The Treaty Between The Czechoslovak Socialist Republic And The Federal Republic Of Germany For The Avoidance Of Double Taxation

Original Language Title: o Smlouvě mezi ČSSR a SRN o zamezení dvojího zdanění

Read the untranslated law here: https://portal.gov.cz/app/zakony/download?idBiblio=36094&nr=18~2F1984~20Sb.&ft=txt

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.