The Treaty Between The Czechoslovak Socialist Republic And Sweden On The Avoidance Of Double Taxation Of Income

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

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Read the untranslated law here: https://portal.gov.cz/app/zakony/download?idBiblio=34812&nr=9~2F1981~20Sb.&ft=txt

9/1981 Sb.



DECREE



Minister of Foreign Affairs



of 5 April 2004. November 1980



the Treaty between the Czechoslovak Socialist Republic and the Swedish

Kingdom on avoidance of double taxation with respect to taxes on income and

property



16 December 2002. February 1979 in Prague was signed the Treaty between the Czechoslovak

Socialist Republic of Romania and the Kingdom of Sweden to avoid double

taxation 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.

The instruments of ratification were exchanged in Stockholm on 8 June 1998. October 1980.



Treaty has entered into force pursuant to its article 28, the date of 8 October 1980.



English translation of the text of the Treaty shall be designated at the same time.



Minister:



Ing. Chňoupek v.r.



CONTRACT



between the Czechoslovak Socialist Republic and the Kingdom of Sweden on the

avoidance of double taxation with respect to taxes on income and on capital



The Czechoslovak Socialist Republic and the Kingdom of Sweden,



Desiring to conclude an agreement on avoidance of double taxation with respect to taxes of

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.



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

the benefit of each Contracting State, its sub-national bodies, or

local authorities, irrespective of the method of selecting any.



2 for taxes on income and on capital all taxes shall be levied on

the total income of all assets or income of the individual parts

or of capital, including taxes on gains derived from the alienation of movable

or immovable property, taxes on the total volume of wages paid by undertakings

and taxes on the increment value.



3 at the same time the tax to which the contract relates, are



a) Czechoslovakia:



(i) from profit and profit tax,



(ii) the payroll tax,



(iii) the income tax on the literary and artistic activities,



(iv) agricultural tax



(v) income tax the population,



(vi) domestic tax and



(vii) discharge of Fortune



(hereinafter referred to as "Czechoslovak tax");



(b)) in Sweden:



(i) the State income tax, including tax and tax voucher, the seafarers '



(ii) the tax on retained earnings of the company and split profits tax

reduction of share capital or dissolution of the company,



(iii) the tax on performing artists,



(iv) the local income tax and



(v) the State property tax



(hereinafter referred to as "Swedish tax").



(4) the agreement shall also apply to any identical or substantially

similar taxes that are imposed after the signature of this agreement, in addition to

current taxes or instead of them. The competent authorities of the Contracting States

will report all significant changes that will be made in their

the relevant tax laws.



Article 3



General definitions



1 in this agreement, unless the context requires a different interpretation:



and) the term "Czechoslovakia" indicates the Czechoslovak Socialist

Republic.



(b)), the term "Sweden" means the Kingdom of Sweden and the includes any

the area outside the territorial waters of Sweden, above which can be

Swedish laws and in accordance with international law, exercised

Sweden relating to research and the mining of natural resources on the sea

the bottom or below the seabed.



(c)) the terms "a Contracting State" and "the other Contracting State"

Czechoslovakia or Sweden, as the context requires.



(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 considered as the legal entity for tax purposes.



(f)) the terms "enterprise of a Contracting State" and "enterprise of the other Contracting

State "for enterprise carried on by a person residing or established in

one State party, where appropriate, the enterprise carried on by a person having

resident or established in 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 and Association, set up by the

According to the law in force in a Contracting State.



h) the term "international traffic" means any transport carried out by

boat or plane, which is operated by an undertaking whose real

the management is located in a Contracting State, if the ship or plane

they are not only used between points lying in the other Contracting State.



I) the term "competent authority" means:



(i) in the case of Czechoslovakia, the Czechoslovak Minister of finance

the Socialist Republic or his authorized representative;



(ii) in the case of Sweden, the Minister of the budget or his authorized representative.



2 each expression that is not defined in the Treaty, has for its application

Contracting State, meaning that it has under the law of that Contracting

State governing the taxes which are the subject of this agreement, if the

the link does not require a different interpretation.



Article 4



Tax residence



1 the expression "person residing or established in a Contracting State"

indicates that for the purposes of this agreement, any person who, under the law

This State is subjected to taxation in that State by reason of his residence,

residence, place of management or any other similar criteria.



2 If the individual has a place of residence pursuant to the provisions of paragraph 1, in both

Contracting States, its position will be determined as follows:



and) that this person is resident in that Contracting State in

which he has a permanent home. If he has a permanent home in both Contracting States,

It is assumed that he is resident in that Contracting State with which the

personal and economic ties the closest (Centre of vital interests).



(b)) cannot be determined by the Contracting State in which he has his Centre

their vital interests, or does not have a permanent home in any Contracting State,

It is assumed that he is resident in the Contracting State in which the

usually resides.



(c)) If this person usually resides in either of the Contracting States,

or if it is not present in any of them, it is assumed that it has

resident in the Contracting State of which he is a citizen.



d) if that person is a national of both Contracting States or

If he is not a citizen of any of them, the competent authorities of the Contracting

States shall by mutual agreement.



3 If a person other than a natural person has under the provisions of paragraph 1,

based in both Contracting States, it is assumed that has its registered office in the

the Contracting State in which the place of effective management.



Article 5



Permanent establishment



1 the term "permanent establishment" for the purposes of this Treaty indicates the Permanent

equipment for the business, in which the company carries out all or part of your

activity.



2 the term "permanent establishment" includes especially:



and instead of keeping),



(b)) race,



(c)),



d) factory



e) workshop,



f) mine, a quarry, or any other place of extraction of natural resources,



g) a building site or Assembly, which last more than twelve months.



3 the term "permanent establishment" shall not include:



and) device that is used for storage, display or delivery

of the goods of an undertaking,



(b)) the supply of goods to the enterprise solely for the purpose of storage,

display or delivery,



(c)) the supply of goods to the enterprise solely for the purpose of processing

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 is solely for the purpose

advertising, information, scientific research or similar

activities for the company, which have a preparatory or auxiliary character,



(f) by undertaking a) Assembly of the State in connection with the delivery of

machines or devices in this State to the other Contracting State.



4 a person acting in a Contracting State by an enterprise of the other Contracting

State-other than the representative with independent status, which is

paragraph 5-is considered to be a permanent establishment in the first Member State if the

It is in this State, equipped with power of Attorney, which there usually is used and

that allows her to enter into contracts on behalf of the enterprise, unless the activities of the

the person is not restricted to purchases of goods for the company.



5 for the permanent establishment of an enterprise of a Contracting State has in the other

a Contracting State does not consider the mere fact that the undertaking in this second

the State carries on business through a broker, General

the Commissioner or any other representative of having independent

position, if such persons are acting in the ordinary course of their business

activity.



6 the fact that a company which has its head office in one Contracting State

controlled by the company or is controlled by a company which has its head office in the second

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 income from immovable property including income from agricultural or

forestry may be taxed in the Contracting State in which the

such property is located.



2




and) the term "immovable property" shall, subject to the provisions of paragraphs (b) and (c)))

in conformity with the law defines this Contracting State in which such

the property is located.



(b)), the term "immovable property" includes in any case accessories

immovable property, alive and dead inventory of agricultural and forest

the economy, the rights to which they apply the provisions of the civil law

relating to immovable property, the enjoyment of immovable property and rights

the variable or fixed salaries for unfair advantage unfair advantage or the right to

mineral deposits, sources and other natural resources.



(c)) of the ship, 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

a liberal profession.



Article 7



The profits of enterprises



1 the profits of the 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 the enterprise of a Contracting State carries on business in the

the other Contracting State through a permanent establishment that is there

placed, attach, in each Contracting State such permanent establishment

the gains that could be expected to achieve, if only as a separate

the firm carried out the same or similar activities under the same or

similar conditions 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 of

spent on the objectives of the permanent establishment including expenses

management and general administrative expenses, whether incurred in this way

State in which the permanent establishment is situated or elsewhere.



4 if it is in a Contracting State to determine the profits to

be attributed to a permanent establishment on the basis of allocation of the total profit

the various parts of the company, does not preclude the provisions of paragraph 2, to this

Contracting State the profits to be taxed, in such a distribution,

What is normal. Taken by the method of distribution of profits must, however, be such as to

that result was in line with the principles laid down in this article.



5 permanent establishment nepřičtou no gains on the basis of 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, by the same method, if

There are serious and reasonable grounds for a different procedure.



7 if the gains include 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



Sea and air transport



1 Profits from the operation of ships or aircraft in international traffic shall be

taxable only in the Contracting State in which is situated the real leadership

of the business.



2 If the actual management of the operating of the international maritime

traffic is placed on board a ship, it is considered placed in a Contracting

State in which the ship's home port, or does not have a home

the port is considered located in the Contracting State in which the

operator of the ship residence or registered office.



3 on the profits earned by a consortium of Scandinavian Airlines ' air transport

(SAS) the provisions of paragraph 1 shall apply only to such part of the

profits, corresponding to the participation of that custom on this consortium joint-stock

company Aerotransport (ABA), which is the Swedish partner

Scandinavian Airlines (SAS).



4 the provisions of paragraph 1 shall also apply to profits from the participation of enterprises

of the Contracting States on the joint operation of the pool, or on the international

the operational organization.



Article 9



Associated enterprises



1 if the



and the company) of a Contracting State participates directly or indirectly in the

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 one and in the second case were made between the two enterprises in the

their commercial or financial relations agreed upon or stored

conditions which differ from those which would have been agreed upon between the

businesses are independent, they may be from the profits of this business incorporated and

as a result, taxed profits, which would be without these conditions

accrued to one of the businesses, which, however, due to the following conditions

have not been achieved.



Article 10



Dividends



1 Dividend paid by a company which has its head office in one Contracting

State the person residing or established in the other Contracting State, may

be taxed in that other State.



2 However, Such dividends may be taxed in the Contracting State in which the

registered office of the company, which is paid according to the law of that State. Tax

so charged shall not exceed 10% of the gross amount of the dividends.



3 the Contracting State in which the registered office of the company, regardless of nezdaní

the provisions of paragraph 2, dividends paid by the company

a company whose capital is wholly or partly divided into shares and

which is situated in the other Contracting State and owns directly at least 25%

capital of the company paying the dividends.



4 the competent authorities of the Contracting States shall by mutual agreement settle the mode

the application of paragraphs 2 and 3.



5 the provisions of paragraphs 2 and 3 shall reach the taxation of profits of the company, from the

which the dividends are paid.



6 the term "dividends" as used in this article, means income deriving from

shares or other rights, unless the claims associated with the participation of

the profit, as well as income from other rights which are

subjected to the same taxation as income from shares under the tax legislation

State in which the registered office of the company paying the dividends.



7 Dividends paid by a company which has its head office in one Contracting

the State company, which is based in the other Contracting State, without

Notwithstanding the provisions of paragraph 1 shall exempt from taxation in that other

State in such an extent that they would be exempted from taxation of dividends

According to the laws of that State, if both companies had registered office

in this State.



8 the provisions of paragraphs 1, 2 and 3 shall not apply if the recipient of the

dividends, residing or established in a Contracting State, carries on business in the

the other Contracting State in which the registered office of the company paying the

dividends, industrial or commercial activity through a fixed

the establishment, which is located there, or performs in that other State

the liberal professions, with a permanent base located there, and if

ownership of the shares on which the dividends are paid is effectively

connected with such permanent establishment or fixed base. In such a

If the provisions of article 7 or article 14, depending on

What matters.



9 If a company having its registered office in one Contracting State is achieved

profits or income from the other Contracting State, that other State

tax the dividends paid by the company to persons who do not have

residence or head office in that other State, nor subject the undistributed profits

the company's retained profits tax, even if the dividends paid or

retained profits are made up wholly or partly of profits or income,

that come from this other State.



Article 11



Interest



1 Interest arising in a Contracting State and paid to the person having

resident or established in the other Contracting State shall be taxable only in the

that other State.



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, providing and not provide the right to participate in profits

of the debtor and especially the revenue from public bonds and bonds, including

premiums and prizes related to those securities.



3 the provisions of paragraph 1 shall not apply if the recipient of the interest that has

residence or head office in a Contracting State, carries on business in the other Contracting

State in which they have interest source, industrial or commercial activity

through a permanent establishment situated therein, or performs

in that other State independent profession with a permanent base there

placed and if the claim from which the interest is paid,

associated with such permanent establishment or fixed base. In

such a case, the provisions of article 7 or article 14, as

of this, about what matters.



4 If the amount of the interest paid, having regard to the debt,

of which they are paid, exceeds as a result of special relationship

existing between the payer and the recipient or between both of them and a third party

the amount you would have been had given the payer with the recipient, if it wasn't for such

relations, the provisions of this article shall apply only to the last

amount. Part of the interest that it exceeds, in this case will be subjected to


taxation according to the laws of each Contracting State, taking into account

to other provisions of this agreement.



Article 12



License fees



1 royalties arising in a Contracting State and paid

a person who is resident or established in the other Contracting State, may be

taxed in that other State.



2 However, Such royalties may be taxed in the Contracting State in

where is their source, according to the laws of that State. Tax

so charged shall not exceed 5% of the gross amount of the royalties.



3 royalties arising from copyright to works of literature,

artistic or scientific subject, notwithstanding the provisions of paragraphs 1 and

2 taxable only in the Contracting State in which the recipient of such

license fees, residence or registered office.



4 the term "license fees" used in this article means salaries

of any kind received in return for the use of, or the right to use

any patent, trade mark, design or model, plan, secret

a formula or process, or industrial, commercial or scientific

the device, or for the information, that pertains to the experience of

industrial, commercial or scientific, and any copyright in the work

literary, artistic or scientific including cinematograph films

and films or tapes for television or radio broadcasting.



5 the provisions of paragraphs 1, 2 and 3 shall not apply if the recipient of the

royalties, residing or established in a contractual 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

the liberal professions, with a permanent base located there, and if the right

or property in respect of which royalties are paid,

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.



6 it is assumed that the licence fees have a source in a Contracting

State when the payer is that Contracting State itself, a lower administrative department

or local authority of that Contracting State or a person residing or

head offices in that Contracting State. If, however, the person paying the license

fees, either has or does not have a domicile or registered office in a Contracting State,

has in a Contracting State a permanent establishment in connection with which arose

the obligation to pay royalties, and this shall be borne by the permanent establishment to its

borne by these license fees, it is assumed that these license fees

to arise in the Contracting State in which the permanent establishment is

located.



7 if the amount of the royalties paid, having regard

to the use, right or information for which they are paid, exceeds in

due to the special relationship between the payer and the recipient or

between the two, and the third person the amount you would have been had given the payer with the

the recipient, if it wasn't for such relationship, the provisions of this

article just on this last amount. Part of the salaries that it exceeds the

in this case, subject to taxation in accordance with the legislation of each

a Contracting State with regard to the other provisions of this Treaty.



Article 13



Gains from the alienation of property



1, gains from the alienation of immovable property, whose definition is shown in

Article 6, paragraph 2, or from the alienation of shares or similar rights on the

the company, whose Fortune consists mainly of immovable property may

be taxed in the Contracting State in which such real estate

located.



2-gains from the alienation of movable property forming part of the business property of a

of a permanent establishment which an enterprise of a Contracting State has in the other

Contracting State or of movable property owned by a permanent base,

which a person resident in a Contracting State has in the other

a Contracting State for the exercise of a liberal profession, including gains from the alienation

such a permanent establishment (alone or together with the whole enterprise) or

such permanent base, may be taxed in that other State. However,

gains from the alienation of movable property as referred to in article 22, paragraph 3

shall be taxable only in the Contracting State in which such movable

the property is subject to taxation under the said article.



3-gains from the alienation of assets other than those which are

dealt with in paragraphs 1 and 2, shall be taxable only in the Contracting State,

in which the transferor has a domicile or registered office.



Article 14



An independent profession



1 the income that a person resident in a Contracting State receives for

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, if the

This person does not regularly available in the other Contracting State a permanent

the basis for the performance of its activities. If it has such a fixed base,

such income may be taxed in the other Contracting State but only to the

to the extent that is attributable to that fixed base.



2 the expression "liberal profession" includes especially independent activity

scientific, literary, artistic, educational or teaching, and independent

the activities of physicians, lawyers, engineers, architects, dentists and accountants.



Article 15



Dependent employment



1 wages, salaries and other similar remuneration derived by a person resident in

a Contracting State receives from employment, shall, subject to

the provisions of article 16, 18 and 19 of the taxable only in that State, if the

employment is exercised in the other Contracting State. If there is

employment exercised, can be the rewards received from this job

taxed in that other State.



2 the rewards that a person resident in one Contracting State is receiving from the

employment exercised in the other Contracting State, shall be subject to whatever

the provisions of paragraph 1, taxable only in the first State, if:



and the recipient is resident in) the other State during one or more periods,

that whole does not exceed 183 days in the calendar year, and



(b) the rewards are paid by the employer) or on account of the employer,

that does not have a domicile or registered office in 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 Remuneration from employment exercised aboard a ship or aircraft in

international transport may be notwithstanding the previous provisions of the

This article be taxed in the Contracting State in which is located the actual

management of the undertaking. If a person resident in Sweden is receiving rewards

of employment exercised aboard an aircraft used in international

transport Consortium, Scandinavian Airlines, air services (SAS)

such rewards are subject to taxation only in Sweden.



Article 16



Royalties



Royalties and similar salaries that a person residing in a Contracting

State receives as a member of the administrative or Supervisory Board of a company that has

established in the other Contracting State, may be taxed in that other State.



Article 17



Artists and athletes



1 Income, drawing artists, such as. Theatre, film,

radio or television artists, musicians and athletes from your personal

activities may be, notwithstanding the provisions of articles 14 and 15 of the taxed in the

the Contracting State in which these activities are exercised.



2 If the revenue from the personal activities of an artist or an athlete won't go

This artist or athlete himself but to another person, they can be

income, regardless of the provisions of articles 7, 14 and 15 are taxed in a Contracting

State in which the activities of the artist or athlete are exercised.



3 income from the activities referred to in paragraph 1, carried out under the

cultural exchange between the Contracting States, irrespective of the provisions of the

paragraphs 1 and 2 shall be exempt from tax in the Contracting State in which they are

These activities are carried out.



Article 18



Government services



1



a) Salaries, other than a pension, paid by a Contracting State, any of its

a political subdivision or local authority of a natural person for services

proven that State, an administrative subdivision or local authority shall be subject to

tax only in that State.



(b) However, Such salaries) shall be taxable only in the other Contracting State,

If the services were performed in this State, the recipient is resident in

the latter Contracting State, and



(i) is a citizen of that State, or



(ii) resident in that State only because of these services,

or



(iii) is not subjected to such salaries tax in the Contracting State of which the

these salaries are paid.



2



and pension paid by one) of any Contracting State, its lower

Administrative Department or local authority, or paid from funds that

set up the physical person for services rendered to that State, 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 recipient is a citizen of that State and is in that State

residence.



3 the provisions of articles 15, 16 and 18 shall apply to remuneration and pensions for services

established in conjunction with the industrial or commercial activities carried out by


Contracting State, a political subdivision or a local authority.



Article 19



Board



Pensions and other similar remuneration poukazované a person who is resident in

a Contracting State shall, subject to the provisions of article 18 of the

paragraph 2 of taxation only in the State from which they come.



Article 20



Learners



1 the student or apprentice who is present in a Contracting State only

for the purpose of his education or practice that has, or immediately before

his stay in that State were resident in the other Contracting State, it will be

in the first State shall be exempt from the tax on the salary that he receives on his

nutrition, education, or practice, when such salaries are paid from the

sources outside the first State.



2 Students at the University, or other educational institution in one

a Contracting State that during a temporary stay in the other Contracting State

he pursued a job in that other State for a period not exceeding 100

days in a calendar year, in order to gain practical experience related to

his studies will be in that other State, be taxed only from such

part of the employment income that exceeds the amount of 1500 SEK in the

calendar month or consideration in the Czechoslovak currency. Tax

the exemption granted under this paragraph shall not exceed the total

amount of SEK 4500 or consideration in the Czechoslovak currency.

Any amount exempted under this paragraph shall include

personal tax credits for the calendar year.



Article 21



Other income



Income of persons resident or established in a Contracting State, that

are not expressly mentioned in the foregoing articles of this Convention,

shall be taxable only in that State.



Article 22



Property



1 the immovable property within the meaning of article 6, paragraph 2, may be taxed in the

the Contracting State in which it 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 that is

used to exercise the profession, may be taxed in the Contracting

State in which the permanent establishment is situated, or a permanent base.



3 the ship or aircraft used in international traffic and movable property

for the operation of such ships and aircraft shall be taxable only in the

the Contracting State in which the actual management of the undertaking is located.



4 all other parts of the assets of persons who are resident or established in

any Contracting State shall be taxable only in that State.



Article 23



Elimination of double taxation



1 in Czechoslovakia with the double taxation eliminates this way:



a) if the person residing or established in Czechoslovakia he receives

income or assets that may be subject to the provisions of this

the contract taxed in Sweden, Czechoslovakia, subject to the provisions

referred to in (b)) of this paragraph, such income or such

assets from taxation. In the calculation of the tax on other income or assets

This person, however, can use the tax rate that would apply if the

exempt income or property were not exempt from taxation in this way.



b) Czechoslovakia may, when depositing taxes for persons who are

the territory of residence or registered office, include in the taxable income, which can

be in accordance with the provisions of articles 10, 12, 16 and 17 of this agreement also taxed

in Sweden. Czechoslovakia, however, allows to reduce the amount of tax calculated from the

such a base an amount equal to the tax paid in Sweden.

The amount of the tax is to be reduced, however, such part shall not exceed

the Czechoslovak tax, calculated before tax reduction was

enabled that quite falls on the income that can be

the provisions of articles 10, 12, 16 and 17 of this agreement are taxed in Sweden.



2 in Sweden, double taxation shall be excluded in this way:



a) if the person residing or established in Sweden receives revenue

or own property that may be subject to the provisions of this agreement

taxed in Czechoslovakia, Sweden shall allow, subject to the provisions of

referred to in subparagraph (b)) of this paragraph and in article 10, paragraph 7:



(i) to reduce the tax on the income of that person an amount equal to the income tax

paid in Czechoslovakia;



(ii) reduce the property tax of that person an amount equal to the tax on

the property paid in Czechoslovakia.



The amount by which, in one or in the other case, the tax to be reduced, does not exceed

However, a portion of the income taxes or property taxes calculated before

than the tax reduction was enabled that quite falls under the circumstances

the case of the income or property which may be taxed in the

Czechoslovakia.



b) if the person residing or established in Sweden receives revenue

or own property subject to taxation in accordance with the provisions of this

the Treaty only in Czechoslovakia, Sweden may include such income

or assets in the tax base. Sweden, however, allows to reduce the income tax

or property tax on a portion of the income taxes or property taxes,

that quite falls under the circumstances of the case on the income accruing from

Czechoslovakia or on assets owned in Czechoslovakia.



Article 24



Prohibition of discrimination



1 members, of a Contracting State shall not be subjected in the other

Contracting 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 under the same circumstances, the members of this

the second Member State.



2 the taxation of a permanent establishment which an enterprise of a Contracting State has in the

the other Contracting State, that other State will not be the most favourable than

taxation of enterprises of that other State carrying out the same activity.



This provision shall not be construed as an obligation of a Contracting State,

to admit persons, resident in the other Contracting State personal

deductions, credits and tax reductions because of the status or duties to the

the family, which it grants to persons residing on its territory.



3 interest, royalties and other expenses paid by the undertaking of one

Contracting State in person residing or established in the other Contracting State

will be subject to the provisions of article 9, article 11, paragraph 4, or article

12 paragraph 7 deductible for purposes of determining taxable profits

of the undertaking under the same terms as would have been payable to the person

residing or established in the first Member State.



Similarly, the debts of an enterprise of a Contracting State against a person having

resident or established in the other Contracting State shall be deductible for the purposes of

the determination of the taxable assets of the undertaking, as would result from

contractual obligation against a person residing or established in the first Member State.



4 Enterprises of a Contracting State, the capital of which is wholly or partly,

directly or indirectly owned or under the control of the person or persons

residing or established in the other Contracting State, shall not be subjected to the

the first Contracting State to any taxation or duties associated with him,

which is other or more burdensome than the taxation and connected requirements

which they are or may be subject to other similar businesses of this

the first State.



5 the term "taxation" means taxes in this article of any kind and

naming.



Article 25



Resolving cases by agreement



1 if a person residing or established in a Contracting State

considers that the action taken by one or both of the Contracting States shall have the

or will result in taxation for it, which is not in accordance with this

Agreement may independently of the remedies available under national

the law of those States, present his case to the competent authority of a Contracting

the State in which he resides or is established.



2 the competent authority will try to make the case decided by mutual agreement with the

the competent authority of the other Contracting State for the purpose of exclusion of taxation,

that is not in conformity with this agreement, will be considered if an objection

justified and if it is not itself able to arrive at a satisfactory solution.



3. the competent authorities of the Contracting States shall endeavour to decide by mutual

the agreement difficulties or concerns that may arise in the interpretation or

the application of this agreement. They can also consult for the purpose of exclusion

double taxation in cases not covered by this agreement.



4 the competent authorities of the Contracting States may come in direct contact with a view to

the agreement in the sense of the preceding paragraphs. If an oral exchange of opinions

considers it desirable for the achievement of the agreement, such exchange may take place in

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 this agreement and the national laws of the Contracting States in

things taxes to which this agreement applies, if the taxation according to them

will be in accordance with this agreement. All the information thus exchanged will be

considered to be confidential and may be disclosed only to persons or authorities and courts

entrusted with the charge of the assessment, collection or recovery of taxes that are

the subject of this agreement, or criminal prosecution in the case of such taxes.



2 the provisions of paragraph 1 shall not be in any way interpreted as


store one of the Contracting States the obligation:



and) to perform administrative measures which derogate from the laws

or administrative practice of that or of the other Contracting State;



(b)) provide the information that could not be achieved on the basis of the law or in

the standard administrative procedure of this or the other Contracting State;



c) to supply information which would disclose 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 27



Diplomatic and consular officers



The provisions of this Agreement shall not affect the tax privileges that pertain

diplomatic and consular officials under the General rules of

of international law or under the provisions of special agreements.



Article 28



Entry into force of



1 this Agreement shall be ratified and the instruments of ratification shall be exchanged

in Stockholm as soon as possible.



2 the contract shall enter into force on the date of exchange of instruments of ratification and its

the provisions will apply to income earned 1. January 1 of the following

After a year in which the instruments of ratification have been exchanged, or later, and on the

the assets from which the tax assessment in the second calendar year

following the year in which the instruments of ratification have been exchanged or

at a later time.



3 Exchange of notes of 25. October 1962 between the Swedish Government and the Czechoslovak

the Government of the reciprocal exemption from taxes on profits from the implementation of the international

air transport to and from the property taxes will expire on the date

This agreement will become effective in accordance with the provisions of paragraph 2.



Article 29



Notice of termination



This agreement is concluded for an indefinite period. Each Contracting State it

However, it may be terminated by written notice through diplomatic channels was sent as an

the second Contracting State not later than 30 June 2005. June of each calendar year

After the expiry of a period of five years from the date when the Treaty comes into force.



In this case, the agreement shall not apply to income achieved by January 1,

following the year in which the notice is given, or later, and on the

the assets from which the tax assessment in the second calendar year,

that will be followed by the year in which the notice is given, or

at a later time.



On the evidence of this sign, who were duly authorised thereto, have signed the

This agreement and attached to her their seal.



Done at Prague on 16. February 1979 in duplicate, in the English

the language.



For the Czechoslovak Socialist Republic:



Dr. Dušan Spáčil v.r.



For the Kingdom of Sweden:



Sigge Lilliehöök v.r.