164/1996 Coll.
The COMMUNICATION FROM the
Ministry of Foreign Affairs
Ministry of Foreign Affairs says that the 14 December. November 1995 was
in Prague, signed an agreement between the Czech Republic and Ireland for the avoidance of
of double taxation and prevention of fiscal evasion with respect to taxes on income and
asset.
With the Treaty, its assent, Parliament of the Czech Republic and the President of the
the Republic has ratified it.
The contract on the basis of its article 29, paragraph 1. 1 entered into force on
April 21, 1996.
The Czech version of the Treaty shall be designated at the same time.
CONTRACT
between the Czech Republic and Ireland for the avoidance of double taxation and the prevention of
fiscal evasion with respect to taxes on income and on capital
Czech Republic and Ireland, desiring to conclude an agreement on avoidance of double
taxation and prevention of fiscal evasion with respect to taxes on income and wealth,
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 property shall be treated as all taxes levied on
total income, on total capital, or of the part of the income or assets of the
including taxes on profits from the alienation of movable or immovable property.
3. Current taxes, to which the contract relates are:
and) in Ireland:
(i) income tax;
(ii) the corporation tax; and
(iii) the capital gains tax; (hereinafter referred to as "Irish tax");
(b)) 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").
4. this Agreement shall also apply to taxes identical or essentially
of a similar kind, that will be stored after the signature of this agreement, in addition to
or instead of the current taxes. The competent authorities of the Contracting States shall mutually
shall notify substantial changes that will be made in their respective
tax laws.
5. If in Ireland introduced property tax, this contract will be
apply to this tax.
Article 3
General definitions
1. for the purposes of this agreement, unless the context requires a different interpretation:
and) the term "Ireland" includes any area outside the territorial waters
Ireland, which, in accordance with international law has been or may be
the laws of Ireland concerning the continental shelf marked territory
which may be exercised rights Ireland concerning the seabed and
the subsoil and their natural resources;
(b)), the term "Czech Republic" means the territory of the Czech Republic, which the
are according to the Czech legislation and in accordance with international law
exercised the sovereign rights of the United States;
(c)) the terms "a Contracting State" and "the other Contracting State" mean respectively according to the
the case of the Czech Republic or Ireland;
(d)) the term "person" includes an individual, a company and any other
an Association of persons;
(e)) the term "company" means the entity or rights holders
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 the enterprise carried on by a resident of a Contracting State
or undertaking operated by a resident of the other Contracting State;
(g)) the term "international traffic" means any transport
undertaken by boat or plane, which is operated by an undertaking whose
instead of the actual management is located in a Contracting State, if the
such transport is not carried out only between places in the other Contracting
State;
h) the term "national" means:
(i) in the case of Ireland, each of the Irish citizen, and any legal person,
Association or other body established under the law in force in Ireland;
(ii) in the case of the Czech Republic
(i) any natural person who is a citizen of the United States;
(ii) any legal person, partnership or association established
According to the law in force in the Czech Republic;
I) the term "competent authority" means
(i) in the case of Ireland, the Commissioner of the tax authority or their authorised
representative; and
(ii) in the case of the Czech Republic the Minister of Finance of the Czech Republic, or
his authorised representative.
2. Each expression, which is not defined, it will be for the application of this
the Treaty, a Contracting State the importance which it has under the law of that State,
covered by the taxes covered by this agreement, unless the context
does not require a different interpretation.
Article 4
A resident of the
1. for the purposes of this agreement, the term "resident of a Contracting State"
indicates any person who, under the law of that State, subject to the
that State taxation because of their place of residence, permanent residence, place of
management, or any other similar criteria. This term, however,
does not include a person who is subject to tax in that State, only from the
the reasons of income from sources in that State or property in this State
located.
2. If the individual is under the provisions of paragraph 1, a resident in the
both of the Contracting States, its position will be addressed to the following
follows:
and it is assumed that) this person is resident in the State in which the
He has a permanent home; If he has a permanent home in both States, it is assumed that
It is resident in the State, which has a 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 both
States, it is assumed, that is resident in the State in which the
usually resides;
(c)) If this person usually resides in both States, or in any
of them, it is assumed that it is resident in the State of which he is a
citizen;
d) if that person is a national of both States or of any of the
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, that is resident in
the State in which the place of effective management.
Article 5
Permanent establishment
1. For the purposes of this agreement, the term "permanent establishment" means a permanent
device for business, through which the undertaking carries out completely
or part of their activities.
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 the benefits
natural resources.
3. the term "permanent establishment" also includes:
a building site or construction), Assembly or installation project, or surveillance
above them, but only if this takes the construction supervision, project, or longer
than 12 months;
(b)) the provision of services, including consultancy or managerial services,
the enterprise of a Contracting State through employees or
other workers hired by the enterprise for such purposes, but only if
activities such as to insist on the territory of the other Contracting State after
one or more periods exceeding in the aggregate more than six months in the
any 12-month period and the provision of services requires the use of
establishments situated in the other Contracting State.
4. Notwithstanding the preceding provisions of this article, it is assumed
the term "permanent establishment" shall not include:
and) device that is used only for storage, display or delivery
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) durable equipment for the business, which is solely for the purpose
purchase of goods, or collecting information for the enterprise;
e) durable equipment for the business, which for the company only for the
the purpose of the ads, the provision of information, scientific research or similar
activities which have a preparatory or auxiliary to the business nature;
f) permanent device for business, solely for the performance of
any combination of activities mentioned in subparagraphs (a) and (e)))-if
the total activity of durable equipment for the business, arising from this
the connection has a preparatory or auxiliary character.
5. If, notwithstanding the provisions of paragraphs 1 and 2, a person--other than
an independent representative, to whom paragraph 6 applies--acting in
a Contracting State on behalf of the company and has available and usually uses the full
the power that allows her to enter into contracts on behalf of the company, it is considered that the
This enterprise has a permanent establishment in that State in respect of all
the activities that the person performs for the enterprise if the activities of this
people are not limited to the activities listed in paragraph 4 which, if
were carried out through permanent device, this would
durable equipment corresponding to a permanent establishment under the provisions of this
paragraph.
6. Not considered that the enterprise has a permanent establishment in a Contracting State,
When in this State, carries on business only through
a broker, General Commission agent or any other agent of an independent,
If these persons are acting within their proper operation.
7. the fact that a company which is resident in a Contracting
State, controlled by the company or is controlled by a company which is
a resident of the other Contracting State, or which in the latter State
carries on business (whether through a permanent establishment or
otherwise), will not make itself from any of the company's permanent
the establishment of the second company.
Article 6
Income from immovable property
1. Income derived 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 land, buildings, the right to the enjoyment of
of immovable property and rights to variable or fixed payments for mining
or allow the mining of mineral deposits, sources 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 from the direct use, letting, 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 that other State, but only to the extent that it is
can be attributed 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, taking into account the provisions of paragraph 3 in any
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.
3. when calculating the profits of a permanent establishment shall be allowed to deduct the costs of
the firm incurred for the purposes of the permanent establishment, including Executive and
General administrative expenses, whether incurred in this way in the State
the permanent establishment is situated or elsewhere.
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, does not preclude the provisions of paragraph 2, to
This Contracting State the profits to be taxed by the usual
the Division; the method used for distribution of profits must, however, be such that the
the result was 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 or profits which are
dealt with separately in other articles of this agreement, the provisions will not be
those articles without prejudice to the provisions of this article.
Article 8
International transport
1. Profits from the operation of ships or aircraft in international traffic
shall be taxable only in the Contracting State in which the registered office is located
effective management of the enterprise.
2. when the effective centre of management of shipping is on board
the ship, it is considered located in the Contracting State in which the
the home port of the ship, or if there is no such home harbour, in the
the Contracting State in which the operator of the ship is a resident.
3. for the purposes of this article, profits derived from the operation of ships or
aircraft in international traffic include profits derived from the rental of the
ships or aircraft if such ships or aircraft are operated in
international transport or if there are any gains from the rents associated with
other profits described in paragraph 1 of this article.
4. The provisions of paragraph 1 shall also apply to profits from the participation in a pool,
the 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
financial relations terms that agree or they were
stored and which differ from those which would have been agreed upon between the
companies independent, 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 to modify the amount of tax it appropriately
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.
Article 10
Dividends
1. dividends paid by a company which is resident in the same
Contracting State, to a person who is resident in the other Contracting State,
may be taxed in that other State.
2. However, such dividends may also be taxed in the Contracting State in
which is a company that is paid, a resident, and according to the laws
laws of that State, but if the recipient is the beneficial owner
dividends, the tax so determined shall not exceed:
and 5% of the gross amount) of the dividends if the recipient is a company that
directly owns at least 25% of the voting shares of the company
paying the dividends;
b) 15% of the gross amount of the dividends in all other cases.
The competent authorities of the Contracting States shall by mutual agreement settle the mode
the application of these restrictions. This paragraph shall not affect the taxation of profits
the company from which the dividends are paid.
3. the term "dividends" as used in this article means income from shares
or other rights, with the exception of receivables, and includes any income
or the distribution of profits, which are in accordance with the tax legislation of the contractual
State in which it is a company that pays out dividends or profits, rozdílí
a resident, built on a par with the income from the shares.
4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of
of the dividends, being a resident in a Contracting State, carries on business in the
the other Contracting State in which the resident company paying
dividends, business activity through a permanent establishment,
that is placed there, or performs in that other State independent
the profession through a permanent base located there, and if the participation,
for which the dividends are paid is effectively connected to such permanent
establishment or that fixed base. In that case, shall apply
the provisions of article 7 or article 14, depending on what matters.
5. Where a company which is resident in 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, actually belongs to the permanent establishment
or a permanent base, which is located in that other State, nor
subject to the company's retained profits tax on retained profits, even
When dividends paid or the undistributed profits consists wholly or
partly of profits or income realised in that other State.
Article 11
Interest
1. interest arising in a Contracting State and paid to the person who
is resident in the other Contracting State, shall be taxed only in that
the other State, if the resident is the beneficial owner of the interest.
2. The term "interest" as used in this article means income from debt-claims
any kind, secured and not secured the right to
real estate or supplement about participation in the debtor's profits, and in particular income
from government securities and income from bonds or debentures, including premiums
and prizes associated with those securities, bonds or debentures and
also any other income, which includes income from rented
money under the law of the State in which their source, but does not include
any income which is treated as a dividend under article 10.
3. The provisions of paragraph 1 shall not apply if the beneficial owner
interest, which is resident in a Contracting State, carries on business in the other
the Contracting State in which the interest, business source
through a permanent establishment situated therein, or performs
in that other State independent of the profession through a permanent base
There are located 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, as the case.
4. If the amount of the interest, having regard to the debt, of which
they are paid, exceeds the due to the special relationship between the
the payer and the beneficial owner of interest or that one and the other with
a third party, the amount which would have been had given the real payer
owner, if it wasn't for such a relationship, the provisions of this
article just on this last-mentioned amount. Amount of payments, that it
exceeds, in this case may be taxed under the law of each
Contracting State and taking into consideration other provisions of this agreement.
Article 12
License fees
1. Royalties arising in a Contracting State paid to
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 recipient is the beneficial owner of the license
fees the tax so determined shall not exceed the 10% of the gross amount of the license
fees. The competent authorities of the Contracting States shall by mutual agreement
the mode of application of this limitation.
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 of literary, artistic or scientific
the piece (including cinematograph films, or films or tapes or any other
funds used for radio and television broadcasting), any
patent, trade mark, design or model, plan, secret formula
or manufacturing process or for the information, which apply to
experience gained in 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 in 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 independent profession of
a permanent base located there, and the right or property, which give
the emergence of royalty to actually attach to such permanent establishment
or a permanent base. In this case, the provisions of article 7
or article 14, depending on what matters.
5. It is assumed that the licence fees to arise in a Contracting State,
When the payer is that State itself, its administrative unit, a local authority
or a resident of that State. However, if the payer of royalties,
whether he is or is not a resident in a Contracting State, has in a Contracting
State a permanent establishment or a fixed base in connection with which it is established
the obligation to pay royalties, which are borne by a permanent establishment
or a permanent base, it is assumed that these license fees are
arise in the Contracting State in which the permanent establishment or a permanent
the base is located.
6. If the amount of the license fees that are related to the use,
right or information for which they are paid, exceeds the due
the special relationship between the payer and the beneficial owner or
that one and the other keeps with the third party, the amount which would have been
the payer is the beneficial owner had given, if it wasn't for such relationships,
the provisions of this article shall apply only to the latter
amount. The amount of the salaries that it exceeds, in this case, will be subject to
taxation according to the laws of each Contracting State, taking into account
to other provisions of this agreement.
Article 13
Gains from the alienation of property
1. the Profits that accrue to a resident of a Contracting State from the alienation of
immovable property referred to in article 6, which is located on the second
a Contracting State may be taxed in that other State.
2. Gains from the alienation of shares or participation rights in the company, other
a legal person or a personal company, whose property it consists mainly
of immovable property or rights to such property that is located
in a Contracting State, or of shares in the company, whose property
It consists mainly of immovable property or rights to such property,
that is located in a Contracting State, may be taxed in the State in
in which the immovable property is located, if under the law of this
the State shall be subject to such profits the same tax rules as the gains from the
the alienation of immovable property.
3. Profits other than those referred to in paragraph 2 of this article from the alienation
movable property that is part of the business property of a permanent establishment,
which an enterprise of a Contracting State in the other Contracting State, or
movable property belonging to the permanent base of the resident
of a Contracting State has in the other Contracting State for the performance of independent
profession, including such gains from the alienation of such a permanent achieved
establishment (alone or together with the whole enterprise) or of such a fixed
base, may be taxed in that other State.
4. Gains from the alienation of ships or aircraft operated in international
transport or movable property, that serves the operation of such ships or
aircraft, shall be taxable only in the Contracting State in which it is located
the effective centre of management.
5. Gains from the alienation of any property, other than that referred to in
the preceding paragraphs of this article, shall be taxable only in the
the Contracting State in which the alienator is a resident.
Article 14
An independent profession
1. Income derived by a resident of a Contracting State receives from the free
the profession or other independent activities of a similar character shall be subject to
taxable only in that State except in the following cases, when they can be
the income taxed in the other Contracting State:
and) if the fixed base regularly available in the other
a Contracting State for the purpose of conducting its activities; in this case,
just a portion of the revenue that is attributable to that fixed base may
be taxed in that other State; or
b) if his stay in the other State for a period or multiple periods
exceeds 183 days in the aggregate in any 12-month period in
the fiscal year of that other State; in this case, the only
that portion of the income arising from its activities carried out in this
the other State, may be taxed in that other State.
2. The expression "liberal profession" includes especially independent activity
scientific, literary, artistic, educational or teaching, as well as
separate the activities of physicians, lawyers, engineers, architects, dentists and
accounting.
Article 15
Employment
1. a salaries, wages and other similar remuneration derived by a resident of a Contracting
the State is receiving due to employment, shall, subject to the provisions of
articles 16, 18, 19 and 21 of the taxable only in that State unless the employment is not
exercised in the other Contracting State. If there is a job to be exercised,
Rewards can be received for them taxed in that other State.
2. remuneration which a resident of a Contracting State is receiving because of the
employment exercised in the other Contracting State, shall be subject to whatever
the provisions of paragraph 1, taxable only in the first-mentioned State, if:
and the recipient is resident in) other State for a period or multiple periods
shall not exceed in the aggregate 183 days in the tax year of the second
State, 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) a permanent establishment or a fixed base, which has
employer in the other State.
3. Notwithstanding the preceding provisions of this article may be rewards
received from employment exercised aboard a ship or aircraft in
international transport taxed in the Contracting State in which the registered office is located
effective management of the enterprise.
Article 16
Royalties
Directors ' fees and other similar payments to a resident of a Contracting State
he receives as a member of the management board or other similar body of a company,
which is resident in the other Contracting State, may be taxed in that
the second 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
an 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 income from the activities carried out by the artist in person or
athlete accrues not to that artist or athlete himself, but other
the person may be those revenues regardless of the provisions of articles 7, 14 and 15
taxed in the Contracting State in which an artist or an athlete performs
their activity.
Article 18
Pensions and annuities
1. Pensions and other similar salaries paid by reason of past employment
a resident of a Contracting State and any annuity paid to this
a resident of the subject, taking into account the provisions of article 19, paragraph 2. 2
tax only in that State.
2. the term "annuity" means a set amount paid repeatedly in
the time limits for life or during a specified or
discovery of a time period based on the obligation to pay in return for
matching and full payment in cash or Money Express.
Article 19
Public function
1.
and, other than) the remuneration, pension paid by one Contracting State or
administrative unit or a local authority thereof to an individual in
services rendered to that State or an administrative subdivision or a local
authority in the exercise of the functions of governmental nature shall be taxable only in that
State.
(b) However, Such remuneration) are subject to taxation only in the other Contracting State,
If the services are rendered in that State and the individual 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 sole purpose of providing
These services.
2.
and Pensions paid by) either directly or from the funds, which has set up a
Contracting State, an administrative department or local authority of that State, of a natural
person for services rendered to that State, an administrative subdivision or a local
the Office in the performance of functions of a governmental nature 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 remuneration and pensions for services
proven in the context of business activities carried out by some
Contracting State, an administrative department or local authority of that State.
Article 20
Students
Salaries that a student or an apprentice who is or was immediately before the
his arrival in a Contracting State a resident of the other Contracting
State and who is present in the first-mentioned State solely for the purpose of study
or training, to cover the costs of nutrition, study or training,
will not be taxed in that State provided that such salaries are
paid from sources outside that State.
Article 21
Professors and teachers
1. A professor or teacher who visits one of the States parties to the
a period not exceeding two years solely for the purpose of teaching or performing
Advanced Studies (including research) at the University, high school or
other recognised research institution or facilities for higher education in the
This Contracting State, and which was, immediately before such visit
a resident of the other Contracting State, it will be exempt from taxation in the first-
the said Contracting State of rewards for such teaching or research for a period of
not exceeding two years from the date when that Contracting State visits for the first time
for such a purpose. A natural person shall be entitled to the benefits under this
the article only once.
2. the preceding provisions of this article shall not apply to remuneration, which
a professor or teacher receives for carrying out research, if such a
research is conducted primarily for the private benefit of a specific person or
persons.
Article 22
Other income
1. Part of the income of a person who is resident in a Contracting State, whether
have a source anywhere, which are not dealt with in the foregoing articles
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 beneficial owner of such income, being a resident in a
a Contracting State, carries on industrial or commercial activities in the second
Contracting State through a permanent establishment located there or
performs in that other State independent of the profession of a permanent base there
placed and if the right or property in respect of which the income
, are actually connected with such permanent establishment or a permanent
the base. In such a case, the provisions of article 7 or article
14, depending on what matters.
Article 23
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 exercise an independent profession, may be taxed in that other
State.
3. Capital represented by ships and aircraft, which are used in
international traffic and movable property associated with the operation of
such ships and aircraft shall be subject to taxation only in the Contracting State in
where is located the actual management of the undertaking.
4. All other elements of property of a resident of a Contracting State shall be subject to
tax only in that State.
Article 24
Elimination of double taxation
1. Taking into account the provisions of the legislation of Ireland governing
credit for the tax paid on duty outside of Ireland in Ireland (which are
do not affect the overall meaning of the Treaty):
and United will be duty paid) on the basis of the legislation of the Czech Republic
and in accordance with this agreement, whether directly or by deduction, on profits, income
or the taxable income from sources in the Czech Republic (with the exception of the
If the dividend tax paid on profits from which are paid
dividends) included on the Irish tax attributable to the same profits, income
or taxable income, of which Czech tax was calculated;
(b) in the case of dividends paid by) a company which is a resident of the
The Czech Republic, a company which is resident in Ireland and who
controls directly or indirectly at least 10% of the voting shares of the
the company paying the dividends, the tax credits (in addition to Czech,
which can be included under the provisions of subparagraph (a)) of this paragraph)
in consideration of the Czech tax paid from the profits of companies, which
dividends are paid.
2. in the case of a resident of the United Kingdom, double taxation will be avoided
as follows: Czech Republic may, when depositing taxes its residents
include in the basis upon which such taxes are saved, part of the income
or property that may be subject to the provisions of this agreement also
taxed in Ireland, however, allows to reduce the amount of tax calculated from such
an amount equal to the tax paid in Ireland. The amount by which
the tax to be reduced, however, shall not exceed such a part of Czech taxes calculated before
the reduction, which rather falls on income or assets that
may be taxed in accordance with the provisions of this Treaty in Ireland.
3. for the purposes of paragraphs 1 and 2 of this article shall be deemed to be the profits,
revenue, profits from the assets and property owned by a resident of a
the Contracting State which may be taxed in the other Contracting State in
accordance with this agreement, have a source in that other Contracting State.
4. If, in accordance with the provisions of this agreement, the income received by the
or property owned by a resident of a Contracting State shall be exempt from taxation
in this State, that State shall, when the rest of the income tax calculation or
the property of such resident, take into account the exempted income or
asset.
5. If the income or profits wholly or partially exempt under
any provision of this Treaty from taxation in one Contracting State and
natural person under the applicable law in the other Contracting State shall be subject to
taxation of income or profit from the above that, taking into account the amount of such
income or profits, that is remitted to the second State or is in the
It accepted, and not taking into account the total amount of this income
or profits, then the tax exemption under this Treaty in the first
mentioned State shall apply only to that part of the income or profits poukazovanou
to another State or to be accepted.
6. If, after the signature of this contract will provide relief from the Czech Republic
taxation of dividends between companies, it shall notify without delay to the Ireland and
the entry negotiations in order to lay down new provisions for the granting of credit
the tax on dividends is allowed by the Czech Republic.
Article 25
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 the same circumstances. This provision shall, notwithstanding the
the provisions of article 1, also apply to persons who are not residents
one or both of the Contracting States.
2. the taxation on a permanent establishment which an enterprise of a Contracting State has in the
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 personal credits, discounts and
the tax reduction because of the status or family obligations, which
It grants to its own residents.
3. If you do not apply the provisions of article 9, paragraph 1. 1, article 11
paragraph. 4 and article 12 paragraph 1. 5, interest, royalties and other
expenses paid by the enterprise of a Contracting State to a person who is
a resident of the other Contracting State, the deductible for purposes of determining
taxable profits of this business under the same conditions as if they were
paid to a person who is a resident of the first-mentioned State. Similarly,
any debts of the enterprise of a Contracting State to a resident of the other
a Contracting State shall, for the purposes of determining the taxable property of such
the company deductible 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,
that are resident in 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.
Article 26
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 agreement, he may, irrespective of the remedies
that provides the national law of those States, present your case
the competent authority of the Contracting State of which he is a resident or, if the
the case falls under article 25, paragraph 2. 1, the Office of the Contracting State of which he is
citizen. The case must be presented within three years from the first
notification of the measure, which leads to taxation, which is not in accordance with the
the provisions of this agreement.
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 decided by agreement with the competent authority of the other Contracting State,
in order to avoid taxation which is not in conformity with this agreement. Each
the agreement reached will be implemented notwithstanding any time limits
contained in the national legislation of the Contracting States.
3. the competent authorities of the Contracting States shall endeavour to resolve by agreement
problems or concerns that may arise in the interpretation or
the application of this agreement.
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.
Article 27
The exchange of information
1. the competent authorities of the Contracting States shall exchange the information necessary
for the application 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
information thus exchanged shall be kept secret in the same manner as
the information obtained under the domestic laws of that State and shall be
disclosed only to persons or authorities (including courts and administrative authorities),
dealing with the charge of the assessment or collection of the taxes covered by the
the agreement, criminal prosecution in case of such taxes or making decisions about
the appeals. Such persons or authorities shall use such information only for
these purposes. They may disclose the information in public court
in legal proceedings or decisions.
2. The provisions of paragraph 1 shall not be in any way interpreted as
store a Contracting State the obligation:
and management measures) to conduct that would violate the law or
the administrative practice of that or of the other Contracting State;
(b)) to divulge information that could not be obtained on the basis of the legal
regulations or in a normal administrative procedure of this or of the other Contracting
State;
(c)) to divulge information which would reveal the commercial, corporate, industrial,
commercial or professional secret or trade process, or information,
the disclosure of which would be contrary to public policy (ordre public).
Article 28
Diplomats and consular officials
Nothing in this Agreement shall affect the fiscal privileges that pertain
diplomats or consular officials under the General rules of
of international law or under the provisions of special agreements.
Article 29
Entry into force
The Contracting States shall notify each other in writing through diplomatic channels that were
procedures required by their legal systems, to enter this agreement
into force. This agreement shall enter into force on the date of the later of the notification and
It will apply:
(a) in Ireland:
(i) in respect of income tax and tax on profits from the assets, on each tax
year starting 6. April or later in the year following the date on
which the Agreement enters into force;
(ii) in respect of tax companies for each financial year starting 1.
January or later in the year following the year in which the contract enters
entry into force;
(b) in the Czech Republic:
(i) the tax withheld at source, to amounts received for 1. January
or later in the calendar year following the year in which the Treaty
entry 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
the calendar year following the year in which the contract enters
force.
Article 30
Notice of termination
This agreement shall remain in force until denounced by one
Contracting State. Each State party may terminate the contract at any time after
five years from the date when the Treaty entered into force, provided
at least six months ' written certificate has been given through diplomatic channels. In
this case the Treaty cease to apply:
(a) in Ireland:
(i) in respect of income tax and tax on profits from the assets, on each tax
year starting 6. April or later in the year following the date on
which the period laid down in the said nótě;
(ii) in respect of tax companies for each financial year starting 1.
January or later in the year following the date on which the period expires
in that nótě;
(b) in the Czech Republic:
(i) in respect of taxes withheld at source, on income 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, to receive and
property tax for each tax year starting on 1 July. January or later
calendar year following the year in which the notice of termination has been given.
In witness whereof, the duly authorised thereto, have signed this agreement.
Given in duplicate in Prague on 14. November 1995 in Czech and
the English language, both texts being equally authentic.
For the Czech Republic:
Ivan Kočárník, in r.
Deputy Prime Minister and Minister of finance
For Ireland:
Marie Cross in r.
emergency and authorized Ambassador
