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
