23/1982 Sb.
DECREE
Minister of Foreign Affairs of 10 June 1999. December 1981 on the contract between the
The Czechoslovak Socialist Republic and Spain for the avoidance of
of double taxation and prevention of fiscal evasion with respect to taxes on income and
property
On 8 June 1998. May 1980 in Madrid has been signed the contract between the
The Czechoslovak Socialist Republic and Spain for the avoidance of
of double taxation and prevention of fiscal evasion of taxes on income and
asset.
With the Treaty, expressed its approval of the Federal Assembly of the Czechoslovak
Socialist Republic and the President of the Republic has ratified it.
The instruments of ratification were exchanged in Prague on 5. June 1981.
According to article 28 of the Treaty has entered into force on 5 July 2004. June 1981.
The Czech version of the Treaty shall be designated at the same time.
First Deputy:
Ing. Book v.r.
CONTRACT
between the Czechoslovak Socialist Republic and Spain for the avoidance of
of double taxation and prevention of fiscal evasion with respect to taxes on income and
property
The Czechoslovak Socialist Republic and Spain,
aware of the need to facilitate trade and promote economic
cooperation in accordance with the final act of the Conference on security and
cooperation in Europe,
have decided to conclude an agreement on avoidance of double taxation and the prevention of
fiscal evasion with respect to taxes on income and on capital. For this purpose,
have agreed as follows:
Article 1
The person to which the contract relates
This agreement shall apply to persons who are resident or established in
one or both of the Contracting States.
Article 2
The tax, to which the contract relates
1. this Agreement shall apply to taxes on income and on capital, to be charged in the
the benefit of each Contracting State, whatever the way to select any.
2. taxes on income and on capital all taxes shall be levied on
the total income of all assets or income of the individual parts
or of capital, including taxes on gains derived from the alienation of movable
or immovable property, taxes on the total volume of wages paid by undertakings
and taxes on the increment value.
3. Current taxes, to which the contract relates, are particularly
a) Czechoslovakia:
(i) extraction of profit and the profit tax;
(ii) the payroll tax;
(iii) the income tax on the literary and artistic activities;
(iv) agricultural tax;
(v) income tax the population;
(vi) domestic tax and
(vii) discharge of Fortune
(hereinafter referred to as "Czechoslovak tax");
(b)) in Spain:
(i) the tax on income of individuals;
(ii) the tax on legal persons;
(iii) the property tax
(hereinafter referred to as "the Spanish tax").
4. the agreement shall also apply to any identical or substantially
similar taxes that are imposed after the signature of this agreement, in addition to
current taxes or instead of them. The competent authorities of the Contracting States
will report all significant changes that will be made in their
the relevant tax laws.
Article 3
General definitions
1. In this agreement, unless the context requires a different interpretation:
and) the term "Spain" refers to the Spanish State, and includes any
the area behind the territorial waters of Spain, which has been or may be
accordance with international law, marked by the laws of Spain about
Mainland stranded in the area, over which rights may be exercised
Of Spain to the seabed and subsoil and their natural resources.
(b)), the term "Czechoslovakia" indicates the Czechoslovak Socialist
Republic.
(c)) the terms "a Contracting State" and "the other Contracting State" mean respectively according to the
the context of Czechoslovakia and Spain.
(d)) the term "person" includes natural persons, companies and any other
an Association of persons.
(e)) the term "company" means any legal person or any
the essence of which is considered as the legal entity for tax purposes.
(f)) the terms "enterprise of a Contracting State" and "enterprise of the other Contracting
State "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 "national" means:
(i) any natural person who is a citizen of a Contracting
State;
(ii) any legal person, partnership and Association, set up by the
According to the law in force in a Contracting State.
h) the term "international traffic" means any transport carried out by
boat or plane, which is operated by an undertaking whose real
the management is located in a Contracting State, if the ship or plane
they are not only used between points lying in the other Contracting State.
I) the term "competent authority" means:
(i) in the case of Czechoslovakia, the Czechoslovak Minister of finance
the Socialist Republic or its authorized representative:
(ii) in the case of Spain, the Minister of finance or any other authority,
that the Minister of the latter.
2. each term that is not defined in the Treaty, has for its application
Contracting State, meaning that it has under the law of that Contracting
State governing the taxes which are the subject of this agreement, if the
the link does not require a different interpretation.
Article 4
Tax residence
1. The expression "person residing or established in a Contracting State"
indicates that for the purposes of this agreement, any person who, under the law
This State is subjected to taxation in that State by reason of his residence,
stay at the place of management or any other similar criteria. However, this
the term does not include persons who are subject to tax in that State
only the income that they receive from sources located in that State, or
of the assets in that State of their own.
2. If a natural person has under the provisions of paragraph 1, the place of residence in the
both of the Contracting States, shall decide the case in accordance with the following rules:
and) that this person is resident in that Contracting State in
which he has a permanent home. If he has a permanent home in both Contracting States,
It is assumed that he is resident in that Contracting State with which the
personal and economic ties the closest (Centre of vital interests).
(b)) cannot be determined by the Contracting State in which he has his Centre
their vital interests, or if it does not have a permanent home in any Contracting
State, it is assumed that he is resident in the Contracting State in which the
usually resides.
(c)) If this person usually resides in 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 national.
d) if that person is a national of both Contracting States, or
If it is not a member of any of them, the competent authorities of the Contracting
States shall by mutual agreement.
3. If a person other than a natural person has under the provisions of paragraph 1,
based in both Contracting States, it is assumed that has its registered office in the
the Contracting State in which the place of effective management.
Article 5
Permanent establishment
1. the term "permanent establishment" means for the purposes of this agreement, the Permanent
equipment for the business, in which the undertaking in whole or in part of its
activity.
2. the term "permanent establishment" includes especially:
and instead of keeping),
(b)) race,
(c)),
d) factory
e) workshop,
f) mine, a quarry, or any other place of extraction of natural resources.
3. A building site or installation are a permanent establishment only if the
last longer than 12 months.
4. the term "permanent establishment" shall not include:
and) device that is used only for storage, display or
supply of goods of an enterprise;
(b)) the supply of goods to the enterprise solely for the purpose of storage,
display or delivery;
(c)) the supply of goods to the enterprise solely for the purpose of processing
another undertaking;
d) durable equipment for the business, which is solely for the purpose
advertising, information, scientific research or similar
activities for the company, which have a preparatory or auxiliary character.
5. a person acting in a Contracting State by an enterprise of the other Contracting
State-other than the representative with independent status, which is
paragraph 5-is considered to be a permanent establishment in the first Member State if the
It is in this State, equipped with power of Attorney, which there usually is used and
that allows her to enter into contracts on behalf of the enterprise, unless the activities of the
the person is not restricted to the activities referred to in paragraph 4.
6. For the permanent establishment of the enterprise of a Contracting State, in the second
a Contracting State does not consider the mere fact that the undertaking in this second
the State carries on business through a broker, General
the Commissioner or any other representative of having independent
position, if such persons are acting in the ordinary course of their business.
7. 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 in that other State carries on business
(whether through a permanent establishment or otherwise), will not make itself from
either this company a permanent establishment of the other company.
Article 6
Income from immovable property
1. Income from immovable property including income from agricultural or
forestry may be taxed in the Contracting State in which the
such property is located.
2.
and) the term "immovable property" shall, subject to the provisions of paragraphs (b) and (c)))
in conformity with the law defines this Contracting State in which such
the property is located.
(b)), the term "immovable property" includes in any case accessories
immovable property, alive and dead inventory of agricultural and forest
the economy, the rights to which they apply the provisions of the civil law
relating to immovable property, the enjoyment of immovable property and rights
the variable or fixed salaries for unfair advantage unfair advantage or the right to
mineral deposits, sources and other natural resources.
(c) the ship or aircraft) are not considered as immovable property.
3. The provisions of paragraph 1 shall apply to the income from the direct use, letting
and every other manner of use of immovable property.
4. The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property
the assets of the company and to income from immovable property used for the performance of
a liberal profession.
Article 7
The profits of enterprises
1. The profits of an enterprise of a Contracting State shall be taxable only in that
State if the undertaking does not pursue its activities in the other Contracting State
through a permanent establishment that is located there. If
the enterprise carries on business in this way, the profits of the enterprise may be
taxed in that other State, but only to the extent that it is
can be attributed to that permanent establishment.
2. If an enterprise of a Contracting State, carries on business in the
the other Contracting State through a permanent establishment that is there
placed, attach, in each Contracting State such permanent establishment
the gains that could be expected to achieve, if only as a separate
the firm carried out the same or similar activities under the same or
similar conditions and traded quite independently with the enterprise of which it is
a permanent establishment.
3. In determining the profits of a permanent establishment shall be allowed to deduct the costs of
spent on the objectives of the permanent establishment including expenses
management and general administrative expenses, whether incurred in this way
State in which the permanent establishment is situated or elsewhere.
4. If any Contracting State to determine the profits
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
This Contracting State the profits to be taxed, in such a
the Division of what is normal. Taken by the method of distribution of profits must be
However, such that 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, by the same method, if
There are serious and reasonable 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
Sea and air transport
1. Profits from the operation of ships or aircraft in international traffic
shall be taxable only in the Contracting State in which is located the actual
management of the undertaking.
2. If the place of effective management of maritime transport is on the
Board a ship, it is considered located in the Contracting State in which the ship
my home port, or if the ship does not have a home port, it is considered
located in the Contracting State in which the operator has his domicile or
registered office.
3. The provisions of paragraph 1 shall also apply to profits from the participation in a pool,
the joint operation or international operating organization.
Article 9
Associated enterprises
1. If the
and the company) of a Contracting State participates directly or indirectly in the
the management, control or capital of an undertaking of the other Contracting State, or
(b)) the same persons participate directly or indirectly in the management, control or
the assets of the enterprise of a Contracting State and enterprise of the other Contracting
State,
and if in one and the second case were between the two enterprises in their
commercial or financial relations negotiated or imposed conditions,
which differ from those which would have been agreed upon between undertakings
the independent, may be the gains that have been achieved without these
the terms of one of the businesses, which, however, due to the following conditions
have not so accrued, integrated into the profits of this business, and as a result,
taxed.
2. If the profits out of which the company was a Contracting State taxed in
This State, were also included in the profits of the enterprise of the other Contracting
State and taxed accordingly, and if profits are the profits thus included,
that would have accrued to the enterprise of the other Contracting State, if
the two firms were contracted conditions as between undertakings,
modifies the first reasonably amount of tax to be imposed on the State of these profits in the
the first State. In determining such adjustment, due account will be taken of the
the other provisions of this agreement in relation to the nature of the income, and if
necessary, the competent authorities of the Contracting States to this end.
3. A Contracting State does not adjust the profits of the enterprise, in the cases referred to in paragraph
1 if, under the law of this state the limitation period has expired.
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 also be taxed in the Contracting State in which the
the company has its head office, which is to be paid according to the law of that State.
However, if the recipient is the beneficial owner of the dividends the tax so
charged shall not exceed:
and 5% of the gross amount) of the dividends if the beneficial owner is
the company (but not personal company that does not have the legal
personality), which owns directly at least 25% of the capital of the company
paying the dividends;
b) 15% of the gross amount of the dividends in all other cases.
3. the competent authorities of the Contracting States shall by mutual agreement settle the mode
the application of paragraph 2.
4. The provisions of paragraph 2 shall not affect the taxation of the profits of the company, from the
which the dividends are paid.
5. the term "dividends" as used in this article means income from shares,
jouissance shares or jouissance rights, kuksů or other rights, with
the exception of the claims, with the participation in the profits, as well as income from other
social rights, which are subjected to the same taxation as income from
shares pursuant to the tax law of the State in which the seat of the company
paying dividends.
6. The provisions of paragraphs 1 and 2 shall not apply if the recipient of the dividends,
residing or established in a Contracting State, carries on business in the other
the Contracting State in which the registered office of the company paying the dividends,
industrial or commercial activity through a permanent establishment,
that is placed there, or performs in that other State of the free
occupation by using permanent base located there and if the participation on the
basis of which the dividends are paid is effectively connected with such permanent
establishment or fixed base. In that case, shall apply
the provisions of article 7 or article 14, depending on what matters.
7. If a company having its registered office in one Contracting State is achieved
profits or income from the other Contracting State, that other State
tax the dividends paid by the company to persons residing or
established in the first Member State, nor subject the company's undistributed profits tax
retained earnings, even if the dividends paid or retained earnings
consists in whole or in part on profits or income realised in this
the 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 shall be taxable only in the
that other State.
2. The term "interest" as used in this article means income from debt-claims
any kind, secured and not secured the right to
real estate, providing and not provide the right to participate in profits
of the debtor, in particular income from public bonds and bonds, including
premiums and prizes related to the bond market.
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
performs in that other State independent profession using the permanent base
There are located and if the claim from which the interest is paid,
associated with such permanent establishment or fixed base. In
this case, the provisions of article 7 or article 14, depending on
on what matters.
4. If the amount of the interest paid, having regard to
the claim from which they are paid, exceeds the due to specific
relationship between the payer and the recipient or between both of them and the third
the person in the amount you would have been had given the payer with the recipient, if not
such relationships, the provisions of this article shall apply only to that
the last amount. Part of the salary, which exceeds it, remains in this
If subjected to taxation according to the law of each Contracting State and with
the light of the other provisions of this agreement.
Article 12
License fees
1. Royalties arising in a Contracting State and paid
a person who is resident or established in the other Contracting State, may be
taxed in that other State.
2. However, Such royalties may be taxed in the Contracting State,
where is their source, according to the law of that State. The tax so
imposed shall not exceed 5% of the gross amount of the royalties for the
the assumption that royalties shall be taxable in the other Contracting
State.
3. copyright licensing fees and other similar remuneration for making or
the reproduction of a literary, dramatic, musical or artistic work
(but with the exception of royalties paid for cinematographic
movies and works recorded on film or television tapes for television
broadcasting) arising in a Contracting State and paid to the person having
resident or established in the other Contracting State who is subject to taxation from
these royalties, shall be taxable only in that other
State.
4. the term "royalties" as used in this article means salaries
any kind of paid for the use of, or the right to use the copyright
the rights to literary, artistic or scientific, including
Cinematograph films, any patent, trade mark, design or model,
the plan, secret formula or process, or for the use of, or the right to
the use of industrial, commercial or scientific equipment, or for
information relating to the experience of the field of industrial, commercial
or scientific.
5. the provisions of paragraphs 1, 2 and 3 shall not apply if the recipient of the
the royalties or the seat of the resident in one Contracting State
carries on in the other Contracting State in which the royalties
source, industrial or commercial activity through a fixed
the establishment, which is located there, or carries on business in that State, the free
occupation by using permanent base located there, and if the right or
assets for which they are paid, royalties are actually
connected with such permanent establishment or fixed base. In such a
If the provisions of article 7 or article 14, depending on
What matters.
6. It is assumed that the licence fees have a source in a Contracting
State when the payer is that Contracting State itself, a lower administrative department
or local authority of that Contracting State or a person residing or
head offices in that Contracting State. If, however, the person paying the license
fees, either has or does not have a domicile or registered office in a Contracting State,
has in a Contracting State a permanent establishment in connection with which arose
the obligation to pay royalties, and this shall be borne by the permanent establishment to its
borne by these license fees, it is assumed that these license fees
to arise in the Contracting State in which the permanent establishment is
located.
7. If the amount of the paid license fees assessed to
regard to the use, right or information for which they are paid,
exceeds owing to special relationship between the payer and the
recipient or between both of them and a third party in the amount you would have been had given the
the payer with the recipient, if it wasn't for such relationship, the provisions of
This article just on this last amount. Part of the salaries that it
exceeds, it remains in this case subject to taxation according to the law
Each Contracting State and taking into account the other provisions of this
of the Treaty.
Article 13
Capital gains
1. the Profits obtained by the person residing or established in a Contracting
State from the alienation of immovable property, which is dealt with in article 6, and
which is located in the other Contracting State, may be taxed in that
the second State.
2. Gains from the alienation of movable property forming part of the business property of a
of a permanent establishment which an enterprise of a Contracting State has in the other
Contracting State or of movable property owned by a permanent base,
which a person resident in a Contracting State has in the other
a Contracting State for the exercise of a liberal profession, including gains from the alienation
such a permanent establishment (alone or together with the whole enterprise) or
such permanent base, may be taxed in that other State. Profits from the
the alienation of movable property as referred to in article 22, paragraph 3, however,
shall be taxable only in the Contracting State in which such movable
the property is subject to taxation under the said article.
3. Gains from the alienation of assets other than those which are
dealt with in paragraphs 1 and 2, shall be taxable only in the Contracting State,
in which the transferor has a domicile or registered office.
Article 14
An independent profession
1. Income derived by a person resident in a Contracting State receives
for services rendered in the exercise of a liberal profession or other
independent activities of a similar nature shall be taxable only in that
State, if such person does not regularly available in the other Contracting
State a permanent base for the performance of its activities. If it has such
fixed base, the income may be taxed in the other Contracting State,
but only to the extent that can be attributed to that permanent
the base.
2. The expression "liberal profession" includes especially independent activity
scientific, literary, artistic, educational or teaching, as well as
the independent activities of physicians, lawyers, engineers, architects, dentists and
accounting.
Article 15
Dependent employment
1. Wages, salaries and other similar remuneration derived by a person resident in
a Contracting State receives from employment, shall, subject to
the provisions of articles 16, 18 and 19 of the taxable only in that State, if the
employment is exercised in the other Contracting State. If there is
employment exercised, can be the rewards received from this job
taxed in that other State.
2. The rewards that a person resident in a Contracting State receives
from the employment exercised in the other Contracting State, shall be subject to no
Notwithstanding the provisions of paragraph 1, taxable only in the first Member State, if:
and the recipient is resident in) the other State during one or more periods,
that whole does not exceed 183 days in the calendar year,
(b)) the rewards are paid by the employer, or on behalf of the employer,
that does not have a domicile or head office in that other State, and
(c) the remuneration is not borne by) a permanent establishment or a fixed base, which has
the employer in that other State.
3. the Rewards of employment exercised aboard a ship or aircraft in
international transport may be notwithstanding the preceding provisions of this
Article taxed in the Contracting State in which it is located, the actual
the placing of the undertaking.
Article 16
Royalties
Royalties and similar salaries that a person residing in a Contracting
State receives as a member of the administrative or supervisory board or other similar
body of the company, which is based in the other Contracting 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 or television artists, and musicians
athletes as such from your personal activities 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 personal activities exercised by an artist or athlete
as such they artists or athletes, but to another person,
such income may be taxed, notwithstanding the provisions of articles 7, 14 and
15 in the Contracting State in which the activities of the artists or athletes
exercised.
Article 18
Board
Pensions and other similar salaries paid by reason of past employment
a person resident in a Contracting State shall, subject to
the provisions of article 19 (1) taxation only in that State.
Article 19
The public service
1.
and Salaries other than pensions), paid by a Contracting State, a lower one
administrative unit or a local authority thereof to an individual in
of services rendered to that State, less an administrative subdivision or authority,
shall be taxable only in that State.
(b) However, Such salaries) shall be taxable only in the other Contracting State,
If the services were held in this State, and the natural person has in this
State of residence and
(i) is a national of that State, or
(ii) place of residence has not been obtained in that State only for the purpose of these
services.
2.
and pension paid by one) of any Contracting State, lower administrative
Department or local authority thereof, or from the funds, which have established,
the physical person for services rendered to that State, administrative unit
or authority shall be taxable only in that State.
(b) However, Such pension) shall be taxable only in the other Contracting State,
If the individual is resident in that State and is a member of
of that State.
3. the provisions of articles 15, 16 and 18 shall apply to remuneration and pensions for services
held in conjunction with the industrial and commercial activities, carried out by
Contracting State, a political subdivision or a local authority.
Article 20
Learners
Salaries to cover the costs of nutrition, education, or practice receiving
the student or apprentice who is present in a Contracting State only
for the purpose of his education or experience and who have or have had
immediately before such visit is resident in the other Contracting State,
to nezdaní in the first Contracting State if such salaries were
remitted from sources outside that State.
Article 21
Other income
1. the income of persons resident or established in a Contracting State,
which is not dealt with in the foregoing articles of this agreement, is
their source anywhere, shall be taxable only in that State.
2. The provisions of paragraph 1 shall not apply to income, other than income from
immovable property, which is defined in article 6, paragraph 2, if the
the recipient of such income having residence or registered office in a Contracting
State industrial or commercial activity exercised in the other Contracting
State through a permanent establishment located there, or performing in
that other State independent of the profession with a permanent base there
placed and if the right or property in respect of which the income, are
actually associated with a permanent establishment or with such a permanent
the base. In such a case, the provisions of article 7 or article
14, depending on what matters.
Article 22
Property
1. Immovable property within the meaning of article 6, which own a person holding a
residence or head office in a Contracting State and which is located in the second
a Contracting State may be taxed in that other State.
2. Movable property that is part of the business property of a permanent establishment
undertaking, or movable property pertaining to a fixed base used for the
profession may be taxed in the Contracting State in which the
permanent establishment or fixed base.
3. Ship and aircraft used in international traffic and movable property
for the operation of such ships and aircraft shall be taxable only in the
the Contracting State in which the actual placing of the undertaking is located.
4. All other parts of the assets of persons who are resident or established in
a Contracting State shall be taxable only in that State.
Article 23
The method of elimination of double taxation
1. In Czechoslovakia with the double taxation eliminates this way:
a) if the person residing or established in Czechoslovakia he receives
income or assets that may be subject to the provisions of this
the contract taxed in Spain, Czechoslovakia, subject to
the provisions referred to in (b)) of this paragraph, such income or
such property from taxation. In the calculation of the tax on other income or
the assets of that person can, however, use the tax rate that would apply,
If exempted income or property were not exempt from taxation in this way.
b) Czechoslovakia may, when depositing taxes for persons who are
the territory of residence or registered office, include in the basis upon which such taxes
stores, receipts, that may be according to the provisions of articles 10, 12, 16 and
17 of this Treaty also taxed in Spain. Czechoslovakia, however, enables the
reduce the amount of tax computed on such a base an amount equal to
tax paid in Spain. The amount of the tax is to be reduced, does not exceed
However, such a part of the Czechoslovak tax, calculated before the reduction
taxes were allowed, that quite falls on revenue that can be
According to the provisions of articles 10, 12, 16 and 17 of this agreement are taxed in
Spain.
2. In Spain, the double taxation eliminates this way:
a) if the person residing or established in Spain, is in receipt of income
or own property that may be subject to the provisions of this agreement
taxed in Czechoslovakia, Spain, subject to provisions of
referred to in (b)) of this paragraph, such income or such
assets from taxation. In the calculation of the tax on other income or assets
This person may, however, use the tax rate that is used, if set aside
income or assets were as follows, be exempted from taxation.
(b)) may, when depositing taxes Spain persons who are within its territory
place of residence or registered office, include in the basis upon which such taxes
stores, receipts, which may be subject to the provisions of articles 10 and 12 of this
the Treaty also taxed in Czechoslovakia. Spain, however, allows to reduce
the amount of tax computed on such a base an amount equal to the tax
paid in Czechoslovakia. The amount of the tax is to be reduced, does not exceed
However, such a part of the Spanish tax, calculated before tax reduction
was enabled that quite falls on the income that can be
the provisions of articles 10 and 12 of this agreement, be taxed in Czechoslovakia.
Article 24
Prohibition of discrimination
1. Nationals of a Contracting State shall not be subjected in the other
Contracting State to any taxation or duties associated with it, which
is other or more burdensome than the taxation and connected requirements to which
are or may be subjected under the same circumstances, the members of this
the second Member State.
2. Stateless persons who are resident in a Contracting
the State will not be subjected to in one or in the other Contracting State to any
taxation or duties associated with it that are more troubling than
the taxation and connected requirements to which are or may be subjected
nationals of the State concerned in the same circumstances.
3. 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,
to admit persons resident in the other Contracting State personal
deductions, credits and tax reductions because of the status or duties to the
the family, which it grants to persons residing on its territory.
4. enterprises of a Contracting State, the capital of which is wholly or partly,
directly or indirectly owned or controlled by the person or persons
having a domicile or registered office in the other Contracting State, shall not be subjected to the
the first Contracting State to any taxation or duties associated with it,
which is other or more burdensome than the taxation and connected requirements
which they are or may be subject to other similar businesses of this
the first State.
5. interest, royalties and other payments paid by the undertaking of one
Contracting State to the person residing or established in the other Contracting State
will be subject to the cases to which the provisions of article 9 of the
paragraph 1, article 11, paragraph 4, or article 12, paragraph 7, for the purpose of
determination of taxable profits of this business deductible for the same
conditions, as would have been paid by a person resident or established in the first
State.
The debts of an enterprise of a Contracting State against a person residing or
established in the other Contracting State are similar for the purposes of determining the
the taxable assets of the undertaking under the same terms, odčitatelé
as if it were a commitment against the person residing or established in the first
State.
6. 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. If a person residing or established in a Contracting State
considers that the actions of one or both of the Contracting States are or will be
for it will result in taxation not in accordance with this agreement,
can independently of the remedies available under national law
These States present their case to the competent authority of the Contracting State
in which he resides or is established.
2. when the competent authority will be the objection to be justified and if it is not
myself with it to arrive at 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 interpretation or
the application of this agreement. They can also consult for the purpose of exclusion
double taxation in cases not covered by this agreement.
4. the competent authorities of the Contracting States may come in direct contact with a view to
reaching an agreement in the sense of the preceding paragraphs. If the oral exchange
opinions seem to be helping to achieve agreement, such exchange may take place in
the Commission, composed of representatives of the competent authorities of the Contracting States.
Article 26
The exchange of information
1. the competent authorities of the Contracting States shall exchange the information necessary
for the implementation of this agreement and the national laws of the Contracting States in
things taxes to which this agreement applies, if the taxation according to them
will be in accordance with this agreement. All the information thus exchanged will be
considered to be confidential and may be disclosed only to persons or authorities and courts
entrusted with the charge of the assessment, collection or recovery of taxes that are
the subject of this agreement, or criminal prosecution in the case of such taxes.
2. The provisions of paragraph 1 shall not be in any way interpreted as
store one of the Contracting States the obligation:
and) to perform administrative measures which derogate from the laws
or administrative practice of that or of the other Contracting State;
(b)) provide the information that could not be achieved on the basis of the law or in
the standard administrative procedure of this or the other Contracting State;
c) to supply information which would disclose commercial, corporate,
industrial, commercial or professional secret or trade process
or information, the disclosure of which would be contrary to public policy
(ordre public).
Article 27
Diplomatic and consular officers
The provisions of this Agreement shall not affect the tax privileges that pertain
diplomatic and consular officials under the General rules of
of international law or under the provisions of special agreements.
Article 28
Entry into force of
1. this Treaty shall be ratified and the instruments of ratification shall be exchanged
in Prague as soon as possible.
2. the contract shall enter into force on the date of exchange of instruments of ratification and its
the provisions will apply:
and) when it comes to taxes levied at source, to amounts received 1. January
calendar year following the year in which the agreement
validity, or later;
(b)) with regard to other income tax and property taxes, for taxes imposed for
tax years starting on 1 July. January 1 of the calendar year following the
year in which the agreement comes into force, or later.
Article 29
Notice of termination
This agreement will remain in effect until one of the Contracting
States is terminated. Either Contracting State may terminate the contract
notice sent through diplomatic channels, at least six months before the end of
of any calendar year following after the period of three years from the date of
the Treaty came into force. In this case, the agreement shall cease to be
efficiency:
and) when it comes to taxes levied at source, to amounts received 1. January
calendar year following the year in which the notice was given,
or later;
(b)) with respect to other taxes on income and taxes on capital, for taxes imposed by
for tax years starting on 1 July. January 1 of the calendar year following the
year in which the notice was given, or later.
In witness whereof, who were duly authorised thereto, have signed the
This contract.
Given in duplicate in Madrid on 8. May 1980 in Czech and
Spanish language, both texts being equally authentic.
For the Czechoslovak Socialist Republic:
Dr. Zdeněk Tammy v.r.
For Spain:
Carlos Robles Piquer v.r.