Treaty On Avoidance Of Double Taxation With Estonia

Original Language Title: Smlouva o zamezení dvojího zdanění s Estonskem

Read the untranslated law here: https://portal.gov.cz/app/zakony/download?idBiblio=43141&nr=184~2F1995~20Sb.&ft=txt

184/1995 Sb.



The COMMUNICATION FROM the



Ministry of Foreign Affairs



Ministry of Foreign Affairs says that the 24 July. October 1994 was in

Tallinn signed an agreement between the Czech Republic and Estonian

Republic on the avoidance of double taxation and the prevention of fiscal evasion

with respect to taxes on income and on capital.



With the Treaty, its assent, Parliament of the Czech Republic and the President of the

the Republic has ratified it.



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

May 26, 1995.



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

The contract, which is for its interpretation of the applicable, can be consulted on the

Ministry of Foreign Affairs and Ministry of finance.



CONTRACT



between the Czech Republic and the Republic of Estonia to avoid double

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



Czech Republic and the Republic of Estonia,



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 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 of the part of the income or assets of the

including taxes on profits from the alienation of movable or immovable property and

also taxes on the increment property.



3. Current taxes, to which the contract relates, in particular:



and) the Republic of Estonia:



(i) income tax;



(ii) the tax on land;



(hereinafter referred to as "Estonian tax");



(b)) in the Czech Republic:



(i) the tax on income of individuals;



(ii) the tax on income of legal persons;



(iii) tax on immovable property;



(hereinafter referred to as "Czech tax").



4. this Agreement shall also apply to the taxes of the same or

of a similar kind, that will be stored after the signature of this agreement, in addition to

or instead of the current taxes. The competent authorities of the Contracting States shall mutually

shall notify substantial changes that will be made in their respective

tax laws.



Article 3



General definitions



1. for the purposes of this agreement, unless the context requires a different interpretation:



and) the term "Estonia" means the Republic of Estonia and, when used in

geographical importance, means the territory of Estonia and any other area

adjacent to their territorial waters of Estonia, on which may be under the laws of

Of Estonia and in accordance with international law, exercised the right of Estonia

relating to the seabed and subsoil and their natural resources;



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

are according to the Czech legislation and in accordance with international law

exercised the sovereign rights of the United States;



(c)) the terms "a Contracting State" and "the other Contracting State" mean respectively according to the

the case of the Czech Republic or Estonia;



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

an Association of persons;



(e)) the term "company" refers to any legal entity or

the rightholder, considered for the purposes of taxation under the legal person;



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

State "means the enterprise carried on by a resident of a Contracting State

or undertaking operated 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

undertaken by boat or plane, which is operated by an undertaking

of a Contracting State, if such a right is not carried out only

between places in the other Contracting State;



ch) the term "competent authority" means:



(i) in the case of Estonia, the Minister of finance or his authorized representative;



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

representative.



2. each expression that is not otherwise defined will have for the application of this

the Treaty, a Contracting State the importance which it has under the law of that State,

covered by the taxes covered by this agreement, unless the context

does not require a different interpretation.



Article 4



A resident of the



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

indicates any person who, under the law of that State, subject to the

that State taxation because of their place of residence, permanent residence, place of

management, place of establishment, or any other similar criteria. This

the expression, however, does not include a person who is subjected to taxation in this

a Contracting State only on grounds of income from sources in that State or

the assets located in that State.



For the purposes of this agreement, the Government of a Contracting State, its lower administrative

departments and the local authorities considered to be a resident of that Contracting State.



2. If the individual is under the provisions of paragraph 1, a resident in the

both of the Contracting States, its position will be addressed to the following

follows:



and it is assumed that) this person is resident in the State in which the

He has a permanent home; If he has a permanent home in both States, it is assumed that

It is resident in the State, which has a 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 assumed that it is resident in 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 that it is resident in the State of which he is a

citizen;



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

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, the competent authorities of the Contracting

States seek to resolve the question by mutual agreement and determine for such

the way the application of the person of the Treaty.



Article 5



Permanent establishment



1. For the purposes of this agreement, the term "permanent establishment" means a permanent

equipment for the business, in which the undertaking carries out entirely or partly

their activity.



2. the term "permanent establishment" includes especially:



and instead of keeping);



(b)) race;



(c));



(d) a factory;)



e) workshop and



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

natural resources.



3. the term "permanent establishment" also includes:



construction site, construction), Assembly or installation project or a supervisory

or consultancy activities connected with them, but only if this

construction, project, or activity for more than six months;



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

the enterprise of a Contracting State through employees or

other workers hired by the enterprise for such purposes, 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, it is assumed

the term "permanent establishment" shall not include:



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

goods belonging to the enterprise;



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

storage, display or delivery;



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

the processing of another undertaking;



d) durable equipment for the business, which is solely for the purpose

purchase of goods, or collecting information for the enterprise;



e) durable equipment for the business, which for the company only for the

the purpose of the ads, the provision of information, scientific research or similar

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



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

any combination of activities mentioned in subparagraphs (a) and (e)))-if

the total activity of durable equipment, resulting from this concentration has

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--acting in

a Contracting State on behalf of the company and has available and usually uses the full

the power that allows it to enter into contracts on behalf of the company, it is considered that the

This enterprise has a permanent establishment in that State in respect of all

the activities that the person performs for the enterprise if the activities of this

people are not limited to the activities listed in paragraph 4 which, if

were carried out through permanent facilities were not based on

the existence of a permanent establishment under 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 agent of an independent,

If these persons are acting within their proper operation. However, if the

such activities are wholly or largely devoted to

interests of the undertaking will not be considered as an independent representative in the

the meaning of this paragraph.



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

State, controlled by the company or is controlled by a company which is

a resident of the other Contracting State, or which carries on there

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



Income from immovable property



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

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

a Contracting State may be taxed in that other State.



2. the term "immovable property" has such importance under the laws

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

any case, accessories of immovable property, the living and the dead inventory

used in agriculture and forestry, rights to which the provisions of the

civil law relating to land, buildings, options or similar

the right to acquire immovable property, the right to the enjoyment of immovable property and

rights to variable or fixed salaries for mining or consent to

mining of mineral deposits, sources and other natural resources; ships,

boats and planes will not be regarded as immovable property.



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

any other manner of use of immovable property.



4. where the ownership of shares or other rights in a company entitles the

the owner of shares or rights to the company to the enjoyment of immovable property,

which is the owner of the company, the income from the direct use, letting, or

any other use of such rights may be taxed in the

the Contracting State in which the immovable property is located.



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

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

an independent profession.



Article 7



The profits of enterprises



1. The profits of an enterprise of a Contracting State shall be taxable only in that

State if the undertaking does not 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 that other State, but only to the extent that it is

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, attach, subject to the provisions of paragraph 3 in any

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

the company spent on the objectives pursued by the permanent establishment, including

Executive and general administrative expenses, whether incurred as follows

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

The cost, which allows a Contracting State to deduct, shall include only

the cost of the deductible under the domestic laws of that State.



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, does not preclude the provisions of paragraph 2, to

This Contracting State the profits to be taxed by the usual

the Division; the method used for distribution of profits must, however, be such that the

the result was in accordance with the principles 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

the preceding paragraphs shall each year, in the same way, if the

There are insufficient grounds for a different procedure.



7. where profits include receipts, which are dealt with separately in the

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 from the operation of ships or

aircraft in international traffic shall be taxable only in that State.



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

the joint operation or an international operating organization.



Article 9



Associated enterprises



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

financial relations terms that agree or they were

stored and which differ from those which would have been agreed upon between the

companies independent, 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 resident in the same

a Contracting State to a resident of the other Contracting State may be taxed in the

that other State.



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

which is a company that is paid, a resident, and according to the laws

laws of that State, but if the recipient is the beneficial owner

dividends, the tax so determined shall not exceed:



and 5% of the gross amount) of the dividends if the beneficial owner is

company (other than a partnership) which holds directly 25

% of the assets of the company paying the dividends;



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

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

the application of these restrictions.



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

dividends are paid.



3. the term "dividends" as used in this article means income from shares

or other rights, with the exception of receivables, with a share of the profits, as well as

revenue from the company's rights, which are pursuant to the tax provisions of the country

where is the company that rozdílí profit, residence, built on the

shall be assimilated to income from shares.



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

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

the other Contracting State in which the resident company paying

dividends, industrial or commercial activity through a fixed

the establishment, which is located there, or performs in that other State

independent profession through a permanent base located there, and

If the participation, for which the dividends are paid is effectively connected to

such permanent establishment or to the permanent base. In this case,

provisions of article 7 or article 14, depending on which case

it comes.



5. Where a company which is resident in a Contracting State,

achieves profits or income from the other Contracting State, that

the second State to tax dividends paid by the company, unless such

dividends are paid to a resident of that other State or to participate,

for which the dividends are paid, actually belongs to the permanent establishment

or a permanent base, which is located in that other State, nor

subject to the company's retained profits tax on retained profits, even

When dividends paid or the undistributed profits consists wholly or

partly of profits or income realised in that other State.



Article 11



Interest



1. interest arising in a Contracting State by a resident of

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



2. However, the interest referred to in paragraph 1 of this article may be taxed

also in the Contracting State in which they arise, and according to the law

of that State, but if the recipient is the beneficial owner of the interest, the tax

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



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

the application of these restrictions.



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

a Contracting State and which arise and are actually owned by the Government of the

the other State, including its lower administrative bodies and local authorities,

the Central Bank or any financial institution wholly owned

by that Government, or interest derived from loans guaranteed by that Government,

they will be exempt from taxation in the first-mentioned State.



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

any kind of secured and not secured the right to

real estate or having or not carrying a right to participate in profits


of the debtor, and in particular, income from government securities and income from

bonds or debentures, including premiums and fees associated with those

securities, bonds or debentures. Penalties for late payment shall

not be 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 in 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 independent profession through a permanent base there

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

actually binds to that permanent establishment or to the permanent 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,

If the payer is a resident of that State. If, however, the person paying

the interest, whether he is a resident of a Contracting State or not, has in a Contracting State

permanent establishment or fixed base, in whose context the

debt, of which the interest is paid, and such interest shall be charged to such

permanent establishment or fixed base, then such interest will be a source of

considered to be 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 the due to the special relationship between the

the payer and the beneficial owner of the interest, or that one or the other keeps the

with a third party, the amount which would have been had given the payer with the actual

owner, if it wasn't for such a relationship, the provisions of this

article just on this latter amount. The amount of the salaries that it

exceeds, in this case, will be taxed in accordance with the legislation of each

a Contracting State with regard to the other provisions of this Treaty.



Article 12



License fees



1. the royalties and licence fees, arising in a Contracting State paid to

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 it is their source and in accordance with the law of that

State, but if the recipient is the beneficial owner of the royalties,

the amount of tax thus determined may not exceed 10% of the gross amount of the license

fees.



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

the application of these restrictions.



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

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 process, or for the use of, or

the right to use industrial, commercial or scientific equipment,

or for the information, which applies to experience acquired in the field of

industrial, commercial or scientific.



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

of the royalties, being a resident in a Contracting State,

carries on in the other Contracting State in which the royalties

source, industrial or commercial activity through a fixed

the establishment, which is located there, or performs independent profession

through 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 this 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 in any Contracting

State, has in a Contracting State a permanent establishment or a fixed base in

connection with which the obligation to pay license fees was that go to

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

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

the establishment or the fixed base is situated.



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

right or information for which they are paid, exceeds the due

the special relationship between the payer and the beneficial owner or

that one and the other keeps with the third party, the amount which would have been

the payer is the beneficial owner had given, if it wasn't for such relationships,

the provisions of this article shall apply only to the latter

amount. The amount of the salaries that it exceeds, in this case will be taxed

According to the legislation of each Contracting State, taking into account

the other provisions of this agreement.



Article 13



Gains from the alienation of property



1. the Profits that accrue to a resident of a Contracting State from the alienation of

immovable property referred to in article 6, which is located on the second

Contracting State or shares in a company whose equity is made up of

mostly such property, may be taxed in that other State.



2. Gains from the alienation of movable property forming part of the business property of a

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

Contracting State or of movable property belonging to the permanent base

by a resident of a Contracting State has in the other Contracting State to the

the performance of an independent profession, including such profits realised from

the alienation of such a permanent establishment (alone or together with the whole enterprise)

or such a permanent base, may be taxed in that other State.



3. the Profits that accrue to an enterprise of a Contracting State from the alienation of ships

or aircraft operated in international traffic, or movable

the property, which is used of such ships or aircraft, shall be subject to

taxable only in that State.



4. Gains from the alienation of property, other than that referred to in paragraphs 1,

2 and 3, shall be taxable only in the Contracting State in which the alienator

resident.



Article 14



An independent profession



1. the revenues received by the natural person who is a resident of a

Contracting State, of a liberal profession or other independent activity,

shall be taxable only in that State unless such person for the purposes of

the pursuit of their activities fixed base regularly available in the

the other Contracting State. If it has or had such a fixed base,

the income may be taxed in the other State, but only to the extent that can be

attributable to that fixed base. For the purposes of this paragraph, it is considered that the

natural person in a Contracting State has a permanent base in the tax year,

If its stay in this State takes at least 183 days in any

the 12-month period commencing or ending in the year.



2. The expression "liberal profession" includes especially independent activity

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

separate the 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 Contracting

the State is receiving due to 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,

Rewards can be received for them taxed in that other State.



2. remuneration which a resident of a Contracting State is receiving because of the

employment exercised in the other Contracting State, shall be subject to whatever

the provisions of paragraph 1, taxable only in the first-mentioned State if

all of the following conditions are met:



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

shall not exceed in the aggregate 183 days in any twelve month period

starting or ending in the relevant financial year, 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) a permanent establishment or a fixed base, which has

employer in the other State.



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

received because of employment exercised a resident of a Contracting

State on board a ship or aircraft in international traffic are taxed in this

State.



Article 16



Royalties



Directors ' fees and other similar remuneration, which a resident of a Contracting State

he receives as a member of the management board or other similar body of a company,

which is resident in the other Contracting State, may be taxed in that

the second State.



Article 17



Artists and athletes



1. Income derived by a resident of a Contracting State as to the public

entertainer, such as a theatre, film, radio or television

the 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 to that artist or athlete himself, but other

the person may be those revenues regardless of the provisions of articles 7, 14 and 15

taxed in the Contracting State in which an artist or an athlete performs

their activity.



3. Income referred to in this article, regardless of the

the provisions of paragraphs 1 and 2 may be excluded from taxation in the Contracting State in which the

an artist or an athlete performs its activities, provided that this

the activity is covered by a substantial part of the public funds of this State,

its lower administrative department or the local authority.



Article 18



Board



Pensions and other similar salaries paid by reason of past employment

a resident of a Contracting State shall, subject to the provisions of

paragraph 2 of article 19 taxation only in that State.



Article 19



Public function



1.



and, other than) the remuneration, pension paid by one Contracting State or

Administrative Department or local authority thereof or by the agency or

institution wholly owned by the State, an administrative department or local authority

the physical person for services rendered to that State or an Administrative Department

or local authority or to the agency or body shall be taxable

only in that State.



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

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

is a resident of this State:



(i) is a citizen of that State, or



(ii) did not become a resident of this State for the provision of

These services.



2.



and Pensions paid by) either directly or from the funds, which has set up a

Contracting State, an administrative department or local authority of that State or the Agency

or institution wholly owned by that State, the Administrative Department or

the local Office of a natural person for the services of the dependent nature of the proven

that State, an administrative subdivision or a local authority or agency, or

the institution, shall be taxable only in that State.



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

If the individual is a resident and citizen of this State.



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

proven in the context of industrial or commercial activities carried out by

any Contracting State, an administrative department or local authority of that

the State or an agency or institution wholly owned by the State, administrative

Department or local authority.



Article 20



Students, professors and researchers



1. the salaries that the student, or an apprentice or trainee, who is or has been

immediately prior to their arrival in a Contracting State a resident of the

in the other Contracting State and who is present in the first-mentioned State only

for the purpose of study or training, to cover the costs of nutrition, studies

or training, shall not be taxed in that State, provided that such

salaries are paid to him from sources outside that State.



2. An individual who visits a Contracting State for the purpose of teaching

or carrying out research at a University, college or other recognized

educational institution in that Contracting State and that is or has been

immediately such a visit to a resident of the other Contracting State,

will be exempt from taxation in the first-mentioned Contracting State on remuneration for the

such teaching or research for a period not exceeding two years from the date of

first visit for such a purpose.



3. The provisions of paragraph 2 of this article shall not apply to income from

research if such research is not carried out for the public interest,

But first of all for the private benefit of a specific person or persons.



Article 21



Other income



1. the income of a person who is resident in a Contracting State, and which

have a source anywhere, which are not dealt with in the foregoing articles

This agreement shall be taxable only in that State.



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

immovable property, which is defined in paragraph 2 of article 6, if the

the recipient of such income, being a resident in a Contracting

State, industrial or commercial activity exercised in the other Contracting

State through a permanent establishment located there, or exercises in

that other State independent of the profession from a permanent base located there, and

If the right or property in respect of which the income is paid, are actually

connected with such permanent establishment or fixed base. In such a

If 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

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

the other Contracting State or of movable property belonging to the Permanent

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

State to exercise an independent profession, may be taxed in that other

State.



3. Capital represented by ships or aircraft operated in

international transport undertaking in one Contracting State and by movable

the property used for the operation of such ships or aircraft, shall be subject to

tax only in that State.



4. All other elements of property of a resident of a Contracting State shall be subject to

tax only in that State.



Article 23



Elimination of double taxation



1. in the case of a resident of Estonia, double taxation will be avoided

as follows:



and a resident of Estonia receives a) if income or assets, which

in accordance with this agreement, may be taxed in the Czech Republic, Estonia,

If the national provisions do not provide more favourable treatment,

enables:



(i) as a reduction of tax on the income of a resident, an amount equal to

income tax paid in the Czech Republic,



(ii) as a reduction of property taxes that resident, an amount equal to

tax on property paid in the Czech Republic.

Such a reduction, however, in no event shall not exceed the portion of the income tax or

from the assets in Estonia, calculated before the reduction, which is relatively

falls on the revenue that may be according to the provisions of this agreement

taxed in the Czech Republic.



(b)) for the purposes of point (a)), if a company which is a resident of

Estonia, receives a dividend from a company that is a resident of the United

the Republic, in which it owns at least 10% of the shares with full voting

the law, the tax paid in the Czech Republic will include not only the tax

paid on the dividend but also the tax on profits of the company, from which they were

dividends are paid.



2. in the case of a resident of the United Kingdom, double taxation will be avoided

as follows:



and Czech Republic) may, when depositing taxes its residents included in the

base from which to impose such a tax, income or assets, which

may be, in accordance with the provisions of this Treaty also taxed in the

Estonia, however, allows to reduce the amount of tax computed on such a base

the amount of the tax paid in Estonia. This reduction, however, shall not exceed

a part of Czech taxes calculated before the reduction, which rather falls

on income or assets that may be subject to the provisions of this agreement

taxed in Estonia;



(b)) If, in accordance with the provisions of this agreement or of national

legislation is the income derived or property owned by a resident of the United

States shall be exempt from taxation in the Czech Republic, the Czech Republic may

in the calculation of the tax on other income or assets of a resident to take

into account the exempted income or property.



3. for the purposes of paragraphs 1 and 2 shall be considered that the expression "tax paid

in the Czech Republic ", or" tax paid in Estonia "includes

any tax that would have been due if under the laws of the United

Republic or Estonia in support of economic development has not been

granted an exemption or reduction of taxes.



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 duties associated with him,

which is other or more burdensome than the taxation and connected requirements

which are or may be subjected by nationals of this second

State, in particular with respect to residence, in the same situation.

This provision shall, notwithstanding the provisions of article 1 shall apply also to the

persons who are not residents of one or both of the Contracting States.



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

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

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

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

admitting to residents of the other Contracting State personal credits, discounts and

the tax reduction because of the status or family obligations, which

It grants to its own residents.



3. If you will apply the provisions of article 9, paragraph 7 of article 11

and paragraph 6 of article 12, interest, royalties and other expenses

paid by the enterprise of a Contracting State to a resident of the other Contracting

State, the deductible for purposes of determining the taxable profits of that


the undertaking under the same conditions as if they had been paid to a person who is

a resident of the first-mentioned State. Similarly, any debts of an undertaking

of a Contracting State to a resident of the other Contracting State shall be

for the purposes of establishing the taxable assets of the undertaking,

under the same conditions as if they had been contracted to a resident of the first-

of that State.



4. enterprises of a Contracting State, whose capital is wholly or

in part, directly or indirectly owned or controlled by a person or

persons who are resident in the other Contracting State, shall not be

undergo in the first-mentioned Contracting State to any taxation or

the obligations associated with him, which is other or more burdensome than the taxation

and with it the obligation to which they are or may be subject to other

similar to the first-mentioned State enterprises.



5. the provisions of this article shall, notwithstanding the provisions of article 2 of

apply to taxes of every kind and name.



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 agreement, he may, irrespective of the remedies

that provide the national law of those States, present

his case to the competent authority of the Contracting State of which he is a resident of,

or if the case comes under paragraph 1 of article 24, the Office of the Contracting

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

years from the first notification of the action which gives rise to taxation, which is not in the

accordance with the provisions of this agreement.



2. If the competent authority of the objection to be justified and

If it is not itself able to find a satisfactory solution, it will try to

case decided by agreement with the competent authority of the other Contracting State,

in order to avoid taxation which is not in conformity with this agreement.

Any agreement reached will be made without regard to the time limits

in the national legislation of the Contracting States.



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

problems or concerns that may arise in the interpretation or

the application of this agreement. They may also consult in order to avoid

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. If oral

Exchange of views appears to be effective for the achievement of the agreement, can such exchange

opinions to take place through the Commission, composed of representatives of

the competent authorities of the Contracting States.



Article 26



The exchange of information



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

for the application the provisions of this agreement or of national laws

regulations of the Contracting States shall apply to the taxes which are the subject

This agreement, if the taxation thereunder is not contrary to the provisions of this

the Treaty. Exchange of information is not restricted by article 1. All of the information

a Contracting State received will be kept confidential in the same way

as the information obtained under the domestic laws of that State, and

will be disclosed only to persons or authorities (including courts and administrative

offices), dealing with the charge of the assessment or collection of taxes, to which the

covered by this contract, criminal prosecution relating to such taxes, or

decisions on appeals. Such persons or authorities shall use the

such information only for such purposes. They can apply this information

in public court proceedings or in legal decisions.



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

store a Contracting State the obligation:



and management measures) to conduct that would violate the law or

administrative practice of a Contracting State;



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

regulations or in a normal administrative procedure of this or of the other State;



(c)) to divulge information which would reveal the commercial, corporate, industrial,

commercial or professional secret or trade process, or whose

communication would be contrary to public policy.



Article 27



Diplomats and consular officials



No provision of this Agreement shall not affect the tax privileges, which

It is for diplomats or consular officials under the General rules of

of international law or under the provisions of special agreements.



Article 28



Entry into force



1. the Governments of the Contracting States shall notify each other, that it has satisfied the constitutional

requirements for the entry into force of this Treaty.



2. this Treaty shall enter into force on the date of the later of the notification within the meaning of

paragraph 1 and its provisions shall apply:



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, the taxes imposed by

for each tax year beginning with 1. January or later calendar year

following the year in which the Agreement enters into force.



Article 29



Notice of termination



This agreement shall remain in force until denounced by one

Contracting State. Each State party may terminate the contract

through diplomatic channels by filing written notice of termination at least six months before the

at the end of each calendar year. In this case, the contract ceases to

to apply:



and) with regard to taxes withheld at source, on amounts paid to the 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, the taxes imposed by

for each tax year starting on 1 July. January or later 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.



Given in duplicate in Tallinn on 24. October 1994 in English

language.



For the Czech Republic:



Ivan Kočárník, in r.



Deputy Prime Minister and Minister of finance



The Estonian Republic:



Andres Lipstok in r.



the Minister of finance