138/1974 Sb.
DECREE
Minister of Foreign Affairs
of 22 March. November 1974
the Treaty between the Czechoslovak Socialist Republic and the Dutch
Kingdom on avoidance of double taxation and the prevention of fiscal evasion
with respect to taxes on income and on capital
112/1997: Sb.
Change: 58/2013 Coll.
On 4 April 2006. March 1974 in Prague was signed the Treaty between the Czechoslovak
Socialist Republic of Romania and the Kingdom of the Netherlands to avoid double
taxation and prevention of fiscal evasion with respect to taxes on income and on capital.
With the Treaty, expressed its approval of the Federal Assembly of the Czechoslovak
Socialist Republic and the president of the Republic has ratified it.
According to article 31 of the Agreement entered into force on 5. November
1974.
Czech text of the Treaty shall be designated at the same time.
First Deputy Minister of:
V.r. Krajčír
CONTRACT
between the Czechoslovak Socialist Republic and the Dutch
Kingdom on avoidance of double taxation and the prevention of fiscal evasion
with respect to taxes on income and on capital
The Government of the Czechoslovak Socialist Republic and the Government of the Netherlands
Kingdom of Spain,
Desiring to conclude an agreement on avoidance of double taxation and the prevention of
fiscal evasion with respect to taxes on income and on capital
have agreed as follows:
CHAPTER I
The scope of application of the Treaty
Article 1
The person to which the contract relates
This agreement shall apply to persons who are resident or established in
one or both 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
benefit of each of the two States or its subdivisions or lower
local authorities, irrespective of the method of selecting any.
2. taxes on income and on capital all taxes shall be levied on
total income, total assets, or parts of income or assets
including taxes on gains from the alienation of coming of movable or immovable
property, taxes on the total of wages or salaries paid by enterprises, as well as taxes on
increment values.
3. Current taxes, to which the contract relates, are especially:
and)
When it comes to the Netherlands:
income tax (de inkomstenbelasting);
the payroll tax (de loonbelasting);
company tax (de vennootschapsbelasting)
the tax on dividends (de dividendbelasting)
tax on equity (de vermogensbelasting)
(hereinafter referred to as "Netherlands tax");
(b))
as regards:
agricultural tax,
the tax House,
extraction of profit and profit tax,
income tax the population,
the payroll tax,
income tax from the literary and artistic work
(hereinafter referred to as "Czechoslovak tax"),
4. the agreement shall also apply to any identical or substantially
Similarly, taxes that will later be stored in addition to the current taxes or
instead of them. The competent authorities of both States shall notify each other
all the significant changes that have been made in their respective
tax laws.
CHAPTER II
The definition of the
Article 3
General definitions
1. In this agreement, unless the context requires a different interpretation:
and the expression "State") indicates the Netherlands or Czechoslovakia, as it requires the
link; the term "States" refers to the Netherlands and Czechoslovakia;
(b)), the term "the Netherlands" includes a part of the Kingdom of the Netherlands, which is
located in Europe, and that part of the seabed subsoil beneath the North Sea,
over which the Kingdom of the Netherlands exercises sovereign rights, in accordance with
international law;
(c)), the term "Czechoslovakia" indicates the Czechoslovak Socialist
Republic;
(d)) the term "person" includes natural persons, companies and any other
an Association of persons;
(e)) the term "company" means any legal person or any
the essence of which is treated as a legal person for the purposes of taxation;
(f) the terms "enterprise of one) of the two States" and "enterprise of the other State"
indicate as appropriate, Enterprise carried on by a person residing or
based in one of the two States or the enterprise carried on by a person having
place of residence or registered office in the other State;
(g)) the term "competent authority" means:
1. in the case of the Netherlands the Minister of finance or his authorised representative,
2. in the case of Czechoslovakia, the Czechoslovak Minister of finance
the Socialist Republic or by his authorised representative.
2. each expression that is not otherwise defined, the application of this
the contract by any of the two States make sense, which is determined by the legal
provisions of that State, which regulate the taxes which are the subject of this
the contract, unless the context requires a different interpretation.
Article 4
Tax residence
1. The expression "person residing or established in one of the two States" means
for the purposes of this agreement, any person who is under the laws of this
State subject to taxation because of their place of residence, permanent residence, place of
management or any other criterion of a similar nature.
2. A natural person who is a member of a diplomatic mission or consular
the Office of one of the two States in the second or in a third State and who is
a national of the sending State for the purposes of this contract will be
considered a person residing in the posting State, if the
There subject to the same obligations in respect of taxes on income and on capital,
as persons who are resident in that State.
3. If a natural person has under the provisions of paragraph 1, the place of residence in the
both States will decide the case according to the following rules:
and) that this person is resident in the State in which the
a permanent home. If he has a permanent home in both States, it is assumed that it has
residence in the State in which they are her personal and economic ties
the closest (Centre of vital interests).
(b)) if it cannot be determined by the Member State in which that person has the Centre of its
vital interests, or if it does not have a permanent home in the sound of the two States,
It is assumed that he is resident in the State in which it is usually
resides.
(c)) If this person usually resides in both States, or if
is usually not present in any of them, it is assumed that resides in
the State of which he is a citizen.
(d)) if that person is a citizen of both States, or if
He is not a citizen of any of them, the competent authorities shall decide the following
States the question by mutual agreement.
4. If a person other than a natural person has under the provisions of paragraph
1 headquarters in both countries, it is assumed that has its registered office in the State in which the
It is the place of effective management.
Article 5
Permanent establishment
1. the term "permanent establishment" means for the purposes of this agreement, 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 construction or Assembly, which last more than twelve
months.
3. the term "permanent establishment" shall not include:
and) device that is used only for the purpose of storage, display
or forwarding of goods or merchandise belonging to the enterprise;
(b)) the supply of goods belonging to the enterprise solely for the purpose
storage, display, or transmission;
(c)) the supply of goods belonging to the enterprise solely for the purpose
its processing, by another undertaking;
d) permanent equipment business, which is solely for the purpose
purchase of goods, or collecting information for the enterprise;
e) durable equipment used business, solely for the purpose of
advertising, information, scientific research or similar
activities for the company, which have a preparatory or auxiliary character.
4. A person acting in one of the two States on behalf of the enterprise of the other
State-other than an independent representative, to whom paragraph 5 applies
-will be regarded as a permanent establishment in the first-mentioned State,
If he has, and habitually carries out in this State power of attorney authorizing it
to enter into contracts on behalf of the business, if its activity is not limited to
purchases of goods for the company.
5. for the permanent establishment of the enterprise of one of the two States in the other State
does not consider the mere fact that an undertaking operates in this second
State through a broker, General Commission agent or any other
independent representative, if these persons are acting within their proper
activity.
6. the fact that a company which has its head office in one of the two States,
controls, or is controlled by a company which has its head office in the second
State, or which carries out the activity in that other State (whether
through a permanent establishment or otherwise), will not make itself from one
of the two companies, a permanent establishment of the other company.
CHAPTER III
Taxation of income
Article 6
Income from immovable property
1. Income from immovable property may be taxed in the State in which the
such property is located.
2. the term "immovable property" shall be determined in accordance with the laws of the State,
in which such property is located. In any case, the expression includes
accessories of immovable property, the living and the dead, to be used in the inventory
Agriculture and forestry, rights to which the provisions are applied
civil law, ownership of plots on the right to the enjoyment of immovable property
property and rights to variable or fixed salaries, provided as
compensation for unfair advantage or the right to mining, mineral springs and
other natural resources. Ships, boats and aircraft shall not be regarded as
immovable property.
3. The provisions of paragraph 1 shall apply to income derived from the direct
the use, rental or any other manner of use immovable
asset.
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 one of the two States shall be taxable only in that
State if the undertaking does not operate activities in the other State through
a permanent establishment that is located there. If the undertaking of such a
the activity runs the profits of the enterprise may be taxed in that other
State, but only to the extent that can be attributed to that permanent
establishment.
2. where an enterprise of one of the two States, operates in the second
State through a permanent establishment situated therein,
attribute in each State that permanent establishment profits which, according to
expectations could achieve if it had pursued an identical or similar activities
under the same or similar conditions as a stand-alone business and
traded quite independently with the enterprise of which it is a permanent establishment.
3. In determining the profits of a permanent establishment shall be allowed to deduct the costs,
which are incurred for the purposes of the permanent establishment, including the cost of
the management and general administration expenses, whether in the State in which the
permanent establishment is situated or elsewhere.
4. If it is in a State to determine the profits to be
attributed to a permanent establishment on the basis of allocation of the total profit of the enterprise
its various parts, nothing in paragraph 2 shall not prevent this State has designated
the profits to be taxed, in such a Division, what is normal;
taken by the Division method must, however, be such that the result was in accordance
with the principles laid down in this article.
5. A permanent establishment will not be attributed to any profits from this reason that
This permanent establishment only goods for the company.
6. The profits to be attributed to a permanent establishment, for the purpose of
the preceding paragraphs set out each year by the same method, if it is not
an appropriate and sufficient reason for a different procedure.
7. where profits include the part of the income which are 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
taxation is in the State in which the place of effective management of the undertaking.
2. Profits from the operation of boats used in inland waterway transport
subject to taxation is in the State in which the place of effective management
of the business.
3. If the place of effective management of the maritime or inland
water transport on board a ship or boat, it is assumed that the
located in the State in which the home harbour of the ship or boat, or,
If there is no home port, in the State in which the operator
a ship or boat of residence or registered office.
Article 9
Associated enterprises
If
and one of the two) States are involved directly or indirectly in the management,
control or equity of the enterprise of the other State, or
(b)) the same persons participate directly or indirectly in the management, control or
the assets of the undertaking of one of the two States and the enterprise of the other State,
and in both cases have been agreed between the two companies, or stored in
their commercial or financial relations, conditions that people from
conditions which would have been agreed between independent undertakings, may be
any profits which would, but for those conditions, reached one of the
businesses, but as a result of these conditions has not reached them, included in the
the profits of that enterprise and taxed.
Article 10
Dividends
1. dividends paid by a company which has its head office in one of the two
States, a person who is resident or established in the other State, may be
taxed in that other State.
2. However, such dividends may be taxed in the State in which the
registered office of the company, which is paid out according to the laws of that State. Tax
on this basis, however, cannot exceed 10% of the gross amount of the dividends.
3. the State in which the registered office of the company paying the dividends, nezdaní
Notwithstanding the provisions of paragraph 2, dividends paid by
by a company whose capital is wholly or partly divided into
shares and who is registered in the latter State and own directly at least 25%
the assets of the company paying the dividends.
4. the competent authorities of the States shall by mutual agreement settle the mode of the application
paragraphs 2 and 3.
5. The provisions of paragraphs 2 and 3 shall not affect the taxation of the profits of the company, from the
which the dividends are paid.
6. the term "dividends" as used in this article means income from shares,
of the profit participation certificates or rights, kuksů, founders, shares or
other rights with a share of the profits, as well as income from debt-claims with
share of profits and income from other social rights that are
built on shall be assimilated to income from shares tax regulations state, in which the
registered office of the company paying the dividends.
7. The provisions of paragraphs 1, 2 and 3 shall not apply if the recipient of the
dividends who are resident or based in one of the two States in the second
State in which the registered office of the company paying the dividends, Permanent
establishment with which it is in fact linked to the participation, on the basis of
dividends are paid. In such a case, the provisions of article 7.
8. If a company that has its head office in one Member State, the profits
or income from the other State, the latter State may not impose any tax
from dividends paid by the company to persons who are not resident or
its registered office in that other State, nor subject the company's undistributed profits
tax on undistributed profits, even if the dividends paid or the undistributed
profits are made up wholly or partly of profits or income, which have been
achieved in that other State.
Article 11
Interest
1. interest arising in one of the two States, and shall be paid to the person
residing or established in the other State, shall be subject to taxation only in
that other State.
2. The term "interest" as used in this article means income from public
bonds, bonds, or debentures secured and unsecured
a lien on the real estate, if you do not provide the right to share in the
profit and from debt-claims of every kind, as well as all other
income assimilated to income from loans tax legislation of the State in
which have this revenue source.
3. The provisions of paragraph 1 shall not apply if the recipient of the interest that
He is resident or established in one of the two States, has in the other State in which the
is the source of interest, a permanent establishment to which it actually binds
the claim, which is the source of interest. In this case, it's the article
7.
4. If the amount of the interest, having regard to the debt, of which
they are paid, exceeds as a result of the special relationships that exist
between the debtor and the creditor, or between the two and a third party, the amount
that would have been negotiated between the borrower and lender, had it not been
such relationship, the provisions of this article apply only to later
the said amount. In this case, the amount of the salaries that it exceeds, the
taxed in accordance with the legislation of each State, taking into account other
the provisions of this agreement.
Article 12
License fees
1. Royalties arising in one of the two States and paid
a person residing or established in the other State may be taxed in that
the second State.
2. However, Such royalties may be taxed in the State in which the
It is their source, according to the laws of that State. The tax so
provided for shall not exceed 5% of the amount of the royalties.
3. the competent authorities of both States shall by mutual agreement settle the mode of the application
of paragraph 2.
4. the term "royalties" as used in this article, indicates the salaries
any kind, received in return for the use of, or the right to use
any copyright for literary, artistic or
scientific, including cinematograph films, any patent,
trade mark, design or model, plan, secret instructions or
the manufacturing process for the use of, or the right to use industrial,
commercial or scientific equipment, or for information related to the
industrial, commercial or scientific experience.
5. The provisions of paragraphs 1 and 2 shall not apply if the recipient of the license
fees, residing or located in one of the two States, in the second
State in which it is the source of royalties, a permanent establishment to which the
in fact binds the right or property, that are the source
license fees. In such a case, the provisions of article 7.
6. It is assumed that the licence fees have a source in one of the two
the States when the payer is that State itself, a lower administrative department, local
the authority or a person who has a domicile or head office in that State. If
However, the person paying the royalties, whether he is resident or established in one
of the two States or not, has in one of the two States of the permanent establishment, and
If, in the context of this permanent establishment has been closed
the contract on the basis of licence fees are paid, and if
such royalties are borne by such permanent establishment, the
assume that the source of such royalties is in the State in
which the permanent establishment is situated.
7. If the amount of the royalties, having regard to
the use, right or information for which they are paid, exceeds in
due to the special relations that exist between the borrower and lender
or between the two and a third party, the amount which would have been agreed upon between the
borrower and lender, if it wasn't for such relationships, the
the provisions of this article apply only to later mentioned amount. In this
the case of exceeding the amount of the wages remains subject to tax under the laws
the laws of both States, with reference to the other provisions of this agreement.
Article 13
Limitation of articles 10, 11 and 12
International organizations, their authorities and officials and members of the
diplomatic missions and consular posts of the third State who are
present in one of the two States do not have in other State entitled to tax
discount or exemption provided for in article 10, 11 and 12 with regard to the part of the
income which are dealt with in these articles, and that have a source in the
that other State if such income is not subject to tax
in the first-mentioned income State.
Article 14
Capital gains
1. Gains from the alienation of immovable property, whose definition is shown in
paragraph 2 of article 6, may be taxed in the State in which such
the property is located.
2. Gains from the alienation of movable property forming part of the business property of a
used by a permanent establishment which an enterprise of one of the two States in the
the other State, or from the alienation of movable property forming part of the Permanent
the base, which a person resident in one of the two States in the
the second State for the profession, including such
gains from the alienation of such a permanent establishment (alone or together with the whole
the enterprise) or of such fixed base, may be taxed in that other
State.
3. Notwithstanding the provisions of paragraph 2, shall be subject to gains from the alienation of ships
or aircraft used in international transport and boats used in the
inland waterways transport and movable property, intended to operate
of such ships, aircraft and boats, tax only in the State in which it is
instead of the actual management of the undertaking. For the purposes of this paragraph shall apply
the provisions of paragraph 3 of article 8.
4. Gains from the alienation of any property, other than that which is
dealt with in paragraphs 1, 2 and 3, shall be taxable only in the State in
which the transferor has a domicile or registered office.
5. The provisions of paragraph 4 shall not affect the rights of either of the Contracting States to levy
According to their own law a tax on gains from the alienation of shares or
the exploitation rights to a company whose capital is wholly or partly
divided into shares and which, under the laws of this State seat in this
the State received a natural person being a resident in the other State, and
resident in the first-mentioned State in the course of the last five years
prior to the disposal of shares or rights.
Article 15
Liberal professions
1. Income derived by a person residing in one of the two States is receiving a
services provided in the exercise of a liberal profession or other independent
the activities of a similar character shall be taxable only in that State unless the
This person has regularly available in the other State a permanent base for
carry out their activities. If it has such a fixed base, may
be taxed in that other State, but only to the extent
the extent to which it is attributable to that fixed base.
2. the term "professional services" includes independent scientific activities,
literary, artistic, educational or teaching, as well as independent
the activities of physicians, lawyers, engineers, architects, dentists and accountants.
Article 16
Dependent employment
1. Wages, salaries and other similar remuneration derived by a person resident in
one of the two States is receiving due to employment, shall, subject to
the provisions of articles 17, 19 and 20 only taxation in that State, unless the
the employment is exercised in the other State. If there is a job
exercised, can be the rewards received from this job, taxed in
that other State.
2. The rewards that a person resident in one of the two States shall receive from the
because of the employment exercised in the other State, shall be subject to whatever
the provisions of paragraph 1 only taxation in the first-mentioned State,
If:
and the recipient) is present in the other State during one or more periods
not exceeding in the aggregate 183 days in the tax year, and
(b)) the rewards are paid by the employer, or on behalf
an employer who does not have a domicile or head office in that other State, and
(c) the remuneration is not borne by) a permanent establishment or a fixed base, which has
employer in the other State.
3. The rewards that a person resident in one of the two States shall receive from the
because of the employment exercised aboard a ship or aircraft used
in international traffic, or aboard a boat used in inland
water transport, are subject to regardless of the preceding provisions of this
Article taxed only in that State.
Article 17
Royalties
1. Directors ' fees and similar salaries that a person residing in the Netherlands,
he receives by virtue of their function as a member of the Board or of the Supervisory Board of the company,
which has its registered office in the UK, may be taxed in Czechoslovakia.
2. The remuneration and salaries that other person residing in Czechoslovakia
he receives by virtue of their function in the management of the company, which has its registered office in
The Netherlands, as a "bestuurder" or a "commissaris" may be taxed
in the Netherlands.
Article 18
Artists and athletes
The income that they receive a gainfully employed theatrical, film, radio
or television artists, musicians and athletes from this personal
activities may be, notwithstanding the provisions of article 15 and 16 are taxed in
This State in which these activities are exercised.
Article 19
Board
Pensions and other similar remuneration paid to a person who is resident in
one of the two States in connection with the earlier work, are subject to a
subject to the provisions of paragraph 2 of article 20 taxation only in that State.
Article 20
Public function
1.
a) salaries, wages and other similar remuneration paid by one of the States or
its a political subdivision or local authority tyzické to a person in
services rendered to that State or subdivision or authority may be
taxed in that State.
(b)), Such salaries, wages and other similar remuneration shall be taxable only, however,
in the other State if the services are rendered in that State and
an individual who is domiciled in this State:
(i) is a national of that State; or
(ii) is not resident in that State only because of the proof of these
services.
2.
a) Pensions and other similar remuneration paid by one of the two States, its
lower administrative department or the local úřaden, or paid out of the funds,
which have established, the physical person for services rendered to that State or
subdivision or authority may be, notwithstanding the provisions of paragraph 1 are taxed
in this State.
b) Such pensions and other similar remuneration shall be taxable only in všal
the other State, if the individual is resident in that State and is
national of that State.
3. The provisions of articles 16, 17 and 18 shall apply to salaries, wages, pensions, and
other similar remuneration for services rendered in connection with the industrial
or business done by one State or its lower
Administrative Department or the local authority.
Article 21
Professors and teachers
The rewards that a professor or teacher who is resident in one of the two
States and which is present in the other State for the purpose of teaching for a period
not exceeding two years at some University, college or other
Institute of instruction in that other State, receives for such teaching,
shall be taxable only in the first-mentioned State.
Article 22
Students
Salaries that a student or an apprentice who is or was formerly resided in
one of the two States and who is present in the other State solely for the purpose
of their education or training, receives to cover the costs of their diet and
property, education or training shall not be taxed in that other State,
If these salaries were demonstrated to him from sources outside that other State.
Article 23
The revenue of the implied
Part of the income of a person residing or established in one of the two States,
that are not expressly mentioned in the foregoing articles of this agreement,
will be subject to tax only in that State.
CHAPTER IV
Taxation of property
Article 24
Property
1. Real property, whose definition is referred to in paragraph 2 of article 6,
may be taxed in the State in which such property is located.
2. Movable property that is part of the business property of a permanent establishment
undertaking, or movable property pertaining to a fixed base used for the
profession, may be taxed in the State in which the
permanent establishment or fixed base is situated.
3. Notwithstanding the provisions of paragraph 2, shall be subject to the ship and aircraft used
in international transport and boats used in inland waterway transport,
as well as movable property pertaining to the operation of such ships, aircraft, and
boats, taxed only in the State in which is situated the real leadership
of the business. For the purposes of this paragraph the provisions of paragraph 3,
Article 8.
4. All other parts of the assets of the person who has a domicile or registered office in the
one of the two States shall be taxable only in that State.
CHAPTER V
Article 25
Elimination of double taxation
Double taxation is eliminated in this way:
And.
In the case of the Netherlands
1. The Netherlands, when imposing tax may persons who are in the Netherlands
place of residence or registered office, include in the basis upon which such taxes
calculated, part of the income or property that may be subject to the provisions
This contract taxed in Czechoslovakia.
2. Without limiting the application of the provisions on compensation for losses under the
national provisions on avoidance of double taxation, enables the Netherlands
deducted from the amount of tax calculated in accordance with paragraph 1 of this article the amount of
equal to such part of this tax, which is in the same proportion to the amount of the
the said tax, as part of the income or property that is included in the basis
referred to in paragraph B1 of this article and may be taxed in the
Czechoslovakia under article 6, 7, 10, paragraph 7 of article 11, paragraph 3
Article 12, paragraph 5, article 14, paragraph 1 and 2, article 15, article 16
paragraph 1, article 17, article 20 (1) of paragraph (1) and (2) subparagraphs)
Article 24 paragraph 1 and 2 of this agreement, to the total income or property,
which form the basis referred to in paragraph 1 of this article.
3. Further, the Netherlands shall allow a reduction of the tax computed in conformity with the previous
paragraph of this article and concerning the part of the income that may be
taxed in Czechoslovakia under article 10, paragraph 2, article 12 paragraph
2, article 14, paragraph 5, and article 18, and are included in the basis
referred to in paragraph 1 of this article. The amount of the tax is to be reduced, with
will be equal to the lesser of the amount of the following amounts:
and the amount equal to the Czechoslovak) tax or
(b) the amount of the Netherlands tax), which is in the same proportion to the amount of the tax
calculated in accordance with paragraph 1 of this article, as the amount of the mentioned parts
income to the amount of income which forms the basis referred to in paragraph 1 of this
article.
(B).
In the case of Czechoslovakia
1. When imposing taxes for persons who are resident or registered office can be
part of the income or property that may be in accordance with the provisions of
This agreement also taxed in the Netherlands, included in the tax base,
from which such taxes are imposed, subject to the provisions of
national legislation on the exclusion of double
taxation is allowed to reduce the amount of tax computed on such a base on
amount equal to the tax paid in the Netherlands. The amount by which the tax
reduced, however, shall not exceed that portion of the domestic tax calculated prior to its
by reducing that fairly falls on income or assets that can be
in accordance with the provisions of this agreement, taxed in the Netherlands.
2. If there is, in accordance with any provision of the contract, income
received or assets owned by the holder of the residence or seat of the here
exempt from taxation, exempt income or property may be
yet taken into account in calculating the amount of tax on the remaining income or
the assets of such person.
CHAPTER VI
Special provisions
Article 26
Prohibition of discrimination
1. Nationals of one of the two States, regardless of whether they are in this
the State of residence or registered office, shall not be subjected in the other State to any
taxation or duties associated with him, that would be different, or
more burdensome than the taxation and connected requirements to which they are or may
be subjected to the nationals of the other State in the same circumstances.
2. the term "nationals" means:
and all the natural persons) who are nationals of one of the two
States,
(b)) all legal entities, companies and associations, established by
laws in force in either of the two States.
3. the taxation on a permanent establishment which an enterprise of one of the two States has
in the second State, will not be able to follow the less favourably in the other State
than for taxation, dumped the second State businesses, which
run by the same activity. This provision shall not be construed as a commitment
one of the two States provide individuals resident in the other State
any personal discounts, benefits and reductions for taxation purposes on account of their
of civil status or family responsibilities that provides citizens,
having a resident on its territory.
4. enterprises of one of the two States, whose capital is wholly or in part,
directly or indirectly owned or controlled by one or more
persons having a domicile or registered office in the other State, shall not be subjected to the
the first-mentioned State to any taxation or duties associated with him,
that would be the other or more burdensome than the taxation and connected with it
obligations to which they are or may be subject to other similar businesses
for the first time appointed by the State.
5. the term "taxation" in this article means taxes of every kind and
the name.
Article 27
Resolving cases by mutual agreement
1. If a person resident or established in one of the two States,
considers that the actions of one or both States have or will have for her behind
result in taxation not in accordance with this agreement, can independently
on the legal resources that provides national legislation
of those States, present his case to the competent authority of the State in which the
He resides or is established.
2. the competent authority will try, if objection will
seem to be justified and if it is not itself able to find a satisfactory solution,
to decide the case by mutual agreement with the competent authority of the other State,
for the avoidance of taxation which is not in accordance with this agreement.
3. the competent authorities of both States shall endeavour to resolve by mutual agreement
any difficulties or doubts arising in respect to the interpretation or
the use of this agreement. They can also consult each other on the exclusion of
double taxation in cases not covered by this agreement.
4. the competent authorities of both States can directly connect to achieve
the agreement in the sense of the preceding paragraphs.
Article 28
The exchange of information
1. the competent authorities of both States shall exchange such information with
which can be předpokládát that are relevant to the implementation of the
the provisions of this contract or in relation to the implementation or enforcement of the
national law relating to the taxation of any
type and name, imposed on behalf of the States or their lower administrative
departments or local authorities if the taxation thereunder is not in
budget with the Treaty. Exchange of information is not restricted by articles 1 and 2.
2. All information received by the State referred to in paragraph 1 shall be maintained in a
secret in the same manner as information obtained under the national
legislation of that State and shall be disclosed only to persons or
authorities (including courts and administrative offices), dealing with the charge of the assessment
or collecting taxes that are listed in the ostavci 1, enforcement or
prosecutions relating to such taxes, deciding about
resources in relation to such taxes, or supervision of the above. These
reindeer or authorities shall use the information only for such purposes. Can communicate
the information in public court proceedings or in soudích
decisions.
2. the provisions of the previous odsatců will not be interpreted in any preparation
so that saved the State an obligation to:
and perform administrative measures) that would infringe on the laws and
administrative practice of the other State,
(b)) to provide information that cannot be obtained on the basis of the legal
regulations or in the normal course of administrative proceedings of this or of the other State,
c) to supply information which would disclose any trade,
economic, industrial, commercial or professional secret or of a commercial
procedure or information whose communication would be contrary to the public
policy.
4. where, in accordance with this article, one State required
information, the second State shall use its measures aimed at obtaining
information in order to obtain the requested information, even though the other State such
information needs for its own tax purposes. The obligation to set out
in the preceding sentence is subject to the limitations of paragraph 3 but in no case
These restrictions will not be interpreted so as to allow the State to refuse
provide information solely because it has no domestic interest in the
such information.
5. The provisions of paragraph 3 are not in any case be interpreted so that the
allow the State to refuse to provide information only on the grounds that the
the information has a Bank, other financial institution, trustee or
person acting on behalf of or as an agent, or because
information related to proprietary interests on the person.
Article 29
Diplomatic and consular officers
The provisions of this Agreement shall not affect the tax privileges, that use
diplomatic and consular officers under the General rules of
of international law or under the provisions of special agreements.
Article 30
Territorial extension
1. This agreement may be extended, either in its entirety or with the necessary
modifications to Surinam or the Netherlands Antilles, or on these two countries,
If the country concerned will store the substantially similar nature tax tax
to which this agreement applies. Any such extension shall take
the effectiveness of that day and will be subject to such modifications and conditions, including
the conditions governing its termination, which will be specified and agreed upon
nótami, which are exchanged through diplomatic channels.
2. Unless otherwise agreed, upon termination of the contract
not because of the application of the Treaty also to any country to which the contract was
extended under this article.
CHAPTER VII
Final provisions
Article 31
Entry into force of
This agreement shall enter into force on the date on which the Contracting Governments mutually
be notified in writing that the contract was approved by their respective
constitutional law, and its provisions will apply:
-in respect of tax withheld at the source, on all amounts
paid or credited in favour of 1. January 1972 or later;
-in respect of other taxes, for any tax years and periods, starting on 1 July.
January 1972 or later.
Article 32
Notice of termination
This agreement will remain in effect until one of the Contracting
the parties denounced. Each party may terminate the contract by the diplomatic
the way testimony sent by at least six months before the end of each
the calendar year after the year 1977.
In this case, the contract will not apply to tax years and periods
beginning after the end of the calendar year in which the notice of termination is given.
Done in Prague on 4. March 1974 in two original copies, each in the Czech,
the Dutch and English languages, all three texts being equally
force. If there is a different interpretation of Czech and Dutch text,
the English text will be decisive.
In witness whereof the undersigned, duly authorised thereto, have signed this
the contract.
For the Government of the Czechoslovak Socialist Republic:
L. Lér v.r.
For the Government of the Netherlands:
R. Froger v.r.
PROTOCOL
When signing the Treaty on avoidance of double taxation and prevention of fiscal
evasion with respect to taxes on income and on capital, this day concluded between the
The Czechoslovak Socialist Republic and the Kingdom of the Netherlands,
the undersigned have agreed that the following provisions shall form an integral part of this
of the Treaty.
I. Ad article 4
Natural person who lives on board the ship and that does not have the actual residence
in both States, is to be judged as should reside in the
State in which the ship's home port.
II. With respect to articles 10, 11 and 12
Application for refund of tax collected in violation of the provisions of article 10, 11 and
12 must be submitted to the competent authority, that tax, during the three
years after the end of the calendar year in which the tax was selected.
III. With respect to article 25
As regards the Dutch income tax or company tax, is the consensus about the
the fact that the Foundation referred to in article 25, paragraph 1 is based on the circumstances of the
"onzuivere inkomen" or "winst" in terms of the Dutch law on the taxation of
income or tax companies.
Done in Prague on 4. March 1974 in duplicate each in the Czech,
the Dutch and English languages, all three texts being equally
force. If there is a different interpretation of Czech and Dutch text,
the English text will be decisive.
In witness whereof the undersigned, duly authorised thereto, have signed this
Protocol.
For the Government of the Czechoslovak Socialist Republic:
L. Lér v.r.
For the Government of the Netherlands:
R. Froger v.r.
