement between the Contracting States.
Article 18
Pension
Pensions and similar to the salaries paid by reason of a previous employment
a resident of a Contracting State shall, subject to the provisions of the
Article 19, paragraph. 2 taxation only in that State.
Article 19
Public function
1.
and Remuneration other than pensions) paid by one Contracting State or an administrative
Department or local authority of that State, of a natural person for services
prokazované that State or an administrative body or a local authority
are subject to tax only in that State.
(b) However, Such remuneration shall be subject to) the taxation of only the second 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
These services.
2.
and Pensions paid to) either directly or from the funds, which has set up a
Contracting State, an administrative department or local authority of that State, of a natural
the person for the service of proven that State, an administrative department or the local
the authority shall be subject to tax only in that State.
(b) However, Such pension shall be subject to) the taxation of only the second Contracting State,
If the individual is a resident of, and a national of that
State.
3. On remuneration and pensions in respect of services in connection with the business of proven or
industrial activity carried out by any Contracting State, an administrative
Department or local authority of that State shall apply the provisions of articles
15, 16 and 18.
Article 20
Students
Salaries that a student or an apprentice who is or was immediately before the
by visiting a Contracting State a resident of the other Contracting State and who
staying in the first mentioned State solely for the purpose of study or training,
receives for the purpose of his education or training shall not be taxed in this
State, provided that these salaries have a source outside of this State.
Article 21
Professors and researchers
Remuneration for teaching or scientific research, that the person who is or has been
immediately before visiting a Contracting State a resident of the
the other Contracting State and who is present in the first mentioned State after
a period not exceeding two years for the purpose of scientific research or teaching
University, high school, higher education, research
Institute or another similar device designated by the Government of the second
the Contracting State will be exempt from taxation in that State for the first time
provided that the purpose of all these institutions is not making a profit and that the
income derived from sources outside that State.
Article 22
Other revenue
1. the income of a person who is resident in one Contracting State, whether they are
source anywhere that is not addressed in the preceding articles of this
of the 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 as defined in article 6 (1). 2, if the recipient
such income which is resident in one Contracting State, it shall exercise
business activity in the other Contracting State through a permanent
the establishments located there, or performs in that other State independent
the profession of a permanent base located there, and if the right or property,
for income, are actually associated with a permanent
establishment or permanent base. In this case, apply
the provisions of article 7 or article 14, depending on what matters.
Article 23
The exclusion of double taxation
Double taxation shall be eliminated as follows:
and the Portuguese Republic):
(i) where a resident of Portugal receives income that may be
the provisions of the articles of this Treaty, be taxed in the Czech Republic, Portugal
allows to reduce the amount of tax calculated from the income of a resident of the amount
equal to the income tax paid in the Czech Republic. Such a reduction
However, shall not exceed that part of the tax calculated prior to its reduction, which
rather, for the income that may be taxed in the Czech
the Republic;
(ii) If, in accordance with the provisions of this Treaty, the income of a resident
Portugal were exempt from tax in this State, Portugal may, in
the calculation of the tax from the rest of the income of the resident to take into account the
exempt income.
(b)) in the Czech Republic:
(i) the Czech Republic can save taxes its residents include
the base from which such taxes are imposed, the revenue that may be in
accordance with the provisions of this Treaty also taxed in Portugal, but
allows to reduce the amount of tax calculated on the basis of the amount of tax
paid in Portugal. This reduction, however, shall not exceed such part
Czech taxes calculated before the reduction, which relatively relates to revenue,
which may be taxed in accordance with the provisions of this Treaty in Portugal.
(ii) If, in accordance with the provisions of this Treaty or domestic law
income is a resident of the Czech Republic shall be exempt from tax in this State,
Czech Republic may, in calculating tax on the remaining income of that
resident to take into account the exempted income.
Article 24
The principle of equal treatment
1. nationals of one Contracting State shall not be subjected in the
the second Contracting State to any taxation or duties associated with him,
that are different or more troubling than the taxation and connected with it obligations,
which are or may be subjected to the nationals of the other
State, in particular with a view to permanent residence, in the same
the situation. This provision shall, notwithstanding the provisions of article 1 shall apply
also 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, a 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 a commitment to a single State,
to residents of the other Contracting State admitted personal credits, discounts and
tax reductions due to personal or family obligations, which
He admits to its own residents.
3. If you do not apply the provisions of article 9 (2). 1, article 11
paragraph. 6 or article 12 paragraph. 4, interest, royalties and other
expenses paid by the enterprise of one Contracting State to the person who is
a resident in the other Contracting State for the purposes of determining the deductible
the taxable profits of the undertaking under the same conditions as if they were
paid to a person who is resident in 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 one or more
residents of the other Contracting State, shall not be subjected in the first mentioned
the State of any taxation or duties associated with him, other
or more troubling than the taxation and connected with it obligations, which are or
may be subject to other similar enterprises of the first mentioned State.
5. the provisions of this article shall, notwithstanding the provisions of article 2
apply to taxes of any kind or name.
Article 25
Resolving cases by 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
remedies, which the national law provides the following
States, present his case to the competent authority of the Contracting State of which the
is a resident or, if his case comes under paragraph of article 24. 1,
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 the
taxation, which is not in accordance with the provisions of this 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
the 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.
Any agreement reached shall be implemented without regard to the time limits
in the national legislation of the Contracting State.
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 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 oral
Exchange of views appears useful for the achievement of the agreement, the Exchange
of views to take place through a Commission consisting of representatives of the
the competent authorities of the Contracting States.
Article 26
The exchange of information
1. the competent authorities of the Contracting States shall exchange the information necessary
for the application of the provisions of this Treaty or national legislation
the laws of the Contracting States shall apply to the taxes which are the subject
This Treaty, if the taxation of that edit, it is not in conflict with this
the Treaty. Exchange of information is not restricted by article 1. All of the information
a Contracting State received will be kept confidential in the same way
as the information obtained under the domestic laws of that State, and
will be disclosed only to persons or authorities (including courts and administrative
authorities), which deal with the vyměřováním or the collecting of taxes covered
covered by this contract, the enforcement or prosecution in respect of these
taxes, or decisions on appeals. Such persons or authorities
such information shall be used only for these purposes. Can publish these
the information in 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 violate the law or
the administrative practice of that or of the other Contracting State;
(b)) to divulge information which could not be obtained on the basis of the legal
regulations or in ordinary administrative proceedings of this or of the other Contracting
State;
(c)) to communicate the information that would have revealed the commercial, corporate, industrial,
commercial or professional secret or trade process, or information,
the communication would be contrary to public policy (ordre public).
Article 27
Diplomats and consular officials
No provision of this Agreement shall not affect the tax privileges, which
It is for diplomats or consular officials under the General rules of
of international law or under the provisions of special agreements.
Article 28
Entry into force of the
1. this Treaty is subject to ratification and the instruments of ratification shall be exchanged
in Prague as soon as possible.
2. the contract shall enter into force on the date of exchange of instruments of ratification and its
the provisions will apply:
and) in Portugal:
(i) in respect of taxes withheld at source, on the basis of the fact
giving rise to these taxes, which occurs to 1. January or later
the year following the year in which the Agreement enters into force;
(ii) in respect of other taxes on income for tax years beginning on January 1.
January or later, the year following the year in which the contract shall enter into
force;
(b)) in the Czech Republic:
(i) in respect of taxes withheld at source, on amounts 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, for taxes chargeable for any
the tax year starting on January 1. January or later in the calendar year
following the year in which the Agreement enters into force.
Article 29
Notice of termination
1. this Agreement shall remain in force until denounced by one
Contracting State. Any Contracting State may withdraw from the Contract in writing
through diplomatic channels, at least six months before the end of each
the calendar year following the expiry of five years from the date on which
The Treaty enters into force. In this case, the contract ceases to
to apply:
and) in Portugal:
(i) in respect of taxes withheld at source, on the basis of the fact
giving rise to these taxes, which occurs to 1. January or later in
the calendar year following the year in which the period referred to in
These nótě;
(ii) in respect of other taxes on income, the income for tax years
starting with 1. January or later in the calendar year following the
the year in which the period referred to in the said nótě.
(b)) in the Czech Republic:
(i) in respect of taxes withheld at source, on amounts 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, for taxes due for each tax
year starting 1. January or later in the calendar year following the
the year in which the notice of termination has been given.
On the evidence of subscribers, duly authorised thereto, have signed this Treaty.
Done at Lisbon on 24. in May 1994, in two originals, each in the
Czech, Portuguese and English, all texts are
authentic. In the case of a difference in interpretation of the texts is decisive in
the English language.
For the Government of the Czech Republic:
doc. Ing. Josef Zieleniec, CSc. v.r.
Minister of Foreign Affairs
For the Government of the Portuguese Republic:
José Manuel Durao Barroso in the r.
Minister of Foreign Affairs
