The Treaty Between The Czechoslovak Socialist Republic And The Fed To Avoid Double Taxation

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

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Read the untranslated law here: https://portal.gov.cz/app/zakony/download?idBiblio=39206&nr=200~2F1991~20Sb.&ft=txt

200/1991.



The COMMUNICATION FROM the



the Federal Ministry of Foreign Affairs



The Federal Ministry of Foreign Affairs says that the 26 July. August 1986

She was in Brazil signed an agreement between the Government of the Czechoslovak

Socialist Republic and the Government of the Federative Republic of

avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on

income and the Protocol to it.



With the Treaty, expressed its approval of the Federal Assembly of the Czechoslovak

Socialist Republic and the President of the Czech and Slovak Federal

The Republic has ratified it. The instruments of ratification were exchanged in Prague on

November 14, 1990.



Treaty has entered into force pursuant to its article 28, paragraph 1. 2 day

November 14, 1990.



The Czech version of the Treaty shall be designated at the same time.



CONTRACT



between the Government of the Czechoslovak Socialist Republic and the Government of Brazil

the Federal Republic on the avoidance of double taxation and prevention of fiscal

evasion with respect to taxes on income



The Government of the Czechoslovak Socialist Republic and the



The Government of the Federative Republic of Brazil



Desiring to conclude an agreement on avoidance of double taxation



and the prevention of fiscal evasion with respect to taxes on income,



have agreed as follows:



Article 1



The person to which the contract relates



This agreement shall apply to persons who are resident or established in

one or both of the Contracting States (residents).



Article 2



The tax, to which the contract relates



1. this agreement applies to income tax levied for the benefit of

each of the Contracting States, either is a way to select any.



2. Current taxes, to which the contract relates are:



and) in Brazil:



-Federal income tax, with the exception of the additional tax revenue and taxes

on the activity of minor importance



(hereinafter called "the Brazilian tax)



(b)):



-profit tax;



-payroll tax;



-income tax from the literary and artistic work;



-agricultural tax;



-income tax population;



-tax House



(hereinafter referred to as "Czechoslovak tax").



3. this Agreement shall also apply to taxes of the same or a similar type,

which are levied in addition to or in place of current taxes. The relevant

the authorities of the Contracting States shall notify each other of significant changes that have been

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 "Brazil" refers to the territory of the Federative Republic of Brazil, which

the territory of the Mainland and of the Islands and corresponding airspace and also

territorial waters and the seabed and subsoil, including the air

the space above the sovereignty of the territory, over which, in accordance with international law

and the Brazilian laws may be exercised by the Brazilian law;



(b)), the term "Czechoslovakia" indicates the Czechoslovak Socialist

Republic;



(c)) the term "nationals" means:



I-all natural persons who are nationals of one of the

Contracting State,



II any legal person, partnership and Association of persons that

have been set up under the law in force in a Contracting State;



(d)) the terms "a Contracting State" and "the other Contracting State" mean respectively according to the

the case of Brazil, or Czechoslovakia;



(e)) the term "person" includes natural persons, companies and any other

an Association of persons;



(f)), the expression "company" refers to the organizational departments, person or bearer

Rights considered for taxation purposes under the organizational bodies;



g) the terms "enterprise of a Contracting State" and "enterprise of the other Contracting

State "means the enterprise carried on by a resident of a Contracting State

or undertaking operated by a resident of the other Contracting State;



h) the term "international traffic" means any transport

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

instead of the actual management is located in a Contracting State, if the ship

or aircraft not operated only between places in the other Contracting State;



I) the term "tax" means the Brazilian tax, or

the Czechoslovak tax;



j) the term "competent authority" means:



I-in Brazil: the Minister of finance, the Secretary of State revenues or their

authorised representative;



II-in Czechoslovakia: the Minister of Finance of the Czechoslovak Socialist

the Republic or its authorized 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 jurisdiction



1. the term "resident of a Contracting State" means within the meaning of this

of the Treaty, any person who, under the law of that State, subject to the

that State taxation because of their place of residence, permanent residence, place of

management, or any other similar criteria.



2. If the individual is under the provisions of paragraph 1, a resident in the

of both Contracting States, his status will be determined as follows:



and it is assumed 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 it is resident in that Contracting State for which the

enhanced 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 to be a resident in that Contracting State,

in which usually resides;



(c)) If this person usually resides in both Contracting States or

in any of them, it is assumed to be a resident in that Contracting State,

which he is a citizen;



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

any of them, the competent authorities of the Contracting States to modify

question by mutual agreement.



3. If a person other than an individual is subject to the provisions of paragraph 1,

a resident of both Contracting States, it is assumed, that is resident in

the State in which the place of effective management.



Article 5



Permanent establishment



1. the term "permanent establishment" within the meaning of this Treaty indicates the Permanent

device for business, through which the undertaking carries out completely

or part of their activities.



2. the term "permanent establishment" includes especially:



and instead of keeping);



(b)) race;



(c));



(d) a factory;)



e) a workshop;



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



g) a building site or Assembly or installation devices, if the duration is more

than 6 months.



3. the term "permanent establishment" shall not include:



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 belonging to the enterprise solely for the purpose

storage, display or delivery;



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

the processing of another undertaking;



d) durable equipment for the business, which is 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, for scientific research or for

implementation of 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 limited 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 is resident in a Contracting

State, controlled by the company or is controlled by a company which is

a resident of the other Contracting State, or which carries on there

activity (whether through a permanent establishment or otherwise), will not make itself

about myself from any of this company a permanent establishment of the other

the 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 property

located.



2.



and) subject to subparagraphs (b) and (c))) defines the expression

"immovable property" in conformity with the law of the Contracting State in which the

the property is situated;



(b)) this expression includes in any case the accessories of immovable

property, dead livestock and agricultural and forestry holdings and rights,

subject to the provisions of civil law relating to property,

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;



(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 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 an enterprise of a Contracting State will 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 of which 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 pursued by this establishment, including Executive and

General administrative expenses.



4. no permanent establishment of nepřičtou gains based on the fact that

only goods for the company.



5. 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 shall be

taxed only in the Contracting State in which the registered office is located the actual

management of the undertaking.



2. when the effective centre of management of maritime transport is on the

Board, shall be deemed registered office situated in a Contracting State, in the

where is the home port of the ship or if the home port, in

the Contracting State in which the operator of the ship is a resident.



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 is resident in the same

Contracting State, to a person who is resident in the other Contracting State,

may be taxed in that other State.



2. However, such dividends may 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 if the recipient is the beneficial owner of the dividends, the tax

thus determined may not exceed 15% of the gross amount of the dividends.



This paragraph shall not affect the taxation of the profits of the company, which is used to

payment of dividends.



3. The provisions of paragraphs 1 and 2 shall not apply if the owner of the dividends,

that is resident in a Contracting State, carries on business in the other

the Contracting State in which the company paying the dividends is a resident,

industrial or commercial activity through a permanent establishment,

that is placed there, or a liberal profession through a permanent

the base located there, and if the participation, on the basis of dividends

paid, actually belong to that permanent establishment or that fixed

the base. In such a case, the provisions of article 7 or article

14.



4. 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 accounts receivable, profit shares and the income from

other shares in the company, which, under the tax law of the State in

which is a company that pays dividends is a resident, built on

shall be assimilated to income from shares.



5. If a resident has a permanent establishment in Brazil, Czechoslovakia, may

This permanent establishment is subject to withholding tax at source in accordance with the

Brazilian laws. This tax, however, cannot exceed 15% of the gross amount of

the profits of that permanent establishment after paying corporate income tax,

which binds to those profits.



6. Where a company which is resident in a Contracting State,

achieves profits or income from the other Contracting State, that

the second State to tax dividends paid by the company, unless such

dividends are paid to a person who is a resident in this second

State, or that participation, for which dividends are paid, really belongs to

to a permanent establishment or a fixed base, which are located in the

other State, nor subject the company's undistributed profits tax

retained earnings, even if the dividends paid or the undistributed profits

consists wholly or partly of profits or income realised in this

the second State.



7. limitation of tax rates resulting from paragraphs 2 and 5 shall not be

apply to dividends or profits paid or poukazované before

the end of the third calendar year after the year in which the contract enters

force.



Article 11



Interest



1. interest arising in a Contracting State and paid to the person who

is resident in the other Contracting State, may be taxed in that other

State.



2. However, such interest may also be taxed in the Contracting State in

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

However, if the recipient is the beneficial owner of the interest, the tax so

imposed shall not exceed:



and) 10%, in terms of loans and credits provided by the Bank for the period

at least 10 years in connection with the sale of an industrial facility or study,

installations or equipment in industrial or scientific units and in the

connection with a public work;



(b) 15% of the gross) interest amounts in all other cases.



3. Notwithstanding the provisions of paragraphs 1 and 2:



and interest arising from one) of a Contracting State and paid to the Government of the second

Contracting State, an administrative department or other institution (including

This financial) belonging to the Government or administrative department shall be exempt

from tax in the first-mentioned State, if shall not apply the provisions of

subparagraph (b);



(b)) interest arising from the securities, bonds or debentures

issued by the Government of a Contracting State, an administrative department or

institutions (including financial) belonging to the Government or administrative unit

will be taxed only in that State.



4. The term "interest" as used in this article means income from Government

securities, bonds or debentures secured and unsecured

a lien on the property or profit participation clause

the debtor, claims of every kind as well as all other income built

shall be assimilated to income from money lending under the tax laws of the Contracting

State in which the income arises.



5. the provisions of paragraphs 1, 2 and 3 shall not apply if the owner of the interest,

that is resident 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 independent

the profession through a permanent base located there, and if

the claim from which the interest is paid, it actually binds to that permanent

establishment or that fixed base. In that case, shall apply

the provisions of article 7 or article 14.



6. The restriction provided for in paragraph 2 shall not apply to the interest arising from the

of a Contracting State and paid to a permanent establishment belonging to the company

of the other Contracting State, that is located in a third State.



7. It is anticipated that interest to arise in a Contracting State,

If the payer is that State itself, its governing body or

a person who is a resident in this State. However, if the payer, whether a

or is not a resident in a Contracting State, has in a Contracting

State a permanent establishment in connection with which the indebtedness on which the

the basis of the interest paid and that such interest carries to its detriment, it assumes

that such interest to arise in the Contracting State in which the Permanent

establishment is situated.



8. 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

recipient of the payer and the beneficial interest or that one and the other with

third parties, the amount which would have been had given the payer with the actual

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 in the other Contracting State, may be taxed in the

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,

However, if the recipient is the beneficial owner of the royalties,

the tax thus determined shall not exceed:



and) 25% of the gross amount of the royalties for the use of, or the right to

the use of trade marks;



b) 15% of the gross amount of the royalties in all other cases.



3. the term "royalties" as used in this article means salaries

of any kind, be paid for the use of, or the right to use a copyright

the rights to literary, artistic or scientific (including

cinematographic films, television or radio records),

patents, trade marks, designs or models, plans, secret formulas

or procedures or for the use of, or the right to use industrial,

commercial or scientific equipment, or for information that is subject to the

the experience acquired in the field of industrial, commercial or scientific.



4. It is assumed that the licence fees have a source in a Contracting

State when the payer is that State itself, its governing body, local

the authority or person who is a resident in this State. However, if the

the payer of the royalties, whether he is or is not a resident in any

Contracting State, has in a Contracting State a permanent establishment or

a permanent base in connection with which the obligation was established on the basis of

the license fees are paid and that carries to their 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.



5. The provisions of paragraphs 1 and 2 shall not apply if the recipient of the license

the charges, which is resident 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, which give rise to

royalty are actually associated with them. In this case, the

provisions of article 7 or article 14.



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 payer and the actual beneficiary 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

the salaries, that is, in this case will be taxed according to the legal

the laws of each Contracting State and taking into account other

the provisions of this agreement.



7. limitation of the tax rate referred to in paragraph 2b) of this article, shall

not apply to license fees paid before the end of the fifth calendar

the year following the year in which this agreement enters into force,

If such licence fees shall be paid to a person who is a resident of

of a Contracting State and which is owned, directly or indirectly, at least 50%

voting shares of the company paying the license

fees.



Article 13



Gains from the alienation of property



1. Gains from the alienation of immovable property, which is defined in article 6,

may be taxed in the Contracting State in which such 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 resident of a Contracting State has in the other Contracting State for the performance of

the independent professions, including such gains from the alienation of realised

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 ships or aircraft used in international transport, and

movable property, that serves the operation of such ships or aircraft, shall be

taxed only in the contractual State in which is situated the real

management of the undertaking.



3. Gains from the alienation of other property or rights than is shown in the

paragraphs 1 and 2, may be taxed in both Contracting States.



Article 14



An independent profession



1. Income derived by a resident of a Contracting State receives from the free

the profession or other independent activities of a similar nature, will be

taxed only in that State, if payment for such occupation or

the activity is not borne by a permanent establishment situated in the other Contracting

State or of the company which is a resident of. In this case,

the income may be taxed in that other State.



2. The expression "liberal 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 resident of a Contracting

the 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. remuneration which a resident of a Contracting State receives for the reasons

paid employment exercised in the other Contracting State, may be

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 on behalf of the employer,

that is not a resident of the other State, and



(c) the remuneration is not borne by) a permanent establishment or a fixed base, which has

employer in the other State.



3. Notwithstanding the preceding provisions of this article may be rewards

received because of employment exercised aboard a ship or aircraft in

international transport taxed in the Contracting State in which it is located

the effective centre of management.



Article 16



Royalties



Directors ' fees and other similar remuneration derived by a resident of a Contracting State

he receives as a member of the management board or other advisory body of the company,

which is resident in the other Contracting State, may be taxed in that

the second State.



Article 17



Artists and athletes



1. the revenue paid by residents of a Contracting State, as

to the public, such as performers. Theatre, film,

radio and television artists, and musicians or athletes, from its

the activities carried out in person, they may be, notwithstanding the provisions of articles

14 and 15, be taxed in the Contracting State where that activity is carried on.



2. If the activities referred to in paragraph 1 of this article are carried out in

a Contracting State through the organizations of the other Contracting

State may be income arising out of the implementation of these activities, regardless of

the other provisions of this agreement, taxed in the first-mentioned Contracting

State. Income arising from the implementation of these activities through the

the organisation will be exempted from taxation in the first-mentioned Contracting State,

If this organization is, directly or indirectly, wholly or substantially

maintained out of public funds of the other Contracting State.



3. the revenue of the activities defined in paragraph 1, regardless of the

the provisions of paragraphs 1 and 2 of this article shall be exempt from taxation in the State of

in which these activities are exercised if the following activities

they perform within the framework of cultural agreements concluded between the Contracting States.



Article 18



Pensions and annuities



1. Pensions and other similar remuneration shall not exceed an amount corresponding to 3000 USD

in the calendar year, not exceeding the amount of the maintenance of US $ 3000 in a calendar

year and the rents not exceeding the amount of $ 3000 paid in a calendar year

a resident of a Contracting State may be subject to the provisions

Article 19 of the taxed only in that State.



The amount in excess of the above limits may be taxed in both

of the Contracting States.



2. for the purposes of this article:



a), the term "pensions and other similar remuneration" refers to the recurring payments

carried out after retirement, as a reward for previous

employment or as a compensation for the injury suffered in connection with the

previous employment;



(b)) the term "annuity" means the amounts paid in

dates for the life or during a specified or exactly

identifiable period, based on the commitment to the implementation of the replacement

for the full corresponding value in money, or money ocenitelnou (another

than services rendered).



Article 19



Public function



1. remuneration, other than a pension, paid by a Contracting State, any administrative


Department or local authority of that State, of a natural person for services

proving this State, its administrative department or local authority

may be taxed only in that State.



Such rewards, however, will be taxed only in the other Contracting State,

If the services are performed in that State and the recipient, which is

a resident of this father,



and) is a citizen of that State, or



(b)) domicile in this State only on the grounds of these services.



2. Pension paid by one Contracting State, an administrative department or

the local authority of the State, either directly or from the funds, which have established,

the physical person for services rendered to that State, administrative body or

the local authority, may be taxed only in that State.



However, such pension will be taxed only in the other Contracting State, if the

the recipient is a resident and citizen of this State.



3. any pension paid under the social security system

of a Contracting State to a resident of the other Contracting State may be

taxed only in the first-mentioned State.



4. The provisions of article 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, an administrative department or local authority of that State.



Article 20



Professors and researchers



The rewards that a person who is or was immediately before arriving in

a resident of a Contracting State in the other Contracting State and that the

the invitation of the first-mentioned State or University Research Institute,

schools, museums or other cultural institutions, the first-mentioned State or on

under the cultural exchange, is present in this State for a period

not exceeding two years solely for the purpose of teaching, lectures or

conducting research in such an institution receives from this activity will be

be exempt from tax in that State, provided that they are paid from the

resources outside of this State.



Article 21



Students and apprentices



The salaries, that person who is or was immediately before their arrival

in a Contracting State a resident of the other Contracting State and who

is present in the first-mentioned State only



and as a student at the University) or the first-mentioned State school,



(b)) as the recipient of scholarships or aid for the purpose of study or research

provided by religious, charitable, scientific or educational

organisations,



(c)) as a participant on the programme of technical cooperation agreed with the Government

of the other Contracting State, or



(d)) as an apprentice,

he receives for the purpose of cost recovery nutrition, education or training,

shall be exempt from tax in the first-mentioned State, provided that they come from

from sources outside that State.



Article 22



Other income



The income of the person who is a resident of a Contracting State resulting from the

other Contracting State that are not dealt with in the foregoing articles

of this agreement, may be taxed in that other State.



Article 23



The method of elimination of double taxation



1. If a person who is a resident in Brazil, is in receipt of income

may, in accordance with the provisions of this agreement, be taxed in the

Czechoslovakia, enables this subtract the amount a resident of Brazil

corresponding to the tax paid in Czechoslovakia from its tax liability.



The amount to be deducted, however, it cannot exceed the proportion of the tax, calculated

before it is executed, the deduction which is attributable to the income which may

be taxed in Czechoslovakia.



2. If a person who is a resident in Czechoslovakia derives income,

other than that specified in paragraph 3, which, in accordance with the provisions of this

the contract may be taxed in Brazil, cut the former State such

income from taxation.



3. If a person who is a resident in Czechoslovakia derives income,

that is in accordance with the provisions of articles 11, 12, 16 and 17 may be

taxed in Brazil, will allow to reduce the amount of tax attributable to Czechoslovakia

on this income an amount equal to the tax paid in Brazil.



The amount of the tax is to be reduced, however, shall not exceed a percentage of the tax

calculated before the reduction, which falls on income arising from

Brazil.



4. For the purpose of reducing the amount of tax referred to in paragraph 3 in respect of the taxation of interest

and license fees will always be considered a Brazilian tax

paid at the rate of 25%.



5. Retained earnings of a company of a Contracting State, whose property

is wholly or partly owned or controlled, directly or indirectly,

by one or more residents of the other Contracting State, shall not be subject to

in the last-mentioned State tax.



6. the value of the shares issued by the company of a Contracting State, whose

the property is wholly or partly owned or controlled, directly or

indirectly, by one or more residents of the other Contracting State, it will not

be subject to income tax in the last-mentioned State.



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 are or may be subjected by nationals of this second

State who are in the same situation.



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

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

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



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

admitting to residents of the other Contracting State personal credits, deductions and

tax reduction for reasons of status or family obligations that

grants to its residents.



3. enterprises of a Contracting State, the capital of which is wholly or partly,

directly or indirectly owned or controlled by a person who is

a resident of the other Contracting State, or a larger number of such persons,

will not be subjected in the first-mentioned State to any taxation or

the obligations associated with him, which is other or more burdensome than the taxation

and with it the obligation to which they are or may be subject to

other similar businesses for the first-mentioned State.



4. the term "taxation" used in this article means taxes which are

covered by this agreement.



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 of which he is

resident.



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

edited 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.



Article 26



The exchange of information



1. the competent authorities of the Contracting States shall exchange the information necessary

for the application of the provisions of this agreement. All the information as follows

provided will be kept confidential and cannot be disclosed to other

to the persons or authorities or courts than dealing with the charge of the assessment or

the collecting of taxes to which this agreement applies, or a ruling on the

appeals or criminal prosecution in the case of such taxes.



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)) to divulge information that could not be obtained on the basis of the legal

regulations or in a normal administrative procedure of this or of the other State;



(c)) to divulge information which would have revealed the commercial, industrial,

economic or trade secret or trade process, or information,

the disclosure of which would be contrary to public policy.



Article 27



Diplomatic and consular officers



This agreement will not affect the tax privileges that pertain to the members

diplomatic missions and consular posts under the General rules of

international law or on the basis of specific agreements.



Article 28



Entry into force of



1. this Treaty is subject to ratification and the instruments of ratification shall be exchanged

in Prague, as soon as possible.



2. the contract shall enter into force by the exchange of instruments of ratification and its

the provisions are to be applied "



and for taxes levied) by deduction at source on amounts paid or

remitted starting at 1. January of the calendar year following the year in

which the contract enters into force;



(b)) for other taxes, covered by this agreement, for each tax

year, starting on 1 July. January of the calendar year following the year in

which the contract enters into force.



Article 29



Notice of termination



Each State party may, after the expiration of three years from the entry into force of


Agreement, terminate this agreement by written notification to the other

Contracting State through diplomatic channels, no later than the thirtieth day of the month

June of the calendar year.



In this case, the agreement will apply for the last time:



and for taxes levied) by deduction at source on amounts paid or

remitted before the end of the calendar year in which it was given notice of

notice of termination;



(b)) for other taxes, covered by this agreement, the amounts received

in the course of the tax year beginning in the calendar year in which the

given notice of termination.



Done at Brasilia, 26 March 2004. August 1986, in two originals, each in the

Czech, English, Portuguese and English languages, all three texts being

the same force. In case of any differences in interpretation will

the decisive English text.



For the Government of the Czechoslovak Socialist Republic:



J. Pupil v.r.



The Government of the Federative Republic of Brazil:



C. Sodré v.r.



XIII.



PROTOCOL



At the time of the signing of the Treaty between the Government of the Czechoslovak Socialist

the Republic and the Government of the Federative Republic of Brazil to avoid double

taxation and the prevention of fiscal evasion with respect to taxes on income, the undersigned, to

duly authorised thereto, have agreed the following provisions, which are

an integral part of this agreement.



1. On article 7, paragraph 3



It is understood that the provisions of paragraph 3 of article 7 will be interpreted as

the costs incurred for the objectives of the permanent establishment including expenses

management and general administrative expenses, will be allowed to deduct, whether

in the State where the permanent establishment is situated or elsewhere.



2. With respect to article 11, paragraph 3a)



It is understood that the expression "the institutions belonging to the Government" may refer to:



and in the case of Czechoslovakia), the Czechoslovak commercial bank;



(b)) in the case of Brazil, Banco Central do Brasil and Banco do Brasil.



3. The provisions of article 12, paragraph 3



It is understood that the provisions of paragraph 3 of article 12 shall apply to the

income for the provision of technical assistance and technical services.



4. Article 14 of the



It is understood that the provisions of article 14 shall apply, even if the activities are

performed by companies set up under civil law ("sociedade

civil ").



5. With respect to article 24, paragraph 2



It is understood that the provisions of paragraph 5 of article 10 are not in conflict with

the provisions of paragraph 2 of article 24.



6. With respect to article 24, paragraph 3



The provisions of the Brazilian laws, which do not allow the license fees

as defined in paragraph 3 of article 12, which is paid by a company

a resident in Brazil, a person who is a resident in Czechoslovakia and

that own at least 50% of the voting shares of the company,

they were odpočítávány in determining the taxable income of a company that

It is resident in Brazil, are not inconsistent with the provisions of paragraph 3

Article 24 of this agreement.



Done at Brasilia, 26 March 2004. August 1986, in two originals, each in the

Czech, English, Portuguese and English languages, all three texts being

the same force. In case of any differences in interpretation will

the decisive English text.



For the Government of the Czechoslovak Socialist Republic:



J. Pupil v.r.



The Government of the Federative Republic of Brazil:



C. Sodré v.r.