Double-Taxation Treaty With Ukraine

Original Language Title: Smlouva o zamezení dvojího zdanění s Ukrajinou

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Read the untranslated law here: https://portal.gov.cz/app/zakony/download?idBiblio=47800&nr=103~2F1999~20Sb.&ft=txt

103/1999 Coll.



The COMMUNICATION FROM the



Ministry of Foreign Affairs



Ministry of Foreign Affairs says that the 30 June. in June 1997,

Kiev signed an agreement between the Government of the United Kingdom and the Government of Ukraine

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. 1 day 20.

April 1999, and its provisions will be implemented in accordance with the wording of

paragraph 1 (b). a) and (b)). In accordance with paragraph 2 of the same article, the date on which

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

Ukraine will no longer make:



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 Government of the United Kingdom and the Government of Ukraine on the Elimination of 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 Ukraine,



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 and affirming their

efforts to develop and deepen economic relations,



have agreed as follows:



Article 1



The person to which the contract relates



This agreement shall apply to persons who are resident or established in

one or both of the Contracting States (residents).



Article 2



The tax, to which the contract relates



1. this Agreement shall apply to taxes on income and on capital imposed by the

on behalf of each Contracting State or of its lower administrative departments

or local authorities, irrespective of the method of selecting 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. the taxes to which this agreement applies are:



and in the case of Ukraine):



(i) the tax on profit of enterprises; and



(ii) the income tax on citizens;



(hereinafter referred to as "Ukrainian tax");



(b)) in the case of the Czech Republic:



(i) the tax on income of individuals;



(ii) the tax on income of legal persons;



(iii) tax on immovable property;



(hereinafter referred to as "Czech tax").



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

the principle of a similar kind, that will be stored after the signature of this contract

In addition to or instead of the current taxes. The competent authorities of the Contracting States

shall notify each other of any significant 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 "Ukraine" refers to the territory of Ukraine, its continental shelf and

its exclusive (maritime) economic zone, including any area

outside the territorial waters of Ukraine, which is or may be in accordance with the

international law and in accordance with the legislation of Ukraine marked as

the area, where they can be exercised in Ukraine, when it comes to the sea bottom

and subsoil and their natural resources;



(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 terms "a Contracting State" and "the other Contracting State" mean, as

context, the Czech Republic or Ukraine;



(d)) 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;



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

an Association of persons;



f) the term "company" refers to any legal entity or

the rightholder considered for taxation purposes for the entity;



g) 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;



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

by air, road or railway vehicle operated by an undertaking

of a Contracting State, except when the ship, boat, airplane,

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

Contracting State;



I) the term "competent authority" means in the case of Ukraine, the Ministry of

Finance of Ukraine or his authorized representative and in the case of the United

Minister of Finance of the Republic of the United States or his authorized

representative.



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

that it is not defined, of such importance that it has under the laws

laws of this State governing the taxes to which the Agreement

apply, unless the context requires a different interpretation.



Article 4



A resident of the



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

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, place of management, place of registration or any other similar

criteria. However, this term does not include any person who is subjected to

taxation in this State solely because of the income from sources in that State

or assets located there.



2. If the individual is in accordance with the provisions of paragraph 1 of this article

a resident of both Contracting States, the position of the specified

in the following way:



and) it is assumed that this person is a resident of a Contracting State, in the

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

It is assumed that it is a resident of the Contracting State to which the

enhanced personal and economic relations (Centre of vital interests);



(b)) if it cannot be determined, the Contracting State in which the person has

the Centre of their vital interests, or if it does not have a permanent home in no

Contracting State, it is assumed that he is a resident of a Contracting State,

in which usually resides;



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

in any of them, it is assumed that there is a resident of a Contracting State,

of which he is a national;



d) if that person is a national of both Contracting States

or any of them, the competent authorities of the Contracting States shall adjust this question

by mutual agreement.



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

This article, a resident of both Contracting States, it is assumed that it is

a resident of the Contracting State in which the place of its

effective management.



Article 5



Permanent establishment



1. the term "permanent establishment" means for the purposes of this agreement, the Permanent

place to do business, through which is wholly or partly

carried on the business.



2. the term "permanent establishment" includes especially:



and instead of keeping);



(b)) race;



(c));



(d) a factory;)



e) a workshop;



f) device or a building to investigate natural resources;



g) mine, oil or gas deposits, a quarry or any other place where

mining natural resources;



h) a warehouse or other facilities used to deliver the goods.



3. the term "permanent establishment" also includes:



a building site or construction), Assembly or installation project or supervision with

This, however, only if it takes such construction, project or supervision

For more than 12 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 three months in 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 or display

goods belonging to the enterprise;



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

storage or display;



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

the processing of another undertaking;



d) permanent place to do business, solely for the purpose of purchasing

goods, or collecting information for the enterprise;



e) permanent place for business, solely for the purpose of

advertising, information, scientific research or similar

activities which have a preparatory or auxiliary to the business nature;



f) permanent place for business, solely for the performance of


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 6 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. 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.



7. the fact that a company which is a resident of a Contracting

State controls or is controlled by a company which is a resident of the other

Contracting State or that in that other State carries on business

(whether through a permanent establishment or otherwise), will not make itself from

either this company a permanent establishment of the other company.



Article 6



Income from immovable property



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

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

the other Contracting State, may be taxed in that other 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

of natural resources. Ships, boats, aircraft, road and rail vehicles

will not be regarded as immovable property.



3. the provisions of paragraph 1 of this article shall apply to income received from

the direct use, letting, or any other manner of use immovable

asset.



4. The provisions of paragraphs 1 and 3 of this article shall also apply to income from

immovable property of enterprises and to income from immovable property used

to exercise 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 of this article,

in each Contracting State of such permanent establishment profits which would be

could do 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. However, such a deduction is

does not allow for the amounts, if any, paid (otherwise than against

reimbursement of actual expenses) permanent establishment of the headquarters of the undertaking or

another of his agents in the form of royalties, or other

similar payments as compensation for the use of patents or other rights, or in the

the form of commissions for services rendered or for separate control of the service or,

except in the case of the banking business, in the form of interest on the money borrowed

permanent establishment. Likewise, no account in the determination of profits to a permanent

the establishment of the amounts charged (otherwise than against reimbursement of the actual

expenditure) permanent establishment of the enterprise or other Headquarters from its offices

in the form of licence fees or other similar payments in return for

the use of patents or other rights, or in the form of commissions for separately

the service rendered or for the management of the service or, except in the case of the Bank

the company, in the form of interest on the money borrowed from the company headquarters or other

its offices.



4. If a Contracting State in accordance with its laws and

regulations determine the profits to be attributed to a permanent

the establishment, on the basis of allocation of the total profits of the enterprise to its various

parts, nothing in paragraph 2 of this article shall not preclude the Contracting

State has set the profits to be taxed, this normal distribution;

the method of distribution must, however, be such as to result 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 that accrue to a resident of a Contracting State from the operation of

ships, boats, aircraft, road or railway vehicles in the

international traffic shall be taxable only in that State.



2. Profits from the operation of ships or aircraft in international traffic for

the purpose of this article include:



a) rental income of ships or aircraft without the crew and



(b)) gains from use, maintenance or rental of containers (including trailers and

related equipment for the transport of containers) used for the

the transport of goods where such rental or such use, maintenance

or car, depending on what matters, is occasionally in relation to

the operation of ships or aircraft in international traffic.



3. The provisions of paragraph 1 of this article shall also apply to profits derived from

participation in a pool, a joint operation or an international operating

the 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:



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, 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

income from other rights to companies which are subjected to the same

tax system, such as income from shares by the laws of the State,

which is a company that rozdílí profit, a resident.



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 of this agreement, 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 5 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 this restriction.



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

a Contracting State and received and actually owned by the Government of the second

Contracting State, including lower administrative bodies and local authorities

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

owned by that Government, or interest derived on loans guaranteed

by that Government shall be exempt from taxation in the first-mentioned 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

debentures, including premiums and prizes attaching to such a valuable

securities, bonds or debentures.



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

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

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

activity through a permanent establishment situated therein, or

performs in that other State independent of the profession of a permanent base there

placed and if the claim from which the interest is paid,

actually attaches to such permanent establishment or fixed base. In such a

If the provisions of article 7 or article 14 of this agreement

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 lower administrative unit, a local authority or

a resident of that State. However, if the payer of interest, 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 there has been a debt of

which are interest paid, and such interest shall be charged to such permanent

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

a source in the State in which the permanent establishment or fixed base

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 or recordings for

radio or television broadcasting), any patent, trade

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

procedure or any industrial, commercial or scientific

device, or for information (know-how) relating to the experience

acquired in the field of industrial, commercial or scientific.



4. The provisions of paragraphs 1 and 2 of this article shall not apply if the

beneficial owner of the royalties, being a resident of one

of a Contracting State, carries on business in the other Contracting State in which they have

source license fees, industrial or commercial activity

through a permanent establishment situated therein, or performs

in that other State independent of the profession of a permanent base located there

and if the right or property giving the emergence of royalty

actually attaching to such permanent establishment or fixed base. In

such a case, the provisions of article 7 or article 14 of this

contract depending on what matters.



5. 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.



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

When the payer is that State itself, a lower administrative unit, a local authority

or a resident of that State. However, if the payer of 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 it is established

the obligation to pay royalties, and these license fees go to the

borne by such permanent establishment or fixed base, it is assumed that

these license fees are to arise in the State in which the Permanent

the establishment or the fixed base is situated.



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 of this agreement, which is located

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



2. Gains from the alienation of shares in the share capital of the company whose

the property consists directly or indirectly principally of immovable property

located in a Contracting State, may be taxed in that State.



3. 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.



4. Gains from the alienation of ships, boats, aircraft, road or railway

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

or from the alienation of movable property that is used for the operation of these

ships, boats, aircraft, road or railway vehicles, shall be subject to

taxable only in that Contracting State.



5. Gains from the alienation of any property, other than that referred to in

paragraphs 1, 2, 3 and 4 of this article, shall be taxable only in the Contracting

State of which the alienator is a resident.



Article 14



An independent profession



1. Income derived by a resident of a Contracting State from the free

profession or other activities of an independent character, shall be subject to

taxable only in that State except in the following cases, when such

income may also be taxed in the other 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 12-month period; in

this case just a portion of the revenue derived from its activities

carried on 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 and 19 of this agreement, taxable only in that State, if the

employment is exercised in the other Contracting State. If there is

employment exercised, can be the rewards of it taxed in this

the second 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 of this article, the taxable only in the first-mentioned

State, if:



and the recipient) is employed in other State for a period or multiple periods

not exceeding in the aggregate 183 days in any 12-month period, 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, boat,

the aircraft, in a road or rail vehicle operated in

international transport taxed in the Contracting State of which the company is

operating a ship, boat, aircraft, road or railway vehicle

resident.



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 this agreement, 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 of this

the contract taxed in the Contracting State in which the activities of the artist or

athletes performed.



3. Notwithstanding the provisions of paragraphs 1 and 2 of the revenue referred to in this

article will be exempt from tax in the Contracting State in which they are

the activities of the artist or athlete are exercised, if such activities

are mainly financed by the public funds of the other State, or are

carried out on the basis of the agreement on cultural cooperation between the Contracting States.



Article 18



Board



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

State because of past employment and any annuity paid to the

such a resident shall, subject to the provisions of article 19, paragraph 2. 2

This contract taxable only in that State.



2. the term "annuity" means a set amount paid to a natural person

repeatedly within the time limits for the duration of her life or during

a specific time period or a discovery based on the obligation to perform

payments in return for adequate and full payment in cash or money

representable.



3. Notwithstanding the provisions of paragraph 1 of this article, pensions and other

similar salaries and any annuity paid under the State

pension plan as part of the social security system of a Contracting

the State, its lower administrative subdivision or local authority shall be subject to

taxable only in that State.



Article 19



Public function



1.



and Remuneration other than pensions) paid by one Contracting State or lower

administrative unit or a local authority thereof to an individual in

services rendered to that State or subdivision or authority shall be subject to

taxable only in that State.



(b) However, Such remuneration) shall be taxable only in the other Contracting State,

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

is a resident of this State:



(i) is a national of that State; or



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

services.



2.



and pension paid by one) of any Contracting State or lower administrative

Department or local authority thereof or payable out of funds that

set up the physical person for services rendered to that State or subdivision

or authority shall be taxable only in that State.

(b)



However, Such pensions) 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 and 18 of this Agreement shall apply to remuneration and

Board for services rendered in connection with an industrial or commercial

the activities carried out by any Contracting State or lower administrative

Department or local authority of that State.



Article 20



Students



Payments which a student or an apprentice who is, or immediately before the

arriving in one Contracting State he was a resident of the other Contracting

State and who is present in the first-mentioned State solely for the purpose of its

education or training, receives for the purpose of reimbursement of the costs of their diet,

education or training, are not subject to tax in that State in

provided that such payments arise from sources outside that State.



Article 21



Other revenue



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 agreement,

shall be taxable only in that State.



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

income from immovable property, which is defined in article 6 (1). 2 of this

the contract, if the recipient of such income, being a resident of one

of a Contracting State, carries on business in the other Contracting State industrial or

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 the right or property in respect of which the

revenue, actually attach to such permanent establishment or a permanent

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

14, depending on what matters.



Article 22



Property



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

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

a Contracting State may be taxed in that other State.



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

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

the other Contracting State or movable property, which belongs to the Permanent

the base, which is a resident of a Contracting State in the other Contracting

State in order to exercise an independent profession, may be taxed in the

that other State.



3. Capital represented by ships, boats, aircraft, road and

railway vehicles operated in international traffic by an undertaking

Contracting State and movable property, that serves to operate the

ships, boats, aircraft, road and rail vehicles, shall be subject to

taxable only in that Contracting 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. 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. Stateless persons who are residents of a Contracting State,

will not be subjected to in any Contracting State to any taxation or

any obligations associated with him, which is other or more burdensome

than the taxation and connected requirements to which they are or can be

subjected to the nationals of the State concerned, who are in the same

situation.



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

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

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



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

or article 12 para. 5, 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.



6. nothing contained in this article shall be construed as a commitment

of a Contracting State, that he confessed 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.



7. The provisions of this article shall apply to taxes covered by the

This agreement.



Article 25



Resolving cases by agreement



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

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 of, or

If her case falls under article 24, paragraph 1. 1, the Office of a Contracting State,

of which he is a national. The case must be presented within three years from the

the first notification of the measure to taxation 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

breach of contract, in particular for the purpose of fraud prevention and

to facilitate the administration of statutory provisions against tax avoidance. The exchange of

of information is not restricted by article 1. Any information received by a Contracting

the State will be kept confidential and will be disclosed only to persons

or authorities (including courts and administrative authorities), which deal with

charge of the assessment or collection of the taxes to which the Agreement applies, the enforcement

or criminal prosecution in the case of these taxes or making decisions about

appeals in relation to such taxes. Such persons or authorities shall use the

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

judicial proceedings or in legal decisions.



2. the provisions of paragraph 1 of this article, shall in no case

interpreted as requiring the competent authority of a Contracting State

the obligation to:



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

administrative practice of a Contracting State;



(b)) to provide information that could not be obtained on the basis of the

legislation or in the normal course of administrative proceedings of a 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. the Contracting States shall notify each other through diplomatic channels that the requirements

given their national laws to enter this agreement in

entry into force have been met. This agreement shall enter into force on the date of the later

of these notifications and its provisions shall be carried out in both countries:



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

attributed to a 1. January or later in the calendar year following the

year in which the Agreement enters into force;



(b)) in respect of other taxes on income and property taxes, to revenue or

property for each tax period starting 1. January or later in

calendar year following the year in which the Agreement enters

force.



2. Since the entry into force of this Treaty in the relations between the Czech

Republic and Ukraine stops make the multilateral treaty on the

avoidance of double taxation of income and assets of natural persons, signed at

Miškovci 27. in May 1977, and the Multilateral Agreement on avoidance of double

taxation and property of legal persons, signed at Ulan Bator 19.

May 1978.



Article 29



Notice of termination



This agreement shall remain in force until denounced by one of the

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

written notice to terminate the contract for at least six months before the end of

each calendar year beginning after the expiry of five years from the date of

the entry into force of the Treaty. In this case, the contract stops in both

States may carry out:



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

attributed to a 1. January or later in the calendar year following the

year in which the notice of termination has been given;



(b)) in respect of other taxes on income and property taxes, to revenue or

property for each tax period starting 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 Kiev on 30 November. June 1997, in two original copies, each

in Czech, Ukrainian and English languages, all the texts are

authentic. In case of any differences will be a determining

English text.



For the Government of the United States:



Ing. Ivan Pilip in r.




the Minister of finance



For the Government of Ukraine:



Jackie Janovič Azarov in r.



the Chairman of the State tax adjustments