180/1994 Coll.
The COMMUNICATION FROM the
Ministry of Foreign Affairs
Ministry of Foreign Affairs says that the 8 March. November 1993 was in
Bucharest signed an agreement between the Government of the United Kingdom and the Government of
Romania on the avoidance of double taxation and the prevention of fiscal evasion with respect
taxes on income and on capital.
With the Treaty, its assent, Parliament of the Czech Republic and the President of the
the Republic has ratified it.
Treaty has entered into force pursuant to article 29, paragraph 1. 2 on 10 July 2004.
August 1994 and that date pursuant to the provisions of paragraph 3 of the same article, in
relations between the Czech Republic and Romania ceased to
apply the following multilateral agreements:
Agreement on avoidance of double taxation of income and assets of natural persons,
signed at Miškovci on 27. May 1977, well-known under the No 30/1979 Sb.
and
Agreement on avoidance of double taxation of income and assets of legal entities,
signed at Ulan Bator on 19 December. May 1978, well-known under no. 49/1979
SB.
The Czech version of the Treaty shall be designated at the same time. In the English version of the Treaty,
for its interpretation of the applicable, can be consulted at the Ministry of
Foreign Affairs and the Ministry of finance.
CONTRACT
between the Government of the United Kingdom and the Government of Romania to avoid double
taxation and prevention of fiscal evasion with respect to taxes on income and on capital
The Government of the United Kingdom and the Government of Romania
Desiring to conclude an agreement on avoidance of double taxation and the prevention of
fiscal evasion with respect to taxes on income and on capital,
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 shall apply to taxes on income and on capital imposed by the
on behalf of each Contracting State or of its lower administrative departments
the local authorities or territorial administrative units, whether it is way to select
any.
2. taxes on income and on capital all taxes shall be levied on
the total income of all assets or parts of income or assets
including taxes on profits from the alienation of movable or immovable property and
also taxes on the increment property.
3. Current taxes, to which the contract relates, in particular:
and) in the Czech Republic:
(i) the tax on income of individuals;
(ii) the tax on income of legal persons;
(iii) tax on immovable property;
(hereinafter referred to as "Czech tax");
(b)) in Romania:
(i) the income tax of individuals (impozitul pe veniturile realizate de
persoanale fizice);
(ii) the tax on profits of legal persons (impozitul pe profiturile realizate
de persoanale juridice);
(iii) the tax on the salaries, wages and other similar remuneration (impozitul pe salarii
alte remuneratii similare);
(iv) the tax on dividends (impozitul pe dividende);
(v) the tax on income from agricultural activities (impozitul pe veniturile
realizate din activitati agricole);
(hereinafter referred to as "Romanian tax").
4. this Agreement shall also apply to the taxes of the same or
of a similar kind, that will be stored after the signature of this agreement, in addition to
or instead of the current taxes. The competent authorities of the Contracting States shall mutually
shall notify substantial changes that will be made in their respective
the tax code at the appropriate time after the implementation of such changes.
Article 3
General definitions
1. for the purposes of this agreement, unless the context requires a different interpretation:
and) the term "Romania" means Romania, and when used in a geographical
meaning, indicates the territory of Romania, including its territorial waters and also
the exclusive economic zone over which they exercised sovereign rights
or jurisdiction in accordance with its national law and with international
the law, with regard to the exploration and exploitation of natural, biological and
mineral resources located in sea water, on the ocean floor and in the
the subsoil of these waters;
(b)), the term "Czech Republic" means the territory in which the tax laws apply
The Czech Republic;
(c)) the terms "a Contracting State" and "the other Contracting State" mean respectively according to the
the case of the Czech Republic or Romania;
(d)) the term "person" includes an individual, a company and any other
an Association of persons;
(e)) the term "company" refers to any legal entity or
the rightholder, considered for the purposes of taxation under the legal person;
(f)) 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;
(g)) the term "national" means:
(i) any natural person who is a citizen of the United States
or of Romania;
(ii) any legal person, partnership or association established
According to the law in force in a Contracting State;
h) the term "international traffic" means any transport
undertaken by ship, boat, plane, train or road
the vehicle, which is operated by an undertaking whose place of effective management
It is located in a Contracting State, if such a right is not
takes place only between places in the other Contracting State;
I) the term "competent authority" means:
(i) in the case of the Czech Republic, the Minister of finance or his authorized
representative;
(ii) in the case of Romania, the Minister of finance or his authorized
representative.
2. each expression that is not otherwise defined will have for the application of this
the Treaty, a Contracting State the importance which it has under the law of that State,
covered by the taxes covered by this agreement, unless the context
does not require a different interpretation.
Article 4
A resident of the
1. for the purposes of this agreement, the term "resident of a Contracting State"
indicates 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. This term, however,
does not include a person who is subject to tax in that Contracting State
only for reasons of income from sources in that State or property in this
the State placed.
2. If the individual is under the provisions of paragraph 1, a resident in the
both of the Contracting States, its position will be addressed to the following
follows:
and it is assumed that) this person is resident in the State in which the
He has a permanent home; If he has a permanent home in both States, it is assumed that
It is resident in the State, which has a strong personal and economic
relations (Centre of vital interests);
(b)) if it cannot be determined which state the person Center
their vital interests or if it does not have a permanent home in any State
It is assumed that it is resident in the State in which it is usually
resides;
(c)) If this person usually resides in both States, or in any
of them, it is assumed that it is resident in the State of which he is a
National;
d) if that person is a national of both States or of any
of them, the competent authorities of the Contracting States shall adjust the question by mutual
by the 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. For the purposes of this agreement, the term "permanent establishment" means a permanent
equipment for the business, in which the undertaking carries out entirely or partly
their activity.
2. the term "permanent establishment" includes especially:
and instead of keeping);
(b)) race;
(c));
(d) a factory;)
e) a workshop;
f) mine, the site of diesel or gas, a quarry or any other place where the benefits
natural resources; and
g) plantation, farm, Orchard or vineyard.
3. the term "permanent establishment" also includes:
a building site or construction), Assembly or installation project or supervision
associated with them, but only if such site, project or
supervision for more than nine months;
(b)) the provision of services, including consulting and management services
provided by the enterprise of a Contracting State through the
employees or other workers employed by the enterprise for such
purposes, but only where activities of that nature still occur at the same
or the related project on the territory of the other Contracting State for a period
or more periods exceeding in the aggregate of nine months in any
the 12-month period.
4. Notwithstanding the provisions of paragraphs 1, 2 and 3 assume that the expression
"permanent establishment" shall not include:
and) device that is used only for storage, display or delivery
goods 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 solely for the purpose
purchase of goods, or collecting information for the enterprise;
e) durable equipment for the business, which for the company only for the
the purpose of the ads, the provision of information, scientific research or similar
activities which have a preparatory or auxiliary to the business nature;
(f) the sale of goods or merchandise belonging to the enterprise) drawn up in the framework of the opportunistic,
temporary fair or exhibition, which will take place after the expiry;
g) durable equipment for the business, which is kept only for the performance of
any combination of activities mentioned in subparagraphs a) to (f)), if
the total activity of durable equipment, resulting from this concentration has
a preparatory or auxiliary character.
5. If, notwithstanding the provisions of paragraphs 1, 2 and 3, the person-other
than an independent representative, to whom paragraph 6 applies-is acting in a
a Contracting State on behalf of the company and has available and usually uses the full
the power that allows it to enter into contracts on behalf of the company, it is considered that the
This enterprise has a permanent establishment in that State in respect of all
the activities that the person performs for the enterprise if the activities of this
people are not limited to the activities listed in paragraph 4 which, if
were carried out through permanent facilities were not based on
the existence of a permanent establishment under the provisions of this paragraph.
6. Not considered that the enterprise has a permanent establishment in a Contracting State
just because in this State, carries on business through a
a broker, General Commission agent or any other agent of an independent,
If these persons are acting within their proper operation.
7. 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 derived by a resident of a Contracting State from immovable
property (including income from agriculture or forestry) situated in the second
a Contracting State may be taxed in that other State.
2. the term "immovable property" has such importance under the laws
the Contracting State in which such property is located. The term includes in
any case, accessories of immovable property, the living and the dead inventory
used in agriculture and forestry, rights to which the provisions of the
civil law relating to property, the right to the enjoyment of immovable property
property and rights to variable or fixed salaries for conveying or
consent to the mining of mineral deposits, sources and other natural
resources; ships, boats, aircraft, rail and road vehicles
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 also apply to the income from immovable property
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 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, 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
undertaking, incurred to the objectives pursued by the permanent establishment, including
Executive and general administrative expenses, whether incurred as follows
incurred in the State in which the permanent establishment is situated or elsewhere.
This provision shall apply subject to the limitations under the national
legislation.
4. If a Contracting State determine the gains that
to be attributed to a permanent establishment on the basis of allocation of the total
the profits of the enterprise to its various parts, does not preclude the provisions of paragraph 2, to
This Contracting State the profits to be taxed by the usual
the allocation. The method used for distribution of profits must, however, be such that the
the result was in accordance with the principles laid down in this article.
5. no permanent establishment of nepřičtou gains based on the fact that
only goods for the company.
6. the Profits to be attributed to a permanent establishment for purposes of the
the preceding paragraphs shall each year, in the same way, if the
There are insufficient grounds for a different procedure.
7. where profits include receipts, which are dealt with separately in the
the other articles of this agreement, the provisions of those articles shall not affect the
the provisions of this article.
Article 8
International transport
1. Profits from the operation of ships, boats, aircraft, railway or
road vehicles in international traffic shall be taxable only in the
the Contracting State in which the registered office is located the actual management of the undertaking.
2. when the effective centre of management of shipping is on board
a ship or boat, it is considered located in the Contracting State in which the
is the home port of the ship or boat, or, if no such
the home port, in the Contracting State in which the operator of a ship or
the boat is a resident.
3. The provisions of paragraph 1 shall also apply to profits from the participation in a pool,
the joint operation or an international operating organization.
Article 9
Associated enterprises
1. If the
and the company) of a Contracting State participates directly or indirectly in 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 in their
commercial or financial relations with terms that agree
or they were stored, and which differ from those which would be
agreed upon between undertakings are independent, can any profits which would,
but for those conditions, have accrued to one of the businesses, but due to the
These conditions were not achieved, be included in the profits of this business and
subsequently taxed.
2. where a Contracting State includes in the profits of the enterprise of that State and
then tax the profits from which the enterprise of the other Contracting State
taxed in that other State and the profits following profits which are included
would have been achieved by the undertaking first-mentioned State if the conditions
negotiated between the companies were for what would have been agreed upon between the
independent enterprises, the second State appropriately modify the tax amount saved
of such profits in that State. In determining such adjustment shall
due account of other provisions of this agreement and, if necessary,
the competent authorities of the Contracting States shall to this end consult each other.
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 also be taxed in the Contracting State in
which is a company that is paid, a resident, and according to the laws
laws of that State, but if the recipient is the beneficial owner
dividends, the tax so determined shall not exceed 10 per cent of the gross amount of
dividends. This paragraph shall not affect the taxation of the profits of the company, from the
which the dividends are paid.
3. the term "dividends" as used in this article means income from shares,
or other rights with profit, with the exception of receivables, as well as
revenue from the company's rights, which are pursuant to the tax provisions of the country
where is the company that rozdílí profit, residence, built on the
shall be assimilated to income from shares.
4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of
of the dividends, being a resident in a Contracting State, carries on business in the
the other Contracting State in which the resident company paying
dividends, industrial or commercial activity through a fixed
the establishment, which is located there, or performs in that other State
independent profession through a permanent base located there, and
If the participation, for which the dividends are paid is effectively connected to
such permanent establishment or to the permanent base. In this case,
provisions of article 7 or article 14, depending on which case
it comes.
5. 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 resident of that other State or to participate,
for which the dividends are paid, actually belongs to the permanent establishment
or a permanent base, which is located in that other State, nor
subject to the company's retained profits tax on retained profits, even
When dividends paid or the undistributed profits consists wholly or
partly of profits or income realised in that other State.
Article 11
Interest
1. interest arising in a Contracting State by a resident of
of the other Contracting State, may be taxed in that other State.
2. However, such interest may also be taxed in the Contracting State in
which have a source, and according to the laws of that State, but if the
the recipient is the beneficial owner of the interest, the tax so charged shall not exceed 7
per cent of the gross amount of the interest.
3. Notwithstanding the provisions of paragraph 2, interest arising in one of the
a Contracting State shall be exempt from tax in that State if it is
receiving and actually own the Government of the other Contracting State, a local authority
or territorial administrative unit of this State or any agency or
the Bank or the authority of this Government or if the claim of a resident of the other
Contracting State are guaranteed, secured or directly or indirectly
funded by a financial institution wholly owned by the Government of the second
Contracting State, provided that the loan, which is the source of such
of interest, is not on a commercial basis.
4. The term "interest" as used in this article means income from debt-claims
any kind of secured and not secured the right to
real estate or having or not the right to participate in the debtor's profits, and
in particular, income from government securities and income from bonds or
bonds, including bonuses and rewards associated with those securities,
bonds or bonds. Penalties for late payment shall not be deemed
interest for the purposes of this article.
5. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of
interest, which is resident in a Contracting State, carries on business in the other
the Contracting State in which they have interest, industrial or commercial source
activity through a permanent establishment situated therein, or
independent profession through a permanent base located there, and
If the claim from which the interest is actually paid, it binds to
such permanent establishment or to the permanent base. In this case,
provisions of article 7 or article 14, as the case
it comes.
6. It is anticipated that interest to arise in a Contracting State,
When the payer is that State itself, its lower administrative department, local
the Office of territorial administrative unit or a resident of that State. However, if the
the person paying the interest, whether he is a resident of a Contracting State or not, has in a
a Contracting State a permanent establishment or a fixed base, in whose
the context of the debt occurred, of which the interest is paid, and such interest
are borne by such permanent establishment or fixed base, then as a source
such interest will be considered by the State in which the permanent establishment or
a permanent base is located.
7. If the amount of interest that are applicable to the claim from which they are
paid exceeds the due to the special relationship between the
the payer and the beneficial owner of the interest, or that one or the other keeps the
with a third party, the amount which would have been had given the payer with the actual
owner, if it wasn't for such a relationship, the provisions of this
article just on this latter amount. The amount of the salaries that it
exceeds, in this case, will be taxed in accordance with the legislation of each
a Contracting State with regard to the other provisions of this Treaty.
Article 12
License fees
1. the royalties and licence fees, arising in a Contracting State paid to
a resident of the other Contracting State, may be taxed in that other
State.
2. However, such royalties may also be taxed in the Contracting
State in which it is their source, and in accordance with the legislation of
of that State, but if the recipient is the beneficial owner of the license
the fees, the amount of tax thus determined shall not exceed 10 per cent of the gross
the amount of the royalties.
3. the term "royalties" as used in this article means payments
of any kind received as a consideration for the use of, or the right to use
Copyright for literary, artistic or scientific, including
Cinematograph films, and films or recordings for tv or
radio broadcast, satellite or cable transmission for the purpose of
broadcasts to the public by any form of electronic
Media; or any patent, trade mark, design or model,
the plan, secret formula or process, or for the use of, or for the
right to use, industrial, commercial or scientific equipment, or
for information relating to experience gained in the field of
industrial, commercial or scientific.
4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of
of the royalties, being a resident in a 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 performs independent profession
through a permanent base located there, and if the right or
assets that give the emergence of royalty actually bind to
such permanent establishment or fixed base. In this case, shall apply
the provisions of article 7 or article 14, depending on what matters.
5. It is assumed that the licence fees to arise in a Contracting State,
When the payer is that State itself, its lower administrative department, local
the Office of territorial administrative unit or a resident of that State. However, if the
the payer of the royalties, whether he is or is not a resident in the Contracting
State, has in a Contracting State a permanent establishment or a fixed base in
connection with which the obligation to pay license fees was that go to
borne by a permanent establishment or a fixed base, it is assumed that these
license fees are to arise in the Contracting State in which the Permanent
the establishment or the fixed base is situated.
6. If the amount of the license fees that are related to the use,
right or information for which they are paid, exceeds the due
the special relationship between the payer and the beneficial owner,
or that one or the other, it maintains with the third party, the amount which would have been
the payer is the beneficial owner had given, if it wasn't for such relationships,
the provisions of this article shall apply only to the latter
amount. The amount of the salaries that it exceeds, in this case will be taxed
According to the legislation of each Contracting State, taking into account
the other provisions of this agreement.
Article 13
Gains from the alienation of property
1. the Profits that accrue to a resident of a Contracting State from the alienation of
immovable property referred to in article 6 and situated in the other Contracting
the State, may be taxed in that other State.
2. Gains from the alienation of movable property forming part of the business property of a
a permanent establishment which an enterprise of a Contracting State in the other
Contracting State or of movable property belonging to the permanent base
by a resident of a Contracting State has in the other Contracting State to the
the performance of an independent profession, including such profits realised from
the alienation of such a permanent establishment (alone or together with the whole enterprise)
or such a permanent base, may be taxed in that other State.
3. Gains from the alienation of ships, boats, aircraft, railway or road
vehicles operated in international traffic, or movable property,
that serves the operation of such means of transport are subject to taxation
only in the Contracting State in which the effective centre of management is located
of the business.
4. Gains from the alienation of property, other than that referred to in paragraphs 1,
2 and 3 shall be taxable only in the Contracting State in which the alienator
resident.
Article 14
An independent profession
1. Income derived by a resident of a Contracting State receives from the free
the profession or other activities of an independent character, shall be subject to taxation
only in that State unless it has a fixed base regularly available in the
the other Contracting State for the purpose of conducting its activities. If you want the
such a 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
separate the activities of physicians, lawyers, engineers, architects, dentists and
accounting experts.
Article 15
Employment
1. a salaries, wages and other similar remuneration derived by a resident of a Contracting
the State is receiving due to employment, shall, subject to the provisions of
articles 16, 18, 19 and 20 taxable only in that State unless the employment is not
exercised in the other Contracting State. If there is a job to be exercised,
Rewards can be received for them taxed in that other State.
2. remuneration which a resident of a Contracting State is receiving because of the
employment exercised in the other Contracting State, shall be subject to whatever
the provisions of paragraph 1, taxable only in the first-mentioned State if
all the following conditions are true:
and the recipient is resident in) other State for a period or multiple periods
shall not exceed in the aggregate 183 days in any twelve month period, and
(b)) the rewards are paid by the employer, or an employer who
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, boat,
the aircraft, in the railway or road vehicle in international traffic,
taxed in the Contracting State in which the effective centre of management is located
of the business.
Article 16
Royalties
Directors ' fees and other similar remuneration, which a resident of a Contracting State
he receives as a member of the Board of Directors of a company which is a resident in the second
a Contracting State may be taxed in that other State.
Article 17
Artists and athletes
1. Income derived by a resident of a Contracting State as to the public
entertainer, such as a theatre, film, radio or television
the artist, or a musician, or as an athlete, from such personally
activities in the other Contracting State, may be, regardless of the
the provisions of articles 14 and 15 of the taxed in that other State.
2. If the income from the activities carried out by the artist in person or
athlete accrues not to that artist or athlete himself, but other
the person may be those revenues regardless of the provisions of articles 7, 14 and 15
taxed in the Contracting State in which an artist or an athlete performs
their activity.
3. The revenue referred to in this article shall, notwithstanding the provisions of
paragraphs 1 and 2, shall be exempt from tax in the Contracting State in which the artist
or the athlete carries on the activity, provided that this activity is of
a substantial part of public funds of this State or of the other
State, or that the activity is carried out on the basis of the cultural agreement between the
the Governments of the Contracting States.
Article 18
Board
Pensions and other similar salaries paid by reason of past employment
a resident of a Contracting State shall, subject to the provisions of
paragraph 2 of article 19 taxation only in that State.
Article 19
Public function
1.
and, other than Remuneration) pension, paid by a Contracting State or a lower one
the administrative unit, a local authority or administrative territorial unit for this
the State of a natural person for services rendered to that State, administrative
Department, local authority or a territorial administrative unit of that State;
shall be taxable only in that State.
(b) However, Such remuneration) are subject to taxation only in the other Contracting State,
If the services are rendered in that State and the individual who
is a resident of this State:
(i) is a national of that State; or
(ii) did not become a resident of this State for the provision of
These services.
2.
and Pensions paid by) either directly or from the funds, which has set up a
Contracting State, lower administrative unit, a local authority or a local authority
the unit of this State, of a natural person for services rendered to that State,
an administrative unit, a local authority or a territorial administrative unit of
State, shall be taxable only in that State.
(b) However, Such pension) are subject to taxation only in the other Contracting State,
If the individual is a resident of, and a national of that
State.
3. the provisions of articles 15, 16 and 18 shall apply to remuneration and pensions for services
proven in the context of industrial or commercial activities carried out by
any Contracting State, a political subdivision, local authority or
the administrative territorial unit of that State.
Article 20
Students and apprentices
1. the salaries that a student or an apprentice who is or was immediately before the
his arrival in a Contracting State a resident of the other Contracting
State and who is present in the first-mentioned State solely for the purpose of study
or training, to cover the costs of nutrition, study or training,
will not be taxed in that State for a period not exceeding six years, for
provided that such salaries are paid to him from sources outside that
State.
2. any remuneration which a student or apprentice receives during their
stay in the other Contracting State, shall be exempt from tax in this
the other State, provided that such remuneration, received in the context of
with the activities undertaken in that other State, which are in connection
with his study, research or training and are necessary for its nutrition,
does not exceed in the currency of that other Contracting State the equivalent of two thousand
five hundred United States dollars (US $2500) in a calendar year.
Article 21
Professors and researchers
1. An individual who visits a Contracting State for the purpose of teaching
or carrying out research at a University, college or other officially
a recognized educational and research institution in that Contracting State, and
that is, or was immediately before visiting a resident of the other
of a Contracting State, the first-mentioned State shall be exempt from tax from the remuneration of
for such teaching or research for a period not exceeding two years from the date of
first visit for that purpose.
2. The provisions of paragraph 1 shall not apply to income from research if it is
such research is conducted not for the public interest but primarily for the
the private benefit of a specific person or persons.
Article 22
Other income
1. the income of a person who is resident in a Contracting State, whether they are
source anywhere, which are not dealt with in the foregoing articles of this
of the Treaty, 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 (1). 2 If the
the recipient of such income, being a resident in a Contracting State,
industrial or commercial activity exercised in the other Contracting State
through a permanent establishment located there, or exercises in this
other State independent of the profession from a permanent base located there, and
If the right or property in respect of which the income is paid, are actually
connected with such permanent establishment or fixed base. In such a
If the provisions of article 7 or article 14, as
What matters.
Article 23
Property
1. Capital represented by immovable property referred to in article 6, which
own a resident of a Contracting State and which is located on the second
a Contracting State may be taxed in that other State.
2. Capital represented by movable property that is part of the business
the property of a permanent establishment which an enterprise of a Contracting State in the
the other Contracting State or of movable property belonging to the Permanent
the base, which is a resident of a Contracting State in the other Contracting
State to exercise an independent profession, may be taxed in that other
State.
3. Capital represented by ships, boats, aircraft or railway, and
road vehicles used in international transport, and
movable property serving for the operation of such means
resources, shall be subject to taxation only in the Contracting State in which the
placed the actual management of the undertaking.
4. All other elements of property of a resident of a Contracting State shall be subject to
tax only in that State.
Article 24
Elimination of double taxation
1. in the case of a resident of Romania will be double taxation is excluded
as follows: taxes paid by the Romanian residents of income or assets,
in accordance with the provisions of this Treaty shall be subject to taxation in the United
Republic, shall be deducted from the tax payable under Romanian Romanian
tax laws. The amount of the tax is to be reduced, however, shall not exceed such
part of the income tax or property tax calculated prior to its reduction, which
fairly falls on revenue or property which may be taxed in the United
Republic.
2. in the case of a resident of the United States double taxation will be avoided
as follows: Czech Republic may, when depositing taxes its residents
include in the basis upon which such taxes are saved, the revenues that
may be subject to the provisions of the articles of this Treaty also taxed in the
Romania, however, allows to reduce the amount of tax computed on such a base
an amount equal to the tax paid in Romania. The amount by which the
the tax to be reduced, however, shall not exceed such a part of Czech taxes calculated before
by reducing that fairly falls on the income that can be
the provisions of this Treaty are taxed in Romania.
Article 25
Prohibition of discrimination
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, in particular with respect to residence, in the same situation.
This provision shall, notwithstanding the provisions of article 1 shall apply also to the
persons who are not residents of one or both of the Contracting States.
2. the taxation on a permanent establishment which an enterprise of a Contracting State has in the
the other Contracting State, that other State will not be less favourable than
taxation of enterprises of that other State carrying out the same activities.
This provision shall not be construed as an obligation of a Contracting State,
admitting to residents of the other Contracting State personal credits, discounts and
the tax reduction because of the status or family obligations, which
It grants to its own residents.
3. If you do not apply the provisions of article 9, paragraph 1. 7, article 11
or article 12 para. 6, interest, royalties and other expenses
paid by the enterprise of a Contracting State to a person who is resident in
the other Contracting State, the deductible for purposes of determining taxable
the profits of this business under the same conditions as if they had been paid to the
a person who is a resident of the first-mentioned State. The debts of the business
of a Contracting State to a resident of the other Contracting State shall be
Similarly, for the purpose of determining the taxable assets of such an undertaking
deductible under the same conditions as if they were a commitment to a resident
the first-mentioned State.
4. enterprises of a Contracting State, the capital of which is wholly or partly,
directly or indirectly owned or controlled by a person or persons,
that are resident in the other Contracting State, shall not be subjected in the first-
the said Contracting State to any taxation or duties with him
United, which is other or more burdensome than the taxation and connected with it
the obligations to which they are or may be subject to other similar businesses
the first-mentioned State.
5. the provisions of this article shall, notwithstanding the provisions of article 2 of
apply to taxes of every kind and name.
Article 26
Resolving cases by agreement
1. where a person considers that the actions of one or both of the Contracting
States lead or lead it to taxation not in accordance with the
the provisions of this agreement, he may, irrespective of the remedies
that provides the national law of those States, present your case
the competent authority of the Contracting State of which he is a resident or, if the
the case falls under article 25, paragraph 2. 1, the Office of the Contracting State of which he is
a national. The case must be presented within three years from the first
notification of the measure, which leads to taxation, which is not in accordance with the
the provisions of this agreement.
2. If the competent authority of the objection to be justified and
If it is not itself able to find a satisfactory solution, it will try to
case decided by mutual agreement with the competent authority of the other Contracting
the State so as to avoid taxation which is not in conformity with this
the Treaty.
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 may also consult in order to avoid
double taxation in cases not covered by the contract.
4. the competent authorities of the Contracting States may come in direct contact with a view to
reaching an agreement in the sense of the preceding paragraphs. If oral
Exchange of views appears to be effective for the achievement of the agreement, can such exchange
opinions to take place through the Commission, composed of representatives of
the competent authorities of the Contracting States.
Article 27
The exchange of information
1. the competent authorities of the Contracting States shall exchange information
relevant to the application of the provisions of this Treaty or national
the legislation of the States parties, which shall apply to the taxes which are the
the subject of this agreement, if the taxation thereunder is not contrary to
This agreement. Exchange of information is not restricted by article 1. All
information received by a Contracting State will be kept confidential in the same
manner as information received under its national law
the State and will be disclosed only to persons or authorities (including courts and
administrative offices), dealing with the charge of the assessment or collection of taxes, on the
covered by this contract, criminal prosecution in case of such taxes
or decisions on appeals. Such persons or authorities
such information shall be used only for such purposes. May apply these
the information in public court proceedings or in legal decisions.
The information received will be kept confidential at the request of the Contracting
the State that provided the information.
2. The provisions of paragraph 1 shall not be in any way interpreted as
store a Contracting State the obligation:
and perform administrative measures) which would be in conflict with the law
regulations or administrative practice of that or of the other Contracting 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, economic,
industrial, commercial or professional secret or trade process, or
information whose communication would be contrary to public policy.
Article 28
Diplomats and consular officials
No provision of this Agreement shall not affect the tax privileges, which
It is for diplomats or consular officials under the General rules of
of international law or under the provisions of special agreements.
Article 29
Entry into force
1. the Governments of the Contracting States shall notify each other, that it has satisfied the constitutional
requirements for the entry into force of this Treaty.
2. this Treaty shall enter into force 30 days after the date of the later notification
within the meaning of paragraph 1 and its provisions shall apply:
and) with regard to taxes withheld at source, on amounts of income
paid to the 1. January or later in the calendar year following the
year in which the Agreement enters into force;
(b)) in respect of other taxes on income and property taxes, the taxes imposed by
for each tax year beginning with 1. January or later calendar year
following the year in which the Agreement enters into force.
3. After the entry into force of this agreement, in the mutual relations between the
The Czech Republic and Romania cease to apply Multilateral Agreement
to avoid double taxation of the income and assets of natural persons, signed at
Miškovci 27. in May 1977, and the multilateral agreement on avoidance of double
taxation and property of legal persons, signed at Ulan Bator 19.
May 1978.
Article 30
Notice of termination
This agreement shall remain in force until denounced by one
Contracting State. Any Contracting State may withdraw from the Contract in writing
through diplomatic channels, at least six months before the end of each
the calendar year beginning after the expiry of five years from the date of entry into
into force of this agreement. In this case, the contract ceases to
to apply:
and) with regard to taxes withheld at source, on amounts of income
paid to the 1. January or later in the calendar year following the
year in which the notice of termination has been given;
(b)) in respect of other taxes on income and property taxes, the taxes imposed by
for each tax year starting on 1 July. January or later calendar year
following the year in which the notice of termination has been given.
In witness whereof, the duly authorised thereto, have signed this agreement.
Given in duplicate in Bucharest on 8. November 1993 in the Czech,
the Romanian and English languages, all the texts are authentic. In
the event of any differences of interpretation, the English text will be decisive.
For the Government of the United States:
Klaus r.
the Prime Minister
For the Government of Romania:
N. Vacaroiu in r.
the Prime Minister