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
