Treaty On Avoidance Of Double Taxation With Australia

Original Language Title: Smlouva o zamezení dvojího zdanění s Austrálií

Read the untranslated law here: https://portal.gov.cz/app/zakony/download?idBiblio=43500&nr=5~2F1996~20Sb.&ft=txt

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