277/1997 Coll.
The COMMUNICATION FROM the
Ministry of Foreign Affairs
Ministry of Foreign Affairs says that the 30 June. September 1996 was in
Washington signed the Treaty between the Czech Republic and the United
Arab Emirates on avoidance of double taxation and the prevention of fiscal evasion
in the field of 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 its article 28, paragraph 1. 2 day 9.
August 22, 1997.
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 Czech Republic and the United Arab Emirates to avoid double
taxation and prevention of fiscal evasion with respect to taxes on income and on capital
And the U.A.E., Czech Republic
Desiring to promote and strengthen the economic relations of the contract of
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
or local government departments or local governments, whatever the way to select any.
2. taxes on income and on capital all taxes shall be levied on
total income, on total capital, or on elements of income or of capital,
including taxes on gains from the alienation of movable or immovable property, taxes
of the total volume of wages or salaries paid by enterprises as well as taxes on
the increment property.
3. Current taxes, to which the contract relates are:
and) in case of the United Arab Emirates:
(i) income tax;
(ii) the tax on companies;
(hereinafter referred to as "the UAE tax");
(b)) in the case of 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").
4. this Agreement shall also apply to any tax of the same
or, in principle, of a similar kind, that will be stored after the signature of this
agreement in addition to or instead of the current taxes referred to in paragraph 3.
The competent authorities of the Contracting States shall notify each other of any substantial
the changes that will be made in their respective taxation laws, and
within a reasonable period of time after such changes.
Article 3
General definitions
1. for the purposes of this agreement, unless the context requires a different interpretation:
and) the terms "a Contracting State" and "the other Contracting State" mean respectively according to the
the context of the Czech Republic or U.A.E.;
(b)), the term "Czech Republic" means the territory in which they are, according to the
Czech legislation and in accordance with international law, exercised
the sovereign rights of the United States;
(c)), the term "U.A.E.", when used in a geographical
meaning, indicates that the territory of the United Arab Emirates, including their
waters, Islands, air space, seabed, subsoil and
their natural resources on which the U.A.E. shall exercise
in accordance with international law, its sovereign rights;
(d)) the term "tax" means, in respect of the tax or the Czech tax;
(e)) the term "person" includes a natural person, company or any
other Association of persons established under the law in any of the
of the Contracting States;
f) the term "company" refers to any legal entity or
any bearer of Rights considered for taxation purposes legal
person;
g) the terms "enterprise of a Contracting State" and "enterprise of the other Contracting
State "means an enterprise carried on by a resident of a
of a Contracting State and an enterprise carried on by a resident of the other Contracting
State;
h) the term "national" means:
all natural persons who are nationals of a Contracting
State, and all legal persons, partnerships and associations established
According to the law in force in a Contracting State.
2. The term "international traffic" means any transport by ship, boat
or plane operated by the enterprise of a Contracting State, except
in cases where the ship, boat or aircraft is operated solely between places in the
the other Contracting State.
3. the term "competent authority" means:
and in the case of the Minister of the UAE) finance and industry or his authorized
representative; and
(b)) in the case of the Czech Republic the Minister of finance or his authorized
representative.
4. in the implementation of this agreement of any of the Contracting States, each expression,
that it is not defined, it will have the meaning which it has under the
laws of this State governing the taxes to which the
Covered by the agreement, unless the context requires a different interpretation.
Article 4
A resident of the
1. the term "resident of a Contracting State" means for the purposes of this
contract person under the legislation of that State, subject to
taxation in that State by reason of his domicile, residence, place of permanent
management, or any other similar criteria. This term, however,
does not include any person who is subject to tax in that State only
because of the income from sources in that State or property that is located there.
2. for the purposes of paragraph 1, the term "resident" shall include:
and the Government of the Contracting State) or any lower administrative department or the local
the Office or the local Government of this State;
(b) any institution established by Government) under public law, such as
the Central Bank, funds, associations, agencies, foundations, agencies or
any other similar organisations established in a Contracting State;
c) any intergovernmental organization established in one of the Contracting
States, on whose property is involved in the State party, together with other States.
3. If the individual is under the provisions of paragraph 1 shall be considered
a resident of both Contracting States, the position will be addressed to the following
follows:
and) it is assumed that this person is a resident of a Contracting State, in the
which he has a permanent home. If he has a permanent home in both Contracting States,
It is assumed that it is a resident of the Contracting State to which the
enhanced personal and economic relations (Centre of vital interests);
(b)) if it cannot be determined, the Contracting State in which the person has
the Centre of their vital interests, or if it does not have a permanent home in no
Contracting State, it is assumed that he is a resident of a Contracting State,
in which usually resides;
(c)) If this person usually resides in both Contracting States or
in any of them, it is assumed that there is a resident of a Contracting State,
of which he is a national;
d) if that person is a national of both Contracting States
or any of them, the competent authorities of the Contracting States shall adjust this question
by mutual agreement.
4. 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 it is a resident of the
the State in which its place of effective management.
Article 5
Permanent establishment
1. the term "permanent establishment" means for the purposes of this agreement, the Permanent
place to do business, through which is wholly or partly
operated business.
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
mining natural resources;
g) farm or plantation.
3. the term "permanent establishment" also includes:
construction site, construction), Assembly or installation project or supervision with
associated, but only if such construction, project or supervision for more than
twelve months;
(b)) the provision of services, including consultancy services, by an undertaking of one
of a Contracting State through employees or other personnel in the
the other Contracting State, but only where activities of that nature
insist on the territory of the other Contracting State for a period or multiple periods
exceeding in the aggregate six months within any twelve month period.
4. Notwithstanding the provisions of paragraphs 1 to 3, the expression "permanent establishment"
does not include:
and) device that is used only for the purpose of storage or display
goods belonging to the enterprise;
(b)) the supply of goods belonging to the enterprise solely for the purpose
storage or display;
(c)) the supply of goods belonging to the enterprise solely for the purpose
the processing of another undertaking;
d) permanent place to do business, solely for the purpose of purchasing
goods, or collecting information for the enterprise;
e) permanent place for business, solely for the purpose of
advertising, 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 context of opportunistic
temporary fair or exhibition or trade fair after that
the exhibition, if interested parties or companies met all the
the requirements in the respective Contracting State;
g) a permanent place for business, solely for the performance of
any combination of activities mentioned in subparagraphs (a) to (f))), if
the overall activity of the fixed place of business resulting from this
the connection is of a preparatory or auxiliary character.
5. If, notwithstanding the provisions of paragraphs 1 and 2, a person-other than
an independent representative, to whom paragraph 6 applies-is acting in a
a Contracting State on behalf of the company of the other Contracting State, it shall be deemed that the
This enterprise has a permanent establishment in the first-mentioned Contracting State in
respect of all the activities that the person performs for the enterprise, if
This person:
a) has and typically used in that State to the permissions that it allows
to enter into contracts on behalf of the firm, unless the activities of such persons are not
limited to the activities listed in paragraph 4 which, if they were
exercised through a fixed place of business, would not based
from this fixed place of business a permanent establishment under for
the provisions of this paragraph; or
(b)) does not have such privileges, but typically maintains in the first-mentioned State
the supply of goods, of which regularly delivers the goods on behalf of the company.
6. the broker, the Commissioner or other independent representative, that this is only
as an intermediary between an enterprise of a Contracting State and any
future customer in the other Contracting State, shall not be considered a permanent
establishment in the other Contracting State, if such persons are acting
in the context of its proper operation. However, if the activities of such a representative
are wholly or almost wholly devoted to the interests of this business, it will not
This representative is considered to be independent within the meaning of this paragraph.
7. the fact that a company which is a resident of a Contracting
State controls or is controlled by a company which is a resident of the other
Contracting State or that in that other State carries on business
(whether through a permanent establishment or otherwise), will not make itself from
either this company a permanent establishment of the other company.
Article 6
Income from immovable property
1. Income derived by a resident of a Contracting State from immovable
property (including income from agriculture or forestry) situated in the
the other Contracting State, may be taxed in that other Contracting State.
2. the term "immovable property" is of such importance that it under the
the law of 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 it applies
the provisions of civil law relating to land, buildings, the right to
the enjoyment of immovable property and rights to variable or fixed payments for the
unfair advantage or consent to the mining of mineral deposits, sources and other
natural resources; ships, boats and aircraft shall not be regarded as immovable
asset.
3. The provisions of paragraph 1 shall apply to income derived from the direct use,
hire 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 the other State, but only to the extent that they can be
attributable 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 each
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
spent on the objectives of the permanent establishment, including Executive and
General administrative expenses, whether incurred in this way in the State
which the permanent establishment is situated or elsewhere.
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, nothing in this article shall not preclude the
This Contracting State the profits to be taxed by the usual
the Division; the method of distribution must, however, be such that the result of the
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 preceding paragraphs shall each year, in the same way, if the
There are insufficient grounds for a different procedure.
7. where profits include the part of the income which are dealt with separately
in the other articles of this agreement, the provisions of those articles shall not affect the
the provisions of this article.
Article 8
Shipping and air transport
1. The profits of an enterprise of a Contracting State from the operation of ships, boats or
aircraft in international traffic shall be without regard to the provisions of article
7 taxable only in that State.
2. The profits of an enterprise of a Contracting State from the use, accidental
maintenance or rental of containers, including towing barges and
related equipment for the transport of containers used for the transport of
the goods shall be liable, notwithstanding the provisions of article 7 of the taxation only in that
State, except where such containers are used for the transport of
goods only between places in the other Contracting State.
3. The provisions of paragraphs 1 and 2 shall also apply to profits from the participation in a pool,
the joint operation or an international operating organization.
4. for the purposes of paragraph 1:
and) the term "profits" includes:
(i) profits, net profits, gross sales and revenues arising directly from
the operation of ships, boats or aircraft in international traffic, and
(ii) interest on sums generated directly from the operation of ships, boats or
aircraft in international traffic provided that such interest in random
relation to the operation,
and received by the person operating the ships, boats or aircraft;
(b)) the term "operation of ships, boats or aircraft" includes:
(i) the rental or lease of ships, boats or aircraft,
(ii) the rental of containers and related equipment, and
(iii) the alienation of ships, boats, aircraft, or containers and related
the device,
This person, if such a lease, rental or alienation is incidental in the
relation to the operation of ships, boats or aircraft in international traffic
that person.
Article 9
Associated enterprises
If
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 enterprises in their commercial or
bound by the terms of the financial relations which have negotiated or they were
stored and which differ from those which would have been agreed upon between the
independent enterprises, 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.
Article 10
Dividends
1. dividends paid by a company which is a resident of a
of a Contracting State to a resident of the other Contracting State, may be taxed in the
that other Contracting State.
2. However, such dividends may also be taxed in the Contracting State,
of which the company paying the dividends is a resident and according to the laws
laws of that State, but if the beneficial owner of the dividends is
a resident of the other Contracting State, the tax so charged shall not exceed 5% of the
the gross amount of the dividends.
3. Notwithstanding the provisions of paragraphs 1 and 2 are not dividends paid by
a company which is a resident of a Contracting State, subject to the
taxation in this State if the beneficial owner of the dividends is:
and) the Government of the other Contracting State or any government institution or
the Organization of the State;
(b)) a company which is a resident of the other Contracting State of which the
the property is owned, directly or indirectly, at least 25% of the Government or
Government agencies of the other Contracting State.
4. The provisions of paragraphs 2 and 3 shall not affect the taxation of the profits of the company,
out of which the dividends are paid, taking into account the law for
foreign investment.
5. the term "dividends" as used in this article means income from shares,
jouissance shares or jouissance rights, kuksů, founders, shares
or other rights, with the exception of receivables, with a share of the profits, as well as
income from other rights to companies which are subjected to the same
tax system, such as income from shares by the laws of the State,
which is a company that rozdílí profit, a resident.
6. The provisions of paragraphs 1, 2 and 3 shall not apply if the beneficial
owner of the dividends, being a resident of a Contracting State,
carries on in the other Contracting State of which he is a resident company
paying the dividends, industrial or commercial activity
through a permanent establishment situated therein, or performs
in that other State independent of the profession of a permanent base located there
and if participation, for which the dividends are paid is effectively connected to
such permanent establishment or fixed base. In that case, shall apply
the provisions of article 7 or article 14, depending on what matters.
7. Where a company which is a resident of 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 is effectively binds to a permanent establishment
or a permanent base, which is located in that other State, nor
subject to the company's retained profits tax on retained earnings
the company, even if the dividends paid or the undistributed profits
consists wholly or partly of profits or income with a source in the
that other State.
Article 11
Interest
1. interest arising in a Contracting State and paid to a resident of the
of the other Contracting State shall be taxable only in the other Contracting
State if the resident is the beneficial owner of the interest.
2. The term "interest" as used in this article means income from debt-claims
of any kind, whether or not a lien on
real estate or whether or not carrying a right to participate in the debtor's profits,
and in particular, income from government securities and income from bonds or
debentures, including premiums and prizes attaching to such a valuable
securities, bonds or debentures. Penalty charges for late payment shall
not be regarded as interest for the purpose of this article.
3. The provisions of paragraph 1 shall not apply if the beneficial owner of
of the interest, being a resident of a Contracting State, carries on business in the other
the Contracting State in which they have interest, industrial or commercial source
activity through a permanent establishment situated therein, or
performs in that other State independent of the profession of a permanent base there
placed and if the claim from which the interest is paid,
actually attaches to such permanent establishment or fixed base. In such a
If the provisions of article 7 or article 14, depending on
What matters.
4. If the amount of interest that are applicable to the claim from which they are
paid, exceeds as a result of special relationship between the payer and the
the beneficial owner or between both of them and some other person,
the amount you would have been had given the Bill-to customer is the beneficial owner, if
There was no such relationship, the provisions of this article shall apply only to that
latter amount. The amount of the payments, which will be in excess
this case taxed pursuant to the legislation of each Contracting State to the
reference to the other provisions of this agreement.
Article 12
License fees
1. Royalties arising in a Contracting State and paid to the
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 they arise, and according to the laws of that State,
But if the beneficial owner of the royalties is a resident of
of the other Contracting State, the tax so charged shall not exceed 10% of the gross amount
license fees.
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
any copyright for literary, artistic or
scientific, including cinematograph films and films or recordings for
television or radio broadcasting, any patent, trade
mark, design or model, plan, secret formula or production
procedure, or for the use of, or the right to use, industrial, commercial
or scientific equipment, or for information, which apply to
experience gained in the field of industrial, commercial or scientific, but
does not include payments for the operation of quarries or mines or mining natural
sources.
4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of
of the royalties, being a resident of 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 in that other State
independent profession from 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 that 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, a lower administrative unit, a local authority
or the local Government of this State or a resident of that State. If
However, the payer of the royalties, whether he is or is not a resident of any
of a Contracting State, has in a Contracting State a permanent establishment or a permanent
the base in connection with which the obligation to pay the royalties was created,
and those royalties are borne by such permanent establishment or a permanent
the base, it is assumed that such license fees in
the Contracting State in which the permanent establishment or fixed base
located.
6. If the amount of the license fees that are related to the use,
law or information for which they are paid, exceeds the due
the special relationship between the payer and the beneficial owner or between both of
them and some other person, the amount which would have been had given the Bill-to customer is
the beneficial owner, if it wasn't for such relationships, the
the provisions of this article to the latter amount. The amount of the
payments that it exceeds, in this case will be taxed according to the legal
the laws of each Contracting State, taking into account the other provisions
of this agreement.
Article 13
Gains from the alienation of property
1. Gains derived by a resident of a Contracting State from the alienation of
immovable property referred to in article 6 (1). 2 and placed in the second
a Contracting 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
that is a resident of a Contracting State in the other Contracting State for the
the purpose of the exercise of an independent profession, including gains from the alienation of such
a permanent establishment (alone or together with the whole enterprise) or of such a
fixed base, may be taxed in that other State.
3. Gains from the alienation of ships, boats or aircraft operated in
international traffic and of movable property that is used for the operation of these
ships, boats or aircraft shall be taxable only in the Contracting State in
which the place of effective management of the enterprise.
4. Gains from the alienation of any property, other than that referred to in
paragraphs 1 to 3, shall be taxable only in the Contracting State of which he is
alienator is a resident.
Article 14
An independent profession
1. Income derived by a resident of a Contracting State from the free
profession or other activities of an independent character, shall be subject to
taxable only in that State unless the resident has regularly to
available in the other Contracting State a permanent base for the purpose of carrying out
of their activities. If it has such a fixed base, the income may be
taxed in the other State, but only to the extent that they can be
attributable to that fixed base.
2. The expression "liberal profession" includes especially independent activity
scientific, literary, artistic, educational or teaching, as well as
the independent activities of physicians, lawyers, engineers, architects, financial
experts and dentists.
Article 15
Employment
1. a salaries, wages and other similar remuneration derived by a resident of a
Contracting State of employment shall, subject to the provisions of articles
18, 19 and 20 taxable only in that State unless the employment is exercised
in the other Contracting State. If the employment is exercised, there may be
the rewards of it taxed in that other State.
2. remuneration derived by a resident of a Contracting State from employment
exercised in the other Contracting State shall be liable, regardless of the
the provisions of paragraph 1, taxable only in the first-mentioned State, if:
and the recipient) is employed in the other Contracting State for a period or more
a period not exceeding in the aggregate 183 days in any 12-month
period commencing or ending in the fiscal year concerned, and
(b)) the rewards are paid by the employer or by the employer, that
is not a resident of the other Contracting State, and
(c) the remuneration is not borne by) of a permanent establishment or a fixed base, which has
employer in the other Contracting State.
3. Notwithstanding the preceding provisions of this article shall be subject to remuneration,
by a resident of a Contracting State from employment
exercised on board a ship, boat or aircraft operated in
international transport, taxable only in that Contracting State.
Article 16
Students
Payments which a student or an apprentice who is, or immediately before the
arriving in one Contracting State he was a resident of the other Contracting
State and who is present in the first-mentioned State solely for the purpose of its
education or training, receives for the purpose of reimbursement of the costs of their diet,
education or training, shall not be subject to tax in that State in
provided that such payments arise from sources outside that law.
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 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 article 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 artists or athletes, but to another person,
This revenue may be, notwithstanding the provisions of articles 7, 14 and 15,
taxed in the Contracting State in which the activities of the artist or
athletes performed.
Article 18
Royalties
Directors ' fees and similar payments derived by a resident of a Contracting
the State as a member of the management board or any other similar body
a company which is a resident of the other Contracting State, may be
taxed in that other State.
Article 19
Pension and annuity
1. Pension, annuity and other similar salaries paid to a resident of one
a Contracting State because of past employment shall be subject to, subject to the
the provisions of article 20 (2). 2, taxable only in that State.
2. The expression "pension, annuity, and other similar remuneration" as used in this article
identifies the recurring payments after retirement because of
past employment or because of compensation for damages incurred in the
the context of the earlier work.
Article 20
Public function
1.
and Remuneration other than pensions) paid by one Contracting State or lower
Administrative Department or local authority, or a local Government of this State
the physical person for services rendered to that State or subdivision or authority
or Government, shall be taxable only in that State.
(b) However, Such remuneration) shall be taxable 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 that State for the provision of such
services.
2.
and pension paid by one) of any Contracting State or lower administrative
Department or local authority, or a local Government of this State or of the
paid from the funds, which have established, the physical person for services rendered
to that State or subdivision or authority shall be taxable only in the Government or in the
This state.
(b) However, Such pension) shall be taxable 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, 18 and 19 shall apply to remuneration and pensions for services
proven in the context of industrial or commercial activities carried out by
any Contracting State or a political subdivision or local
the Office or the local Government of this State.
Article 21
Other revenue
Part of the income of a resident of a Contracting State, whether they have a source anywhere,
which are specifically not dealt with in the foregoing articles of this agreement,
shall be taxable only in that State.
Article 22
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
property of a permanent establishment which an enterprise of a Contracting State in the
the other Contracting State or movable property, which belongs to the Permanent
the base, which is a resident of a Contracting State in the other Contracting
State in order to exercise an independent profession, may be taxed in the
that other State.
3. Capital represented by ships, boats and aircraft are operated in
international traffic and movable property, that serves to operate such
ships, boats or aircraft shall be subject to taxation only in the Contracting State in which the
the place of effective management of the enterprise.
4. All other elements of property of a resident of a Contracting State shall be subject to
taxable only in that State.
Article 23
Elimination of double taxation
A Contracting State may, when depositing taxes its residents included in the
the tax base from which such a tax imposed under the income or
the property, which may be, in accordance with the provisions of this agreement, also
taxed in the other Contracting State, but enables to reduce the amount of tax
calculated from such a base an amount equal to the tax paid in
the other Contracting State. The amount of the tax is to be reduced, however, shall not exceed
the part of the first-mentioned State tax calculated prior to its reduction, which
fairly falls on income or assets that may be, in accordance with the
the provisions of this Treaty, taxed in the other Contracting State.
If, in accordance with any provision of this agreement, income derived
or property owned by a resident of a Contracting State in that State
exempt from taxation, that State may nevertheless, in calculating the amount of tax
of the remaining income or property of such resident, take into account the
exempt income or property.
Article 24
Prohibition of discrimination
1. nationals of a Contracting State shall not be subjected in the
the other Contracting State to any taxation or any requirement connected therewith
United, which is other or more burdensome than the taxation and connected with it
the obligations to which they are or may be subjected by nationals
This second State, in particular with respect to residence, in
the same situation. This provision shall, notwithstanding the provisions of article 1 of
also apply to persons who are not residents of one or both of the
of the Contracting States.
2. the taxation on a permanent establishment which an enterprise of a Contracting State 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 any personal relief,
discounts and reductions because of the status or obligations to the family,
which it grants to its own residents.
3. If you will apply the provisions of article 9, article 11, paragraph 2. 4
or article 12 para. 6, interest, royalties and other expenses
paid by the enterprise of a Contracting State to a resident of the other Contracting
State deductible for purposes of determining the taxable profits of such
the undertaking under the same conditions as if they had been paid to a resident of the first-
of that State. Similarly, any debts of the enterprise of a Contracting
State to a resident of the other Contracting State for the purposes of determining the
of the undertaking's taxable property deductible under the same conditions,
as if they had been contracted to a resident of 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 one or more
residents of the other Contracting State, shall not be subjected in the first-mentioned
State to any taxation or any requirement connected therewith, which
is other or more burdensome than the taxation and connected requirements to which
are or may be subjected to other similar businesses of former
State.
5. the provisions of this article shall, notwithstanding the provisions of article 2,
apply to taxes of every kind and name.
Article 25
Resolving cases by agreement
1. where a resident of a Contracting State considers that the measures
one or both of the Contracting States result or will result for him in taxation,
that is not in accordance with the provisions of this agreement, you may, independently of the
the remedies available under the national legislation of the
These States, contact the competent authority of the Contracting State of which he is
resident with a written request, expressing the reasons for the request
repair of such taxation. This application, that gets accepted, it must be
presented within three years from the first notification of the action leading to
of taxation which is not in accordance with this agreement.
2. If the competent authority of a Contracting State to consider
the objection to be justified and if it is not itself able to find a satisfactory solution,
will try to resolve the case by mutual agreement with the competent
authority of the other Contracting State, in order to avoid taxation, which is not
in accordance with this agreement. Any agreement reached will be implemented
Notwithstanding any time limits in the national legal
regulations of the Contracting States.
3. the competent authorities of the Contracting States shall endeavour to resolve by mutual
the agreement any difficulties or doubts that might arise in
the interpretation or application of this agreement. They may also consult together for the
the purpose of the Elimination of double taxation in cases where the Treaty
not dealt with.
4. the competent authorities of the Contracting States, if necessary, to fit in the direct
for the purpose of implementing this agreement and reach an agreement within the meaning of
in the previous paragraphs.
Article 26
The exchange of information
1. the competent authorities of the Contracting States shall exchange such information,
What are necessary for the implementation of the provisions of this agreement or
the national legislation of the Contracting States, which apply to
the taxes which are the subject of the contract, if the taxation thereunder is not in
contrary to the Treaty. Exchange of information is not restricted by article 1. All
information thus exchanged shall be kept confidential by a Contracting State
in the same manner as information obtained under the national law
laws 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
the collecting of taxes to which the Agreement applies, the recovery or criminal
prosecutions relating to such taxes, or deciding on appeals in relation to the
These taxes. Such persons or authorities shall use the information only to those
purposes. They may disclose the information in public court proceedings
or in legal decisions.
2. The provisions of paragraph 1 shall not be in any way interpreted as
store one of the Contracting States the obligation:
and management measures) to conduct that would violate the law or
the administrative practice of that or of the other Contracting State;
(b)) to provide information that could not be obtained on the basis of the
the laws or in the normal administrative proceedings of this or the other
Contracting State;
c) to supply information which would disclose any industrial,
commercial or professional secret or trade process, or information,
the disclosure of which would be contrary to public policy.
Article 27
Diplomats and consular officials
Nothing in this Agreement shall affect the fiscal privileges of diplomatic or
consular officials attributed to them on the basis of the General rules of
of international law or under the provisions of special agreements.
Article 28
Entry into force
1. the Contracting States shall notify each other that the requirements of the national
laws for the entry into force of this agreement have been fulfilled.
2. the contract shall enter into force on the day of the later notification referred to in
paragraph 1 of this article and its provisions will be implemented:
and) with regard to taxes withheld at source, on income paid or
attributed to a 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, to revenue or
property for each tax year beginning with 1. January or later in
calendar year following the year in which the Agreement enters
force.
Article 29
Notice of termination
This agreement will remain in effect until one of the Contracting States
to deliver through the diplomatic channel written notice of his interest to terminate the
This contract; such written notice shall be given before or on 30 June.
June in any calendar year beginning after the expiration of the period
five years from the date on which the Treaty has entered into force. In such a
If this agreement will cease to apply:
and) with regard to taxes withheld at source, on income paid or
attributed to a 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, to revenue or
property for each tax year beginning with 1. January or later in
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 Washington on 30 November. September 1996, which corresponds to 17. Jumada 1, 1417
H., in two original copies, each in the English, Arabic and
English, these texts are authentic. In case of any
differences of interpretation of the provisions of this agreement will be the decisive English
the text.
For the Czech Republic:
Ing. Ivan Kočárník, CSc. v. r.
Deputy Prime Minister and Minister of finance
For U.A.E.:
Ahmed Humaid Altayer in r.
Minister of State for finance and industry
XIII.
PROTOCOL
When signing the contract between the Czech Republic and the United Arab
Emirates on the avoidance of double taxation and the prevention of fiscal evasion with respect
taxes on income and on capital, the undersigned have agreed on the following
the provisions which form an integral part of this agreement:
1. Nothing in this Agreement shall prejudice any right of the Government of the United Arab
Emirates, their lower administrative departments, local authorities or local
Governments use their own legislation relating to the taxation of
the income received from the oil and natural resources. Such activities
will be taxed in accordance with the laws of the United Arab
Emirates.
2. As regards article 8, if the company of the Czech Republic will be saved
any tax in any State of which he is a national carrier Gulf Air
(State of Bahrain, State of Qatar, the Sultanate of Oman), the Contracting States shall
negotiations without delay in order to adapt the exemption covered by this
the contract.
3. If, pursuant to any contract or agreement or Protocol to the
the contract or agreement--signed after the signature of this agreement--between the Czech
Republic and any member of the Council for cooperation in the Gulf (United
Arab Emirates, Kuwait, Kingdom of Saudi Arabia, Bahrain, Qatar and
The Sultanate of Oman), the Czech Republic adopt, with regard to the provisions of this
the Treaty, a more favourable treatment than that which is entitled under this
the Treaty, to residents of the United Arab Emirates, then the date on which
the relevant Czech agreement or agreement or its Protocol will apply
efficiency, with an equally favourable treatment will automatically use to
residents of the United Arab Emirates under this agreement.
In witness whereof, the duly authorised thereto, have signed this
Protocol.
Given in Washington on 30 November. September 1996, which corresponds to 17. Jumada 1, 1417
H., in two original copies, each in the English, Arabic and
English, these texts are authentic. In case of any
differences of interpretation of the provisions of this Protocol will be a determining
English text.
