The Treaty Between The Czechoslovak Federative Republic And. ... On The Avoidance Of Double Taxation

Original Language Title: o Smlouvě mezi ČSFR a V. Brit. o zamezení dvojího zdanění

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Read the untranslated law here: https://portal.gov.cz/app/zakony/download?idBiblio=39776&nr=89~2F1992~20Sb.&ft=txt

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.