164/1997.
The COMMUNICATION FROM the
Ministry of Foreign Affairs
Ministry of Foreign Affairs says that on 21 February 2006. June 1996
Crans Montana signed an agreement between the Czech Republic and Malta on
avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on
income and capital.
With the Treaty, its assent, Parliament of the Czech Republic and the President of the
the Republic has ratified it.
Treaty has entered into force pursuant to its article 28, paragraph 1. 2 day 6.
June 1997.
English translation of the Treaty shall be designated at the same time. In the English version
The contract can be consulted at the Ministry of Foreign Affairs and the Ministry of
finances.
CONTRACT
between the Czech Republic and Malta for the avoidance of double taxation and the prevention of
fiscal evasion with respect to taxes on income and on capital
Czech Republic and Malta,
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:
Article 1
The person to which the contract relates
This agreement shall apply to persons who are resident or established in
one or both of the Contracting States (residents).
Article 2
The tax, to which the contract relates
1. this Agreement shall apply to taxes on income and on capital imposed by the
on behalf of each Contracting State or of its lower administrative departments
or local authorities, irrespective of the method of selecting any.
2. taxes on income and on capital all taxes shall be levied on
total income, on total capital, or on elements of income or of capital,
including taxes on gains from the alienation of movable or immovable property, taxes
of the total volume of wages or salaries paid by enterprises as well as taxes on
the increment property.
3. Current taxes, to which the contract relates are:
and) in the Czech Republic:
(i) the tax on income of individuals;
(ii) the tax on income of legal persons;
(iii) tax on immovable property;
(hereinafter referred to as "Czech tax");
(b)) in Malta:
income tax;
(hereinafter referred to as "Malta tax").
4. the agreement shall also apply to any tax of the same or
the principle of a similar kind, that will be stored after signature of the contract in addition to the
or instead of the current taxes. The competent authorities of the Contracting States shall mutually
communicate any material changes that will be made in their
the relevant tax laws.
5. Notwithstanding the other provisions of this article, this agreement
will not apply to tax paid or payable in Malta in accordance with
the provisions of subsection (1) of section 56 of the income tax Act (Cap. 123)
relating to the taxable income of any person doing business in production
diesel produced in Malta or any similar, in principle,
the provisions which will be applied after the signature of this agreement.
Article 3
General definitions
1. for the purposes of this agreement, unless the context requires a different interpretation:
and) the term "Czech Republic", when used in a geographical meaning,
indicates the territory on which the Czech Republic may be exercised according to Czech
legislation and in accordance with international law, its sovereign
law;
(b)), the term "Malta" means the Republic of Malta, and when used in
geographical importance, indicates the island of Malta, the island of Gozo and the other
Islands of the Maltese Islands, including the waters of Malta, and any
the area outside these waters, which, in accordance with the international
law and according to the law concerning the continental shelf is
or it may be marked as the territory in which they can be exercised
Malta in relation to the seabed and subsoil and their natural resources;
(c)) the terms "a Contracting State" and "the other Contracting State" mean, as
context, the Czech Republic or Malta;
(d)) the term "person" includes an individual, a company and any other
an Association of persons;
(e)) the term "company" refers to any legal entity or
the rightholder considered for the purposes of taxation under the legal person;
(f)) the terms "enterprise of a Contracting State" and "enterprise of the other Contracting
State "means, according to the context, the enterprise carried on by a resident
of a Contracting State or the undertaking operated by resident of the other
Contracting State;
(g)) the term "national" means:
(i) any natural person who is a citizen of a Contracting
State;
(ii) any legal person, partnership or association established
According to the law in force in a Contracting State;
h) the term "international traffic" means any transport by boat,
aircraft or road vehicle operated by an undertaking, which is one
of a Contracting State, except when the ship, aircraft or road
vehicle is operated solely between places in the other Contracting State;
I) the term "competent authority" means:
(i) in the case of the Czech Republic the Minister of finance or his authorized
representative;
(ii) in the case of Malta, the Minister responsible for finance or his
authorized representative.
2. As regards the implementation of the Treaty by a Contracting State, each expression in
It is not defined, it will have the meaning which it has under the law of that
the State, which regulates the taxes to which the Agreement relates, if the
the link does not require a different interpretation.
Article 4
A resident of the
1. the term "resident of a Contracting State" means for the purposes of this
of the Treaty, any person who is under the law of that State
subject to taxation in that State by reason of his residence, the Standing
residence, place of management or any other similar criteria. This
the expression, however, does not include a person who is subject to tax in that State
only because of the income from sources in that State or property There
located.
2. If the individual is under the provisions of paragraph 1, a resident of the
both of the Contracting States, the position specified in the following way:
and) it is assumed that this person is resident only of the State in
which he has a permanent home; If he has a permanent home in both States, assumes
that is a resident only of the State with which it has strong personal and
economic relations (Centre of vital interests);
(b)) if it cannot be determined which state the person Center
their vital interests or if it does not have a permanent home in any State
It is believed to be a resident only of the State in which it is usually
resides;
(c)) If this person usually resides in both States, or in any
of them, it is assumed to be a resident only of the State of which he is
is a national;
d) if that person is a national of both States or of any
of them, the competent authorities of the Contracting States shall adjust the question by mutual
by the agreement.
3. If a person other than an individual is subject to the provisions of paragraph 1,
a resident of both Contracting States, it is assumed to be a resident only
of the State in which the place of effective management.
Article 5
Permanent establishment
1. the term "permanent establishment" means for the purposes of this agreement, the Permanent
place to do business, through which is wholly or partly
carried on the business.
2. the term "permanent establishment" includes especially:
and instead of keeping);
(b)) race;
(c));
(d) a factory;)
e) a workshop; and
f) mine, the site of diesel or gas, a quarry or any other place where
extracted natural resources, including mimobřežního.
3. the term "permanent establishment" also includes:
construction site, construction), Assembly or installation project or supervision with
associated, but only if it takes such construction, project supervision or longer
than nine months;
(b)) the provision of services, including consultancy and managerial services
the enterprise through employees or other personnel engaged by a
undertaking for this purpose, but only where activities of that nature
insist on the territory of a Contracting State for a period or periods exceeding in
the aggregate six months within any twelve month period.
4. Notwithstanding the preceding provisions of this article, assume that
the term "permanent establishment" shall not include:
and) device that is used only for the purpose of storage, display
or delivery of the goods belonging to the enterprise;
(b)) the supply of goods belonging to the enterprise solely for the purpose
storage, display or delivery;
(c)) the supply of goods belonging to the enterprise solely for the purpose
the processing of another undertaking;
d) permanent place to do business, solely for the purpose of purchasing
goods, or collecting information for the enterprise;
e) permanent place for business, solely for the purpose of
advertising, information, scientific research or similar
activities which have a preparatory or auxiliary to the business nature; and
f) permanent place for business, solely for the performance of
any combination of activities mentioned in subparagraphs a) to (e)), if
the overall activity of the fixed place of business resulting from this
the connection is of a preparatory or auxiliary character.
5. Notwithstanding the provisions of paragraphs 1 and 2, a person-other than
an independent representative, to whom paragraph 6 applies-is acting in a
a Contracting State on behalf of the enterprise and has, and usually uses the permission that
It allows you to enter into contracts on behalf of the company, it is considered that this
the enterprise has a permanent establishment in that State in relation to all activities,
This person performs for the enterprise if the activities of such person are not
limited to the activities listed in paragraph 4 which, if they were
exercised through a fixed place of business, would not based
from this fixed place of business a permanent establishment under for
the provisions of this paragraph.
6. Not considered that the enterprise of a Contracting State has a permanent
establishment in the other Contracting State merely because in that other State
carries on business through a broker, General Commission agent
or another independent representative, if such persons are acting in the framework of its
the proper operation. However, if such activities are completely
for the most part devoted to or for the benefit of this business will not be
the representative considered independent in the meaning of this paragraph.
7. the fact that a company which is a resident of a Contracting
State controls or is controlled by a company which is a resident of the other
Contracting State or that in that other State carries on business
(whether through a permanent establishment or otherwise), will not make itself from
either this company a permanent establishment of the other company.
Article 6
Income from immovable property
1. the income received by a resident of a Contracting State from immovable
property (including income from agriculture or forestry) situated in the second
a Contracting State may be taxed in that other State.
2. the term "immovable property" has such importance under the laws
the Contracting State in which such property is located. The term includes in
any case, accessories of immovable property, the living and the dead inventory
used in agriculture and forestry, rights to which the provisions of the
civil law relating to property, the right to the enjoyment of immovable property
property and rights to variable or fixed payments for mining or
consent for mining or mineral deposits, research sources and other
natural resources; ships and aircraft shall not be regarded as immovable property.
3. The provisions of paragraph 1 shall apply to income derived from the direct use,
hire or any other manner of use of immovable property.
4. The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property
the assets of the company and to income from immovable property used for the performance of
an independent profession.
Article 7
The profits of enterprises
1. The profits of an enterprise of a Contracting State shall be taxable only in that
State if the undertaking does not pursue its activities in the other Contracting State
through a permanent establishment that is located there. If
the enterprise carries on business in this way, the profits of the enterprise may be
taxed in the other State, but only to the extent that they can be
attributable to that permanent establishment.
2. If an enterprise of a Contracting State, carries on business in the
the other Contracting State through a permanent establishment that is there
placed, attach, subject to the provisions of paragraph 3, in each
Contracting State of such permanent establishment profits which could
so if it were a separate enterprise carried 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, or in the
contact with other associated enterprises.
3. when calculating the profits of a permanent establishment shall be allowed to deduct the costs,
that have been spent on the objectives of the permanent establishment, including
Executive and general administrative expenses, whether incurred as follows
incurred in the Contracting State in which the permanent establishment is situated, or
elsewhere, and which would be deductible if the permanent establishment were
independent undertaking that would pay those costs.
4. If a Contracting State determine the gains that
to be attributed to a permanent establishment on the basis of allocation of the total
the profits of the enterprise to its various parts, nothing in paragraph 2 shall not preclude the
This Contracting State the profits to be taxed by the usual
the Division; the method of distribution must, however, be such that the result of the
in accordance with the principles laid down in this article.
5. no permanent establishment of nepřičtou gains based on the fact that
only goods for the company.
6. the Profits to be attributed to a permanent establishment for purposes of the
the preceding paragraphs shall each year, in the same way, if the
There are insufficient grounds for a different procedure.
7. where profits include the part of the income which are dealt with separately
in the other articles of this agreement, the provisions of those articles shall not affect the
the provisions of this article.
8. the provisions of this article shall not affect the provisions of the law of a Contracting
State concerning the taxation of profits from the business in the area
the insurance industry.
Article 8
International transport
1. The profits of an enterprise of a Contracting State from the operation of ships, aircraft
or road vehicles in international traffic shall be taxable only in the
This state.
2. The provisions of paragraph 1 shall also apply to profits derived from the participation in the
pool, joint operation or an international operating organization.
Article 9
Associated enterprises
1. If the
and the company) of a Contracting State participates directly or indirectly in the
management, control or capital of an undertaking of the other Contracting State, or
(b)) the same persons participate directly or indirectly in the management, control or
the assets of the enterprise of a Contracting State and enterprise of the other Contracting
State,
and if in these cases are both enterprises in their commercial or
bound by the terms of the financial relations which have negotiated or they were
stored and which differ from those which would have been agreed upon between the
independent enterprises, can any profits which would, but for those
conditions have been accrued to one of the enterprises, but due to these
conditions were not achieved, be included in the profits of this business and
subsequently taxed.
2. where a Contracting State includes in the profits of the enterprise of that State-and
Subsequently, the tax-gains that enterprise of the other Contracting State has been
taxed in that other State and the profits following profits which are included
would have been achieved by the undertaking first-mentioned State if the conditions
agreed between the two companies, which would have been agreed upon between the
independent enterprises, the second State shall, mutatis mutandis, the tax amount there
imposed on those profits. In determining such adjustment, due
into account the other provisions of this agreement and, if necessary, the appropriate
the authorities of the Contracting States shall to this end consult each other.
3. A Contracting State does not adjust the profits of the enterprise in the circumstances referred to in
paragraph 2 after the expiry of the time limits laid down in its national
the legislation.
4. The provisions of paragraph 2 shall not apply in the case of fraud, deliberate
negligence or carelessness.
Article 10
Dividends
1. dividends paid by a company which is a resident of a
of a Contracting State to a resident of the other Contracting State, may be taxed in the
that other State.
2. However, such dividends may also be taxed in the Contracting State,
of which the company paying the dividends is a resident and according to the laws
laws of that State, but:
and) if dividends are paid by a company which is a resident of the United
States to a resident of Malta who is the beneficial owner thereof, the United
the tax so charged shall not exceed five per cent of the gross amount of the dividends;
(b)) if dividends are paid by a company which is a resident of Malta,
a resident of the United States, which is the beneficial owner thereof,
Malta tax on the gross amount of the dividends shall not exceed the tax imposed on the profits from
which the dividends are paid.
This paragraph shall not affect the taxation of the profits of the company, all of which are
dividends are paid.
3. the term "dividends" as used in this article means income from shares
or other rights, with the exception of receivables, with a share of the profits, as well as
income from other rights to companies which are subjected to the same
taxation as income from shares by the laws of the State of which the tax is
the company that rozdílí profit, a resident.
4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of
of the dividends, being a resident of a Contracting State, carries on business in the
the other Contracting State of which he is a resident company paying
dividends, industrial or commercial activity through a fixed
the establishment, which is located there, or performs in that other State
independent profession from a permanent base located there, and if the participation,
for which the dividends are paid is effectively connected to such permanent
establishment or fixed base. In such a case, the provisions of
Article 7 or article 14, depending on what matters.
5. Where a company which is a resident of a Contracting State,
achieves profits or income from the other Contracting State, that
the second State to tax dividends paid by the company, unless such
dividends are paid to a resident of that other State or to participate,
for which the dividends are paid is effectively binds to a permanent establishment
or a permanent base, which is located in that other State, nor
subject to the company's retained profits tax on retained earnings
the company, even if the dividends paid or the undistributed profits
consists wholly or partly of profits or income with a source in the
that other State.
Article 11
Interest
1. interest arising in a Contracting State and paid to a resident of the
of the other Contracting State shall be taxable only in that other State,
If the resident is the beneficial owner, of that interest.
2. The term "interest" as used in this article means income from debt-claims
of any kind, whether or not secured by the law of the
on real estate or whether or not carrying a right to participate in profits
of the debtor, and in particular, income from government securities and income from
bonds or debentures, including premiums and prizes attaching to such
securities, bonds or debentures. Penalties for late payment shall
not be regarded as interest for the purpose of this article.
3. The provisions of paragraph 1 shall not apply if the beneficial owner
of the interest, being a resident of a Contracting State, carries on business in the other
the Contracting State in which they have interest, industrial or commercial source
activity through a permanent establishment situated therein, or
performs in that other State independent of the profession of a permanent base there
placed, and if the claim from which the interest is paid,
actually attaches to such permanent establishment or fixed base. In such a
If the provisions of article 7 or article 14, depending on
What matters.
4. If the amount of interest that are applicable to the claim from which they are
paid, exceeds as a result of special relationship between the payer and the
the recipient, who is the beneficial owner of interest or between both of them
and some other person, the amount which would have been had given the payer of such
the recipient, if it wasn't for such relationship, the provisions of this
article just on this latter amount. Amount of payments, that it
exceeds, in this case, will be taxed in accordance with the legislation of each
a Contracting State with regard to the other provisions of this Treaty.
Article 12
License fees
1. Royalties arising in a Contracting State and paid to the
a resident of the other Contracting State may be taxed in that other
State.
2. However, Such royalties may also be taxed in the Contracting
State in which it is their source, according to the legislation of that
State, but if the beneficial owner of the royalties, a resident of the
of the other Contracting State, the tax so charged shall not exceed five percent of gross
the amount of the royalties.
3. the term "royalties" as used in this article means payments
of any kind received as a consideration for the use of, or the right to use
any copyright for literary, artistic or
scientific, including cinematograph films and films or recordings for
television or radio broadcasting, any patent, trade
mark, design or model, plan, secret formula or production
procedure or any industrial, commercial or scientific
device or information relating to experience gained in the
the field of industrial, commercial or scientific.
4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of
of the royalties, being a resident of a Contracting State,
carries on in the other Contracting State in which the royalties
source, industrial or commercial activity through a fixed
the establishment, which is located there, or performs in that other State
independent profession from a permanent base located there, and if the right
or things that give the emergence of royalty actually bind
with such permanent establishment or fixed base. In this case,
provisions of article 7 or article 14, depending on which case
it comes.
5. It is assumed that the licence fees to arise in a Contracting State,
When the payer is that State itself, its lower administrative department, local
the authority or a resident of that State. However, if the payer of royalty
fees, whether he is or is not a resident of a Contracting State, has in
a Contracting State a permanent establishment or a fixed base in connection with which
was obliged to pay the licence fees, and these license fees
are borne by that permanent establishment or fixed base, it is assumed
that such license fees to arise in the Contracting State in
which the permanent establishment or fixed base is situated.
6. If the amount of the license fees that are related to the use,
law or information for which they are paid, exceeds the due
the special relationship between the payer and the beneficial owner of the license
fees or between both of them and some other person, the amount you
It would have been had given the Bill-to customer is the beneficial owner, if it wasn't for such
relations, the provisions of this article shall apply only to the latter
the said amount. The amount of the payments that it exceeds, in this
If taxed under the law of each Contracting State to the
reference to the other provisions of this agreement.
Article 13
Disposal of property
1. the income or gains of a resident of a Contracting State
the alienation of immovable property referred to in article 6 and situated in the second
a Contracting State may be taxed in that other State.
2. the income or gains from the alienation of movable property forming part of the
business property of a permanent establishment which an enterprise of a Contracting
State in the other Contracting State or of movable property belonging to
the permanent base of a resident of a Contracting State has in the other
Contracting State in order to exercise an independent profession, including income
or gains from the alienation of such a permanent establishment (alone or together with the
the whole enterprise) or of such fixed base, may be taxed in that
the second State.
3. the income or gains from the alienation of shares or other shares of the
the company, whose assets consist, in principle, directly or indirectly, from
immovable property situated in a Contracting State, may be
taxed in that State.
4. the income or gains from the alienation of ships, aircraft or road vehicles
operated in international traffic by the enterprise of a Contracting State
or from the alienation of movable property, that serves the operation of such ships,
aircraft or road vehicles shall be taxable only in that State.
5. the income or gains from the alienation of property, other than that referred to in
paragraphs 1, 2, 3 and 4, shall be taxable only in the Contracting State of which the
the alienator is a resident.
Article 14
An independent profession
1. Income derived by a resident of a Contracting State from the free
profession or other activities of an independent character, shall be subject to
taxable only in that State. However, such income may be taxed in the
other Contracting State under the following circumstances:
and) if regularly available in the other Contracting State a permanent
base in order to carry out its activities; in this case, the only
that portion of the income which is attributable to that fixed base may be
taxed in that other Contracting State; or
(b)) if his stay in the other Contracting State for a period or periods
equals or exceeds in the aggregate 120 days in any
the 12-month period starting or ending in the
the tax year; in this case, only a portion of the revenue, which is receiving from the
activities performed in the other Contracting State, may be taxed in this
the second State.
2. When calculating the period referred to in paragraph 1 (b). (b)) shall apply mutatis
the provisions of article 15, paragraph 2. 3.
3. the term "liberal profession" includes especially independent activity
scientific, literary, artistic, educational or teaching, as well as
the independent activities of physicians, surgeons, lawyers, engineers, architects,
dentists and accountants.
Article 15
Employment
1. a salaries, wages and other similar remuneration derived by a resident of a Contracting
the State receives from employment shall be subject to the provisions of articles 16,
18 and 19, taxable only in that State unless the employment is exercised in the
the other Contracting State. If the employment is exercised, there may be
fees received for them taxed in that other State.
2. remuneration which a resident of a Contracting State receives from employment
exercised in the other Contracting State shall be liable, regardless of the
the provisions of paragraph 1, taxable only in the first-mentioned State if
all of the following conditions are met:
and) the recipient is present in the other State for a period or multiple periods
shall not exceed in the aggregate 183 days in any 12-month period
starting or ending in the fiscal year concerned, and
(b)) the rewards are paid by the employer or by the employer, that
is not a resident of the other State, and
(c) the remuneration is not borne by) of a permanent establishment or a fixed base, which has
employer in the other State.
3. The counting period referred to in paragraph 2 (a). and) will
include the following days:
and all the days of) physical presence, including arrivals and departures, and
b) days spent outside the State activities such as Saturday and Sunday, the national
holidays, vacations, business travel associated with the performance of the activity, after which
It has been in operation on the territory of that State.
4. the term employer referred to in paragraph 2 (a). (b)) identifies the person
who has the right to work and that carries the responsibility and risk
associated with the performance of the work.
5. Notwithstanding the preceding provisions of this article may be rewards
received from employment exercised aboard a ship, aircraft or
road vehicle operated in international traffic by an undertaking
the Contracting Government taxed in that State.
Article 16
Royalties
Directors ' fees and other similar payments to a resident of a Contracting State
he receives as a member of the Board of directors or any other similar authority
a company which is a resident of the other Contracting State, may be
taxed in that other State.
Article 17
Artists and athletes
1. Income derived by a resident of a Contracting State as to the
public entertainer, such as a theatre, film, radio or
television artist, or a musician, or as an athlete of such personally
activities in the other Contracting State, may be, regardless of the
the provisions of articles 14 and 15 of the taxed in that other State.
2. If the revenue from activities which personally exercises the artist or
athlete accrues not artists or athletes, but to another person,
This revenue may be, notwithstanding the provisions of articles 7, 14 and 15
taxed in the Contracting State in which the artist or athlete shall exercise its
activity.
3. the income received from the activities defined in paragraph 1, carried out in
under the cultural exchange between the Governments of the two States will be regardless of the
the provisions of paragraphs 1 and 2 shall be exempt from tax in the Contracting State in
which these activities are carried out.
Article 18
Board
1. Pensions and other similar salaries paid to a resident of a Contracting
State because of past employment shall be subject to, subject to the provisions
Article 19, paragraph 2. 2, taxed only in that State.
2. Notwithstanding the provisions of paragraph 1, pensions paid and other payments
implemented on the basis of the legislation of a Contracting State for social
the security shall be taxable only in that State.
Article 19
Public function
1.
a) salaries, wages and other similar remuneration, other than a pension, paid by one
a Contracting State or a political subdivision or local authority of that
the State of a natural person for services rendered to that State or an administrative
Department or local authority shall be taxable only in that State.
(b)), Such salaries, wages and other similar remuneration shall be taxable, however,
only in the other Contracting State if the services are rendered in the
This State and any natural person who is a resident of this State:
(i) is a national of that State; or
(ii) did not become a resident of that State for the provision of such
services.
2.
and pension paid by one) of any Contracting State or lower administrative
Department or local authority thereof or payable out of funds that
set up the physical person for services rendered to that State or an administrative
Department or local authority shall be taxable only in that State.
(b) However, such pension) are subject to taxation only in the other Contracting State,
If the individual is a resident of, and a national of that
State.
3. the provisions of articles 15, 16 and 18 shall apply to salaries, wages and other
other forms of remuneration, and on the Board for services rendered in connection with
industrial or commercial activity carried out by any Contracting State
or a political subdivision or local authority thereof.
4. If the salaries, wages and other similar remuneration paid on the basis of
the program of a Contracting State to assist with the development of the funds exclusively
This state-funded expert or volunteer seconded to
of the other Contracting State, with the consent of the other State, then such
the remuneration shall be taxable only in the first-mentioned State.
Article 20
Students and apprentices
A student or an apprentice who is present in a Contracting State only
the purpose of his education or training and who is, or immediately before
arriving in this State has been a resident of the other Contracting State,
will be in the first-mentioned State shall be exempt from taxation payments received
from sources outside this former State to cover the costs of nutrition,
education or training.
Article 21
Other revenue
1. Part of the income of a resident of a Contracting State, wherever
anywhere, which are not dealt with in the foregoing articles of this agreement,
shall be taxable only in that State.
2. The provisions of paragraph 1 shall not apply to income, other than income from
immovable property, which is defined in article 6 (1). 2 If the
the recipient of such income, being a resident of a Contracting State,
carries on in the other Contracting State having an industrial or commercial activity
through a permanent establishment located there or exercises in this
other State independent of the profession from a permanent base located there and
If the right or property in respect of which the income is paid is effectively
attaching to such permanent establishment or fixed base. In this case,
provisions of article 7 or article 14, depending on which case
it comes.
Article 22
Property
1. Capital represented by immovable property referred to in article 6, which
own a resident of a Contracting State and which is located on the second
a Contracting State may be taxed in that other State.
2. Capital represented by movable property that is part of the business
the property of a permanent establishment which an enterprise of a Contracting State in the
the other Contracting State or of movable property belonging to the Permanent
the base, which is a resident of a Contracting State in the other Contracting
State to carry out an independent profession, may be taxed in that other
State.
3. Capital represented by ships, aircraft and road vehicles, which
they are operated by an enterprise of a Contracting State in international
transport, and the movable property serving for the operation of such ships,
aircraft and road vehicles shall be subject to taxation in that State, only in
where the company is located.
4. All other elements of property of a resident of a Contracting State shall be subject to
tax only in that State.
Article 23
Elimination of double taxation
1. in the case of Malta, double taxation will be avoided in the following manner:
In accordance with the provisions of the law governing credit
foreign tax on the Maltese tax, if they are taxable in Malta
income included income from sources in the Czech Republic in accordance with the
the provisions of this agreement, the Czech tax on this income included on
comparable to the Maltese tax due from these revenues.
2. In the case of the United States will be eliminated following the double taxation
follows:
Czech Republic may, when depositing taxes its residents included in the
the tax base from which such a tax imposed under the income or
assets that may be in accordance with the provisions of this agreement, also
taxed in Malta, however, will allow to reduce the amount of tax calculated from such
an amount equal to the tax paid in Malta. The amount by which
the tax to be reduced, however, shall not exceed that part of the Czech taxes calculated before
by reducing that fairly falls on income or assets that can be
in accordance with the provisions of this agreement, be taxed in Malta.
3. If the contract provides that income arising in a Contracting
the State will be exempt from tax in that State, either in whole or in
in part, and by the laws in force in the other Contracting State
subject to such income taxation with regard to the amount, which is
remitted to the second State or received in that other State and
not taking into account the total amount, then the exemption to be
allowed in the first-mentioned State shall apply only to that part of the income that
It is remitted to the second State or received in the other State.
4. For the purposes of enabling credit mechanism assumes that the tax payable in the United
Republic or in Malta, according to the context, includes the tax, which would
otherwise have been payable in a Contracting State but has been reduced or waived
by that State in accordance with its legislation on tax relief.
Article 24
Prohibition of discrimination
1. nationals of a Contracting State shall not be subjected in the
the other Contracting State to any taxation or duties associated with him,
which is other or more burdensome than the taxation and connected requirements
which are or may be subjected by nationals of this second
State, in particular with respect to residence, in the same situation.
This provision shall, notwithstanding the provisions of article 1, also apply to the
persons who are not residents of one or both of the Contracting States.
2. the taxation on a permanent establishment which an enterprise of a Contracting State has the
in the other Contracting State, that other State will not be less favourable than
taxation of enterprises of that other State carrying out the same activities.
This provision shall not be construed as an obligation of a Contracting State,
admitting to residents of the other Contracting State any personal deductions,
relief and tax reduction for reasons of status or family obligations,
which it grants to its residents.
3. If you do not apply the provisions of article 9, paragraph 1. 1, article 11
paragraph. 4 or article 12, paragraph 1. 6, interest, royalties and other
expenses paid by the enterprise of a Contracting State to a resident of the other
Contracting State deductible for purposes of determining taxable profits
This undertaking under the same conditions as if they had been paid to a resident of the
the first-mentioned State. Similarly, any debts of an enterprise of a
of a Contracting State to a resident of the other Contracting State for the purposes of
the determination of the taxable assets of such an undertaking, under the same
conditions, as if they had been contracted to a resident of 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,
who are residents of the other Contracting State, shall not be subjected in the first-
mentioned State to any taxation or duties associated with him that
is other or more burdensome than the taxation and connected requirements to which
are or may be subjected to other similar businesses of former
State.
5. the provisions of this article shall, notwithstanding the provisions of article 2 of
apply to taxes of every kind and naming, which is covered by this
the contract.
Article 25
Resolving cases by agreement
1. where a person considers that the actions of one or both of the Contracting
States lead or lead it to taxation not in accordance with the
the provisions of this Treaty, may, notwithstanding the remedies that
under the national laws of those States, present your
the case to the competent authority of the Contracting State of which he is a resident of, or
If her case falls under article 24, paragraph 1. 1, the Office of a Contracting State,
of which he is a national. The case must be presented within three years from the
the first notification of the measure to taxation not in accordance with the
provisions of the Treaty.
2. If the competent authority of the objection to be justified and
If it is not itself able to find a satisfactory solution, it will try to
case solved by mutual agreement with the competent authority of the other Contracting
the State so as to avoid taxation which is not in accordance with the Treaty.
Any agreement reached shall be made without regard to any time
period referred to in the national legislation of the Contracting States.
3. the competent authorities of the Contracting States shall endeavour to resolve by mutual
the agreement difficulties or concerns that may arise in the interpretation or
the implementation of the Treaty. They can also consult each other in order to avoid
double taxation in cases where the contract is not.
4. the competent authorities of the Contracting States may come in direct contact with a view to
reaching an agreement in the sense of the preceding paragraphs. If oral
Exchange of views appears to be effective for the achievement of the agreement, can such exchange
opinions to take place through the Commission, composed of representatives of
the competent authorities of the Contracting States.
Article 26
The exchange of information
1. the competent authorities of the Contracting States shall exchange the information necessary
for the implementation of the provisions of this agreement or of national laws
regulations of the Contracting States shall apply to the taxes which are the subject
This agreement, if the taxation thereunder is not contrary to the provisions of this
the Treaty. Exchange of information is not restricted by article 1. All of the information
a Contracting State received will be kept confidential in the same way
as the information received in accordance with the national legislation of the
the State and will be disclosed only to persons or authorities (including courts and
administrative offices), dealing with the charge of the assessment or collection of taxes, on the
covered by this contract, the enforcement or prosecution in case
These taxes or making decisions on appeals in respect of those taxes.
Such persons or authorities shall use such information only for such purposes.
They can apply this information in public court proceedings or in
legal decisions.
2. The provisions of paragraph 1 shall not be in any way interpreted as
store the Contracting State the obligation:
and perform administrative measures) that would infringe on the laws and
the administrative practice of that or of the other Contracting State;
(b)) to provide information that could not be obtained on the basis of the
the laws or in the normal administrative proceedings of this or the other
Contracting State;
c) to supply information which would disclose any trade,
corporate, industrial, commercial or professional secret or of a commercial
procedure, or information, the disclosure of which would be contrary to the public
policy.
Article 27
Members of diplomatic missions and consular officials
No provision of this Agreement shall not affect the tax privileges, which
It is for the members of diplomatic missions or consular officials under the
the General rules of international law or under the provisions of
Special agreements.
Article 28
Entry into force
1. the Contracting States shall notify each other that the constitutional requirements for the entry into
into force of this agreement have been fulfilled.
2. the contract shall enter into force on the day of the later notification within the meaning of
paragraph 1 and its provisions shall be made:
and) in the Czech Republic:
(i) in respect of taxes withheld at source, to amounts received for 1.
January or later in the calendar year following the year in which the
The Treaty enters into force.
(ii) in respect of other taxes on income and property taxes, for taxes
stored for each tax year beginning with 1. January or later in
calendar year following the year in which the Agreement enters
force;
(b)) in Malta:
in relation to the taxes on the income received during each calendar year
or accounting period, depending on what matters, novice 1.
January or later, immediately following the date on which the Contract
it enters into force.
Article 29
Notice of termination
This agreement shall remain in force until denounced by one
Contracting State. Each State party may terminate the contract
through diplomatic channels by filing written notice of termination at least six months before the
at the end of each calendar year beginning after the expiration of a period of five
years from the date when the Treaty entered into force. In this case,
The Treaty cease to apply:
and) in the Czech Republic:
(i) in respect of taxes withheld at source, to amounts received for 1.
January or later in the calendar year following the year in which the
given notice of termination;
(ii) in respect of other taxes on income and property taxes, for taxes
stored for each tax year beginning with 1. January or later in
calendar year following the year in which the notice of termination has been given;
(b)) in Malta:
in relation to the taxes on the income received during each calendar year
or accounting period, depending on what matters, novice 1.
January or later, immediately following the date on which the
given the statement.
In witness whereof, the duly authorised thereto, have signed this agreement.
Given in Crans Montana on 21 February 2006. June 1996 in two original copies
in the English language.
For the Czech Republic:
Ivan Kočárník, in r.
For Malta:
John Dalli in r.
