Double-Taxation Treaty With Italy

Original Language Title: Smlouva o zamezení dvojího zdanění s Itálií

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Read the untranslated law here: https://portal.gov.cz/app/zakony/download?idBiblio=36492&nr=17~2F1985~20Sb.&ft=txt

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.