18/1984 Sb.
DECREE
of 9 June. December 1983
the Treaty between the Czechoslovak Socialist Republic and the Federal
Republic of Germany for the avoidance of double taxation with respect to taxes on income and
property
On 19 December. December 1980 was in Prague signed a contract between
The Czechoslovak Socialist Republic and the Federal Republic of
Germany for the avoidance of double taxation with respect to taxes on income and on capital.
The Contract rejected the approval of the Federal Assembly of the Czechoslovak
the President of the Czechoslovak Socialist Republic and the Socialist
the Republic has ratified it. The instruments of ratification were exchanged in Bonn the day
18 October 1983.
Treaty has entered into force, pursuant to article 29, paragraph 2, on the day
on November 17, 1983.
The Czech version of the Treaty shall be designated at the same time.
Minister:
Ing. Chňoupek v.r.
CONTRACT
between the Czechoslovak Socialist Republic and the Federal Republic of
Germany for the avoidance of double taxation with respect to taxes on income and on capital
The Czechoslovak Socialist Republic
and
The Federal Republic of Germany,
Desiring to conclude an agreement on avoidance of double taxation with respect to taxes of
income and on capital,
have agreed as follows:
Article 1
The person to which the contract relates
This agreement shall apply to persons who are resident or established in
one or both of the Contracting States.
Article 2
The tax, to which the contract relates
(1) this Agreement shall apply to taxes on income and on capital, to be charged in the
one of the two Contracting States, whether it is any way to select.
(2) taxes on income and on capital all taxes shall be levied on
the total income from all or part of the income or
property, including taxes on profits from the alienation of movable or immovable
property, payroll taxes, and taxes on the increment value.
(3) the current tax, to which the contract relates, in particular,
and in the Federal Republic of Germany):
the income tax (die Einkommensteuer);
tax of legal persons, including supplementary benefits taxable legal persons
(according to Kuerperschaftsteuer einschliesslich der Erganugsabsabe zur
Kuerperschaftsteuer),
property tax (die Vermogensteuer)
land tax (die Grundsteuer) and
trade tax (Gewerbesteuer die);
(b)) in the Czechoslovak Socialist Republic;
extraction of profit and profit tax,
the payroll tax,
income tax on the literary and artistic activities,
agricultural tax,
income tax the population,
Toll House and
exhaust from the capital.
(4) the provisions of this agreement on the taxation of income or property is true
mutatis mutandis to trade tax, rather than by income or vyměřovanou
asset that is selected in the Federal Republic of Germany.
(5) this Agreement shall apply also to any identical or similar
the taxes that will be collected in the future in addition to or in place of current taxes
them. The competent authorities of the Contracting States shall, at the end of each year, according to the
appropriate, communicate the changes that have been made in their taxation laws.
Article 3
General definitions
(1) for the purposes of this agreement, unless the context requires a different interpretation:
and) the terms "a Contracting State" and "the other Contracting State" mean respectively according to the
the context of the Federal Republic of Germany or the Czechoslovak
Socialist Republic of Vietnam.
(b)) the term "person" includes natural persons and companies.
(c)) the term "company" means a legal entity or of the rightholder
considered for the purposes of taxation for legal persons.
(d)) the terms "enterprise of a Contracting State" and "enterprise of the other Contracting
State "means the enterprise carried on by a person residing or established in
one State party, where appropriate, the enterprise carried on by a person having
resident or established in the other Contracting State.
(e)) the term "competent authority" means in the case of the Federal Republic of Germany
the Federal Minister of finance and, in the case of the Czechoslovak Socialist
Minister of Finance of the Republic of the Czechoslovak Socialist Republic, or
his authorised representative.
(2) each expression that is not otherwise defined, the application of this
the Treaty, a Contracting State meaning, which is determined by the legislation of the
of this State governing the taxes which are the subject of this agreement,
unless the context requires a different interpretation.
Article 4
Tax residence
(1) the term "person residing or established in a Contracting State"
indicates within the meaning of this agreement, a person who is subjected to taxation in accordance with
the laws of that State by reason of his residence, permanent residence,
space management, or any other similar criteria.
(2) If a natural person has under the provisions of paragraph 1, the place of residence in the
both of the Contracting States, proceed as follows:
and) that this person is resident in that Contracting State in
which has the standing to be. If he has a permanent home in both Contracting States,
It is assumed that he is resident in that Contracting State which has narrower
the personal and economic relations.
(b)) if it cannot be determined that Contracting State has this person
enhanced personal and economic relations, or if it does not have a permanent home in no
Contracting State, it is assumed that he is resident in that Contracting State in
which usually resides.
(3) If a person other than a natural person has under the provisions of paragraph
1 Office in both Contracting States, it is assumed that has its registered office in the
the Contracting State in which the place of effective management.
Article 5
Permanent establishment
(1) the term "permanent establishment" within the meaning of this Treaty indicates the Permanent
equipment for the business, in which the company carries out all or part of their
activity.
(2) the term "permanent establishment" includes especially:
and instead of keeping),
(b)) race,
(c)),
d) factory
e) workshop,
f) mine, a quarry or other place of extraction of natural resources,
g) a building site or Assembly, which last longer than 12 months.
(3) the establishment will not be considered:
and) device that is used only for storage, display or
the delivery of goods or merchandise belonging to the enterprise,
(b) the supply of goods or merchandise belonging to the enterprise), which is solely for the purpose
storage, display or delivery,
(c) the supply of goods or merchandise belonging to the enterprise), which is solely for the purpose
the processing of another undertaking,
d) permanent equipment business, which is used only for the
the purpose of purchasing goods or collecting information for the enterprise,
e) permanent equipment business, which is used for the enterprise
only for the purpose of advertising, information, scientific research or
similar activities which have a preparatory or auxiliary character.
(4) a person acting in one of the Contracting States for the enterprise of the other Contracting
State-other than an independent representative within the meaning of paragraph 5 shall be deemed to
a permanent establishment in the first-mentioned State, if it is equipped with
power of Attorney, which allows her to enter into contracts on behalf of the enterprise
in this State usually uses if its activity is not limited to
purchases of goods for the company.
(5) does not anticipate that the enterprise of a Contracting State has a permanent
establishment in the other Contracting State merely because it carries on its
working through a broker, agent, or other independent
the representative, if such persons are acting within their proper operation.
(6) the fact that a company which has its head office in one Contracting State
controlled by the company or is controlled by a company which has its head office in the second
Contracting State, or in that other State carries on activities
(whether through a permanent establishment or otherwise), will not make itself from
either this company a permanent establishment of the other company.
Article 6
Income from immovable property
(1) income from immovable property may be taxed in the Contracting State in
where such property is located.
(2) the term "immovable property" is defined in accordance with the law of
the Contracting State in which such property is located. This expression includes the
in any case, accessories of immovable property, the living and the dead
inventory of agricultural and forestry, rights to which the
the provisions of civil law relating to property, consumption
of immovable property and rights to variable or fixed transactions paid for
unfair advantage or for the right to mining mineral deposits, sources and other
of natural resources. Ships, boats and aircraft shall not be regarded as immovable
asset.
(3) the provisions of paragraph 1 shall apply to the income from the direct use,
of the lease, tenancy, and every other manner of use of immovable property.
(4) the provisions of paragraphs 1 and 3 shall also apply to the income from immovable property
the assets of the company and to income from immovable property used for the performance of
a liberal profession.
Article 7
The profits of enterprises
(1) the profits of the enterprise of a Contracting State may be taxed only in that
State if the undertaking does not pursue its activities in the other Contracting State
through a permanent establishment that is located there. If
the enterprise carries on business in this way, the profits of the enterprise may be
taxed in that other State, but only to the extent that it is
can be attributed to that permanent establishment.
(2) If an enterprise of a Contracting State, carries on business in the
the other Contracting State through a permanent establishment that is there
placed, attach, in each Contracting State such permanent establishment
the gains that would have been able to achieve, if it were a separate enterprise
It carried the same or similar activities under the same or similar
conditions and was completely independent in contact with the enterprise of which it is a permanent
establishment.
(3) in calculating the profits of a permanent establishment shall be allowed to deduct the costs,
spent on the objectives pursued by the permanent establishment, including travel expenses, whether
incurred in the State in which the permanent establishment is situated or elsewhere.
(4) if in any Contracting State to determine the profits
to be attributed to a permanent establishment on the basis of allocation of the total
the profits of the enterprise to its various parts, does not preclude the provisions of paragraph 2, to
This Contracting State has designated the profits to be taxed by the usual
the allocation. The method of distribution of profits must be used, however, such that
the result was in line with the principles laid down in this article.
(5) permanent establishment nepřičtou no gains on the basis of the fact
that only goods for the company.
(6) the Profits to be attributed to the permanent establishment shall, for the application
the preceding paragraphs shall be calculated each year according to the same method, if
There are additional reasons for a different procedure.
(7) where profits include income dealt with in other
the articles of this agreement, the provisions of those articles shall not affect the
the provisions of this article.
Article 8
Shipping and air transport
(1) the gains deriving from the operation of ships or aircraft in the sea
international traffic may be taxed only in the Contracting State in which the
is the place of effective management of the undertaking.
(2) profits from the operation of boats used in inland navigation may
only be taxed in the Contracting State in which the place of effective management
of the business.
(3) if the place of effective management of the maritime or inland
the cruise is aboard a ship or boat, it is considered placed in
the Contracting State in which the home harbour of the ship or of the
the boat, or if there is no home port, in the Contracting State in which the
the operator of a ship or boat of residence or registered office.
(4) the provisions of paragraphs 1 to 3 shall apply mutatis mutandis to participation of an enterprise
maritime or inland navigation or air transport at the pool,
the joint operation, or to another international production association.
Article 9
Associated enterprises
(1) if
and the company) of a Contracting State participates directly or indirectly in the
the management, control or capital of an undertaking of the other Contracting State, or
(b)) the same persons participate directly or indirectly in the management, control or
the assets of the enterprise of a Contracting State and enterprise of the other Contracting
State,
and if in these cases were between the two enterprises in their
commercial or financial relations negotiated or imposed conditions,
that differ from the terms and conditions which would have been agreed upon between undertakings
the independent, may be included in the profits of that enterprise and reasonably
taxed profits, that without these conditions would have been accrued to one of the
enterprises which, however, because these conditions have not been achieved.
(2) If a profit, from which the enterprise of a Contracting State taxed
in this State, pursuant to the provisions of paragraph 1 was included in the income of the enterprise
of the other Contracting State and taxed appropriately, and if the profit as follows
included is the profit that would have been achieved by that undertaking of this second
Contracting State, if the conditions agreed between the two companies were
identical to those which would have been agreed between independent undertakings,
does the former State of reasonable repair of covered earnings, as follows
to avoid double taxation. This adjustment shall be made taking into account
to other provisions of this agreement with regard to the kind of income and, if
necessary, the competent authorities of the Contracting States to this end.
Article 10
Dividends
(1) dividends paid by a company which has its head office in one Contracting
State the person residing or established in the other Contracting State, may
be taxed in that other State.
(2) However, such dividends may be taxed in the Contracting State in which the
registered office of the company, which is paid out according to the laws of that State. Tax
However, the thus determined may not exceed:
and 5% of the gross amount) of the dividends if the recipient is a company that
own directly at least 25% of the assets of the company paying the dividends;
b) 15% of the gross amount of the dividends in all other cases.
(3) If the rate of tax on company profits is in a Contracting State
lower for the split profits than for undistributed profits, and if the difference
is 20% or more, the tax, which is levied in that State from
dividends do by way of derogation from paragraph 2 25% of the gross amount
dividends plus additional benefits, if the dividends come from
the company, which has headquarters in that Contracting State, and are accrued
the company, which is based in the other Contracting State and if the
the company itself or together with other persons, which is controlled by,
or that are controlled together with her, are directly or indirectly
at least 25% of the shares with voting rights of the company having
the seat in the first-mentioned State.
(4) the term "dividends" as used in this article means income from shares,
požívacích rights or profit participation certificates, kuksů, profit-sharing, or
other rights-with the exception of claims-with profits and income from
other shares in the company, which is based on the tax legislation of the State
in which the registered office of a company that pays dividends, built on the
shall be assimilated to income from shares, including the silent partnership contribution income from participation in the
trade, income from bonds or loans linked to the participation in the profits, and
including payments on the units of the company for saving capital
(investmentfonds).
(5) the provisions of paragraphs 1 to 3 shall not apply if the recipient of the dividends
residing or established in a Contracting State, has in the other Contracting
State in which the registered office of the company paying the dividends, Permanent
establishment and participation, on the basis of which the dividends are paid,
actually belong to that permanent establishment. In that case, shall apply
the provisions of article 7.
(6) where a company having its registered office in one Contracting State is achieved
profits or income from the other Contracting State, that other State
choose any tax on the dividends paid by the company to persons
that do not have a domicile or head office in that other State, nor subject the gains
company tax on retained profits, even if the dividends paid
or the undistributed profits are made up wholly or partly of profits or
income realised in that other State.
Article 11
Interest
(1) interest arising in a Contracting State and paid to the person having
resident or established in the other Contracting State may be taxed only in the
that other State.
(2) the term "interest" as used in this article means income from public
loans, promissory notes, even if they are secured by a lien on the
real estate or provide the right to participate in profits, and debt
of any nature, as well as all other income, which are pursuant to the tax
the laws of the State in which it is their source, built on a par with income from
loans.
(3) the provisions of paragraph 1 shall not apply if the recipient of the interest that
residence or head office in a Contracting State, has in the other Contracting
State in which they have interest, permanent establishment and source if
the claim from which the interest is paid to us, actually belong to this permanent
establishment. In such a case, the provisions of article 7.
(4) if the amount of the interest paid, having regard to
the claim from which they are paid, exceeds the due to specific
relationship between borrower and lender, or between the two and the third
the person of the amount that would have been a borrower with the lender had given, if it wasn't for
such relationships, the provisions of this article shall apply only to that
last-mentioned amount. The amount of the interest exceeds, it may be in
this case taxed pursuant to the legislation of each Contracting State and
under other provisions of this agreement.
Article 12
License fees
(1) royalties arising in a Contracting State and paid
a person who is resident or established in the other Contracting State, may be
taxed in that other State.
(2) such royalties may be taxed in the Contracting State in
where is their source, according to the laws of that State,
but the tax must not exceed 5% of the gross amount of the royalties.
(3) the term "royalties" as used in this article means salaries
of any kind, be paid for the use of, or the right to use a copyright
the rights to literary, artistic or scientific, including
Cinematograph films, patents, trademarks, designs or
models, plans, secret formula or process, or for the use of, or the right
on the use of industrial, commercial or scientific equipment, or for
information relating to experience gained in the field of industrial,
commercial or scientific.
(4) the provisions of paragraphs 1 and 2 shall not apply if the recipient of the
the royalties or the seat of the resident in one Contracting State has
in the other Contracting State in which the royalties, a permanent source
establishment and if the rights or assets for which they are
license fees paid, actually belong to that permanent establishment. In
such a case, the provisions of article 7.
(5) if the amount of the paid license fees assessed to
taking into account the performance for which they are paid, exceeds the due
special relationship between borrower and lender, or between
the two and a third party in the amount you would have been had given the debtor with the lender,
If it wasn't for such relationship, the provisions of this article only
to this last-mentioned amount. The amount of the salaries that it exceeds,
in this case, may be taxed in accordance with the legislation of each
Contracting State and according to the other provisions of this agreement.
Article 13
Gains from the alienation of property
(1) gains from the alienation of immovable property referred to in article 6 may be
taxed in the Contracting State in which such property is located.
(2) gains from the alienation of movable property that is operating the property
of a permanent establishment which an enterprise of a Contracting State in the other
Contracting State or of movable property owned by a permanent base,
which a person resident in a Contracting State has in the other
Contracting State in order to exercise an independent profession, including such
realised gains from the alienation of such a permanent establishment (alone or together
with the whole enterprise) or of such fixed base, may be taxed in that
the second State. However, gains from the alienation of movable property as referred to in
Article 22, paragraph 3, may be taxed only in the Contracting State in which the
the movable property may be taxed in accordance with the provisions of the said
article.
(3) gains from the alienation of shares in a company having its registered office in one
a Contracting State may be taxed in that State.
(4) gains from the alienation of property that is not listed in paragraphs 1, 2 and 3
may be taxed only in the Contracting State in which the transferor has a residence
or registered office.
Article 14
An independent profession
(1) the income which a person resident in a Contracting State receives
from a free profession or other independent activities of a similar nature,
may be taxed only in that State, if such person has periodically to
available in the other Contracting State a permanent base for the performance of their
activity. If they have a permanent "base", the income may be taxed
in the other State, but only to the extent to which it can be attributed to this
a permanent base.
(2) the term "liberal profession" includes especially independent activity
scientific, literary, artistic, educational or teaching, as well as
the independent activities of physicians, lawyers, engineers, architects, and dental
doctors.
Article 15
Employment
(1) the salaries, wages and other similar remuneration derived by a natural person having the
resident in one Contracting State is receiving because of the job, may be
subject to the provisions of articles 16 to 20 to be taxed only in that State, if the
employment is exercised in the other Contracting State. If there is
employment exercised, can be taxed for them received rewards in this
the second State.
(2) the remuneration which a natural person resident in one Contracting State
he receives because of an employment exercised in the other Contracting State, may
Notwithstanding the provisions of paragraph 1 be taxed only in the first-mentioned
State, if
and the recipient is not present in) the other State during the calendar
For more than 183 days a year,
(b)) the remuneration is paid by the person or a person who is not resident or
its registered office in that other State, and
(c) the remuneration is not borne by) a permanent establishment of that person who has rewards
applies, in that other State.
(3) Notwithstanding the preceding provisions of this article may be rewards
received because of employment exercised aboard a seagoing ship, or
aircraft in international traffic, or aboard a boat used in the
Inland Navigation taxed in the Contracting State in which the place of
effective management of the enterprise.
Article 16
Tantiemy
The remuneration of the members of the Supervisory Board and the Management Board and similar salaries that a person holding a
resident in one Contracting State receives as a member of the supervisory or administrative
the Council of the society, which is situated in the other Contracting State, may be
taxed in that other State.
Article 17
Artists and athletes
(1) the income which they receive artists from the profession, such as a theatre, film,
radio or television artists, and musicians as well as athletes from this
your personal activities may be, notwithstanding the provisions of articles 14 and 15
taxed in the Contracting State in which these activities are exercised.
(2) if the income from the personal activities of an artist or athlete
doesn't the artists or athletes alone, but to another person, it may be
income, regardless of the provisions of articles 7, 14 and 15, taxed in the State in
which carries on the activity of the artist or athlete.
(3) Income referred to in paragraphs 1 and 2 may not be by derogation from the provisions of the
These paragraphs taxed in the State in which the activity of the artist
or athletes, if an artist or an athlete in the framework of the
cultural exchange agreed upon between the Governments of the Contracting States.
Article 18
Public function
(1) the salaries, including pension, which is paid by one Contracting State
or territorial corporations of this State directly or from a fund set up by this
the State or the territorial corporations to a natural person for services rendered
that State or the territorial Corporation in the exercise of public functions,
may be taxed in that State. This provision shall not apply,
If the remuneration paid to persons who have, in the second State of the Permanent
residence.
(2) The salaries or pensions for services which have been demonstrated in connection with the
a commercial or industrial activities of a Contracting State or its territorial
the Corporation, the provisions of articles 15, 16 and 19.
Article 19
Board
Pensions and similar to the salaries of the poukazované because of past employment to a person
who is resident in a Contracting State shall, subject to
the provisions of article 18 (1) taxation only in that State.
Article 20
Teachers, students and other persons who receive education
(1) University and other teachers who have in one Contracting State
resident, or have had in one Contracting State of residence immediately before the
It is removed in the other Contracting State, to a maximum of
for two years they continued to study or research or to
taught on a recognised University, college or other similar
the Institute, which does not track the earning target will not be in that other State
subject to tax from the remuneration for this work, if they receive such remuneration out of the places
outside of this second State.
(2) if the individual is resident in a Contracting State
immediately before he leaves in the other Contracting State, and
If in this second State resides only temporarily as wells on
University, high school or other educational institution or similar
This second State or as an apprentice (in the Federal Republic of Germany also
as a user name and password or a trainee), is exempt from the date of their first
coming to the second Member State with respect to the residency from tax provided for in this
the second State of all remittances from out this second State intended to
her nutrition, upbringing or education.
(3) if the individual is resident in a Contracting State
immediately before he leaves in the other Contracting State, and
If temporarily resides in that other State solely for the purpose
study, research or education as the beneficiary of the aid,
nutrition or scholarships to scientific, educational, religious, or
the charitable organisation, it is for a maximum period of two years from the date of their
first arrival in that other State, be exempt in connection with this
residents of the other State from tax:
and support) from this allowance or scholarships and
(b)) of all remittances from out this second State for its nutrition,
education or training.
Article 21
The revenue of the implied
Income of persons residing or established in a Contracting State, that
not explicitly mentioned in the preceding articles may be taxed only in the
This state.
Article 22
Property
(1) immovable property within the meaning of article 6, paragraph 2, may be taxed in the
the Contracting State in which such property is located.
(2) the movable property that is operating the property of a permanent establishment
undertaking or belongs to a permanent base, which is used to power
a liberal profession, may be taxed in the Contracting State in which the
permanent establishment or fixed base.
(3) the naval ship and aircraft used in international transport and boats
used in inland navigation, as well as the chattel which is used to
the operation of such ships, boats and aircraft may be taxed only in the
the Contracting State in which the actual management of the undertaking is located.
(4) all other assets of persons who are resident or established in
a Contracting State may be taxed only in that State.
Article 23
Elimination of double taxation
(1) a person who has a domicile or registered office in the Federal Republic of Germany,
the tax shall be as follows:
and if not used) the provisions of subparagraph (b)), with income from sources
in the Czechoslovak Socialist Republic and the property values in
The Czechoslovak Socialist Republic, which may be referred to in this
the contract taxed in the Czechoslovak Socialist Republic, on the basis of
for the tax assessment of the Federal Republic of Germany. The Federal Republic of
Germany, however, takes account of this exclusion income and assets when
the determination of tax rates. On the dividend, the first sentence shall apply only if the
If the dividends are paid by a capital company having its registered office
in the Federal Republic of Germany companies established in the Czechoslovak
Socialist Republic and if at least 25% of the shares of this company
associated with the right to vote belongs to the first-mentioned company. From
the basis for tax assessment of the Federal Republic of Germany shall also remove
participation, whose dividends are exempt from the tax base by
the previous sentence or should be exempt from the tax base for payment.
(b)) tax payable under the legislation of the Czechoslovak
Socialist Republic and, in accordance with the agreement of the
income from sources in the Czechoslovak Socialist Republic, to be reallocated
the tax charge of such income in the Federal Republic of Germany in accordance with
tax legislation of the Federal Republic of Germany concerning the inclusion of foreign
taxes:
1. from the dividends that do not fall under the provisions of subparagraph (a)),
2. royalties within the meaning of article 12,
3. income within the meaning of article 13, paragraph 3,
4. income within the meaning of article 16,
5. income within the meaning of article 17.
(c) the provisions of subparagraph (a))) refers to the profits that can be attributed to the
a permanent establishment located in the Czechoslovak Socialist Republic and the
on property that is operating the property of such a permanent establishment, as well as
on dividends, which are paid by the company having its registered office in
The Czechoslovak Socialist Republic, and participation in such
the company only if the permanent establishment or company
which is the participation, is receiving their incomes solely or almost solely from the further
referred to the activities carried out in the Czechoslovak Socialist
Republic: from the production or sale of goods, technical services or
Bank or insurance business. If these are not
the prerequisites are met, they shall apply the provisions referred to in (b)).
Also in the taxation of property tax is selected in accordance with this agreement
The Czechoslovak Socialist Republic from assets located
in the Czechoslovak Socialist Republic on a tax credit equal to the taxes collected in the
The Federal Republic of Germany pursuant to the tax laws of the Federal Republic of
Germany, netting foreign taxes.
(2) a person who has a domicile or registered office in the Czechoslovak Socialist
Republic, the tax shall be as follows:
income derived from) the Federal Republic of Germany-with the exception of income
under the provisions of subparagraph (b)), and the assets are placed in
The Federal Republic of Germany, which may be taxed under this agreement
in the Federal Republic of Germany, in the Czechoslovak Socialist
Republic exempt from taxation. The Czechoslovak Socialist Republic
may, however, in determining the tax on other income or from other
the assets of that person, apply the rate of tax that would apply if the
the income or the assets has not been exempted from taxation.
(b)) in assessing the Czechoslovak tax into the tax base shall include
revenue from the Federal Republic of Germany, pursuant to articles 10, 12, 13
paragraph 3, 16 and 18 may be taxed in the Federal Republic of Germany.
Tax paid in the Federal Republic of Germany, pursuant to articles 10, 12, 13
paragraph 3, 16 and 17 shall be reallocated to the tax charge in the Czechoslovak
Socialist Republic of these revenues. The amount is reallocated, however,
cannot exceed a percentage of tax calculated before setting off to that
rather it seems to these income subject to taxation in the Federal
Republic of Germany.
Article 24
The principle of equal treatment
(1) a Contracting State may not impose on the persons that have in the other Contracting
the State of residence or registered office, any taxes that would not save persons
have a domicile or registered office in a third country with which it has not concluded the contract of
avoidance of double taxation.
(2) the taxation on a permanent establishment which an enterprise of a Contracting State has the
in the other Contracting State, shall not apply in that other State in the manner
less favourable than the taxation of enterprises of that other State, that
carry out the same activity.
This provision shall not be construed as an obligation of a Contracting State,
to admit persons resident in the other Contracting State, the tax
exemptions, reliefs and the tax reduction for reasons of status or
obligations to the family, or for other personal reasons, which it grants
persons who have resided in its territory
.
(3) enterprises of a Contracting State, whose capital is wholly or
in part, directly or indirectly owned or controlled by a person or
persons having a domicile or registered office in the other Contracting State, shall not be
undergo in the first-mentioned Contracting State to any taxation or
the obligations associated with him, that would have been other or more burdensome than the
the taxation and connected requirements to which are or may be
subjected to other similar enterprises of that first-mentioned State.
(4) the term "taxation" means taxes in this article of any kind and
naming.
Article 25
Deal with cases on the way of the agreement
(1) If a person residing or established in a Contracting
the State considers that the measures taken by one or both of the Contracting States
brought about or cause for her taxation not in accordance with this
regardless of the agreement may redress provides
the national legislation of those States, present your case
the competent authority of the Contracting State in which he resides or is established.
(2) if the competent authority will be the objection to be justified and
If it is not itself able to find a satisfactory solution, it will try to question
edited by agreement with the competent authority of the other Contracting State, so that the
exclude taxation not in accordance with this agreement.
(3) the competent authorities of the Contracting States shall endeavour to resolve by mutual
the agreement difficulties or concerns that may arise in the interpretation or
the application of this agreement. They can also consult each other in order to
Elimination of double taxation in cases not covered by this
the Treaty.
(4) the competent authorities of the Contracting States may come in direct contact with a view to
the application of this agreement.
Article 26
The exchange of information
(1) the competent authorities of the Contracting States shall exchange
the information necessary for the implementation of this agreement. All of the information as follows
exchanged shall be kept confidential and may be disclosed only to persons
or authorities entrusted with the charge of the assessment and collection of taxes, which are
the subject of this agreement.
(2) the provisions of paragraph 1 shall not be in any way interpreted as
store one of the Contracting States the obligation:
and perform the administrative action) which would be in conflict with the law
regulations or administrative practice of that or of the other Contracting State;
(b)) provide the information that could not be achieved on the basis of the applicable
the laws or in the normal administrative management of this or
the other Contracting State;
c) to supply information which would disclose the business, Enterprise, or
the work secrets or business meetings, or the disclosure of which would be
in contrary to public policy.
Article 27
Members of diplomatic missions and consular posts
This agreement will not affect the tax privileges that pertain to the members
diplomatic missions and consular posts under the General rules of
international law or on the basis of specific agreements.
Article 28
Clause on the Berlin (West)
In accordance with the quadripartite agreement of 3. September 1971 this agreement in accordance with the
laid down procedures be extended to Berlin (West).
Article 29
Entry into force of
(1) this Treaty is subject to ratification. The instruments of ratification shall be exchanged
in Bonn as soon as possible.
(2) this Treaty shall enter into force on the thirtieth day after the exchange of instruments of ratification
documents and will apply in both Contracting States:
and on taxes) are selected for the tax period following the
the year in which the contract took effect, and for the next tax year,
(b)) on the tax withheld from income paid after 31 December 2006. December of the year in
the Treaty came into force.
Article 30
Notice of termination
This agreement is concluded for an indefinite period of time, however, any of the
the States parties may denounce it in writing through the diplomatic channel to the
June 30, of the calendar year following the expiry of five years from the
end of the calendar year in which the contract took effect. In such a
the case of the contract no longer apply in both States:
and on taxes) are selected for the tax year following that in which the tax
year in which the notice was given, and for the following tax years,
(b)) on the tax withheld from income paid after 31 December 2006. December of the year in
which the notice of termination has been given.
Done at Prague on 19. December 1980 in two copies, each in the language
Czech and German, both texts being equally authentic.
For the Czechoslovak Socialist
Republic of:
Ing. Bohuslav Chňoupek v.r.
For the Federal Republic of Germany:
Hans Dietrich Genscher v.r.
