5/1996.
The COMMUNICATION FROM the
Ministry of Foreign Affairs
Ministry of Foreign Affairs says that the 28 June. March 1995 was in
Canberra signed an agreement between the Czech Republic and Australia for the avoidance of
of double taxation and prevention of fiscal evasion with respect to taxes on income.
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 its article 27 on 27 November.
November 1995.
The Czech version of the Treaty shall be designated at the same time.
CONTRACT
between the Czech Republic and Australia for the avoidance of double taxation and
Prevention of fiscal evasion with respect to taxes on income
Czech Republic and Australia,
Desiring to conclude an agreement on avoidance of double taxation and the prevention of
fiscal evasion with respect to taxes on income,
have agreed as follows:
Article 1
The person to which the contract relates
This agreement shall apply to persons who are residents of one or
both of the Contracting States.
Article 2
The tax, to which the contract relates
1. Current taxes, to which the contract relates are:
and) in Australia:
income tax and tax on the rental of natural resources in relation to projects in
coastal waters, relating to the exploration and exploitation of oil resources,
imposed on the basis of federal laws of Australia;
(b)) in the Czech Republic:
income tax.
2. this Agreement shall also apply to all taxes of the same or
in principle, of a similar kind, which will be stored in accordance with federal laws
Australia or the laws of the United States after the signing of this agreement, in addition to
current taxes or instead of them. The competent authorities of the Contracting States
shall communicate the essential changes that will be made in their
the relevant tax laws relating to the taxes to which this
covered by the agreement, within a reasonable period after the changes.
Article 3
General definitions
1. In this agreement, unless the context requires a different interpretation:
and) the term "Australia", used in a geographical meaning, does not include external
the territory except:
(i) the territory of Norfolk Island;
(ii) the territory of Christmas Island;
(iii) the territory of Cocos (Keeling);
(iv) the territory of Ashmore and Cartier Islands;
(v) the territory of Heard Island and Mc Donald Islands; and
(vi) the Coral Sea Islands Territory,
and includes any area adjacent to the territorial boundaries of Australia
(including the territories specified in this subparagraph) for which is, in the
accordance with international law, the currently valid law of Australia
relating to the exploration for or the exploitation of any natural resources
the sea-bed and subsoil of the continental threshold;
(b)), the term "Czech Republic", used in a geographical meaning, indicates
the territory over which the Czech Republic is exercised according to the Czech law
regulations and in accordance with international law, its sovereign rights;
(c)) the terms "a Contracting State" and "the other Contracting State" mean respectively according to the
the case of Australia or the Czech Republic;
(d)) the term "person" includes an individual, a company and any other
an Association of persons;
(e)) the term "company" means the entity or the rightholder,
considered for taxation purposes for the company or legal person;
(f)) the terms "enterprise of a Contracting State" and "enterprise of the other Contracting
State "means an enterprise carried on by a resident of the
Enterprise carried on by a resident of Australia or the United States;
(g)) the term "tax" means, as the context of Australian tax or Czech
tax, but does not include any penalty or interest imposed under the law
the laws of each Contracting State relating to its tax;
(h)), the term "Australian tax" means tax to be imposed on Australia, which
This agreement applies in accordance with article 2;
I), the term "Czech tax" means tax to be imposed on the Czech Republic, the
This agreement applies in accordance with article 2;
j) the term "competent authority" means:
(i) in the case of Australia, the tax Commissioner or his authorized
representative;
(ii) in the case of the Czech Republic, the Minister of finance or his authorized
representative.
2. each expression that is not otherwise defined will have for the application of the
the importance of this agreement by a Contracting State, which he enjoys under the law of that
State the applicable at the relevant time, which governs taxes covered
covered by this agreement, unless the context requires a different interpretation.
Article 4
A resident of the
1. For the purposes of this agreement, a person is a resident of a Contracting State,
If it is a resident of that State for the purposes of its tax.
2. a person who is not a resident of a Contracting State for the purposes of this agreement, unless
It is subject to tax in that State only because of income from sources in
This state.
3. If the individual is under the preceding provisions of this article
a resident of both Contracting States, the person shall be deemed to
resident only in the Contracting State in which he has a permanent home, or
If he has a permanent home in both Contracting States or in neither of them, the
This person is considered to be a resident only of the Contracting State to the
which has strong personal and economic relations.
4. for the purposes of paragraph 3 is the nationality of physical persons to
the Contracting Government factor when determining the level of his personal and
economic relations with that State.
5. If a person other than an individual is subject to the provisions of paragraph 1,
a resident of both Contracting States, shall be considered to be resident only
of the Contracting State in which the place of effective management.
Article 5
Permanent establishment
1. the term "permanent establishment" in respect of the undertaking indicates that for the purposes of this
the Treaty permanent device for business, in which the undertaking carries out completely
or part of their activities.
2. the term "permanent establishment" includes especially:
and instead of keeping);
(b)) race;
(c));
(d) a factory;)
e) a workshop;
f) mine, instead of extracting oil or gas, a quarry or any other place where the
benefits of natural resources;
g) agricultural, pastoral or forestry property; and
h) a building site or construction, installation or Assembly project, which
last longer than 12 months.
3. Not considered that the enterprise has a permanent establishment only because of:
and) device that is used only for storage, display or delivery
goods belonging to the enterprise; or
(b) supplies of goods belonging to the enterprise), which is solely for the purpose
storage, display or delivery; or
(c) supplies of goods belonging to the enterprise), which is solely for the purpose
the processing of another undertaking; or
d) durable equipment for the business, which is solely for the purpose
purchase of goods, or collecting information for the enterprise; or
e) durable equipment for the business, which is solely for the purpose
activities which have a preparatory or auxiliary to the firm nature, such as
advertising, information provision, or scientific research or similar
activity.
4. It is understood that the enterprise has a permanent establishment in a Contracting State, and
operates a business through that permanent establishment,
If:
and in that State) performs for more than 12 months of supervision in relation to the
construction sites or construction, installation or Assembly project, which
are made in this State; or
(b)) provides services, including consulting and management services in this
a Contracting State through employees or other personnel
hired by the enterprise for such purpose, but only where such activities
persist in this State in the same or related project after
one or more periods exceeding in the aggregate more than six months in the
any twelve month period; or
c) heavy equipment is used in this State by an undertaking for the company or on the
the basis of a contract with a company.
5. a person acting in a Contracting State on behalf of the enterprise of the other Contracting
State-other than an independent agent, to which the provisions of paragraph 6
--is considered a permanent establishment of that enterprise in the first-mentioned
State, if:
and) this person has available and typically used in that State Attorney,
that allows her to enter into contracts on behalf of the enterprise, unless the activities of this
people are not limited to the purchase of merchandise for the enterprise; or
(b) acting as person) manufactures or processes in the enterprise in that State
goods belonging to the enterprise.
6. Does not assume that the enterprise of a Contracting State has a permanent
place of business in the other Contracting State merely because in that State
carries on business through a person who is a broker,
General komisionářem or another independent counsel and is acting in the
their proper business as a broker or agent.
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 business in the
that other State (whether through a permanent establishment or otherwise),
does not make itself from any of the company's permanent establishment
the other company.
8. The principles referred to in the preceding paragraphs of this article shall apply to the
the purpose of this agreement, in determining whether there is a permanent establishment outside the
both of the Contracting States, and whether the company, which is not an undertaking of a
the Contracting State in which it has a permanent establishment.
Article 6
Income from immovable property
1. Income from immovable property may be taxed in that Contracting State,
in which the immovable property is situated.
2. the term "immovable property" in this article, in relation to a Contracting State
has such a meaning which it has under the laws of that State, and includes:
and lease of land) and any further participation on the grounds, whether
zkultivovaných or not, including the rights to mineral exploration, oil
or gas or other natural resources and rights to benefit from these bearings
or resources; and
(b)) the right to the variable or fixed payments either for the use of, or for the
the right to the survey for the purposes of exploitation of the deposits of minerals, oil or gas,
quarries or other places of extraction or exploitation of natural resources.
3. The provisions of paragraph 1 shall apply to income from the direct use,
rental, or any other manner of use of immovable property.
4. Any participation or right referred to in paragraph 2 shall be deemed to
located where they are placed according to the case of land, minerals, bearings
oil or gas, quarries or natural resources, or where it is carried out the survey.
5. The provisions of paragraphs 1, 3 and 4 shall also apply to the income from immovable property
the assets of the company and to income from immovable property used for the performance of
a liberal profession.
Article 7
The profits of enterprises
1. The profits of an enterprise of a Contracting State shall be taxable only in that
State if the undertaking does not pursue its activities in the other Contracting State
through a permanent establishment that is located there. If
the enterprise carries on business in this way, the profits of the enterprise may be
taxed in that other State, but only to the extent that it is
can be attributed to that permanent establishment.
2. If an enterprise of a Contracting State, carries on business in the
the other Contracting State through a permanent establishment that is there
placed, attach, 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, or with
other undertakings with which it is.
3. In determining the profits of a permanent establishment shall be allowed to deduct the costs of
the company spent on the objectives pursued by the permanent establishment (including
Executive and general administrative expenses incurred by the like this), that
would be deductible if the permanent establishment were an independent
the body, which bore these expenses, whether incurred in the State in which the
the permanent establishment is situated or elsewhere.
4. no permanent establishment of nepřičtou gains based on the fact that
only goods for the company.
5. Nothing in this article shall affect the application of any law of a Contracting
State relating to the determination of the tax liability of a person in cases
where the information available to the competent authorities of that State is inadequate
to determine the profits to be attributed to a permanent establishment, for
provided that that law shall be applied in accordance with the principles of this
article if this information is available to the competent authority permits.
6. 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.
7. Nothing in this article shall not affect the action of any single act
of a Contracting State concerning the taxes imposed on profits from the insurance
non-residents, provided that if the relevant law in force on the
each of the Contracting States on the date of signature of this agreement will be amended
(otherwise than in minor matter, thus would not affect its
general character) the Contracting States can deal with each other, so that the
agree on any change to this paragraph, that would have been appropriate.
8. if:
and) resident of a Contracting State has the immediate right, either directly
or through one or more fiduciary estates, shares in the
the business profits of the undertaking operated in the other Contracting State
Administrator of the entrusted property other than fiduciary that is
considered for taxation purposes for the company; and
(b)) in relation to this undertaking, the administrator, in accordance with the principles of
Article 5, had a permanent establishment in that other State, undertaking
operated by the trustee shall be deemed to have
operated in that other State, this resident through
permanent establishment, which is situated in that other State, and this share
the profits from the business will be added to this permanent establishment.
Article 8
Ships and aircraft
1. the Profits to a resident of a Contracting State resulting from the operation of ships
or aircraft shall be taxable only in that State.
2. Notwithstanding the provisions of paragraph 1, such profits may be taxed
in the other Contracting State, if the profits from the operation of ships
or aircraft limited only to locations in the other State.
3. The provisions of paragraphs 1 and 2 shall apply in relation to the profits of shares
the operation of ships and aircraft, resulting to a resident of a Contracting State
from participation in a pool, on the common organisation of the operating or
international operating organization.
4. Profits resulting from shipping or air transport of passengers,
inventory, mail or goods carried in one
a Contracting State for the purpose of unloading in another place in this State are for
the purpose of this article considered profits from the operation of ships or aircraft
limited only to places in that State.
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 any of these cases, both in its
commercial or financial relations with terms that differ from the
conditions which would have been agreed between independent enterprises acting
together, completely independently, can any profits which would, but for those
conditions have been accrued to one of the enterprises, but due to these
conditions were not achieved, be included in the profits of this business and
subsequently taxed.
2. nothing in this article shall affect the application of any law
of a Contracting State relating to the determination of the tax liability of a person,
including the establishment, in those cases where the information is available
the competent authority of that State to be insufficient for the determination of income,
that has to be attributed to the undertaking, provided that that law shall be applied,
If it is possible, in accordance with the principles of this article.
3. If the profits on which the company was a Contracting State taxed
in this State, are also included on the basis of paragraphs 1 or 2 to the
the profits of the enterprise of the other Contracting State and taxed in that State, and profits
these steps included are profits which would have accrued to the enterprise of the
the other State, if the conditions agreed between the companies were as
would be negotiated between independent enterprises acting together completely
independently, the former State shall adjust the amount of tax saved from appropriately
these profits in the first-mentioned 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.
4. The provisions of paragraph 3 shall not apply in the case of fraud.
Article 10
Dividends
1. dividends paid by a company which is a resident of a
of a Contracting State for the purposes of its tax, which has a direct claim
a resident of 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 a resident for the purposes of paying his taxes, and
According to the laws of that State, but the tax so determined
shall not exceed:
and) in Australia:
(i) five per cent of that part of the gross amount of the dividends, which was
ofrankována (payment of taxes from the profits of the company) in accordance with the laws of
Australia relating to taxes, if pursuant to these laws the rate
the tax on dividends paid to non-resident companies ofrankovaných,
that is a resident of Australia for tax purposes, shall not exceed five percent of the
the gross amount of the dividends;
(ii) 15 percent of the gross amount of the dividends in all other cases; and
(b)) in the Czech Republic:
(i) five per cent of the gross amount of the dividends if the dividends are
paid company (other than a partnership) which holds directly
20 percent of the capital of the company paying the dividends;
(ii) 15 percent of the gross amount of the dividends in all other cases.
3. the term "dividends" as used in this article means income from shares
and other income comparable to the income from the shares pursuant to tax legislation
of the Contracting State in which the company that rozdílí profits,
a resident for the purposes of its tax.
4. The provisions of paragraph 2 shall not apply if the person immediately
entitled to dividends, which is resident in a Contracting State,
exercised in the other Contracting State in which it is a resident company
paying the dividends, industrial or commercial activity
through a permanent establishment that is located in this second
State, or performs in that other State independent of the profession
through a fixed base situated in that other State, and if the
participation, for which the dividends are paid is effectively connected to such permanent
establishment or that fixed base. In that case, shall apply
the provisions of article 7 or article 14, depending on what matters.
5. dividends paid by a company which is a resident of a
a Contracting State that has immediate claim a person who is not
a resident of the other Contracting State, shall be exempt from tax in that
other State, except cases when participation for which the dividends
paid, actually binds to the permanent establishment or fixed base
situated in that other State. This paragraph shall not apply in relation to the
dividends paid by a company which is a resident of Australia for the
the purposes of Australian tax and which is also a resident of the United States for the
the purpose of the Czech tax.
Article 11
Interest
1. interest arising in a Contracting State to which the
immediate claim resident of the other Contracting State, may be taxed
in that other State.
2. Such interest may be taxed in the Contracting State in which they are
source, and according to the laws of that State, but the tax so charged
shall not exceed 10 per cent of the gross amount of the interest.
3. The term "interest" in this article includes interest on Government securities
or from bonds or debentures, secured and unsecured
a lien on the property or having or not carrying a right
the participation in the profits, interest on any other form of indebtedness and all other
income comparable to income from money lent by the laws of
relating to the taxation of the Contracting State in which the income source.
4. The provisions of paragraph 2 shall not apply if the person who has
immediate entitlement to interest and which is resident in a Contracting
State, carries on business in the other Contracting State in which they have interest, source
industrial or commercial activity through a permanent establishment,
that resides in that other State, or independent profession
through a fixed base situated in that other State, and if the
the claim from which the interest is paid, it actually binds to that permanent
establishment or that fixed base. In that case, shall apply
the provisions of article 7 or article 14, depending on what matters.
5. It is assumed that interest rates have a source in a Contracting State,
When the payer is that State itself, its lower administrative department or
local authority of that State or a person who is a resident of that State
for the purposes of its tax. If, however, the person paying the interest, whether he is a resident of
of a Contracting State or not, has in a Contracting State or outside both Contracting
of the States a permanent establishment or a fixed base, in whose context
to debt, from which are paid interest, and such interest shall be charged to
such permanent establishment or fixed base, then such source
of interest will be considered by the State in which the permanent establishment or a permanent
the base is located.
6. If due to a special relationship between the payer and the person having
immediate entitlement to the interest or between both of them and a third party the amount of the
interest paid, which relate to a claim from which are paid,
exceeds the amount which would have been had given the Bill-to customer with a person entitled to
interest, if there were no such 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 the
relating to tax each Contracting State, taking into account the
the other provisions of this agreement.
7. the interest accruing from the investment of the Government's official foreign exchange reserves
one of the States parties, the financial institutions or banks
carrying out the central banking function in this State will be excluded from the
tax in that other Contracting State.
Article 12
License fees
1. license fees arising in a Contracting State and which
is a resident of the other Contracting State shall be entitled to immediate, can be
taxed in that other State.
2. such royalties may be taxed in the Contracting State in
where is their source, and in accordance with the legislation of that State,
but the tax so determined shall not exceed 10 per cent of the gross amount of
license fees.
3. the term "royalties" in this article means payments or
credited to the account, whether or not repeated, however described or computed,
to the extent in which they are made as a substitute for:
and) the use of, or the right to use any copyright, patent,
the design or model, plan, secret formula or process
trade mark or other similar property or rights; or
(b)) the use of or the right to use, any industrial, commercial
or scientific equipment; or
(c)) the provision of scientific, technical, industrial or commercial
knowledge or information; or
(d)) the provision of any assistance that is associated and complementary, and
that is provided as a means of allowing the use or
the operation of any property or right referred to in point (a)),
any equipment referred to in point (b)), or any knowledge or
the information referred to in subparagraph (c)); or
(e)) or the right to receive the income picture or sound, or both,
imparted to the public through:
(i) the satellite; or
(ii) cable, optical fiber or similar technology; or
(f)) the use or the right to use the image or sound, or both, in
connection with the television or radio broadcast, transmitted
by:
(i) the satellite; or
(ii) cable, optical fiber or similar technology; or
(g)) the use of, or the right to use:
(i) cinematographic films; or
(ii) films or video recordings for use in connection with television; or
(iii) sound recordings for use in connection with radio
broadcasting; or
h) total or partial renunciation of the use or provision of any
of property or rights referred to in this paragraph.
4. The provisions of paragraph 2 shall not apply if the person immediately
entitled to royalty, which is resident in a Contracting
State, carries on business in the other Contracting State in which they have a license
fees source, industrial or commercial activity through a fixed
the establishment, which is situated in that other State, or performing
independent profession through a fixed base situated in that
other State and if the property or the right to, in connection with which they are
royalties paid or credited to the account 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 governing body or a local authority
of that State or a person who is a resident of that State for the purposes of
his taxes. However, if the payer of the royalties, whether he is or is not
a resident in a Contracting State, has in a Contracting State or outside
both of the Contracting States a permanent establishment or a fixed base in connection
that was the obligation to pay the license fees shall be charged to
permanent establishment or fixed base, it is assumed that these license
fees are to arise in the Contracting State in which the permanent establishment is
or fixed base is situated.
6. If, as a result of the special relationship between the payer and the
the person having the immediate right to royalties or that one
the other keeps with the third party, the amount paid or credited
of the royalties, having regard to what they are paid for or
credited to the account, exceeds the amount which would have been had given the payer with the
person entitled to royalties, if it wasn't for such relationships,
the provisions of this article shall apply only to the latter
amount. The amount of salary that exceeds the amount paid by or
attributed to fees in this case will be taxed according to the legal
provisions relating to tax each Contracting State, taking into account
to other provisions of this agreement.
Article 13
Transfer of assets
1. Income, profits or income, resulting to a resident of a Contracting
State from the transfer of immovable property, which is located in the other Contracting
the State, may be taxed in that other State.
2. Income, profits or income from the transfer of assets other than immovable
assets that are part of the business property of a permanent establishment which an
Enterprise of a Contracting State in the other Contracting State, or which
belong to the permanent base of a resident of the first-mentioned State is in
the second Contracting State to exercise an independent profession, including income,
profits or income from the transfer of such a permanent establishment (alone or together
with the whole enterprise) or of such fixed base, may be taxed in that
the second State.
3. Income, profits or income from the transfer of ships or aircraft operated
in international traffic, or of property (other than real property),
that serves the operation of such ships or aircraft, shall be taxable only in the
the Contracting State in which the undertaking is operating these ships or aircraft
resident.
4. Income, profits or income received by the resident of a Contracting
the State of the conversion of shares of comparable participation in the company whose
the property is made up of the whole or of a substantial part of immovable property
located in the other Contracting State, may be taxed in that other
State.
5. Nothing in this Agreement shall not affect the application of the law of a Contracting
State concerning the taxation of profits of a capital nature, resulting from the
the transfer of assets other than to be applied any of the previous
paragraphs of this article.
6. the term "immovable property" in this article has the same meaning as in
of article 6.
7. The location of the immovable property for the purposes of this article, in
accordance with article 6 (1). 4.
Article 14
An independent profession
1. the revenues received by the natural person who is a resident of a
Contracting State, of a liberal profession or other activities
of an independent character shall be taxable only in that State, provided that such
professions are not exercised in the other Contracting State and:
and) a natural person is staying in the other State for a period or multiple periods
exceeding in the aggregate 183 days in any 12-month period
commencing or ending in the fiscal year of that other State; or
(b)) has a fixed base regularly available in the other State for the purpose of
the operation of its activities, in which case that part
revenue that is attributable to that fixed base may be taxed in the
This state.
2. The expression "liberal profession" includes services operated in the performance
independent scientific, literary, artistic, educational or
teachers ' activities, as well as in the performance of the independent activities of physicians,
lawyers, engineers, architects, dentists and accountants.
Article 15
Employment
1. a salaries, wages and other similar remuneration derived by an individual who is
a resident of a Contracting State, is due to employment,
shall, subject to the provisions of articles 16, 18 and 19 of the taxable only in this
State if the employment is exercised in the other Contracting State. If
There may be exercised in the employment of fees received for them are taxed in
that other State.
2. The rewards that a natural person who is a resident of a Contracting
the State is receiving because of the employment exercised in the other Contracting State,
subject to, notwithstanding the provisions of paragraph 1, taxable only in the first-
mentioned State, if:
and the recipient is resident in) other State for a period or multiple periods
shall not exceed in the aggregate 183 days in any 12-month period
commencing or ending in the fiscal year of that other State; and
(b)) the rewards are paid by the employer, or on behalf of the employer,
that is not a resident of the other State; and
(c)) the rewards are not odečítatelné in determining taxable profits of a permanent
establishment or fixed base which the employer has in that other
State.
3. Notwithstanding the preceding provisions of this article may be rewards
received because of employment exercised aboard a ship or aircraft
operated in international traffic by a resident of a Contracting State
taxed in that State.
Article 16
Royalties
Directors ' fees and other similar remuneration, which a resident of a Contracting State receives
as a member of the management board or of another similar organ of a company that
is resident in the other Contracting State, may be taxed in that other
State.
Article 17
Artists and athletes
1. the revenue that they receive in public performers (such as
Theatre, film, radio or television artists, and musicians), or
athletes of personally executing activities may be, regardless of the
the provisions of articles 14 and 15, be taxed in the Contracting State in which they are
These activities are carried out.
2. If the income from the activities carried out by the artist in person or
athlete accrues not to that person but the other person, they may be
income, regardless of the provisions of articles 7, 14 and 15 are taxed in a Contracting
State in which these activities are exercised.
3. Income from operations, which are referred to in paragraph 1, carried out in
the framework of cultural exchange agreed between the Governments of the Contracting States without
Notwithstanding the provisions of paragraph 1 be exempt from taxation in the Contracting State,
in which these activities are carried out.
Article 18
Pensions and annuities
1. Pensions (including government pensions) and rents paid to a resident of the one
a Contracting State shall be taxable only in that State.
2. the term "annuity" means a set amount paid in the
dates for the life or during a specified or
discovery of a time period based on the obligation to pay in return for
matching and full payment in cash or Money Express.
3. any alimony or other maintenance payment arising in
a Contracting State and paid to a resident of the other contracting are
State, shall be taxable only in the first-mentioned State.
Article 19
Public function
1. remuneration, other than a pension or annuity, paid by one Contracting State
or a political subdivision or local authority of that State the physical
to a person for services rendered in the framework of the governmental functions are subject to taxation
only in that State. However, such remuneration shall be taxable only in the
the other Contracting State if the services are rendered in that other
State and the recipient is a resident of that other State who:
(i) is a national of that State; or
(ii) did not become a resident of that State solely for the purpose of providing
These services.
2. The provisions of paragraph 1 shall not apply to remuneration for services rendered in the
connection with any industrial or commercial activities carried out by
one Contracting State, a political subdivision or a local authority
of that State. In this case, the provisions of article 15 or 16
Depending on what matters.
Article 20
Students and trainees
If a student or trainee who is a resident of a Contracting
State or which was immediately prior to their arrival in the second
a resident of a Contracting State in that State and who is temporarily present in
that other State solely for the purpose of his education, receiving salaries from the
resources outside of this second State to cover the costs of nutrition, study or
the training, they will be exempt from taxation on the salaries in that other State.
Article 21
Other income
1. the income of a resident of a Contracting State, wherever,
which is not dealt with in the foregoing articles of this agreement, shall be subject to
tax only in that State.
2. any such income arising to a resident of a Contracting State
from sources in the other Contracting State may also be taxed, however, in
that other State.
3. The provisions of paragraph 1 shall not apply to income, other than income from
immovable property, which is defined in article 6 (1). 2, received
a resident of a Contracting State, if they are actually linked to the
a permanent establishment or a fixed base in the other Contracting
State. In such a case, the provisions of article 7 or article 14 of
Depending on what matters.
Article 22
Source of income
1. Income, profits or income arising to a resident of the United States, which
According to one or more of articles 6 to 8 and 10 to 19, may be taxed in the
Australia, Australia, for the purposes of the laws relating to the Australian tax
considered to be income from sources in Australia.
2. Income, profits or income arising to a resident of Australia, which, according to
one or more of articles 6 to 8 and 10 to 19, may be taxed in the United
Republic, for the purposes of article 23, paragraph 1. 1 and the laws of Australia
the Australian tax are considered income from sources in the Czech Republic.
Article 23
Methods of elimination of double taxation
1. with regard to the legislative provisions in force in that Australia
time, subject to the authorisation of the credit for the tax paid in some
a country outside Australia to the Australian tax (which shall not affect the General principles of
This article) will be allowed to set off the Czech tax, paid on the basis of
the legislation of the Czech Republic and in accordance with this agreement, whether
directly or by deduction, income accruing to a person who is a resident of
Australia, from sources in the Czech Republic to Australia tax attributable to the
This revenue.
2. where a company which is a resident of the United States and is not
a resident of Australia for the purposes of Australian tax paid dividends
a company that is a resident of Australia and which controls directly or
indirectly, at least 10 percent of the voting shares of the first mentioned
the company, the compensation referred to in paragraph 1 include the Czech tax
paid by the first-mentioned companies from that part of the profits from
which the dividend is paid.
3. the Czech Republic may, when depositing taxes its residents included in the
the tax base from which to impose such a tax, income, which may
be taxed in accordance with the provisions of this Treaty, but also in Australia
enables to reduce the amount of tax calculated on the basis of the amount of such
equal to the tax paid in Australia. The amount of the tax is to be reduced,
However, such part shall not exceed the Czech tax calculated prior to its reduction,
that fairly falls on revenue, which, in accordance with the provisions of these
articles may be taxed in Australia.
4. If a resident of a Contracting State receives revenue according to the
the provisions of this Agreement shall be taxable only in the other Contracting
State or are exempt from taxation in the first-mentioned State, it may be
This revenue is taken into account in the first-mentioned State, in calculating the amount of tax
due on the remaining income of such resident.
Article 24
Resolving cases by agreement
1. If a person who is a resident of a Contracting State,
considers that measures of the competent authority 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 provide the national law of those States, present
his case to the competent authority of the Contracting State of which he is a resident.
The case must be presented within four years from the first notification of the measure,
that leads to taxation, which is not in accordance with 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
a case decided in agreement with the competent authority of the other Contracting State
so, in order to avoid taxation which is not in conformity with this agreement.
The agreement reached will be made without regard to any time limits
contained in the national legislation of the Contracting States.
3. the competent authorities of the Contracting States will together try to resolve
difficulties or concerns that arise in the interpretation or application of the
of this agreement.
4. the competent authorities of the Contracting States may also come in direct contact for the
any other purpose relating to the interpretation or application of this
of the Treaty.
Article 25
The exchange of information
1. the competent authorities of the Contracting States shall exchange the information necessary
for the application of this Treaty or national legislation
of the States parties, which shall apply to the taxes which are the subject of this
the contract, if the taxation thereunder is not contrary to the provisions of this
the Treaty. Exchange of information is not restricted by article 1. All of the information
received by the competent authority of a Contracting State will be kept confidential
in the same manner as information obtained under the domestic laws of
of that State and shall 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, the enforcement or prosecution in case
These taxes or making decisions on appeals, and will be used
only for the following purposes.
2. The provisions of paragraph 1 shall not be in any way interpreted as
saved to the competent authority of a Contracting State the obligation:
and management measures) to conduct that would violate the law or
administrative practice of a Contracting State; or
(b)) to divulge information that could not be obtained on the basis of the legal
regulations or in the administrative control of that or of the other State; or
(c)) to divulge information which would reveal the commercial, corporate, industrial,
commercial or professional secret or trade process, or to communicate
information the disclosure of which would be contrary to public policy.
Article 26
Members of diplomatic missions and consular officials
Nothing in this Agreement shall affect the fiscal privileges that pertain to the members
diplomatic missions and consular officials under the General rules of
of international law or under the provisions of special agreements.
Article 27
Entry into force
Both of the Contracting States shall notify each other that their have been met
legal and constitutional procedures required for the entry into force of this Treaty.
This agreement shall enter into force on the date of the later of the notification and its
the provisions will apply:
and) in Australia:
(i) in respect of withholding tax on income that is receiving
a non-resident, in relation to income earned from to 1. January or later in
calendar year following the year in which the Agreement enters
force;
(ii) in respect of other Australian tax, in relation to income, profits
or income, for each year of income beginning on 1. July or later in
calendar year following the year in which the Agreement enters
force;
(b)) in the Czech Republic:
(i) in respect of taxes withheld at source, in relation to income
earned from to 1. January or later in the calendar year following the
year in which the Agreement enters into force;
(ii) in respect of other Czech taxes, in relation to income arising in the
each fiscal year beginning 1. January or later in the calendar
the year following the year in which the Agreement enters into force.
Article 28
Notice of termination
This agreement is concluded for an indefinite period, but each Contracting State it
You may cancel in writing to the other Contracting State through the diplomatic channel to the
on or before June 30 of each calendar year beginning after the
the expiry of a period of five years from the date on which the Treaty has entered into force;
in this case the Treaty cease to apply:
and) in Australia:
(i) in respect of withholding tax on income that is receiving
a non-resident, in relation to income arising to a 1. January or later in
calendar year following the year in which the notice of termination has been given;
(ii) in respect of other Australian tax, in relation to income, profits
or income, for each year of income beginning on 1. January or later in
calendar year following the year in which the notice of termination has been given;
(b)) in the Czech Republic:
(i) in respect of taxes withheld at source, in relation to income
arising to the 1. January or later in the calendar year following the
year in which the notice of termination has been given;
(ii) as regards the other Czech taxes, in relation to income arising in the
any tax year commencing 1. January or later in the calendar
the 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 at Canberra on 28. March 1995 in Czech and
the English language, both texts being equally authentic.
For the Czech Republic:
Ivan Kočárník, in r.
the Deputy Prime Minister
and Minister of finance
For Australia:
Ralph Willis in r.
the Minister for economic