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

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

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now

Read the untranslated law here: https://portal.gov.cz/app/zakony/download?idBiblio=35265&nr=23~2F1982~20Sb.&ft=txt

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.