Double Taxation Agreement With Albania

Original Language Title: Smlouva o zamezení dvojího zdanění s Albánií

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Read the untranslated law here: https://portal.gov.cz/app/zakony/download?idBiblio=44474&nr=270~2F1996~20Sb.&ft=txt

270/1996 Coll.



The COMMUNICATION FROM the



Ministry of Foreign Affairs



Ministry of Foreign Affairs declares that on 22 November. June 1995 was in

Tirana signed the contract between the Czech Republic and the Republic of Albania

for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on

income and capital.



With the Treaty, its assent, Parliament of the Czech Republic and the President of the

the Republic has ratified it. The instruments of ratification were exchanged in Prague on

September 10, 1996.



The contract on the basis of its article 29, paragraph 1. 2 entered into force on

September 10, 1996.



English translation of the Treaty shall be designated at the same time. In the English version

The contract can be consulted at the Ministry of Foreign Affairs and the Ministry of

finances.



CONTRACT



between the Czech Republic and the Republic of Albania to avoid double

taxation and prevention of fiscal evasion with respect to taxes on income and on capital



The Government of the United Kingdom and the Government of the Republic of Albania,



Desiring, in order to further develop and facilitate their economic

relationships, enter into an agreement on avoidance of double taxation and 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 a Contracting State or of its local authorities, without

irrespective of the way in which they are levied.



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 property

including taxes on gains from the alienation of movable or immovable property, and

also taxes on the increment property.



3. Current taxes, to which the contract relates are:



a) in Albania:



(i) the tax on profits of legal persons;



(ii) the tax on small business, and commercial activities;



(iii) the tax on income of individuals;



(iv) property taxes;



(hereinafter referred to as "Albanian tax");



(b)) in the Czech Republic:



(i) the tax on income of individuals;



(ii) the tax on income of legal persons;



(iii) tax on immovable property;



(hereinafter referred to as "Czech tax").



4. the agreement shall also apply to any tax of the same or

the principle of a similar kind, that will be stored after signature of the contract in addition to the

or instead of the current taxes. The competent authorities of the Contracting States shall mutually

communicate any material changes that will be made in their

the relevant tax laws.



Article 3



General definitions



1. for the purposes of this agreement, unless the context requires a different interpretation:



and) the term "Albania" refers to the Republic of Albania, and if it is applied in the

geographical importance, the territory of the Republic of Albania including indicates

the territorial sea, and any area beyond the territorial sea of the Albanian

Republic, which in accordance with international law and the legislation of the

The Republic of Albania is an area to which the Republic of Albania may

to exercise the rights in respect of the seabed and subsoil and their natural

source;



(b)), the term "Czech Republic" refers to the territory of the Czech Republic, which the

may be according to the Czech legislation and in accordance with international

the law of the sovereign rights of the United States;



(c)) the terms "a Contracting State" and "the other Contracting State" mean respectively according to the

context of Albania or the Czech Republic;



(d)) the term "person" includes an individual, a company and any other

an Association of persons;



(e)) the term "company" refers to any legal entity or

the rightholder considered for the purposes of taxation under the legal person;



(f)) the terms "enterprise of a Contracting State" and "enterprise of the other Contracting

State "means the enterprise carried on by a resident of a Contracting State, and

Enterprise carried on by a resident of the other Contracting State;



(g)) the term "national" means:



(i) any natural person who is a citizen of a Contracting

State;



(ii) any legal person, partnership or association established

According to the law in force in a Contracting State;



h) the term "international traffic" means any transport by boat,

aircraft or road vehicle, which is operated by an undertaking which

It has its place of effective management in a Contracting State, if the ship,

aircraft or road vehicle is operated only between points in the second

Contracting State;



I) the term "competent authority" means:



(i) in the case of Albania Minister of finance or his authorized representative;



(ii) in the case of the Czech Republic the Minister of finance or his authorized

representative.



2. as regards the application of the Treaty by a Contracting State, it will have any expression

who here is not defined, of such importance that it has under the law of

This State, which regulates the taxes to which the agreement relates, if the

the link does not require a different interpretation.



Article 4



A resident of the



1. for the purposes of this agreement, the term "resident of a Contracting State"

indicates any person who, under the law of that State, subject to the

that State taxation because of their place of residence, permanent residence, place of

management, or any other similar criteria.



2. If the individual is under the provisions of paragraph 1, a resident of the

both of the Contracting States, the position specified in the following way:



and will be considered a resident) of the State in which he has a permanent home;

If he has a permanent home in both countries, will be considered a resident of the

the State, which has a strong personal and economic relations (Centre

vital interests);



(b)) if it cannot be determined by the State in which he has his Centre

their vital interests, or if it does not have a permanent home in any State

will be considered a resident of the State in which he resides;



c) if usually resides in both States or in neither of them,

will be considered a resident of the State of which he is a national;



d) if he is a national of both States, or any of them,

the competent authorities of the Contracting States shall adjust the question by mutual agreement.



3. If a person other than a person under the provisions of paragraph

1 a resident of both Contracting States, it will be considered a resident of the

the State in which its place of effective management.



Article 5



Permanent establishment



1. For the purposes of this agreement, the term "permanent establishment" means a permanent

device for business, through 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, the site of diesel or gas, a quarry or any other place of extraction

natural resources; and



g) farm, plantation, sad or vineyard.



3. the term "permanent establishment" also includes:



construction site, construction), Assembly or installation project, or with them

associated surveillance, but only if this construction, project supervision or longer

than nine months within any 12-month period commencing or

ending in the calendar year; and



(b)) the provision of services, including consultancy services, by an undertaking

through employees or other personnel hired by the undertaking

for such purpose, but only where activities of that kind still occur (for

the same or a connected project) within the country for one or more periods

exceeding in the aggregate six months within any 12-month period

starting or ending in the calendar year.



4. Notwithstanding the preceding provisions of this article, it is assumed

the term "permanent establishment" shall not include:



and) device that is used only for the purpose of storage, display

or delivery of the goods belonging to the enterprise;



(b)) the supply of goods belonging to the enterprise solely for the purpose

storage, display or delivery;



(c)) the supply of goods belonging to the enterprise solely for the purpose

the processing of another undertaking;



d) durable equipment for the business, which is solely for the purpose

purchase of goods, or collecting information for the enterprise;



e) durable equipment for the business, which is solely for the purpose

advertising, information, scientific research or similar

activities which have 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--acting in a

a Contracting State on behalf of the enterprise of the other Contracting State and has available

and typically used in this State by a power of attorney to enter into contracts on behalf of the

undertaking, it shall be deemed that the enterprise has a permanent establishment in the first-

that State in respect of all the activities this person performs

for the enterprise, if the activities of such person are not limited to the activities of the

referred to in paragraph 4, which, if they were carried out

through continuous device for business, should neither constitute

the existence of a permanent establishment under the provisions of this paragraph.



6. Not considered that the enterprise of a Contracting State has a permanent

place of business in the other Contracting State merely because in this second

the State carries on business through a broker, General

agent or any other agent of an independent, if these persons are acting


in the context of its proper operation. However, if the activities of such a representative

are devoted wholly or almost wholly 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 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.



Article 6



Income from immovable property



1. Income derived by a resident of a Contracting State from immovable

property (including income from agriculture or forestry) situated in the second

a Contracting State may be taxed in that other State.



2. the term "immovable property" has such importance under the laws

the Contracting State in which such property is located. The term includes in

any case, accessories of immovable property, the living and the dead inventory

used in agriculture and forestry, rights to which the provisions of the

civil law relating to property, the right to the enjoyment of immovable property

property and rights to variable or fixed payments for extraction or

consent to the extraction of mineral deposits, sources and other natural

sources. Ships, aircraft and road vehicles are not considered 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 carry on business 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:



a) such permanent establishment;



(b)) the sale of goods in that other State, which is the same or similar

kind of like goods sold through that permanent establishment.



2. If an enterprise of a Contracting State, carries on business in the

the other Contracting State through a permanent establishment located there,

attach is subject to the provisions of paragraph 3, in each Contracting State

such permanent establishment profits which would have been able to achieve, if it were

as a separate enterprise engaged in the same or similar activities under the

the same or similar conditions and was completely independent in contact with

the undertaking of which it is a permanent establishment.



3. when calculating the profits of a permanent establishment shall be allowed to deduct the costs of

the company incurred for the purposes of the business of the permanent establishment, including

Executive and general administrative expenses, whether incurred as follows

incurred in the State in which the permanent establishment is situated or elsewhere.



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 paragraph 2 shall not preclude the

This Contracting State the profits to be taxed by the usual

the Division; the method used for distribution of profits must, however, be such that the

the result was in accordance with the principles contained in this article.



5. no permanent establishment of nepřičtou gains based on the fact that

only goods for the company.



6. 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



International transport



1. Profits from the operation of ships, aircraft or road vehicles in the

international traffic shall be taxable only in the Contracting State in which the

the place of effective management of the undertaking.



2. If the place of effective management of shipping is on board

the ship, it is considered located in the Contracting State in which the

the home port of the ship, or if there is no such home harbour, in the

the Contracting State in which the operator of the ship is a resident.



3. The provisions of paragraph 1 shall also apply to profits from the participation in a pool,

the joint operation or an international operating organization.



Article 9



Associated enterprises



1. If:



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.



2. where a Contracting State includes in the profits of the enterprise of that State and

then tax the profits from which the enterprise of the other Contracting State

taxed in that other State and the profits following profits which are included

would have been achieved by the undertaking first-mentioned State if the conditions

agreed between the two companies, which would have been agreed upon

between independent undertakings, the second State appropriately adjusted the amount of tax saved

of such profits in that State. In determining such adjustment shall

due account of other provisions of this agreement and, if necessary,

the competent authorities of the Contracting States shall to this end consult each other.



3. The provisions of paragraph 2 shall not apply in the case of fraud, gross

negligence or wilful neglect.



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 State.



2. However, such dividends may also be taxed in the Contracting State in

which is a company that pays dividends is a resident, and it

According to the laws of that State, but if the recipient is

the beneficial owner of the dividends the tax so charged shall not exceed:



and 5 per cent of the gross amount) of the dividends if the beneficial owner is

company (other than a partnership) which holds directly 25

percent of the assets of the company paying the dividends;



b) 15 percent of the gross amount of the dividends in all other cases.

The competent authorities of the Contracting States shall by mutual agreement settle the mode

the application of these restrictions.

This paragraph shall not affect the taxation of the profits of the company, from which they are

dividends are paid.



3. the term "dividends" as used in this article means income from 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 in accordance with the legislation of the

State in which it is a company which is a resident rozdílí profit, subject to

the same taxation as income from shares.



4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of

of the dividends, being a resident in a Contracting State, carries on business in the

the other Contracting State in which the resident company paying

dividends, industrial or commercial activity through a fixed

establishment located there, or performs in that other State independent

the profession through 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 such a case, the provisions of

Article 7 or article 14, depending on what matters.



5. Where a company which is resident in a Contracting State,

achieves profits or income from the other Contracting State, that

the second State to tax dividends paid by the company, unless such

dividends are paid to a resident of that other State or to participate,

for which the dividends are paid is effectively binds to a permanent establishment

or permanent base situated in that other State, nor subject the

undistributed profits tax on retained profits of the company, and

When dividends paid or the undistributed profits consists wholly or

partly of profits or income with a source in 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 in that other State.



2. However, such interest may also be taxed in the Contracting State in which the

have a source, according to the laws of that State, but if the

the recipient is the beneficial owner of the interest, the tax so charged shall not exceed 5

per cent of the gross amount of the interest. The competent authorities of the Contracting States shall

by mutual agreement the mode of application of this limitation.



3. Notwithstanding the provisions of paragraph 2, interest arising in a

a Contracting State shall be exempt from tax in that State if:



and the payer) is the Government of that Contracting State; or




(b) the interest is paid to the Government) of the other Contracting State or any

the organisation including banks and financial institutions, which wholly owns

the other Contracting State.



4. 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

bonds, including bonuses and rewards associated with those securities,

bonds or bonds. Penalties for late payment shall not be regarded as

interest for the purposes of this article.



5. The provisions of paragraphs 1 and 2 shall not apply if the recipient of the interest,

that 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 located there or exercises in this

other State independent of the profession through 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.



6. It is anticipated that interest to arise in a Contracting State when the

the payer is that State itself, a local authority or a resident of that State.

However, if the payer of interest, 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 indebtedness on which the interest,

paid, and such interest shall be charged to such permanent establishment or a permanent

the base, it is assumed that such interest to arise in the State in which the

It is a permanent establishment or fixed base is situated.



7. If the amount of interest that are applicable to the claim from which they are

paid exceeds the due to the special relationship between the

the payer and the beneficial owner of the interest, or that one or the other keeps the

with a third party, the amount which would have been had given the payer with the actual

owner, if it wasn't for such a relationship, the provisions of this

article just on this latter amount. The amount of the salaries that it

exceeds, in this case, will be taxed in accordance with the legislation of each

a Contracting State with regard to the other provisions of this Treaty.



Article 12



License fees



1. 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,

However, if the recipient is the beneficial owner of the royalties,

the tax so charged shall not exceed 10 per cent of the gross amount of license

fees.



The competent authorities of the Contracting States shall by mutual agreement settle the mode

the application of this restriction.



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

radio or television 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.



4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of

of the royalties, being a resident in a Contracting State,

carries on in the other Contracting State in which the royalties

source, industrial or commercial activity through a fixed

establishment located there, or performs in that other State independent

the profession through a permanent base located there, and if the right

or things that give the emergence of royalty actually bind

with such permanent establishment or fixed base. In this case,

provisions of article 7 or article 14, depending on which case

it comes.



5. It is assumed that the licence fees to arise in a Contracting State,

When the payer is that State itself, a local authority or a resident of that

State. However, if the payer of the royalties, whether he is or is not

a resident of a Contracting State, has in a Contracting State a permanent

establishment or a fixed base in connection with which the obligation was

pay license fees, and such royalties are borne by such

permanent establishment or fixed base, it is assumed that these license

charges to arise in the State in which the permanent establishment or

a permanent base is 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 that one or the other, it maintains with the third party, the amount which would have been

the payer is the beneficial owner had given, if it wasn't for such relationships,

the provisions of this article shall apply only to the latter

amount. The amount of the salaries that it exceeds, in this case will be taxed

According to the legislation of each Contracting State, taking into account

the other provisions of this agreement.



Article 13



Gains from the alienation of property



1. Gains derived by a resident of a Contracting State from the alienation of

immovable property referred to in article 6, which is located on 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

by a resident of a Contracting State has 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, aircraft or road vehicles operated

in international traffic, or movable property, that serves to operate the

these ships, aircraft or road vehicles shall be taxable only in the

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, 2 and 3, shall be taxable only in the Contracting State in which the

alienator is a resident.



Article 14



An independent profession



1. Income derived by an individual who is receiving is a resident of a

Contracting State, of a liberal profession, or other similar activities

of an independent character shall be taxable only in that State except in the

in the following cases, when such income may also be taxed in the

the other Contracting State:



and if that person has) regularly available a permanent base in

the other Contracting State for the purpose of carrying out its activities; in such a

If just a portion of the revenue that is attributable to that fixed base,

may be taxed in that other State; or



(b) if the residence of that person) in the other Contracting State takes or

exceeds, after one or more periods, in the aggregate 183 days in any

12-month period commencing or ending in the calendar

the year; in this case, only a portion of the revenue, which is receiving from their

activities carried on in that other State, may be taxed in this

the second State.



2. The expression "liberal profession" includes especially independent activity

scientific, literary, artistic, educational or teaching, as well as

the independent activities of physicians, dentists, lawyers, engineers, architects and

accounting experts.



Article 15



Employment



1. a salaries, wages and other similar remuneration derived by a resident of a Contracting

the State is receiving due to employment, shall, subject to the provisions of

articles 16, 18, 19, 20 and 21 of the taxable only in that State unless the employment

It is not exercised in the other Contracting State. If there is a job

exercised, the rewards can be received for them taxed in that other

State.



2. remuneration which a resident of a Contracting State is receiving because of the

employment exercised in the other Contracting State, shall be subject to whatever

the provisions of paragraph 1, taxable only in the first-mentioned State if

all of the following conditions are met:



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 starting

or ending in the calendar year; 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 remuneration is not borne by) of a permanent establishment or a fixed base, which has

employer in the other State.



3. Notwithstanding the preceding provisions of this article may be rewards

received because of employment exercised aboard a ship, aircraft or


road vehicle operated in international traffic are taxed in

the Contracting State in which the place of effective management of the enterprise.



Article 16



Royalties



Directors ' fees and other similar payments to a resident of a Contracting State

he receives as a member of the management board or other similar body of a company,

which is resident in the other Contracting State, may be taxed in that

the second State.



Article 17



Artists and athletes



1. Income derived by a resident of a Contracting State as to the

public entertainer, such as a theatre, film, radio or

television artist, or a musician, or as an athlete of such personally

activities in the other Contracting State, may be, regardless of the

the provisions of articles 14 and 15 of the taxed in that other State.



2. If the income from the activities carried out by the artist in person or

athlete accrues not 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



Board



Pensions and other similar remuneration paid to a resident of a Contracting State

because of past employment shall be subject to, subject to the provisions of article

19 para. 2, taxed only in that State.



Article 19



Public function



1.



and, other than) the remuneration, pension paid by one Contracting State or its

the local Office of a natural person for services rendered to that State or

the authority shall be taxable only in that State.



(b) However, Such remuneration) are subject to taxation only in the other Contracting State,

If the services are rendered in that State and the individual who

is a resident of this State:



(i) is a national of that State; or



(ii) did not become a resident of that State only because of the proof

These services.



2.



and pension paid by one) of any Contracting State or a local authority

of this State or paid from the funds, which have established, the physical person for

of services rendered to that State or local authority shall be taxable only

in this State.



(b) However, Such pension) are subject to taxation only in the other Contracting State,

If the individual is a resident of, and a national of that

the second Member State.



3. the provisions of articles 15, 16 and 18 shall apply to remuneration and pensions for services

proven in the context of industrial or commercial activities carried out by

any Contracting State or of its local authorities.



Article 20



Students and apprentices



1. If a student receives or apprentice who is or was immediately

prior to his arrival in a Contracting State a resident of the other

a Contracting State and who is present in the first-mentioned State solely for the

the purpose of his education or training, payments to cover the costs of nutrition,

education or training, such payments will not be taxed in that State

provided that such payments arise from sources outside that State.



2. as regards the study aid, scholarships and remuneration from employment,

that are not covered by paragraph 1, it will have a student or apprentice referred to in

paragraph 1 and, in addition, in the course of such study or training are entitled to

the same exemptions, reliefs or reductions of taxes, what belongs to the students or

for apprentices who are resident in that State in which he resides.



Article 21



Professors and researchers



1. When it receives a Professor, teacher or researcher who is

or was immediately before their arrival in one Contracting State

a resident of the other Contracting State and who is present in the first-mentioned

the State for a period not exceeding two years for the implementation of advanced

study or research or teaching at the University, faculty, school or other

educational institution, any remuneration for such work will not be

such rewards are taxed in the first-mentioned State, provided that these

Rewards flowing from sources outside that State.



2. the preceding provisions of this article shall not apply to income from research

in cases where such research is conducted primarily to private

benefit of a specific person or persons.



Article 22



Other income



1. Part of the income of a resident of a Contracting State, wherever

anywhere, which are not dealt with in the foregoing articles of this

of the Treaty, shall be taxable only in that State.



2. The provisions of paragraph 1 shall not apply to income, other than income from

immovable property, which is defined in article 6 (1). 2 If the

the recipient of such income, being a resident of a Contracting State,

industrial or commercial activity exercised in the other Contracting State

through a permanent establishment located there or exercises in this

other State independent of the profession from a permanent base located there and

If the right or property in respect of which the income is paid is effectively

attaching to such permanent establishment or fixed base. In this case,

the provisions of article 7 or article 14, depending on which case

it comes.



Article 23



Property



1. Capital represented by immovable property referred to in article 6, which

own a resident of a Contracting State and which is located on the second

a Contracting State may be taxed in that other State.



2. Capital represented by movable property that is part of the business

the property of a permanent establishment which an enterprise of a Contracting State in the

the other Contracting State or 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, aircraft and road vehicles

operated in international traffic and movable property used to

the operation of such ships, aircraft or road vehicles shall be subject to

only taxation in the Contracting State in which the place of effective

management of the undertaking.



4. All other elements of property of a resident of a Contracting State shall be subject to

tax only in that State.



Article 24



Elimination of double taxation



The double taxation will be avoided as follows:



1. where a resident of a Contracting State derives income or owns

assets that may be in accordance with the provisions of this agreement, taxed

the other Contracting State, the first-mentioned State shall allow:



and) reduce the amount of tax on the income of the resident, an amount equal to the

income tax paid in that other State;



(b)) reduce the amount of property taxes that resident, an amount equal to the

property tax paid in that other State.

Such amount by which tax is reduced, however, shall not exceed the portion of the tax

income or property taxes calculated before the reduction, that relatively

falls on revenue or asset, depending on what matters that

may be taxed in that other State.



2. where, in accordance with any provision of the contract, income

received or property owned by a resident of a Contracting State is

be exempt from tax in that State, such State may nevertheless, in calculating the

the amount of tax on the remaining income or property of such resident, take

into account the exempted income or property.



3. where any tax to which this agreement applies, the

According to the legislation of one of the Contracting States for a limited time

the period of immunity or reduced, there will be such a tax for the purposes of paragraph 1,

This article will be considered paid.



Article 25



Prohibition of discrimination



1. nationals of a Contracting State shall not be subjected in the

the other Contracting State to any taxation or 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 other State, who are in the same situation. This provision shall

Notwithstanding the provisions of article 1, also apply to persons who are not

residents of one or both of the Contracting States.



2. the taxation on a permanent establishment which an enterprise of a Contracting State has in the

the other Contracting State, that other State will not be less favourable than

taxation of enterprises of that other State carrying out the same activities.

This provision shall not be construed as an obligation of a Contracting State,

admitting to residents of the other Contracting State 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 paragraph 1 of article 9, paragraph

7 of article 11, or paragraph 6 of article 12, interest, royalties, and

other expenses paid by the enterprise of a Contracting State to a person who is

a resident of the other Contracting State, the deductible for purposes of determining

taxable profits of this business under the same conditions as if they were

paid to a person who is a resident of the first-mentioned State. Similarly,

any debts of the enterprise of a Contracting State to a resident of the other

a Contracting State shall, for the purposes of determining the taxable property of such

the company 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 a person or persons,


that are resident in the other Contracting State, shall not be subjected in the first-

mentioned 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 subject to other similar businesses

the first-mentioned State.



Article 26



Resolving cases by agreement



1. where a person considers that the actions of one or both of the Contracting

States lead or lead it to taxation not in accordance with the

the provisions of this agreement, he may, irrespective of the remedies

that provides the national law of those States, present your case

the competent authority of the Contracting State of which he is a resident or, if the

her case falls under article 25, paragraph 2. 1, the Office of the Contracting State of which the

He is a national. The case must be presented within three years from the first

notification of the measure, which leads to taxation not in accordance with the

the provisions of this agreement.



2. If the competent authority of the objection to be justified and

If it is not itself able to find a satisfactory solution, it will try to

the case was resolved by agreement with the competent authority of the other Contracting State,

in order to avoid taxation which is not in conformity with this agreement.

Any agreement reached shall be made without regard to the time limits in the

the national legislation 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 for the purpose of

Elimination of double taxation in cases not covered by the contract.



4. the competent authorities of the Contracting States may come in direct contact with a view to

reaching an agreement in the sense of the preceding paragraphs.



Article 27



The exchange of information



1. the competent authorities of the Contracting States shall exchange the information required to

the implementation of the provisions 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

a Contracting State received will be kept confidential in the same way

as the information received in accordance with the national legislation of the

the State and will be disclosed only to persons or authorities (including courts and

administrative offices), dealing with the charge of the assessment or collection of taxes, on the

covered by this contract, the enforcement or prosecution in case

These taxes or making decisions on appeals in respect of those taxes.

Such persons or authorities shall use such information only for such 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 a Contracting State the obligation:



and perform administrative measures) that would infringe on the laws and

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 trade,

corporate, industrial, commercial or professional secret or of a commercial

procedure, or information, the disclosure of which would be contrary to the public

policy.



Article 28



Diplomats and consular officials



Nothing in this agreement will not affect the tax privileges that pertain

diplomats and consular officials under the General rules of

of international law or under the provisions of special agreements.



Article 29



Entry into force



1. this Treaty is subject to ratification and the instruments of ratification shall be exchanged

in Prague as soon as possible.



2. the contract shall enter into force by the exchange of instruments of ratification and its

the provisions in respect of income received or owned property

will apply to the first of January of the calendar year or later

following the year in which the agreement enters into force.



For the purposes of article 26 (Exchange of information), the provisions apply

the date on which the agreement enters into force, or later.



Article 30



Notice of termination



This agreement shall remain in force until denounced by one

Contracting State. Each Contracting State may, by written notes, the diplomatic

on the way to terminate after five years from the date of entry into

force, for at least six months before the end of each calendar year; in

this case, as regards the revenue received or owned property

the Treaty cease to apply to the first of January or later, calendar

the year following the year in which the notice of termination has been given.



Given in duplicate in Tirana on 22 November. June 1995 in English

language.



For the Government of the United States:



Josef Zieleniec in r.



Minister of Foreign Affairs



For the Government of the Republic of Albania:



Alfred Serreqi in r.



Minister of Foreign Affairs