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
