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

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

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Read the untranslated law here: https://portal.gov.cz/app/zakony/download?idBiblio=32836&nr=138~2F1974~20Sb.&ft=txt

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.