The Treaty Between The Czechoslovak Socialist Republic And Japan On Avoidance Of Double Taxation

Original Language Title: o Smlouvě mezi ČSSR a Japonskem o zamezení dvojího zdanění

Read the untranslated law here: https://portal.gov.cz/app/zakony/download?idBiblio=34157&nr=46~2F1979~20Sb.&ft=txt

46/1979 Sb.



DECREE



Minister of Foreign Affairs



of 18 May. January 1979



the Treaty between the Czechoslovak Socialist Republic and Japan

avoidance of double taxation with respect to taxes on income



On 11 July. October 1977 in Prague was signed the Treaty between the Czechoslovak

Socialist Republic of Vietnam and Japan for the avoidance of double taxation in

with respect to taxes on income.



With the Treaty, expressed its approval of the Federal Assembly of the Czechoslovak

Socialist Republic and the President of the Republic has ratified it.

The instruments of ratification were exchanged in Tokyo, 26. October 1978.



Treaty has entered into force pursuant to its article 28, on 25 September 2004.

November, 1978.



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



Minister:



Ing. Chňoupek v.r.



CONTRACT



between the Czechoslovak Socialist Republic and Japan for the avoidance of

of double taxation with respect to taxes on income



The Czechoslovak Socialist Republic and Japan,



Desiring to conclude an agreement on avoidance of double taxation with respect to taxes of

income,



have agreed as follows:



Article 1



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

one or both of the Contracting States.



Article 2



1. the taxes which are the subject of this agreement is



and) in Japan



(i) the income tax,



(ii) the tax on companies and



(iii) local taxes the population



(hereinafter referred to as "Japanese tax").



(b)):



(i) from profit and profit tax,



(ii) the payroll tax,



(iii) the income tax on the literary and artistic activities,



(iv) the tax on agricultural,



(v) the population and personal income tax



(vi) the tax on domestic (hereinafter referred to as "Czechoslovak tax").



2. the agreement shall also apply to any identical or substantially

similar taxes that are imposed after the signature of this agreement in addition to or

in place of the taxes referred to in the preceding paragraph. The competent authorities of

the Contracting States shall within a reasonable time notify all changes,

that will be made in their respective taxation laws.



Article 3



1. In this agreement, unless the context requires a different interpretation:



and) the term "Japan", if it is used in a geographical sense, indicates the

all the territories in which the Japanese tax laws apply.



(b)), the term "Czechoslovakia" indicates the Czechoslovak Socialist

Republic.



(c)) the terms "a Contracting State" and "the other Contracting State" mean Japan

or Czechoslovakia, as it requires a relationship.



(d)) the term "tax" means the tax or the Czechoslovak tax of Japan, as it

the link requires.



(e)) the term "person" includes natural persons, companies and any other

an Association of persons.



(f)), the expression "company" refers to any legal person or any

the essence of which is considered as the legal entity for tax purposes.



g) the terms "enterprise of a Contracting State" and "enterprise of the other Contracting

State "means the enterprise carried on by a person residing or established in

one State party, where appropriate, the enterprise carried on by a person having

resident or established in the other Contracting State.



h) the term "nationals" means all natural persons who are

nationals of a Contracting State, any legal person,

established or organized under the law of a Contracting State, and

all organisations without legal personality for the purposes of the tax

This Contracting State treated as legal entities established or

organized under the law of that Contracting State.



I) the term "competent authority" in respect of the Contracting State refers to the Minister of

of Finance of the Contracting State or its authorized representative.



j) the term "international traffic" means any transport carried out by

boat or plane, which is operated by an undertaking of a Contracting

State if the boat or aircraft are not used only between points

lying in the other Contracting State.



2. any term not otherwise defined, the application has

of this agreement by a Contracting State makes sense, which is determined by the legislation of the

This Contracting State that govern the taxes which are the subject of this

the contract, unless the context requires a different interpretation.



Article 4



1. The expression "person residing or established in a Contracting State"

indicates that for the purposes of this agreement, any person who is subjected to

taxation according to the laws of that Contracting State by reason of his residence,

the stay, management, leadership, the main space or any other criteria

of a similar nature. The term does not include individuals who are subjected to

tax in that Contracting State only because they receive income from

resources that reside in that State.



2. If a natural person has under the provisions of paragraph 1, the place of residence in the

both of the Contracting States, the competent authorities shall decide by mutual agreement, in

where a Contracting State shall, for the purposes of this agreement be deemed to located

residence of a natural person.



3. If a person other than a natural person has under the provisions of paragraph 1,

based in both Contracting States, it is assumed that has its registered office in the

the Contracting State in which the place of its central administration.



Article 5



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

equipment for the business, in which the company carries out all or part of their

activity.



2. the term "permanent establishment" shall include especially "



and instead of keeping),



(b)) race,



(c)),



d) factory



e) workshop,



f) mine, a quarry, or any other place of extraction of natural resources,



g) a building site or Assembly, which last longer than 12 months.



3. the term "permanent establishment" shall not include:



and) device that is used only for storage, display or

supply of goods or merchandise belonging to the enterprise,



(b) the goods belonging to the enterprise,) that is stored as a store, for

the purpose of the exhibition or the delivery,



(c) the goods belonging to the enterprise), which is stored only for the purpose of

the processing of another undertaking,



d) permanent equipment business, which is used only for the

the purpose of purchasing goods or collecting information for the enterprise,



e) permanent equipment business, which is used for the enterprise

only for the purpose of advertising, information, scientific research or

similar activities which have a preparatory or auxiliary character,



(f) the installation carried out by an undertaking) of a Contracting State in connection with the

delivery of machines or equipment from that of the Contracting State into the other

Contracting State.



4. A person acting in a Contracting State to the enterprise of the other Contracting

State-other than the representative with independent status, which is

paragraph 5-is considered to be a permanent establishment in the first-mentioned Contracting

State, if that first-mentioned Contracting State equipped with full

power, which there usually uses, and allows it to enter into contracts

on behalf of the enterprise, unless the activities of such person is not restricted to purchases of goods

for the enterprise.



5. for the permanent establishment of an enterprise of a Contracting State has in the other

a Contracting State does not consider the mere fact that the undertaking in this second

Contracting State carries on business through a broker,

the Commissioner or any other representative of having independent

position, if such persons are acting in the ordinary course of their business

activity.



6. the fact that a company which has its head office in one Contracting State

controlled by the company or is controlled by a company which has its head office in the second

Contracting State, or in that other Contracting State carries on

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

about myself from any of this company a permanent establishment of the other

the company.



Article 6



1. Income from immovable property may be taxed in the Contracting State in

where such property is located.



2. the term "immovable property" shall be defined in accordance with the law of

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

any case, accessories of immovable property, live and dead inventory

agricultural and forestry, rights to which they apply

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

property and rights to variable or fixed performance, paid as a substitute

for unfair advantage or for the right to mining mineral deposits, sources and other

of natural resources. Ship and aircraft will not be regarded as immovable property.



3. The provisions of paragraph 1 shall apply to the income from the direct use, letting

or any other manner of use of immovable property.



4. The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property

the assets of the company and to income from immovable property used for the performance of

a liberal profession.



Article 7



1. the Profit of the enterprise of a Contracting State shall be subject to taxation only in this

Contracting 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, it can be a profit of the enterprise

taxed in that other Contracting State but only to the extent

the extent to which it can be attributed 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, in each Contracting State such permanent establishment

the profit that could be achieved if, as expected, as a separate


the firm carried out the same or similar activities under the same or

similar conditions and traded quite independently 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 expenses

management and general administrative expenses, whether incurred in this way

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



4. If it is customary in a Contracting State to determine the profit that has

be attributed to a permanent establishment on the basis of allocation of the total profit

the undertaking of its various parts, nothing in paragraph 2 to this contract

State has designated the gain to be taxed, in such a Division, what is

the usual. Taken by the Division method, however, must be such that the result was in the

accordance with the principles set out in this article.



5. A permanent establishment of the shareholder does not attribute any profit on the basis of the fact that

only goods for the company.



6. profit to be attributed to a permanent establishment for purposes of the preceding

paragraphs calculated each year according to the same method, unless there are serious

and sufficient grounds for a different procedure.



7. where profits include part of the income which are dealt with separately in the

the other articles of this agreement, the provisions of this article do not affect

the provisions of those articles.



Article 8



1. Profits from the operation of ships or aircraft in international traffic,

carried out by the enterprise of a Contracting State, shall be subject to taxation only in

This Contracting State.



2. As regards the implementation of the international maritime or air transport

the enterprise of a Contracting State, shall exempt such undertaking, if

undertaking of the Czechoslovak, from tax on business in Japan, and Japanese

company is exempt from any tax of a similar Japanese commercial

Dani, if would be chosen later in Czechoslovakia.



3. The provisions of paragraphs 1 and 2 shall also apply to profits from the participation in a pool,

the joint operation or international operating organization.



Article 9



If



and the company) of a Contracting State participates directly or indirectly in the

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 one and in the second case were between the two enterprises in their

commercial or financial relations negotiated or imposed conditions,

that differ from the terms and conditions which would have been agreed upon between undertakings

independent, profit can be, which would be without these conditions provided

one of the businesses, which, however, due to these conditions was not achieved,

incorporated into the profit of this business and taxed.



Article 10



1. dividends paid by a company which has its head office in one Contracting

State the person residing or established in the other Contracting State, may

be taxed in that other Contracting State.



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

registered office of the company, which is paid according to the legislation of that

Contracting State. The tax thus determined shall not exceed:



and) 10% of the gross amount of the dividends if the recipient is a company that

own at least 25% of the shares with voting rights on the

the company paying the dividends for a period of six months immediately

prior to the date of payment of such dividends.



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

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

dividends are paid.



3. the term "dividends" as used in this article, indicates the income

of the shares or other rights, with the exception of receivables with profits,

as well as income from other rights which is built on the

shall be assimilated to income from shares of the tax legislation of the Contracting State in which the registered office of the

the company paying the dividends.



4. The provisions of paragraphs 1 and 2 shall not apply if the recipient of the dividends,

residing or established in a Contracting State, has in the other Contracting

State in which the registered office of the company paying the dividends, Permanent

establishment, with which he is actually linked to ownership of shares, on its

basis of which the dividends are paid. In such a case, the provisions of

Article 7.



5. If a company having its registered office in one Contracting State,

profits or income from the other Contracting State, that other Contracting

Select any State tax on dividends paid by the company to persons who

do not have a place of residence or head offices in that other Contracting State, or to submit

retained earnings of the company tax on retained earnings, even if

paid dividends or retained earnings consists entirely or partly

of profit or income that come from this other Contracting

State.



Article 11



1. Interest arising in a Contracting State and paid to the person having

resident or established in the other Contracting State, may be taxed in that

the other Contracting State.



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

their source, according to the laws of that Contracting State. Tax

However, the thus determined may not exceed 10% of the gross amount of the interest.



3. the interest arising in a Contracting State and paid to the Government of the other it

Contracting State, its local authorities, Central Bank of the second

Contracting State or the financial institution, which is fully owned by

of this State, or person having in that other Contracting State of residence

or registered office of the claims secured by or indirectly financed by the Government of the

of the other Contracting State, its local authorities, Central Bank

of the other Contracting State or the financial institution that is fully

owned by this State, shall, notwithstanding the provisions of paragraph 2,

be exempt from tax in the first-mentioned Contracting State.



4. The term "interest" as used in this article means income from public

bonds, bonds, secured and non-secured by a lien on the

real estate, providing and not provide the right to participate in profits and

other claims of any kind, any differences that amount

paid on the settlement of such claims exceeds the amount of the loan, and

any other income which is built the contractual tax regulations

the State in which it is a source of income, shall be assimilated to income from the loans.



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

who has his domicile or seat in a Contracting State, has in the second

the Contracting State in which they have interest source, a permanent establishment with which the

actually linked to the claim that is the source of interest. In this case, the

provisions of article 7.



6. It is anticipated that interest rates have a source in a Contracting State, if the

the payer that Contracting State itself, a local authority or the person having the

This Contracting State of residence or registered office. However, if the person who

interest paid, either has or does not have a domicile or registered office in a Contracting

State, has in a Contracting State a permanent establishment in connection with which

the debt was created, of which the interest is valid, and if such interest is borne by the

its detriment this permanent establishment, it is assumed that such interest should

arise in the Contracting State in which the permanent establishment is situated.



7. If the amount of the interest paid, having regard to

the claim from which they are paid, exceeds the due to specific

relationship between the payer and the recipient or between the two and the third

person, the amount which would have been had given the payer with the recipient, if not

such relationships, the provisions of this article shall apply only to that

last-mentioned amount. Part of the salary, which exceeds it, it will be in this

the case will be subject to taxation in accordance with the legislation of each Contracting

State with regard to the other provisions of this Treaty.



Article 12



1. Royalties arising in a Contracting State and paid

a person who is resident or established in the other Contracting State, may be

taxed in that other Contracting State.



2.



Industrial license fees) may be taxed in the Contracting State in

where is their source, according to the law of that Contracting

State. The tax thus determined shall not exceed 10% of the gross amount of license

fees.



(b)) cultural license fees will be exempt from tax in the Contracting

State in which it is their source.



3.



and) the term "industrial royalties" as used in paragraph (2) indicates

the salaries of any kind received in return for the use of, or the right to

the use of any patent, trade mark, design or model, plan,

secret instructions or of the production process, or for the use of, or the right to

the use of industrial, commercial or scientific equipment, or for

information relating to experience gained in the field of industrial,

commercial or scientific.



(b)), the term "cultural license fees" as used in paragraph (2) indicates

the salaries of any kind received in return for the use of, or the right to

the use of any copyright in the literary or artistic

scientific including cinematograph films, and films or tapes for

a radio or television broadcast.



4. The provisions of paragraphs 1 and 2 shall not apply if the recipient of the license


fees resident or established in a Contracting State has in the other

the Contracting State in which the royalties, a permanent source

establishment, with which he is actually right or property that are

the source of the royalties. In such a case, the provisions of

Article 7.



5. It is assumed that the licence fees have a source in a particular contractual

State if the payer is that Contracting State itself, a local authority or

a person holding a residence or head offices in that Contracting State. However, if the

the person who pays the license fees, either has or does not have a domicile or registered office of the

in a Contracting State, has in a Contracting State a permanent

establishment in connection with which the obligation to pay royalties, and

If such licence fees shall be borne by its detriment this permanent

an establishment where it is assumed that these licence fees should arise in the

the Contracting State in which the permanent establishment is situated.



6. If the amount of the paid license fees assessed to

regard to the use, right or information for which they are paid,

exceeds owing to special relationship between the payer and the

the recipient, or between both of them and a third party in the amount you would have been had given the

the payer with the recipient, if it wasn't for such relationship, the provisions of

This article just on this last-mentioned amount. Part of the remuneration, which

it exceeds, in this case will be subjected to taxation by law

the laws of each Contracting State, taking into account the other provisions

of this agreement.



Article 13



1. Profits from the alienation of immovable property, whose definition is shown in

Article 6, paragraph 2, may be taxed in the Contracting State in which the

such property is located.



2. profit from the disposal of each other than immovable property, which is

part of the business property of a permanent establishment which an enterprise of one

of a Contracting State has in the other Contracting State or of any other than

immovable property owned by the permanent base of the person

resident in a Contracting State has in the other Contracting State for the

the exercise of a liberal profession, including profits 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 Contracting State. However, profit

realised by a person residing or established in a Contracting State of the

the alienation of ships or aircraft used in international transport, and each

other than immovable property owned by the operation of such ships,

or aircraft is subject to tax only in that Contracting State.



3. profit realised by a person residing or established in a Contracting

State from the alienation of assets other than those which are

dealt with in paragraphs 1 and 2 shall be subject to tax only in that Contracting

State.



Article 14



1. The income which a person resident in a Contracting State receives

for services rendered in the exercise of a liberal profession or other

independent activities of a similar nature, shall be subject to taxation only in this

Contracting State, unless that person has regularly available in the other

Contracting State a permanent base for the performance of its activities. If you want the

such a fixed base, the income may be taxed in that other Contracting

State but only to the extent to which it can be attributed to this

a permanent base.



2. the term "professional services" includes especially independent activity

scientific, literary, artistic, educational or teaching, and independent

the activities of physicians, lawyers, engineers, architects, dentists and accountants.



Article 15



1. Wages, salaries and other similar remuneration derived by a person resident in

a Contracting State receives because of employment shall, subject to

the provisions of articles 16, 18, 19, 20 and 21 of the taxable only in that Contracting

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

employment there are used, can be the rewards received from this job

taxed in that other Contracting State.



2. The rewards that a person resident in one Contracting State is receiving from the

because of the employment exercised in the other Contracting State, shall be subject to no

Notwithstanding the provisions of paragraph 1, taxable only in the first-mentioned Contracting

State, if:



and the recipient is resident in) that other Contracting State during one or

that whole period does not exceed 183 days in the calendar

year, and



(b) the remuneration is paid by the employer) or in the name of the employer,

that does not have a place of residence or head offices in that other Contracting State and



(c) the remuneration is not borne by) a permanent establishment or a fixed base, which has

the employer in that other Contracting State.



3. the Rewards due to employment exercised aboard a ship or aircraft

used in international transport by the enterprise of a Contracting State

may be notwithstanding the preceding provisions of this article are taxed

in that Contracting State.



Article 16



The rewards that a person resident in a Contracting State receives

as a member of the Board or of the Supervisory Board of the company which has its registered office in

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



Article 17



1. The income which they receive publicly acting Theatre, film,

radio or television artists, and musicians or athletes from this

personal activities may be, notwithstanding the provisions of articles 14 and 15

taxed in the Contracting State in which these activities of artists and

athletes performed.



However, such income in that Contracting State shall exempt from tax, if

such activity is exercised by a natural person residing in the second

Contracting State, under a special program of cultural exchanges, the agreed

the Governments of both Contracting States.



2. where income in respect of personal activities, artists or athletes,

doesn't this artists or athletes, but to another person, it may be

This income is taxed, notwithstanding the provisions of articles 7, 14 and 15 in

the Contracting State in which the activities of the artists or athletes

exercised.



However, such income in that Contracting State shall exempt from tax, if

It is received may from activities carried out by natural persons who are

resident in the other Contracting State under a special programme of cultural

the exchanges agreed by the Governments of both Contracting States, and if this income

found another person who is resident or established in the other Contracting

State.



Article 18



Pensions and other similar remuneration, poukazované because of past employment

a person resident in a Contracting State and any regular

recurrent salaries poukazované such person is subject to taxation only in

This Contracting State.



Article 19



1.



and Remuneration other than pensions), some paid by a Contracting State or its

the local Office of the physical person for services rendered to that Contracting State

or its local office in the performance of functions in the public administration are subject to the

taxable only in that Contracting State.



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

If the services were demonstrated in that other Contracting State, the recipient

has resided in that other Contracting State and



I) is a national of the other Contracting State, or



II) residence in that other Contracting State only for the purpose of

the venue for these services.



2.



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

the Office or from the funds, which provide the posts, to a natural person for services

proven that Contracting State or a local authority are subject to

tax only in that Contracting State.



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

If the pension recipient is a citizen of the other Contracting

State and has in the other Contracting State of residence.



3. the provisions of articles 15, 16, 17 and 18 shall apply to remuneration and pensions

paid for services rendered in connection with an industrial or commercial

the activities carried out by any Contracting State or of its local authorities.



Article 20



1. A professor or teacher who temporarily visits a Contracting State after

a period not exceeding two years, to teach or lead the research work

at the University, College, school or other recognised educational

the Institute, and who has or immediately before such visit was

resident in the other Contracting State, shall be subject to in this second only to the Contracting

State tax on remuneration for such teaching or research.



2. The provisions of paragraph 1 shall not apply to income from research activities,

If such research is carried out primarily for the private benefit of the

a certain person or certain people.



Article 21



Salary or income that it receives to cover the costs of their nutrition, education

or the practice of the student or apprentice who is staying in one of the Contracting

State only for the purpose of his education, training or obtain special

technical experience, and that has, or immediately before the

resident in the other Contracting State, shall be exempt in the first-mentioned

State, if such payments were remitted to this first

of that State from abroad, or if the income received for the


your personal services rendered in the first-mentioned Contracting State in an amount

not exceeding 600 000 Japanese yen or the equivalent value in

Czechoslovak crowns during any tax year.



Article 22



Part of the income of persons resident or established in a Contracting State,

that are not expressly mentioned in the foregoing articles of this Convention,

shall be taxable only in that State.



Article 23



Double taxation of income are excluded in this way:



and If a person holding) domiciled in Japan derives income

may be taxed under the provisions of this agreement in both Contracting States,

shall be according to the Japanese rules on set-off of foreign taxes on

Japanese tax set off the amount of the Czechoslovak tax, which is paid from the

of this income, on Japanese tax, meted out to this person. The amount is

reallocated, shall not exceed such a part of the Japanese tax that quite

found on this income.



(b))



I) If a person resident or established in Czechoslovakia he receives

income that may be taxed under the provisions of this agreement in Japan

cut the Czechoslovakia, subject to the provisions of paragraph ii) such income

from taxation. In the calculation of the tax on other income of that person, however, can

use the tax rate that would be applicable if the exempted income was as follows

exempted from taxation.



II) if persons resident or established in Czechoslovakia he receives

income that may be according to the provisions of articles 10, 11, 12, 16 and 17 of this

the Treaty also taxed in Japan, will allow to reduce the tax from Czechoslovakia

the income of that person an amount equal to the tax paid in Japan.

The amount of the tax is to be reduced, however, shall not exceed a percentage

the Czechoslovak tax calculated before tax reduction was enabled,

that fairly falls on income, which was in accordance with the provisions of articles 10,

11, 12, 16 and 17 of this agreement taxed in Japan.



III) Charges paid Czechoslovak State economic

organisations to the State budget shall be understood as the Czechoslovak tax.



Article 24



1. Nationals of a Contracting State, whether or not resident or

registered office in a Contracting State shall not be subjected in the other Contracting

State to any taxation or duties associated with him, that would have been

other or more burdensome than the taxation and connected requirements to which are

or they can be in the same circumstances subjected members of this

of the other Contracting State.



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

the other Contracting State, shall not apply in that other Contracting State

way less favourable than the taxation of enterprises of the other Contracting

the State, which carry out the same activity.



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

to admit persons resident in the other Contracting State personal

deductions, rebates and tax reductions because of the status or duties to the

the family, which it grants to persons residing on its territory.



3. enterprises of a Contracting State, the capital of which is wholly or partly,

directly or indirectly owned or under the control of the person or persons

residing or established in the other Contracting State, shall not be subjected to the

the first-mentioned Contracting State to any taxation or duties with him

United, which would have been other or more burdensome than the taxation and connected with it

the obligations to which they are or may be subject to other similar businesses

of the first-mentioned State.



4. the term "taxation" means taxes in this article of any kind and

naming.



Article 25



1. If a person residing or established in a Contracting State

considers that the action taken by one or both of the Contracting States shall have the

or will result in taxation for it, which is not in accordance with this

regardless of the agreement may redress provides

the legislation of the Contracting States, present your case to the competent

the Office of the Contracting State in which he resides or is established.



2. the competent authority will try to question modified by mutual agreement

with the competent authority of the other Contracting State for the purpose of avoiding taxation,

that is not in conformity with this agreement, if not to find

a satisfactory solution.



3. the competent authorities of the Contracting States shall endeavour to resolve by mutual

the agreement difficulties or concerns that may arise in the interpretation or

the application of this agreement. They can also consult each other in order to

Elimination of double taxation in cases not covered by this

the Treaty.



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

the agreement in the sense of the preceding paragraphs.



Article 26



1. the competent authorities of the Contracting States shall exchange the information necessary

for the implementation of this agreement and of the national laws of the Contracting States,

relating to the taxes to which this agreement applies, if the taxation

that edit is in compliance with this agreement. All of the information as follows

exchanged will be treated as confidential and may be disclosed only to persons or

the authorities entrusted with the charge of the assessment or collection of the taxes which are the subject

of this agreement.



2. The provisions of paragraph 1 shall not be in any way interpreted as

store one of the Contracting States the obligation:



and perform the administrative action) which would be in conflict with the law

regulations or administrative practice of that or of the other Contracting State;



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

the laws or the administrative practice of that or the normal

of the other Contracting State, or



c) to supply information which would disclose commercial, corporate,

industrial, commercial or professional secret or trade process

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

(ordre public).



Article 27



The provisions of this Agreement shall not affect the tax privileges, which

diplomatic and consular officers shall be accorded by the General rules

of international law or under the provisions of special agreements.



Article 28



1. this Treaty shall be ratified and the instruments of ratification shall be exchanged

in Tokyo as soon as possible.



2. this Treaty shall enter into force 30. on the day after the exchange of instruments of ratification

and it will be in either of the Contracting States to apply to the income for the

all tax years beginning 1. January of the calendar year

following the year in which this agreement enters into force, or

at a later time.



Article 29



This agreement is concluded for an indefinite period. Each Contracting State shall, however,

may terminate a written notice sent through diplomatic channels to the other

the Contracting State not later than 30 June 2005. June of each calendar year after

the expiry of a period of five years from the date when the Treaty came into force. In

this case, the contract no longer apply in both Contracting States to

income for all tax years beginning 1. January of the calendar year

following the year in which the notice was given, or later.



In witness whereof, who were duly authorised thereto, have signed the

This contract.



Given in duplicate in Prague on 11. October 1977 in English

language.



For the Czechoslovak Socialist Republic:



Frantisek Hajek v.r.



For Japan:



Fumihiko Suzuki v.r.