89/1992.
The COMMUNICATION FROM the
the Federal Ministry of Foreign Affairs
The Federal Ministry of Foreign Affairs says that on 5 December. November
1990 was in London signed an agreement between the Government of the Czech and Slovak
The Federal Republic and the Government of the United Kingdom of Great Britain and
Northern Ireland on the avoidance of double taxation in the field of taxes on income and
profits from property.
With the Treaty expressed their consent of the Federal Assembly of the Czech and Slovak
The Federal Republic and the President of the Czech and Slovak Federal
Republic has ratified it.
Treaty has entered into force, pursuant to article 27. 1 day
December 20, 1991.
The Czech version of the Treaty shall be designated at the same time.
CONTRACT
between the Government of the Czech and Slovak Federal Republic and the Government of the United
Kingdom of Great Britain and Northern Ireland for the avoidance of double taxation
in the field of taxes on income and gains from asset
The Government of the Czech and Slovak Federal Republic and the Government of the United
Kingdom of Great Britain and Northern Ireland
Reaffirming their desire to develop and strengthen economic cooperation;
Desiring to conclude a Convention for the avoidance of double taxation in the field of taxes from
income and profits from the asset;
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. the Taxes to which the agreement applies are:
and) in the United Kingdom of Great Britain and Northern Ireland:
(i) the income tax;
(ii) the tax companies; and
(iii) the tax on profits from property;
(hereinafter referred to as "United Kingdom tax");
(b)) in the Czech and Slovak Federal Republic:
(i) the income tax;
(ii) the payroll tax;
(iii) the income tax on the literary and artistic activities;
(iv) agricultural tax;
(v) income tax the population; and
(vi) the tax House;
(hereinafter referred to as the "Czechoslovak tax").
2. This agreement shall also apply to the same or a similar tax
the kind that will be selected in a Contracting State after the signing of this
the Treaty, in addition to or in place of the taxes of the Contracting State referred to in paragraph 1
This article. The competent authorities of the Contracting States shall notify each other of the
significant changes that will be made in their respective taxation
laws.
Article 3
General definition
1. In this agreement, if the link does not require a different interpretation:
(a) the term "United Kingdom" means Great Britain and Northern Ireland
including any area outside the territorial sea of the United Kingdom, which in
accordance with international law has been or will be in the future in accordance with the laws of the
The United Kingdom concerning the continental shelf, marked
as the territory in which the right may be exercised by the United Kingdom,
relating to the seabed and subsoil and their natural resources;
(b) the term "Czechoslovakia" refers to the Czech and Slovak Federal
Republic;
(c) the term "national" means:
(i) in relation to the United Kingdom, any British citizen, or
a British subject, who does not have citizenship in another country or in another territory
The Commonwealth, provided that it has the right to stay in the United
the Kingdom; and any legal person, personal company, an Association of persons
or any other rightholder, established under the law in force in the United
the Kingdom;
(ii) in relation to Czechoslovakia, any natural person who is
a citizen of the Czech and Slovak Federal Republic and each
a legal person, personal, company and Association of persons, established under
the law in force in Czechoslovakia;
(d)) the terms "a Contracting State" and "State" refer to the second speech by
the case of United Kingdom or Czechoslovakia;
(e)), the term "person" refers to a natural person, the company and any other
an Association of persons, but does not include the personal company which is not a legal
person;
(f)), the expression "company" refers to the legal person or the rightholder,
considered, for the purposes of taxation for legal persons;
(g) the terms "enterprise of one) of a Contracting State" and "enterprise of the other Contracting
the State-run company "refer to a resident of a Contracting State
or undertaking operated by a resident of the other Contracting State;
(h)), the term "international traffic" means any transport
undertaken by boat or plane, which is operated by an undertaking whose
instead of the actual management is located in a Contracting State, if the ship
or aircraft are operated only between places in the other Contracting State;
I) the term "competent authority" means, in the case of the United Kingdom
Commissioner of the tax authority or their authorized representative and in the case of
The Czechoslovak Minister of Finance of the Czech and Slovak Federal Republic
or his authorised representative.
2. Each expression, which is not otherwise defined will have for the application of this
the Treaty, a Contracting State importance, he enjoys under the law of that State,
which modifies the taxes covered by this agreement, if the link
does not require a different interpretation.
Article 4
Tax purposes
1. The term "resident of a Contracting State" means within the meaning of this
of the Treaty, 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 expression
does not include a natural person who is subject to tax in that Contracting
the State only for reasons of income from sources in that State.
2. If the individual is in accordance with the provisions of paragraph 1 of this article
a resident of both Contracting States, the position specified in the
accordance with the following principles:
(a) it is assumed that this person is resident in that Contracting State,
in which he has a permanent apartment. If he has a permanent apartment in both Contracting States, the
It is assumed, that is resident in a Contracting State to which the
enhanced personal and economic relations (Centre of vital interests);
(b) if it cannot be determined, the Contracting State in which the person
the Centre of their vital interests, or if it does not have a permanent apartment in any
Contracting State, it is assumed, that is resident in a Contracting State,
in which usually resides;
(c) where the person usually resides in both Contracting States
or in any of them, it is assumed, that is resident in that Contracting
the State of which he is a citizen;
(d) if the person is a citizen both of the Contracting States or
any of them, the competent authorities of the Contracting States shall adapt this question
by mutual agreement.
3. If a person other than a natural person is, under the provisions of paragraph 1,
This article, a resident of both Contracting States, it is assumed that the
It is resident in the State in which is situated the place of actual
leadership.
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 undertaking in whole or in part
their activity.
2. The term "permanent establishment" includes especially:
(a) a place of management;
(b) plant;
(c) an Office;
(d) a factory;
(e) a workshop;
(f) a mine, an oil or gas deposits, Quarry or any other place where the benefits
natural resources;
(g) a device or construction that is used to research or the use of natural
resources;
(h) a building site or construction or Assembly, which last more than twelve
months.
3. The term "permanent establishment" does not include "
(a) equipment which is used only for storage, exposure or
delivery of the 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) permanent equipment for the business, which is used only for the purpose of
purchase of goods, or collecting information for the enterprise;
(e) permanent equipment for the business, which maintains only for the enterprise
the purpose of the ads, the provision of information, scientific research or similar
activities which have a preparatory or auxiliary character;
(f) permanent equipment for the business, which is kept only for the performance of
any concentration of activities referred to in subparagraphs (a)-(e) of this
paragraph, if the total activity of the permanent establishment, resulting from this
the connection has a preparatory or auxiliary character.
4. Notwithstanding the provisions of paragraphs 1 and 2 of this article,
a person-other than an independent agent to whom paragraph 5 applies
This article-it is in a Contracting State on behalf of the company and has full 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 the
the person is not restricted to the activities referred to in paragraph 3 of this article,
that should have been made in the permanent facilities did not constitute
the existence of a permanent establishment under the provisions of this paragraph.
5. He considered that the undertaking of one Contracting State has a permanent
the establishment in the other Contracting State merely because it carries its
working through a broker, General Agent, or other
independent representative, if such persons are acting within their proper
activity.
6. 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. Income from immovable property may be taxed in the Contracting State, in the
where such property is located.
2.
(a) the term "immovable property" is subject to the provisions of subparagraph (b)
This paragraph is defined in conformity with the law of the Contracting State in which the
This property is located.
(b) the term "immovable property" includes in any case accessories
immovable property, alive and dead inventory used in agriculture and
forestry, rights to which the provisions of civil law
relating to land, the right to the enjoyment of immovable property and rights to
variable or fixed salaries for grit or přivolení to the grit
mineral deposits, sources and other natural resources; ships, boats and
the aircraft will not be regarded as immovable property.
3. The provisions of paragraph 1 of this article applies to the income from the direct
the use, rental or any other manner of use of the immovable property.
4. The provisions of paragraphs 1 and 3 of this article shall also apply to the income from the
immovable property of the company and to income from immovable property used
to the profession.
Article 7
The profits of enterprises
1. The profits of the enterprise of one Contracting State will be taxed 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 of this article in
Each 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
undertaking, incurred to the objectives pursued by the permanent establishment, including
expenses management and general administrative expenses, whether incurred in the State in which the
is this permanent establishment is situated or elsewhere.
4. If in a Contracting State to provide for the normal profits, which
to be added 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
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 shall be
taxed in the Contracting State in which the seat is placed the actual
management of the undertaking.
2. where the registered office of the actual management of maritime transport is on the
Board a ship, it is considered located in the Contracting State in which the
is the home port of the vessel or, if no such home
the Harbour, in the Contracting State in which the operator of the ship is a resident.
3. The provisions of paragraph 1 of this article shall also apply to profits from the participation in the
pool, common service or international operating organization.
Article 9
Associated enterprises
If
(a) the undertaking of one Contracting State participates directly or indirectly in the
the management of the assets of the undertaking, control or of the other Contracting State, or
(b) the same persons participate directly or indirectly 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
independent businesses, they can be incorporated into the profits of the company and
as a result, taxed profits, that without these conditions would have been
docíleny one of the businesses, which, however, due to the following conditions
docíleny could not be.
Article 10
Dividends
1. Dividends paid by a company which is resident in the same
Contracting State, to a person who is resident in the other Contracting State,
may be taxed in that other Contracting 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:
(a) 5% of the gross amount of the dividends if the recipient is a company which
manages at least 25% of the voting shares of the company
paying dividends;
(b) 15% of the gross amount of the dividends in all other cases.
3. The term "dividends" as used in this article, refers to income from shares
or other rights-with the exception of claims-with profit, as well as
revenue from the company's rights under the tax legislation of the State
where is the company that rozdílí profit, a resident of assimilated
income from shares and also includes any other revenue, which, in the
the legislation of the Contracting State of which he is a resident company
who carries out the payment, they are considered as dividends or profit divided
the company.
4. The provisions of paragraphs 1 and 2 of this article shall not apply if the
beneficial owner of the dividends, which is resident in the same Contracting
the State shall be exercised in the other Contracting State in which he is a resident of
the company paying the dividends, industrial or commercial activity
through the permanent establishment, which is located there, or independent
the profession through a permanent base located there, and if the participation,
for which the dividends paid, actually binds to the Permanent
the establishment or that fixed base. In this case, apply
the provisions of article 7 or article 14 of this Treaty, depending on what
This is the case.
5. 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 Contracting State, or
that participation, for which the dividends paid, actually belongs to the Permanent
the premises, which is located in the latter State, nor be subjected to the
undistributed profits tax on profits, even if
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
of the other Contracting State and who is the beneficial owner thereof, the
taxed only in that other State.
2. The term "interest" as used in this article, refers to income from Government
securities, bonds or debentures secured and unsecured
a lien on the property or profit participation clause and of the
claims of any kind, as well as all other income,
having the character of the income from the loans, according to the tax law of the State in which the
It is a source of income.
3. The provisions of paragraph 1 of this article 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 a receivable for which they are paid, with interest
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.
4. If the amount of the interest exceeds as a result of special relationship
existing between the payer and the beneficial owner of the interest, or that
one the other, it maintains with the third party, for any reason, the amount
that would be the scheme of the Bill is the beneficial owner, if not
such relations, the provisions of this article shall apply only to that
the last-mentioned amount. Part of the remuneration that exceeds it, it will be in this
If taxed in accordance with the legislation of each Contracting State to the
reference to the other provisions of this Treaty.
Article 12
License fees
1. the royalties and licence fees, with the source in one Contracting State, which
he receives a resident of the other Contracting State and who is their real
the owner, will be taxed only in that other State.
2. the royalties and licence fees referred to in subparagraph 3 (a), may be
the provisions of paragraph 1 of this article, also taxed in a Contracting State,
where is their source, and in accordance with the legislation of the
State, but if the recipient is the beneficial owner of the royalties,
the amount of tax thus determined shall not exceed 10% of the gross amount of the license
the fees.
3. The term "royalties" as used in this article refers to the payments
of any kind received as a replacement for:
(a) the use of, or the right to use a patent, trade mark, design or
model, plan, secret formula or process, or for the use of, or
for the right to use, industrial, commercial or scientific equipment,
or for information relating to experience gained in the area of
industrial, commercial, technical, technological or scientific:
(b) for the use of, or the right to use the copyright in the work
literary, artistic or scientific (including cinematograph films
and films or recordings for radio or television broadcasting).
4. The provisions of paragraphs 1 and 2 of this article shall not apply if
beneficial owner of the royalties, which is resident in the same
a Contracting State, carries on in the other Contracting State in which they are
license fees source, industrial or commercial activity
through the permanent establishment, which is located there, or independent
the profession through a permanent base located there, and if the right
or assets which give rise to the license fees are
actually connected. In this case, with 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 in connection with which the obligation to pay was
license fees, it is assumed that these license fees are a source of
in the Contracting State in which the permanent establishment is situated.
6. If the amount of the royalties due exceeds the specific
relationship between the payer and the beneficial owner or
one or the other maintain with third parties, for any reason
the amount that would be the scheme of the Bill is the beneficial owner, if
There was no such relationship, the provisions of this article shall apply only to that
the last-mentioned amount. The amount of the salaries that it exceeds, in
this case taxed in accordance with the legislation of each Contracting State to the
reference to the other provisions of this Treaty.
Article 13
Profits from the disposal of assets
1. Gains from the alienation of immovable property, as defined in paragraph 2
Article 6 of this agreement, may be taxed in the Contracting State in which the
This property is located.
2. Gains from the alienation of movable property forming part of the assets of the Permanent
the establishment, that the undertaking has a Contracting State in the other Contracting
State, or real estate, which belongs to the permanent base
a resident of a Contracting State has in the other Contracting State for the performance of
the independent professions, including such gains from the alienation of realised
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 and aircraft operated in international traffic
and movable property, that serves the operation of such ships and aircraft, shall be
taxed in the Contracting State in which the seat is placed the actual
management of the undertaking.
4. Gains from the alienation of property, other than that referred to in paragraphs 1,
2 and 3 of this article, may be taxed only in the Contracting State in which the
the transferor is resident.
Article 14
Independent of the profession
1. the income, which a resident of one Contracting State receives from the free
the profession or other independent activities of a similar nature, will be
taxed only in this State, if the recipient does not usually available in the
the second Contracting State a permanent base for the performance of its activities. If
has a permanent base, the income may be taxed in the
the second Contracting State, but only to the extent to which it can be attributed to
This permanent 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 paid employment, they may be subject to
the provisions of articles 16, 18 and 19 of this agreement, 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. Remuneration which a resident of a Contracting State shall receive due
employment exercised in the other Contracting State, irrespective of the
the provisions of paragraph 1 of this article only mentioned in first taxed by the State,
If:
(a) the beneficiary is resident in the other State for one or more periods, which
shall not exceed in the aggregate 183 days in the tax year; and
(b) the remuneration is paid by the employer, or the employer,
that is not a resident in the other State; and
(c) the rewards do not go to the debit of 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 in
international transport only taxed in the Contracting State in which the person is
receiving profits from the operation of ships or aircraft.
Article 16
Royalties
Royalties and other similar rewards, which a resident of a Contracting State
he receives as a member of the Board of Directors of a company which is resident in the second
a Contracting State may be taxed in that other State.
Article 17
Artists and athletes
1. the revenues paid to the artists, the public, acting as
Theatre, film, radio or television artists, and musicians, and
athletes may be, notwithstanding the provisions of articles 14 and 15 of this
the contract taxed in the Contracting State in which these activities are
performed. The revenue from such activities, however, will be exempted from taxation
in this State, if these activities are carried out on the basis of the
cultural agreement or arrangement between the Contracting States.
2. If the income from the activity that you personally exercise the athlete or
the artist, artists or athletes do this himself, but to another person,
This revenue may be, notwithstanding the provisions of articles 7, 14 and 15 of this
the contract taxed in the Contracting State in which the artist or athlete
carries out its activities.
Article 18
Pension
1. Pensions and other similar salaries paid by reason of a previous employment
a resident of a Contracting State and any other annuity paid to such
the resident company, will be subject to the provisions of article 19, paragraph 2 of this
the contract taxed only in that State.
2. The term "annuita" means a set amount paid repeatedly in
the time limits for life or during a specified or
discoverable time period on the basis of the obligation to pay compensation for the
matching and full payment in cash or money vyjádřitelnou.
Article 19
Public function
1.
(a) remuneration, other than a pension, paid by a Contracting State or one
the Administrative Department or local authority of that State, of a natural person for
Service prokazované that State or an administrative department or the local
the authority may be taxed only in that State.
(b) Also rewards, however, will be taxed in the other Contracting State, only,
If the services are demonstrated in this State and any natural person who
It is a resident of this State:
(i) is a citizen of that State, or
(ii) did not become a resident of this State only because of the provision of
These services.
2.
(a) Pensions paid by one Contracting State, an administrative department or
the local authority of the State, either directly or from the funds, which have established,
the physical person for services of proven that State, an administrative body or
the local authority, may be taxed only in that State.
(b) However, Such pension will be taxed only in the other Contracting State,
If the individual is a resident of the State and a citizen of this State.
3. The provisions of articles 15, 16 and 18 of this Agreement shall apply to remuneration and
Board services proven in the context of an industrial or commercial
the activities carried out by any Contracting State, an administrative department or
the local authority of that State.
Article 20
Students
Salaries, which a student or trainee who is or was immediately
prior to his arrival in one Contracting State a resident of the second
a Contracting State and who is staying in the first mentioned State solely for the
the purpose of study or training, receives for the payment of the cost of food, study
or training, shall not be taxed in that State for the first time that
provided that such salaries are paid to him from sources outside that
State.
Article 21
Other revenue
The income of the person who is resident in one Contracting State, whether they are
source anywhere, and if it is a revenue of this kind or from sources of
which does in the preceding articles of this treaty other than the
income from a trust or the estate of deceased persons in the
during the proceedings, the survivor's taxed only in that State.
Article 22
Avoidance of double taxation
1. In accordance with the provisions of the legislation of the United Kingdom,
governing the compensation tax paid outside the territory of the United Kingdom
to tax in the United Kingdom (which shall not affect the following
the principles):
(a) Czechoslovakia, tax will be payable on the basis of Ms. legislation and
in accordance with this agreement, whether directly or by deduction, on profits, income or
taxable income from sources in Czechoslovakia (except in the case of
dividends paid from profits tax, which is paid dividends)
counted on the United Kingdom tax attributable to the same profits,
income or taxable income, from which it was calculated the Czechoslovak
tax;
(b) in the case of dividends paid by a company which is resident in the
Czechoslovakia, a company which is resident in the United Kingdom
and which controls directly or indirectly at least 10% of the shares with voting
the law on companies paying dividends, will credit (in addition to the
the Czechoslovak tax, which may be deducted under the provisions of
subparagraph (a) of this paragraph), apply to the Ms. tax paid
companies on the profits out of which the dividend is paid.
2. In Czechoslovakia will be the Elimination of double taxation as follows:
(a) If a person who is resident in Czechoslovakia he receives revenue
and profits from the assets that may be in accordance with the provisions of this Treaty
taxed in the United Kingdom, Czechoslovakia, subject to
the provisions referred to in point (b) of this paragraph, such income or
profits from assets from taxation, but may, in calculating the amount of tax from the
other revenue and gains on assets of this person to use the tax rate, which
would be used, if you cut the income or profits from the assets were as follows
excluded;
(b) If a person who is resident in Czechoslovakia, he receives
income that may be in accordance with the provisions of articles 10, 12, 16 and 17 of this
the contract taxed in the United Kingdom, allow Czechoslovakia to reduce
the amount of tax calculated on income of Czechoslovakia this person by the amount
equal to the tax paid by the United Kingdom from this income.
The amount of tax to be reduced, however, shall not exceed such part
the Czechoslovak tax calculated before the reduction, which is relatively
falls on the income which may be taxed in the United Kingdom.
3. For the purposes of paragraphs 1 and 2 of this article shall be considered, that the revenue
and profits from the property owned by a resident of a Contracting State, that
may be taxed in the other Contracting State in accordance with this agreement,
have a source in that other Contracting State.
4. If the profits that the enterprise of one Contracting State are taxed in
that State are also included in the profits of the enterprise of the other State and
profits are thus included profits that would gain the enterprise of the other State,
If relations between enterprises, such as between the undertakings of each
independent, with the amount included in the profits of both companies loaded
as with income from a source in the second State company belonging to the first
the said State and the relief will be granted accordingly pursuant to
the provisions of paragraph 1 or paragraph 2 of this article.
Article 23
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 that
the second Member State, who are in the same situation.
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.
3. If you do not apply the provisions of article 9, article 11, paragraph 4
and article 12, paragraph 6, of this agreement, 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 a person or persons,
that are resident in the other Contracting State, shall not be subjected in the first
that State to any taxation or duties associated with him, that
others are more troubling than taxation and or related duties, which
are or may be subjected to other similar businesses for the first time
of the said State.
5. Nothing in this article shall be construed as a commitment
one Contracting State, that he confessed to individuals that are not
residents in this state any personal credits, discounts and reductions,
which confers to its residents.
Article 24
Resolving cases by way of the agreement
1. where a person considers that the actions of one or both of the
of the Contracting States result or will result for it to taxation, which is not in the
accordance with the provisions of this Treaty may, independently of the provisions
resource, which provides a national law of those States,
present your case to the competent authority of the Contracting State of which he is
resident.
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.
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.
Article 25
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 governing, is governed by this agreement.
This information will be treated as confidential and will not be communicated to the
No persons other than persons (including courts and administrative authorities), which
dealing with vyměřováním and or collecting taxes, which are covered by this
the Treaty, enforcement or prosecution in respect of those taxes or
decisions on appeals. Such persons or authorities shall use the
such 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
the competent authorities of a saved a Contracting State the obligation:
(a) perform administrative measures that would violate the law or
administrative practice of a Contracting State;
(b) communicate the information that could not be obtained on the basis of the legal
regulations or in a normal administrative procedure of this or of the other State;
(c) to disclose information that would have revealed the commercial, industrial,
economic or trade secret or trade process, or whose
the communication would be contrary to public policy.
Article 26
Members of diplomatic or permanent missions and consular posts
No provision of this Agreement shall not affect the tax privileges, which
the responsibility of members of diplomatic or permanent missions and consular posts
According to the General rules of international law or on the basis of specific
the agreements.
Article 27
Entry into force of
1. the Contracting States shall notify each other through diplomatic channels that were
procedures required by their legal systems for input of this Treaty
in the force. This agreement shall enter into force on the date of the later of the notification and
It will apply:
(a) in the United Kingdom:
(i) in respect of income tax and the tax on profits from the assets, on each tax
year 6. April or later in the calendar year following the
the year in which the agreement enters into force;
(ii) in respect of tax companies for each financial year starting 1.
April or later in the calendar year following the year in which the
the Treaty enters into force;
(b) in Czechoslovakia:
(i) in respect of taxes withheld at source, to amounts granted or
paid to the 1. January or later in the calendar year following the
the year in which the agreement enters into force;
(ii) in respect of other taxes on income and property taxes, for taxes
imposed for each fiscal year beginning with 1. January or later
the calendar year following the year in which the contract shall enter into
force.
2. the effectiveness of paragraph 3 of article 8 of the agreement between the Government of the United Kingdom
Great Britain and Northern Ireland and the Government of the Czechoslovak Republic
air services between and over the territory of the competent State, signed in
Prague, 15. January 1960, with regard to the taxation of surplus earnings,
will be terminated on the date of entry into force of this Treaty.
Article 28
Notice of termination
This agreement will 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 beginning after the expiry of five years from the date of entry into
force of this Treaty. In this case, the contract will cease to apply:
(a) in the United Kingdom:
(i) in respect of income tax and the tax on profits from the assets, on each tax
year 6. April or later in the calendar year following the
the year in which the notice of termination has been given;
(ii) in respect of tax companies for each financial year starting 1.
April or later in the calendar year following the year in which the
given notice of termination;
(b) in Czechoslovakia:
(i) in respect of taxes withheld at source, to amounts granted or
paid to the 1. January or later in the calendar year following the
the year in which the notice of termination has been given;
(ii) in respect of other taxes on income and property taxes, for taxes
imposed for each tax year from 1 January 2006. January or later
the calendar year following the year in which the notice of termination has been given.
On the evidence of the undersigned, duly authorised, have signed this Treaty.
Done in duplicate at London on 5 December. November 1990 in the Czech and
the English language, both texts being equally authentic.
For the Government of the Czech and Slovak Federal Republic:
Václav Klaus, v.r.
For the Government of the United Kingdom of Great Britain and Northern Ireland:
Norman Lamont v.r.