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.
