17/1985 Sb.
DECREE
Minister of Foreign Affairs
of 22 March. October 1984
the Treaty between the Czechoslovak Socialist Republic and the Italian
Republic on the avoidance of double taxation with respect to taxes on income and the prevention of
fiscal evasion
On 5 July 2004. May 1981 in Prague was signed the Treaty between the Czechoslovak
Socialist Republic and the Italian Republic on the avoidance of double
taxation with respect to taxes on income and the prevention of fiscal evasion.
With the Treaty, expressed its approval of the Federal Assembly of the Czechoslovak
the President of the Czechoslovak Socialist Republic and the Socialist
the Republic has ratified it. The instruments of ratification were exchanged in Rome on
June 26, 1984.
Treaty has entered into force, pursuant to article 29 on 26 February 2000. June
1984.
The Czech version of the Treaty shall be designated at the same time.
Minister:
Now in r.
CONTRACT
between the Czechoslovak Socialist Republic and the Italian Republic on the
avoidance of double taxation with respect to taxes on income and the prevention of fiscal
leakage
The Czechoslovak Socialist Republic and the Italian Republic,
Desiring to conclude an agreement on avoidance of double taxation with respect to taxes of
the reception and the prevention of fiscal evasion, have agreed on the following
provisions:
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 applies to income tax levied for the benefit of
each of the Contracting States, its lower subdivisions or territorial
corporations, whether it is any way to select.
2. the following shall be regarded as taxes on income tax, levied on income or parts of
of income, including taxes on profits from the alienation of movable or immovable
property, taxes on the total volume of wages paid and taxes on businesses
increment values.
3. Current taxes, to which the contract relates are:
a) Czechoslovakia:
1-extraction of profit and the profit tax;
2-the payroll tax;
3-income tax from the literary and artistic work;
4-agricultural tax;
5-income tax population;
6-House tax
including any deduction at source, any advances or payments in advance on
tax referred to above (hereinafter referred to as "Czechoslovak tax);
(b)) in Italy:
1-personal income tax (imposta sul reddito, l ' delle persone
fisiche);
2-corporate income tax (imposta sul reddito, l ' delle persone
giuridiche);
3-local income tax (imposta locale l ' sui redditi), even though these
taxes collected by deduction at source (hereinafter referred to as "Italian tax").
4. This agreement shall also apply to the same or a similar kind of tax,
which are levied after the signature of this agreement, in addition to the current taxes or
instead of them. The competent authorities of the Contracting States shall notify each other of significant
the changes that will be made in their respective taxation laws.
Article 3
General definitions
1. For the purposes of this agreement, unless the context requires a different interpretation:
and) the term "Czechoslovakia" indicates the Czechoslovak Socialist
Republic;
(b)), the term "Italy" refers to the Italian Republic;
(c)) the terms "a Contracting State" and "the other Contracting State" mean respectively according to the
the case of Czechoslovakia, or Italy;
(d)) the term "person" includes natural persons, companies and any other
an Association of persons;
(e)) the term "company" means a legal entity or of the rightholder,
considered for the purposes of taxation for legal persons;
(f)) the terms "enterprise of a Contracting State" and "enterprise of the other Contracting
State "means the 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 "international traffic" means any transport carried out by
boat or plane, which is operated by an undertaking whose place of
effective management is located in a Contracting State if the boat or
the aircraft are operated only between places in the other Contracting State;
h) the term "nationals" means:
(i) all natural persons who are nationals of one of the
Contracting State,
(ii) all legal persons, partnerships and associations of persons,
that have been set up under the law in force in a Contracting State;
I) the term "competent authority" means:
(i) in the case of Italy, the Ministry of finance;
(ii) in the case of Czechoslovakia, the Czechoslovak Minister of finance
the Socialist Republic or by his authorised representative.
2. each expression that is not otherwise defined, the application of this
the contract to the Contracting State, meaning that it has under the law of that
the State, which regulates the taxes covered by this agreement, unless
the link does not require a different interpretation.
Article 4
Tax residence
1. The expression "person residing or established in a Contracting State"
indicates within the meaning of this agreement, any person who, under the law
This State is subjected to taxation in that State by reason of his residence,
permanent residence, place of management or any other
similar criteria. However, this term does not include persons who are
subject to taxation in that State only on income from sources in that State
located.
2. If a natural person has under the provisions of paragraph 1, the place of residence in the
both of the Contracting States, proceed 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 for which the
the closest personal and economic relations (Centre of vital interests).
(b)) if it cannot be determined, the Contracting State in which the person has
the Centre of their vital interests or if it does not have a permanent home in no
Contracting State, it is assumed that he is resident in that Contracting State in
which usually resides.
(c)) If this person usually resides in both Contracting States or
If it is not present in any of the usual ones, it is assumed that it has
resident in the Contracting State of which he is a citizen.
d) if that person is a resident of both Contracting States, State or
If the State is not a citizen of any of them, shall endeavour to take appropriate
authorities of the Contracting States to regulate the question 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
State in which the place of effective management.
Article 5
Permanent establishment
1. the term "permanent establishment" within the meaning of this Treaty indicates the Permanent
facilities for business, through which the undertaking in whole or
part of their activity.
2. the term "permanent establishment" includes especially:
and instead of keeping);
(b)) race;
(c));
(d) a factory;)
e) a workshop;
f) mine, a quarry or any other place of extraction of natural resources;
g) a building site or Assembly, if the duration is more than 12 months.
3. a permanent establishment will not be considered:
and) device that is used only for storage, display or
the delivery of goods or merchandise belonging to the enterprise;
(b) the supply of goods or merchandise belonging to the enterprise), which is solely for the purpose
storage, display or delivery;
(c) the supply of goods or merchandise belonging to the enterprise), which is solely for the purpose
the processing of another undertaking;
d) durable equipment for the business, which is used only for the purpose of
purchase of goods, or collecting information for the enterprise;
e) durable equipment for the business, which is used only for the enterprise
the purpose of the ads, the provision of information, scientific research or similar
activities which have a preparatory or auxiliary character.
4. A person acting in a Contracting State on behalf of an undertaking of the second
Contracting State-other than an independent agent, which is subject to
paragraph 5-is considered as a ' permanent establishment ' in the first-mentioned State,
If it is in this State, equipped with power of Attorney, which there usually
uses and which allows her to enter into contracts on behalf of the firm, unless the
the activities of this person is not restricted to purchases of goods for the company.
5. the company is not expected to have a permanent establishment in a Contracting
the State just because it carries out its activities through
a broker, General Commission agent or any other agent of an independent,
If these persons are acting within their proper operation.
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 which carries on business (whether
through a permanent establishment or not), does 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 and forest
undertakings may be taxed in the Contracting State in which such
the property is located.
2. the term "immovable property" shall be defined in accordance with the law of a Contracting
the State in which such property is situated. This expression includes in any case
accessory to immovable property, livestock and agricultural and
forest holdings and rights for which the rules of the civil law
applicable to the lands. For immovable property shall be considered in addition
the right to the enjoyment of immovable property and rights to variable or fixed
salaries for mining or consent of the mining mineral deposits, springs
and other natural resources. Ships, boats and aircraft shall not be regarded as
immovable property.
3. The provisions of paragraph 1 shall apply to income from the direct use, letting, or
lease and every other manner of use of immovable property.
4. The provisions of paragraphs 1 and 3 shall apply equally to the income from immovable
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 the enterprise of a Contracting State may be taxed 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, subject to 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, it is a permanent establishment.
3. when calculating 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 the State in which the
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
the State has set 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 receipts, which are dealt with separately in the
the other articles of this agreement, the provisions of those articles shall not affect the
the provisions of this article.
Article 8
Shipping and air transport
1. Profits from the operation of ships or aircraft in international traffic may
be taxed 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 maritime transport is on the
Board, shall be deemed registered office situated in the Member State in which the
the home port of the ship, or if the home port, in the Contracting
State in which the operator of the ship residence or registered office.
3. The provisions of paragraph 1 shall also apply to profits from the participation in a pool,
the joint operation or to other international operating organization.
Article 9
Associated enterprises
If
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 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
businesses are independent, they can be incorporated into the profits of this business and
as a result, taxed profits, that without these conditions would have been
accrued to one of the businesses, which, however, due to the following conditions
could not be achieved.
Article 10
Dividends
1. dividends 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 legislation of that
State, but the tax thus determined may not exceed 15% of the gross amount
dividends, if the person who is in receipt of dividends, is their real
by the recipient. The competent authorities of the Contracting States shall by mutual agreement
the modalities of application of this limitation.
This paragraph shall not affect the taxation of the profits of the company, which is used to
payment of dividends.
3. the term "dividends" as used in this article means income from shares,
jouissance shares or profit participation certificates, kuksů, founders, shares
or other rights, with the exception of receivables, and income from other shares
the company, which, under the legislation of the State in which the
registered office of the company that pays dividends, built on a par with tax
income from shares.
4. The provisions of paragraphs 1 and 2 shall not apply if the actual recipient
dividends who are resident or established in a Contracting State, carries on 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 independent profession
through a permanent base located there, and if the participation, for the
which the dividends are paid, actually belong to that permanent establishment
or this permanent base. In this case, dividends may be
taxed in that other Contracting State according to its national
legislation.
5. If a company having its registered office in one Contracting State is achieved
profits or income from the other Contracting State, that other State
to tax dividends paid by a company, unless these dividends are
paid to a person resident or established in that other State or that
participation, for which dividends are paid, actually belongs to the Permanent
the establishment or to a permanent base, which are located in this second
State, nor subject the company's undistributed profits tax on undistributed
profits, even if the dividends paid or the undistributed profits are made up
wholly or partly of profits or income realised in this second
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 may be taxed only in the
that other State, if that person is the actual recipient.
2. The term "interest" as used in this article means income from public
loans, bonds, bearing a and neopatřených a lien on
real estate or the clause on the participation in the profits, and of the claims of all
the species, as well as all other income assimilated to income from loans
the tax law of the State in which the source of the income.
3. The provisions of paragraph 1 shall not apply if the recipient of the interest that
residence or head office in a Contracting State, carries on business in the other
the Contracting State in which they have interest, industrial or commercial source
activity through a permanent establishment situated therein, or
independent profession through a permanent base located there and
If the claim from which the interest is paid to us, actually belong to this
permanent establishment or that fixed base. In this case, can
the interest be taxed in that other Contracting State according to its
national legislation.
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 debtor and the actual recipient of the interest, or that one or the other keeps the
with third parties, the amount that would have been true had given the debtor
the recipient, if it wasn't for such relationship, the provisions of this
article just on this last-mentioned amount. The amount of the salaries that it
exceeds, in this case, may be taxed in accordance with the legislation of the
Each Contracting State and taking into consideration other provisions of this
of the Treaty.
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 only in that other State, if that person is their
the real beneficiary.
2. Notwithstanding the provisions of paragraph 1, the licence fees may be
referred to in paragraph 3 (b)) also taxed in the Contracting State in which the
their source, according to the laws of that State. The tax so
provided, however, cannot exceed 5% of the gross amount of the license
the charges, if the person who is in receipt of license fees, is their
the real beneficiary.
3. the term "royalties" as used in this article means:
and refunds of any kind) paid for the use of a consent for use or
Copyright for literary, artistic or scientific, including
cinematographic and television films;
(b) refunds of any kind) paid for the use of or consent to the use of
patent, trademark, trade, design or model,
the plan, secret formula or process as well as for the use of, or for the
consent to the use of industrial, commercial or scientific equipment,
If there is no immovable property, which is dealt with in article 6, and
information relating to experience gained in the field of industrial,
commercial or scientific.
4. The provisions of paragraphs 1 and 2 shall not apply if the recipient of the license
fees, residing or established in a Contracting State, carries on business in the
the other Contracting State in which the royalties the source, either
industrial or commercial activity through a permanent establishment,
that is placed there, or independent profession through a permanent
the base located there, and the right or property giving the emergence of
royalty are actually associated with them. In this case,
royalties may be taxed in that other Contracting State according to the
its national legislation.
5. It is assumed that the licence fees have a source in a Contracting
State if the debtor is that State itself, its lower administrative department,
territorial corporation or a person resident or established in that State.
However, if the debtor royalties, either has or does not have a domicile or
registered office in a Contracting State, has in a Contracting State a permanent
fixed establishment for which the contract has been negotiated on the basis of the
the license fees are paid, and who is to his detriment these license
fees, it is assumed that these licence fees should arise in the
the Contracting State in which the permanent establishment is situated.
6. If the amount of the royalties, having regard to
the performance for which they are paid, exceeds as a result of special relationship
existing between the debtor and the actual recipient, or that one even
the second keeps with third parties, the amount which would have been had given the debtor
to the actual recipient, if it wasn't for such relationships, the
the provisions of this article to the last-mentioned amount. The amount of the
salaries, which it exceeds in this case may be taxed by
the legislation of each Contracting State and taking into account other
the provisions of this agreement.
Article 13
Gains from the alienation of property
1. Gains from the alienation of immovable property, which is defined in article 6 of
paragraph 2, may be taxed in the Contracting State in which the
the property is located.
2. Gains from the alienation of movable property forming part of the assets of a permanent
the establishment, by an enterprise of a Contracting State in the other Contracting
State, or movable property, which belongs to the permanent base
a person resident in a Contracting State has in the other Contracting
State to exercise an independent profession, including such profits achieved
from the alienation of such a permanent establishment (alone or together with the whole
the enterprise) or of such fixed base, may be taxed in that other
State. Gains from the alienation of ships or aircraft used in international
transport and movable property, that serves the operation of such ships or
aircraft may be taxed only in the Contracting State in which it is located
the effective centre of management.
3. Gains from the alienation of property that is not listed in paragraphs 1 and 2,
may be taxed only in the Contracting State in which the transferor has a residence
or registered office.
Article 14
An independent profession
1. Income derived by a person resident in one Contracting State is receiving from the
an independent profession or other independent activity may be taxed
only in that State, if such person is not usually available in the second
Contracting State a permanent base for the performance of its activities. If you want to
provided such a fixed base, the income may be taxed in the other
State, but only to the extent to which it can be attributed to that permanent
the base.
2. the term "independent profession" includes especially independently carried out by the
the activities of the scientific, literary, artistic, educational or teaching,
as well as the independent activities of physicians, lawyers, engineers,
architects, dentists and accountants.
Article 15
Employment
1. a salaries, wages and other similar remuneration derived by a person resident in
one State is receiving due to paid employment, they may be subject to
the provisions of articles 16, 18 and 19 to be taxed only in that State, if the
employment is exercised in the other Contracting State. If there is
employment exercised, can be taxed for them received rewards in this
the second State.
2. The rewards that a person resident in one Contracting State is receiving from the
because paid employment exercised in the other Contracting State, may
Notwithstanding the provisions of paragraph 1 be taxed 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, and
(b)) the rewards are paid by the employer or by the employer, that
does not have a domicile or registered office in the other State, and
(c)) the rewards are 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 due to paid employment exercised aboard a ship or
aircraft in international traffic are taxed only in the Contracting State in which the
It is located the effective centre of management.
Article 16
Tantiemy
Royalties, compensation for participation in administrative bodies and other similar remuneration,
that person is resident in a Contracting State receives as a Member
administrative or Supervisory Board of a company that is situated in the other Contracting
the State, may be taxed in that other State.
Article 17
Artists and athletes
1. the revenue that they receive in public, such as performers.
Theatre, film, radio and television artists, and musicians or as
athletes from its activities carried out in person, can be regardless of the
the provisions of articles 14 and 15, be taxed in the Contracting State in which they are
These activities are carried out.
2. If the income from the activity that you personally exercises the artist or
an athlete in this property, do not generate this artists or athletes
self, but to another person, may be those revenues regardless of the
the provisions of articles 7, 14 and 15, paragraph 1 of the taxed in the Contracting State in
which artist or athlete carries on business.
3. the revenue of the activities defined in paragraph 1, regardless of the
the provisions of the preceding paragraphs 1 and 2 of this article, be exempt from the
taxation in the State in which these activities are exercised if the
These activities within the framework of cultural agreements concluded between the
the Contracting States.
Article 18
Board
Pensions and other similar salaries paid by reason of past employment
a person who is resident in a Contracting State, may be
subject to the provisions of article 19 paragraph 2 taxed only in that State.
Article 19
Public function
1.
and Remuneration other than pensions), paid by a Contracting State, to some lower
Administrative Department or territorial corporations of this state of a natural person for
of services rendered to that State, less an administrative department or Corporation
may be taxed only in that State.
(b) However, Such remuneration) may be taxed 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.
2.
Pensions paid to some) a Contracting State, a political subdivision
or territorial corporations of this State either directly or from the funds, which
set up the physical person for services rendered to that State, lower
the Administrative Department or corporation may be taxed only in that State.
(b) However, Such pension) may be taxed only in the other Contracting State,
If the beneficiary has resided in that State and is a citizen of this
State.
3. the provisions of articles 15, 16 and 18 shall apply to remuneration and pensions for services
proven in the context of industrial or commercial activities carried out by some
Contracting State, a political subdivision or a territorial corporations of this
State.
Article 20
Professors and teachers
Professors or teachers, who are temporarily staying in a Contracting
State for a period not exceeding two years, to teach or carry out
Research at the University, College, school or other educational institution, and
the aim is not to make a profit, and who have, or immediately before
his stay were resident in the other Contracting State, shall be exempt in
the first-mentioned Contracting State from tax from the remuneration for such teaching or
research.
Article 21
Learners
Salaries, which a student or trainee who is or was immediately
prior to their arrival in one Contracting State of residence in the latter
a Contracting State and who is present in the first-mentioned State solely because
There he continued to study or training, receives for the compensation
the cost of food, study or training, are not subject to tax in that State
with the condition that originate from sources outside that State.
Article 22
Other income
1. the income of persons resident or established in a Contracting State,
which is expressly not dealt with in the foregoing articles of this agreement,
may be taxed only in that State, regardless of where it goes.
2. The provisions of paragraph 1 shall not apply to income, other than income from
immovable property within the meaning of paragraph 2 of article 6, if the recipient
such income resident or established in a Contracting State
carries on in the other Contracting State having an industrial or commercial activity
through a permanent establishment situated therein, or independent
the profession through a permanent base located there, and the right or
assets for which the revenue, actually belong to this
permanent establishment or that fixed base. In this case, these
revenue may subject to tax in that other State in accordance with its national
legislation.
Article 23
Provisions on the exclusion of double taxation
It was agreed that double taxation is eliminated in accordance with the provisions of
the following paragraphs of this article:
1. In the case of Italy:
If a person having a residence or registered office in Italy has resources which can
be taxed in Czechoslovakia, Italy may, in assessing their tax
the income referred to in article 2 of this agreement include in taxable
basis for such tax such income, unless explicit provisions
of this agreement.
In this case, Italy shall deduct from the taxes this way of assessed income tax
paid in Czechoslovakia, but the amount to be deducted, it cannot
shall not exceed the proportion of Italian taxes relating to those payments, which
corresponds to the ratio of income to total income.
No amount, however, will not be permitted to deduct, if some portion of the income
It will be subjected in Italy at the request of the recipient of the final withholding tax for
According to the Italian national law sources.
2. in the case of Czechoslovakia:
a) if the person residing or established in Czechoslovakia he receives
income that may be taxed in accordance with the provisions of this Treaty in Italy,
cut the Czechoslovakia subject to the provisions referred to in subparagraph (b))
This revenue from taxation. Czechoslovakia, however, can calculate the amount
taxes on other income of that person use the same rate of tax as if the
revenue, which goes from the taxation.
(b)) may, when depositing taxes Czechoslovakia to persons in
Residence or registered office, Czechoslovakia, include in the tax base income
that may be in accordance with the provisions of articles 10, 12, 16 and 17 of this agreement
also taxed in Italy. Czechoslovakia enables to reduce the amount of tax that
selects the income of that person, an amount equal to the tax paid in
Italy. The amount of the tax is to be reduced, but shall not exceed a percentage
the Czechoslovak tax calculated prior to its reduction, which is relatively
falls on revenue received from Italy.
Article 24
The principle of equal treatment
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 they are or may be subjected to the nationals of that
the other State who are in the same situation. This provision shall apply without
Notwithstanding the provisions of article 1, also for persons who do not reside or
registered office nor in one or in both 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
corporation tax of the other State, which carry 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
credits, deductions, and tax reduction because of the status or duties to the
the family, which it grants to persons residing on its territory.
3. If you will apply the provisions of article 9, article 11, paragraph 4
and article 12 paragraph 6, interest, royalties and other expenses
paid by the enterprise of a Contracting State to a person resident or registered office
in the other Contracting State to determine the deductible taxable profits
This undertaking under the same terms as would have been paid to the person having
place of residence or registered office in the first-mentioned State.
4. enterprises of one of the State, whose capital is wholly or partly, directly
or indirectly owned or controlled by a person residing or
Head Office in other State or a larger number of such persons, are not
undergo in the first-mentioned State to any taxation or duties with him
United, which is other or more burdensome than the taxation and connected with it
obligations that are or may be subjected to other similar
former State enterprises.
5. the provisions of this article shall apply notwithstanding the provisions of article
2 the taxes of any kind and name.
Article 25
Deal with cases on the way of the agreement
1. where a person considers that the actions of one or both
of the Contracting States result or will result for her, to taxation, which is not in
accordance with the provisions of this Treaty, may, independently of the provisions
the resource provides the national law of those States,
present your case to the competent authority of the Contracting State in which the
place of residence or registered office, or where the case falls under the provisions of article
24 paragraph 1, the competent authority of the Contracting State of which he is a national
a national. The case must be presented within two years after that, when the
for the first time announced measures to taxation not in accordance with the
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 make the case
decided by agreement with the competent authority of the other Contracting State, so that the
avoid taxation which is not in conformity with this agreement.
3. the competent authorities of the Contracting States shall endeavour to resolve by agreement
problems or concerns that may arise in the application of this
of the Treaty.
4. the competent authorities of the Contracting States may come in direct contact with a view to
reaching an agreement in the sense of the preceding paragraphs. If oral
Exchange of views appears to be effective for the achievement of the agreement, can such exchange
opinions held within 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 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, as well as for the prevention of fiscal evasion and fraud.
Exchange of information is not restricted by article 1. Information received by a Contracting
the State will be kept secret, as well as information received by the
national law of that State and may be disclosed only
to persons or authorities (including courts and administrative authorities), which deal with
charge of the assessment or collection of the taxes covered by this agreement,
proceedings or criminal prosecution in the case of these taxes or making decisions about
appeals relating to such taxes. Such persons or authorities
This information shall be used only for such purposes. Can get this information in the
consideration in public court proceedings or in its decisions.
2. The provisions of paragraph 1 shall not be in any way interpreted as
store the Contracting State the obligation:
and management measures) to conduct that would violate the law or
the administrative practice of that or of the other State;
(b)) provide the information that could not be achieved on the basis of
regulations or in a normal administrative procedure of this or of the other State;
c) to supply information which would disclose commercial, industrial or
the work secrets or business practice, or the disclosure of which would be in
contrary to public policy.
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
international law or on the basis of specific agreements.
Article 28
The application for a refund of overpayments
1. Tax collected in one State by deduction at source will be returned at the request of
the candidate or the State in which this lead has residence or registered office,
If the right to choose these taxes is limited by the provisions of this agreement.
2. applications for reimbursement shall be submitted within the time limits laid down by law
legislation of the State, which is obliged to return the tax, and shall be accompanied by
official certificate of the State where the taxpayer has a domicile or registered office of the
the conditions giving entitlement to exemption or reduction of taxes, as laid down
in the contract are met.
3. the competent authorities of the Contracting States shall by mutual agreement in accordance with
the provisions of article 25 of this Treaty, the modalities of application of this article.
They can also provide a different agreement, the procedure for the application of entitlements
the tax cut, covered by this agreement.
Article 29
Entry into force of
1. this Treaty shall be ratified and the instruments of ratification shall be exchanged
in Rome at the time as short as possible.
2. this Treaty shall enter into force on the date of exchange of instruments of ratification and
its provisions will apply:
and) with regard to taxes withheld at source, to amounts granted or
paid starting with 1. in January the year following the year in which they were
exchanged instruments of ratification;
(b)) in respect of other taxes on income, to taxes levied for all
the tax period ending starting with 1. January of the year following the year of
in which the instruments of ratification have been exchanged.
3. the provisions of the Treaty between the Czechoslovak Socialist Republic and the
The Italian Republic for the avoidance of double taxation of income and assets in the field
maritime and air transport, signed in Prague on 28. August 1973,
cease to apply as soon as they begin to apply in this agreement.
Article 30
Notice of termination
1. this Agreement shall remain in force until denounced by one
Contracting State. Each State party may terminate the contract
through diplomatic channels, within a period of at least six months before the end of each
calendar year from the fifth year after the year in which the contract
came into force.
2. In this case, the contract will cease to apply:
and) with regard to taxes withheld at source, to amounts granted or
paid starting with 1. January of the calendar year following the year of
in which the notice of termination has been given;
(b)) in respect of other taxes on income, to taxes levied for all
the tax period which shall commence from 1 January 2004. before 1 January of the calendar year
following the year in which the notice of termination has been given.
In witness whereof the undersigned, duly authorised thereto, have signed this
the contract.
Done at Prague on 5. May 1981 in two copies, each in the language
Czech, Italian and French, with original in language
the French will be crucial in the event of a dispute.
For the Czechoslovak Socialist Republic:
L. Lér in r.
The Italian Republic:
Edoardo Speranza in r.
Č. 1
Protocol
the Treaty between the Czechoslovak Socialist Republic and the Italian
Republic on the avoidance of double taxation with respect to taxes on income and the prevention of
fiscal evasion
At the time of signature of the contract concluded this day between the Czechoslovak
Socialist Republic and the Italian Republic on the avoidance of double
taxation with respect to taxes on income and the prevention of fiscal evasion agreed
subscribers the following provisions, which shall form an integral part of the contract.
a) as regards article 7, paragraph 3, the "costs incurred up to the
the objectives of this permanent establishment "costs directly related to the
the activity of the permanent establishment.
(b)) as regards article 25, paragraph 1, does the term "independently of the
opravních resource, which provides a national law ", the beginning of the
control the way the agreement is given on the selection of any proceedings under
national provisions which must be in any case as soon as possible
to start, if the dispute relates to the application of taxes, that is not in
accordance with the Treaty.
In witness whereof, the undersigned have signed this Protocol.
Done at Prague on 5. May 1981 in two copies, each in the language
Czech, Italian and French, with original in language
the French will be crucial in the event of a dispute.
For the Czechoslovak Socialist Republic:
L. Lér in r.
The Italian Republic:
Edoardo Speranza in r.
