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.
