Double-Taxation Treaty With Romania

Original Language Title: Smlouva o zamezení dvojího zdanění s Rumunskem

Read the untranslated law here: https://portal.gov.cz/app/zakony/download?idBiblio=42146&nr=180~2F1994~20Sb.&ft=txt

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