The Agreement On The Avoidance Of Double Taxation With Bulgaria

Original Language Title: Dohoda o zamezení dvojího zdanění s Bulharskem

Read the untranslated law here: https://portal.gov.cz/app/zakony/download?idBiblio=47992&nr=203~2F1999~20Sb.&ft=txt

203/1999 Coll.



The COMMUNICATION FROM the



Ministry of Foreign Affairs



Ministry of Foreign Affairs says that on 9 April. April 1998 was in

Sofia signed an agreement between the Czech Republic and the Republic of Bulgaria

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 ratified.



Treaty has entered into force pursuant to its article 28, paragraph 1. 2 day 2.

July 1999. Its provisions will be implemented in accordance with the wording of

paragraph 2 (a). a) and (b)). Pursuant to paragraph 3 of the same article, the date on which

begins to execute this agreement, relations between the Czech Republic and

The Republic of Bulgaria shall cease to perform:



Agreement on avoidance of double taxation of income and assets of natural persons,

signed at Miškovci on 27. May 1977, well-known under the No 30/1979 Sb.



and



Agreement on avoidance of double taxation of income and assets of legal entities,

signed at Ulan Bator on 19 December. May 1978, well-known under no. 49/1979

SB.



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 Republic of Bulgaria to avoid double

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



Czech Republic and the Republic of Bulgaria,



Desiring to conclude an agreement on 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 residents of one or

both of the Contracting States.



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 local authorities, irrespective of 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, in particular:



and) 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");



(b)) in Bulgaria:



(i) the tax on income of individuals;



(ii) income tax the company;



(iii) tax on immovable property;



(hereinafter referred to as "the Bulgarian tax").



4. the contract will also apply to any similar taxes, which

will be saved after the signing of the Treaty in addition to or instead of the current taxes.

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.



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, as

context, the Czech Republic or Bulgaria;



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

they are, according to the Czech legislation and in accordance with international

the law, carried on the sovereign rights of the United States;



(c)), the term "Bulgaria" refers to the Republic of Bulgaria, and when used in

geographical importance, indicates the territory and territorial waters, where Bulgaria

the State exercises its sovereignty, as well as continental shelf and

exclusive economic zone, where Bulgaria under international law

It exercises sovereign rights and jurisdiction;



(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

any bearer of Rights considered for taxation purposes legal

person;



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

State "means, according to the context, the enterprise carried on by a resident

of a Contracting State and an 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,

by plane, train or road vehicle operated by an undertaking

of a Contracting State, except when the ship, aircraft, rail

or road vehicle is operated solely between places in the other Contracting

State;



I) the term "competent authority" means:



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

representative;



(ii) in the case of Bulgaria, the Minister of finance or his authorized

representative.



2. As regards the implementation of the Treaty at any time from any of the

of the Contracting States, each expression that is not defined in it, if

the link does not require a different interpretation, of such importance that it has in

This time according to the laws of that State for the purposes of the taxes to the

which the contract applies, any meaning under the used

the tax laws of this State will prevail over the meaning of the expression

under other laws of that State.



Article 4



A resident of the



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

of the Treaty, any person who is under the law of that State

subject to taxation in that State by reason of his residence, the Standing

residence, citizenship, place of management, place of establishment, or

any other similar criteria, and also includes that State and

any local authority of that State. However, this term shall not include any

a 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. 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) it is assumed that this person is resident only of the State in

which he has a permanent home; If he has a permanent home in both States, assumes

that is a resident only of the State with which it has strong personal and

economic relations (Centre of vital interests);



(b)) if it cannot be determined which state the person Center

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

It is believed to be a resident only of the State in which it is usually

resides;



(c)) If this person usually resides in both States, or in any

of them, it is assumed to be a resident only of the State of which he is

is a national;



d) if that person is a national of both States or of any

of them, the competent authorities of the Contracting States shall adjust the question by mutual

by the agreement.



3. If a person other than an individual is subject to the provisions of paragraph 1,

a resident of both Contracting States, it is assumed to be a resident only

of the State under whose legislation has been established.



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

carried on the business.



2. the term "permanent establishment" includes especially:



and instead of keeping);



(b)) race;



(c));



(d) a factory;)



e) a workshop; and



f) mine, the site of diesel or gas, a quarry or any other place where

the benefits of natural resources.



3. the term "permanent establishment" also includes:



and construction, construction site,) the Setup project or surveillance related,

but only if such construction, project supervision, or takes longer than

twelve months;



(b)) the provision of services, including consultancy or managerial services,

the enterprise of a Contracting State through employees or

other workers hired by the enterprise for such purpose, but only if

activities such as to insist on the territory of the other Contracting State after

one or more periods exceeding in the aggregate six months within any

the 12-month period.



4. Notwithstanding the preceding provisions of this article, assume that

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) 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

carrying out any other activity that has for undertaking the preparatory or

auxiliary character;



f) permanent place for business, solely to carry out the

any combination of activities mentioned in subparagraphs (a) to (e))), if

the overall activity of the fixed place of business resulting from this

the connection is of a preparatory or auxiliary character.




5. Notwithstanding the provisions of paragraphs 1 and 2, a person-other than

an independent representative, to whom paragraph 7 applies-is acting in a

a Contracting State on behalf of the enterprise and has, and usually uses the permission that

It allows you to enter into contracts on behalf of the company, it is considered that this

the enterprise has a permanent establishment in that State in relation to all activities,

This person performs for the enterprise if the activities of such person 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.



6. Notwithstanding the preceding provisions of this article, assume that

the insurance company of a Contracting State, with the exception of premiums, has a permanent

establishment in the other Contracting State if it collects premiums in the territory of

This other State or insures risks situated there,

through a person other than an independent agent, which is

subject to paragraph 7.



7. Not considered that the enterprise has a permanent establishment in a Contracting State

just because in this State, carries on business through a

a broker, General Commission agent or any other independent

the representative, if such persons are acting within their proper operation. However,

If such activities are wholly or almost wholly

devoted to the interests of this business, this is not representative of the considered

an independent within the meaning of this paragraph.



8. 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 any of 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 State.



2. the term "immovable property" is of such importance that it under the

the legislation of the Contracting State in which such property is located.

The term includes in any case the accessories of immovable property, live

and dead inventory used in agriculture and forestry, rights to which

the provisions of civil law relating to property, 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 and aircraft shall not be regarded as immovable property.



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 exercise 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 paragraph 2 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



International transport



1. The profits of an enterprise of a Contracting State receives the operation of ships,

aircraft, railway or road vehicles in international traffic,

shall be taxable only in that State.



2. The provisions of paragraph 1 shall also apply to profits derived from the participation in the

pool, joint operation or an international operating organization.



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 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 10

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

by mutual agreement the mode of application of this limitation.



This paragraph shall not affect the taxation of the profits of the company, all of which 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

other revenues, which are subjected to the same tax regime as income

of the shares under the laws of the State of which the company

rozdílí profit, a resident.



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

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

the other Contracting State of which he is a resident company paying

dividends, 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 participation, for the

which the dividends are paid is effectively connected to such permanent establishment

or a permanent base. In such a case, the provisions of article 7

or article 14, depending on what matters.



5. 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 may be taxed 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

beneficial owner of the interest is a resident of the other Contracting State, the tax

so charged shall not exceed 10 per cent of the gross amount of the interest.



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

the application of the restrictions and limitations referred to in paragraph 3.



3. Notwithstanding the provisions of paragraph 2 interest are exempt from taxation

in the Contracting State in which they arise, if they are:




and received and actually owned):



(i) the Government of the other Contracting State, including any local authority

in this State, the Central Bank or any financial institution that

completely own this Government; or



(ii) a resident of the other Contracting State in connection with a loan or

a loan guaranteed by the Government of that other State;



(b)) to be paid in connection with the sale of any equipment or goods to

business loan.



4. The term "interest" as used in this article means income from debt-claims

of any kind, whether or not secured by the law on the

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 regarded as interest for the purpose of this article.



5. The provisions of paragraphs 1, 2 and 3 shall not apply if the beneficial

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

the other Contracting State in which they have interest, industrial or source

business through a permanent establishment that is there

located, or performs in that other State independent of the profession of

a permanent base located there, and if the claim from which the interest

paid, it is actually tied to such permanent establishment or fixed base.

In such a case, the provisions of article 7 or article 14, as

of this, about what matters.



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

the payer is a resident of that State. However, if the payer of interest, whatever it 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 there has been a

debt, from which interest paid, and such interest shall be charged to such

permanent establishment or fixed base, it is assumed that such interest

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

the base is located.



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

paid, exceeds, due to the 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 in accordance with the laws of each Contracting

State, with 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 per cent of the gross

the amount of the royalties. The competent authorities of the Contracting States shall

by mutual agreement the mode of application of this limitation.



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, recordings, or disks

for television or radio broadcasting, any patent, trade

mark, design or model, plan, secret formula or production

procedure or any industrial, commercial or scientific

device or information relating to experience gained in the

the field of industrial, commercial or scientific (know-how).



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,

If the payer is a resident of that State. However, if the payer

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 to pay the royalties was created, and these

royalties are borne by such permanent establishment or a permanent

the base, it is assumed that these licence fees should arise in the

State in which the permanent establishment or fixed base is situated.



6. If the amount of the license fees that are related to the use,

law or information for which they are paid, exceeds, in consequence of the

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 in accordance with the

the laws of each Contracting State, taking into account other

the 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

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 assets owned by the enterprise of a Contracting State, and

consisting of ships, aircraft, rail or road vehicles

operated by that enterprise in international traffic or from the alienation of

movable assets owned by the business and used to operate the

these ships, aircraft, rail or road vehicles shall be subject to

taxable only in that Contracting State.



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 of which he is

alienator is a resident.



Article 14



Free and other independent professions



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 except in the following cases, when such

income may also be taxed in the other Contracting State:



and if you want this) resident regularly available in the other Contracting

State a permanent base for the purpose of carrying out its activities; in such a

the case of just such a part of the income which is attributable to that fixed base,

may be taxed in that other State; or



b) if his stay in the other State for a period or multiple periods

exceeds 183 days in the aggregate in any twelve month period

starting or ending in the fiscal year concerned; in this case,

just a portion of the revenue, which is the amount received from his activities carried out by

in that other State, may be taxed in that other State.



2. The counting period referred to in paragraph 1 (b). (b)) are included

on the following days:



and all the days of physical presence), including arrivals and departures, and



b) days spent outside the State activities such as Saturday and Sunday, the national

holidays, vacations and business trips directly connected with the carrying out of the activity

the recipient in that State, which has been in operation on the territory of that

State.



3. the term "liberal profession" includes especially independent activity

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

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

accounting experts.



Article 15



Employment



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

of a Contracting State by reason of employment, shall, subject to the provisions of

articles 16, 18, 19 and 20 taxable only in that State unless the employment is not

exercised in the other Contracting State. If there is a job to be exercised,

the rewards from it may be taxed in that other State.



2. remuneration derived by a resident of a Contracting State by reason 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 employed in other State for a period or multiple periods

not exceeding in the aggregate 183 days in any twelve month period

starting 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 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. The counting period referred to in paragraph 2 (a). and) include

on the following days:



and all the days of physical presence), including arrivals and departures, and



b) days spent outside the State activities such as Saturday and Sunday, the national

holidays, vacations and business trips directly related to employment of the recipient

in this State, which has been in operation in the territory of that State

continued.



4. the term "employer" referred to in paragraph 2 (a). (b)) identifies the person

who has the right to work and that carries the responsibility and risk

associated with the performance of the work.



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

received because of employment exercised aboard a ship, aircraft, in

the railway or road vehicle operated in international traffic

the undertaking of the Contracting Government taxed in that State.



Article 16



Royalties



Directors ' fees and other similar payments derived by a resident of a Contracting

the State as a member of the management board or any other similar authority

a company which is a resident of the other Contracting State, may be

taxed in that other 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



1. Pensions and other similar salaries paid to a resident of a Contracting State of the

because of past employment shall, subject to the provisions of article 19 of the

paragraph. 2 taxable only in that State.



2. Notwithstanding the provisions of paragraph 1 shall be paid by the Board and other

similar salaries carried out on the basis of a public plan, which is part of the

the social security system of a Contracting State, the tax only in that

State.



Article 19



Public function



1.



a) salaries, wages and other similar remuneration, other than a pension paid by one

Contracting State or a local authority of the State of a natural person for services

rendered to that State or authority shall be taxable only in that

State.



(b)), Such salaries, wages and other similar remuneration shall be taxable only, however,

in the other Contracting State if the services are rendered in that

State, and the natural person 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 of 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 authority shall be taxable only in that

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, 16, 17 and 18 shall apply to salaries, wages and other

similar remuneration and pensions for services rendered in connection with the industrial

or commercial activity carried out by any Contracting State or local

the authority of this State.



Article 20



Students



1. the payments it receives for the purpose of reimbursement of the costs of their diet,

education or training of a student or an apprentice who is, or immediately

prior to their arrival to a Contracting State was a resident of the other

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

the purpose of his education or training, are not subject to tax in that State

provided that such payments arise from sources outside that State.



2. As regards the aid, scholarships and remuneration from employment not

subject to paragraph 1, it will have a student or apprentice referred to in paragraph 1,

In addition, the right to education or in the course of such training to the same

tax exemptions, discounts or reductions, which it is for the residents of the State,

in which it resides.



Article 21



Other revenue



Part of the income of a resident of a Contracting State which are not expressly

listed in the foregoing articles of this Agreement shall be taxable only in the

This State, except cases when such income is received from sources

in the other Contracting State. In this case, such income may be

also taxed in that other 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, aircraft, rail and road

vehicles operated in international traffic by the enterprise of a Contracting State, and

movable property that is used for the operation of such ships, railway

and road vehicles, is subject to tax only in that State.



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



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 income tax for this resident, an amount equal to the tax on

income paid in that other State;



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

the property paid in that other State.



The amount by which the tax decrease, however, in no case shall not exceed that part of the

income taxes or property taxes, depending on what matters,

calculated before the reduction, that fairly falls on revenue or

property which 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.



Article 24



Prohibition of discrimination



1. Residents of a Contracting State shall not be subjected in 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 to the residents of this

the second Member State, who are in the same situation.



2. the taxation on a permanent establishment or a fixed base, which has a resident

a Contracting State in the other Contracting State, it will not be in this second

more detrimental than state taxation of residents of that other State who

carry out the same activity.



3. The provisions of paragraphs 1 and 2 shall not be construed as a commitment of one

Contracting State, to admit to residents of the other Contracting State

any personal credits, rebates and tax reductions because of personal status

or obligations to the family, which it grants to its own residents.



4. If you do not apply the provisions of article 9, article 11, paragraph 2. 7

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.



5. 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.



Article 25



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 Treaty, may, notwithstanding the remedies that

under the national laws of those States, present your

the case to the competent authority of the Contracting State of which he is a resident. Case

must be presented within three years from the first notification of the action leading to

of taxation which is not in accordance with the provisions of the Treaty.



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

case solved by mutual agreement with the competent authority of the other Contracting

the State so as to avoid taxation which is not in accordance with the Treaty.

Any agreement reached will be made without regard to any

the time limits in the domestic law 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 the Treaty. They may also consult together for the

the purpose of the 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 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, and in particular for the purposes of prevention of fraud or

evasion in relation to such taxes. Exchange of information is not restricted by article

1. All information received by a Contracting State shall be maintained in a

secret in the same manner as information obtained under the national

the 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

prosecutions relating to such taxes, or deciding on appeals in

relation to these taxes. Such persons or authorities shall use the information only

for these purposes. They may disclose the information in public court

in legal proceedings or 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 course of 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 27



Members of diplomatic missions and consular officials



Nothing in this Agreement shall affect the fiscal privileges of members of diplomatic missions

or consular officials attributed to them on the basis of the General

rules of international law or under the provisions of the Special

agreements.



Article 28



Entry into force



1. this Treaty is subject to ratification and States parties assist each other, in writing,

reports that their constitutional requirements for the entry into force of this Treaty

have been met.



2. the contract shall enter into force on the date of the later of the notifications referred to in

paragraph 1 and its provisions shall be made:



and) with regard to taxes withheld at source, on income paid to 1.

January or later in the calendar year following the year in which the

The Treaty 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.



3. After the entry into force of this Treaty in the relations between the Czech

Republic and the Republic of Bulgaria will cease to apply and implement the

multilateral treaty on avoidance of double taxation of income and assets

natural persons, signed in Miškovci 27. in May 1977, and the multilateral

agreement on avoidance of double taxation of income and assets of legal entities,

signed at Ulan Bator 19. May 1978.



Article 29



Notice of termination



This agreement shall remain in force until denounced by one

Contracting State. Each Contracting State may, through diplomatic channels, the filing of

terminate the contract, written notice of termination at least six months before the end of

each calendar year following after the period of five years from the date of

the entry into force of the Treaty. In this case, the contract ceases to

carry out:



and) with regard to taxes withheld at source, on income paid to 1.

January or later in the calendar year following the year in which the

given notice of termination;



(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.



Done at Sofia on 9 April. April 1998 in two original copies, each in the

the Czech, Bulgarian and English languages, all the texts are

authentic. In the event of any difference will be the decisive English

the text.



For the Czech Republic: For the Republic of Bulgaria:

PhDr. Jaroslav Sedivy in r. Nadezhda Michajlovová in r.

Deputy Prime Minister and Minister

Foreign Affairs Minister of Foreign Affairs