124/1995 Sb.
The COMMUNICATION FROM the
Ministry of Foreign Affairs
Ministry of Foreign Affairs says that the 27 October. April 1992 was in
Seoul signed an agreement between the Czech and Slovak Federative Republic of Brazil
and the Republic of Korea for the avoidance of double taxation and prevention of tax
the leak in the field of taxes on income.
Exchange of notes Ministry of Foreign Affairs of the Czech Republic of 18 November.
in March 1994, and the Embassy of the Republic of Korea in Prague from 11 October.
April 1994, it was agreed that the agreement between the Czech and the Slovak
Federative Republic of Brazil and the Republic of Korea for the avoidance of double
taxation and prevent tax leakage in the scope of income tax from 27 June.
April 1992 shall be deemed to have been concluded between the Czech Republic and
The Republic of Korea.
With the Treaty, its assent, Parliament of the Czech Republic and the President of the
Republic has ratified it. The instruments of ratification were exchanged in Prague on
March 3, 1995.
Treaty has entered into force pursuant to its article 28, paragraph 2(a). 1 day 3.
March 1995.
The Czech version of the Treaty shall be designated at the same time. In the English version, which is
for its interpretation of the applicable, can be consulted on the Ministry of foreign
Affairs and the Ministry of finance.
CONTRACT
between the Czech and Slovak Federative Republic of Brazil and the Republic of Korea
for the avoidance of double taxation and prevention of tax leakage in the field of taxes from
income
The Government of the Czech and Slovak Federal Republic and the Government of Korea
of the Republic of
Desiring to conclude a Convention for the avoidance of double taxation and the prevention of
tax leakage in the field of taxes on income
have agreed as follows:
Article 1
The person, to which the Treaty applies
This agreement shall apply to persons who have their domicile or registered office in the
one or both of the Contracting States (residents).
Article 2
The taxes to which the Agreement applies
1. this Agreement shall apply to taxes on income imposed on behalf of the
of one of the Contracting States, the administrative departments or
local authorities, whether it is a way of selecting any.
2. the following shall be regarded as taxes on income all taxes imposed on the total
income or the income of the individual parts, including taxes on profits
coming from the disposal of movable or immovable property, taxes on the
total wages paid by companies and the taxes on the increment value.
3. The current tax, to which the Treaty applies,
and in the case of Czechoslovakia):
(i) the income tax;
(ii) the payroll tax;
(iii) the income tax on the literary and artistic activities;
(iv) agricultural tax;
(v) income tax the population; and
(vi) the tax House; (hereinafter referred to as the "Czechoslovak tax");
(b)) in the case of Korea:
(i) the income tax;
(ii) the tax companies; and
(iii) the tax population; (hereinafter referred to as "Korean tax").
3. this Agreement shall also apply to any tax of the same
or a similar type, that will be stored after the signature of this contract
In addition to or in place of current taxes. The competent authorities of the Contracting States
notify each other of significant changes that will be made in their
the relevant tax laws.
Article 3
General definition
1. for the purposes of this agreement, if the link does not require a different interpretation:
and the term "Czechoslovakia") indicates the Czech and Slovak Federal
Republic;
(b)), the term "Korea" means the territory of the Republic of Korea, including any
the area adjacent to the waters of the sovereignty of the Republic of Korea, which in accordance
with international law has been or will be in the future in accordance with the laws of Korea
Republic marked the territory on which it may be exercised sovereign
the law of the Republic of Korea relating to the seabed and subsoil and their
natural resources;
(c)) the expressions "one Contracting State" and "the other Contracting State" referred to in
the case of Czechoslovakia or Korea;
(d)), the term "person" refers to a natural person, the company and any other
an Association of persons;
(e)), the expression "company" refers to any legal entity or bearer
rights, considered for the purposes of taxation for legal persons;
(f) the terms "enterprise of one) of a Contracting State" and "enterprise of the other Contracting
State "under the circumstances, the undertaking operated by a resident of one
Contracting State or the undertaking run by 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, personal, company and Association, set up by the
According to the law in force in a Contracting State;
(h)), the term "international traffic" means any transport
undertaken by ship, boat or plane, which is operated by
the enterprise of a Contracting State, if the ship, boat or aircraft are not
operated solely between places in the other Contracting State necessitated;
I) the term "competent authority" means:
(i) in the case of Czechoslovakia, Minister of Finance of the Czech and Slovak
The Federal Republic or his authorized representative;
(ii) in the case of Korea, the Minister of finance or his authorised representative.
2. Each expression, which is not otherwise defined will have for the application of this
the Treaty, a Contracting State importance, he enjoys under the law of that State,
which modifies the taxes covered by this agreement, if the link
does not require a different interpretation.
Article 4
Tax purposes
1. The term "resident of a Contracting State" means within the meaning of this
of the Treaty, any person who, under the law of that State, subject to the
This state taxation by reason of their residence, the permanent residence place
the main office, place of management or any other similar criteria.
However, this term 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
located.
2. If the individual is in accordance with the provisions of paragraph 1 of the resident in
both of the Contracting States, the position of the specified as follows:
and) that this person is resident in that Contracting State, in the
which has a permanent apartment. If he has a permanent apartment in both Contracting States, the
It is assumed, that is resident in a Contracting State to which the
enhanced personal and economic relations (Centre of vital interests);
(b)) if it cannot be determined, the Contracting State in which the person
the Centre of their vital interests, or if it does not have a permanent apartment in any
Contracting State, it is assumed, that is resident in a Contracting State,
in which usually resides;
(c)) If this person usually resides in both Contracting States or
in any of them, it is assumed, that is resident in a Contracting State,
which he is a citizen;
(d)) If this person is a citizen both of the Contracting States or
any of them, the competent authorities of the Contracting States shall adapt this question
by mutual agreement.
3. If a person other than a natural person is, under the provisions of paragraph 1,
a resident of both Contracting States, it is assumed, that is resident in
This State in which is situated the place of leadership. In the case of
of doubt, the competent authorities of the Contracting States will solve the question of the mutual
the agreement.
Article 5
Permanent establishment
1. The term "permanent establishment" within the meaning of this Treaty indicates the Permanent
equipment for the business, in which the undertaking in whole or part
their activity.
2. The term "permanent establishment" includes especially:
and instead of keeping);
(b)) race;
(c));
(d) a factory;)
e) a workshop; and
(f)) mine, the site of diesel or gas, Quarry or any other place where the benefits
natural resources.
3. A building site or construction or Assembly shall be considered a permanent establishment,
only if the last longer than nine months.
4. Notwithstanding the preceding provisions of this article the expression "permanent
establishment "does not include:
and) device, which is used only for storage, display or delivery of
goods belonging to the enterprise;
(b) the supply of goods belonging to the enterprise), which is kept only for the purpose of
storage, display or delivery;
(c) the supply of goods belonging to the enterprise), which is kept only for the purpose of
the processing of another undertaking;
d) durable equipment for the business, which is used only for the purpose of
purchase of goods, or collecting information for the enterprise;
e) durable equipment for the business, which is kept only for the purpose of
advertising, information, scientific research or similar
activities which have a preparatory or auxiliary to the company the character;
(f)) for business, durable equipment that is maintained only for the performance of
any concentration of activities referred to in points (a) to (e)))
paragraph, if the total activity of the permanent establishment, resulting from this
the connection has a preparatory or auxiliary character.
5. If, notwithstanding the provisions of paragraphs 1 and 2, a person-other than
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 her to enter into contracts on behalf of the company, it is considered that the
This enterprise has a permanent establishment in that State in relation to all
the activities that the person performs for the enterprise if the activities of the
the person is not limited to the activities listed in paragraph 4 which, if
have been carried out through the permanent establishment, should neither constitute
the existence of a permanent establishment under the provisions of this paragraph.
6. He considered that the enterprise has a permanent establishment in a Contracting State
just because it carries on its activities through a broker,
the Chief agent or another independent representative, if these
persons acting within their proper operation.
7. the fact that a company which is a resident of one Contracting
the State controls the company, or is controlled by a company which is a
a resident in the other Contracting State, or which carries out his
activity (whether through a permanent establishment or otherwise), not alone
themselves from any of this company a permanent establishment of the other company.
Article 6
Income from immovable property
1. the income accruing to the resident of one Contracting State of the 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 a meaning is according to the laws of the
the Contracting State in which the assets are located. The expression "immovable
the property "includes in any case the accessories of immovable property,
alive and dead inventory used in agriculture and forestry, rights to
which applies the provisions of civil law relating to property, the right to
the enjoyment of immovable property and rights to variable or fixed salaries for
grit or přivolení to the unfair advantage of mineral deposits, sources and other
natural resources; ships, boats and aircraft shall not be regarded as immovable
assets.
3. The provisions of paragraph 1 apply to the income from the direct use, letting, or
any other use of immovable property.
4. The provisions of paragraphs 1 and 3 shall also apply to the income from immovable
the assets of the undertaking and to income from immovable property used for the performance of
profession.
Article 7
The profits of enterprises
1. The profits of the enterprise of one Contracting State will be taxed only in that
State if the undertaking does not operate in the other Contracting State
through the permanent establishment, which is located there. If
the enterprise carries out its activities in this way, they can be business profits
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 one Contracting State carries on its activities in
the other Contracting State through a permanent establishment that is there
positioned, attach, subject to the provisions of paragraph 3, each
a Contracting State a permanent establishment, the profits of which would be able to
so if it were a separate enterprise carries 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 the permanent establishment shall be allowed to deduct the costs of
undertaking, incurred to the objectives pursued by the permanent establishment, including
expenses management and general administrative expenses so incurred, whether
incurred in the State in which the permanent establishment is situated or elsewhere.
4. If in a Contracting State to provide for the normal profits, which
to be added to a permanent establishment on the basis of allocation of the total
the profits of the enterprise to its various parts, the provisions of paragraph 2 shall not preclude the
This article, so that Contracting State the profits to be
taxed, this normal distribution. The method of distribution of profits must
However, be such that the result was in accordance with the principles laid down in the
This article.
5. A permanent establishment is nepřičtou no gains on the basis of the fact that
only buy goods for the company.
6. The profits to be attributed to a permanent establishment, for the purpose of
the preceding paragraphs shall each year, in the same way, if the
There are sufficient grounds for a different procedure.
7. where profits include revenue, 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
Shipping and air transport
1. Profits of an undertaking of one Contracting State from the operation of ships, boats or
aircraft in international transport will be taxed only in that Contracting State.
2. The provisions of paragraph 1 shall also apply to profits from the participation in the pool,
the joint operation or an international operating organisation.
Article 9
Associated enterprises
If
and the firm one) of a Contracting State participates directly or indirectly in the
the management, control or capital of an undertaking, the other Contracting State, or
(b)) the same persons directly or indirectly involved in the management, control or
the assets of the undertaking and the undertaking of one Contracting State in the other Contracting State
and if in these cases are both enterprises in their commercial or
financial relations are bound by terms that agree or they were
stored and which differ from those which would have been agreed between the
companies independent, can any profits which would, but for those
the conditions were docíleny one of the businesses, but due to these
the conditions of the docíleny not, be included in the profits of that enterprise and
subsequently taxed.
Article 10
Dividends
1. Dividends paid by a company which is resident in the same
Contracting State, to a person who is resident in the other Contracting State,
may be taxed in that other Contracting State.
2. However, such dividends may also be taxed in the Contracting State, in the
which is a company that is paid, a resident, and according to the laws
legislation of that State, but if the recipient is the beneficial owner
dividends, the tax thus determined shall not exceed:
and 5% of the gross amount) of the dividends if the beneficial owner is
the company (but not personal company that does not have the legal
personality), which holds directly at least 25% of the capital of the company
paying dividends;
b) 10% of the gross amount of 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, refers to income from shares
or other rights-with the exception of the claims--with a share of the profits, as well as
(I) income from other rights to companies that are subject to the same
taxation as income from shares by the tax legislation of the State where it is
the company, which rozdílí the profit, a resident.
4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of
the dividend, which is resident in a Contracting State, carries on in the
the second Contracting State, in which the resident company paying
dividends, industrial or commercial activity through a fixed
the establishment, which is located there, or independent profession
through a permanent base located there, and if the participation, for the
the dividend paid is actually binds to this permanent establishment
or this permanent base. In such a case, the provisions of
Article 7 or article 14, depending on what matters.
5. Where a company which is resident in one Contracting State,
achieves profits or income from the other Contracting State,
the second State to tax dividends paid by the company, unless such
dividends are paid to a resident of the other Contracting State, or
that participation, for which the dividends paid, actually belongs to the Permanent
the establishment or permanent base, which is located in the latter State,
nor be subjected to the retained profits of the company profits tax
the company, even if the dividends paid or the undistributed profits
pozůstávají wholly or partly of profits or income realised in this
the second State.
Article 11
Interest
1. the interest having a source in one Contracting State, which receives a resident
the other Contracting State, may be taxed in that other State.
2. However, such interest may also be taxed in the Contracting State, in the
which are the source, under the legislation of that State, but if the
the recipient is the beneficial owner of the interest, the tax so imposed shall not exceed 10
% of the gross amount of the interest.
3. Notwithstanding the provisions of paragraph 2:
and whose source) interest is in one Contracting State and who is receiving the Government
the other Contracting State, including its lower administrative bodies or
the local authorities, the Central Bank of that other State or any other
the Government financial institution, or any resident of this second
a Contracting State with regard to claims guaranteed by or indirectly
financed by the Government of the other Contracting State, including its lower
administrative departments or local offices, the Central Bank of the second
Contracting State or other government financial institutions will be exempt
from tax in that Contracting State;
(b) interest paid) in connection with the sale on credit of industrial,
commercial or scientific equipment or paid in connection with the
the sale on credit of any merchandise by one enterprise to another enterprise
will be subject to tax only in the Contracting State in which the real
the owner of the residence.
4. For the purposes of paragraph 3, the terms "the Central Bank" and "Government Finance
the institution "means:
and in the case of Korea):
(i) the Bank of Korea;
(ii) the export and Import Bank of Korea;
(iii) the Korean Development Bank;
(iv) any other financial institution, whose capital the Government of the Korean
Republic, which occasionally agree to the Governments of both Contracting
States;
(b)) in the case of Czechoslovakia:
(i) the Czechoslovak State Bank;
(ii) by another financial institution, whose capital the Government of the Czech and
Slovak Federal Republic, of which occasionally agree
the Governments of both Contracting States.
5. The term "interest" as used in this article, refers to income from debt claims
any kind, secured and unsecured lien on the
the property or having or not a clause about participation in the debtor's profits, and
in particular, income from government securities and income from bonds or
debentures, including premiums and fees associated with those securities,
bonds and bonds.
6. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of
interest, which is resident in one Contracting State, carries on in the other
the Contracting State in which they have interest, the source of industrial or commercial
activity through a fixed establishment which is located there, or
independent of the profession through a permanent base there and
If the claim from which the interest is paid, is actually binds to the
This permanent establishment or that fixed base. In this case,
the provisions of article 7 or article 14, depending on what kind of case
It is.
7. It is anticipated that interest to the source in one Contracting State,
If the payer is that State itself, its lower administrative department, local
authority or 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 a permanent
place of business or permanent basis, in the context of the debt occurred,
from which the interest is paid, and such interest shall be charged to such permanent
the establishment or permanent base, then a source of such interest will be
considered to be the State in which the permanent establishment or fixed base
located.
8. If the amount of interest that are relevant to the claim, which 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, for any reason, the amount which would have been a scheme
the payer is the beneficial owner, if there was no such relationship, the provisions of
the provisions of this article just on this latter amount.
The amount of the salaries that it exceeds, in this case will be taxed according to the
the legislation of each Contracting State, taking into account the other
the provisions of this Treaty.
Article 12
License fees
1. the royalties and licence fees, with the source in one Contracting State, which
he receives a resident of the other Contracting State may be taxed in this
the second State.
2. However, royalties referred to in paragraph 3 (b). and) can be
taxed in the Contracting State in which it is their source, and in accordance with the
the law of that State, but if the recipient is the beneficial
the owner of the royalties, the tax amount so established shall not exceed the
10% of the gross amount of the royalties. Royalties and licence fees referred to in
paragraph 3 (b). (b)), will be exempt from tax in a Contracting State, in the
where is their source.
3. The term "royalties" as used in this article refers to the payments
of any kind received as a compensation for the use of, or the right to use:
and) patent, trade mark, design or model, plan, secret formula
or manufacturing process or industrial, commercial or scientific
equipment, or for information relating to experience gained in the
the field of industrial, commercial or scientific;
(b)), the copyright in the literary, artistic or scientific,
including cinematograph films and films or recordings for radio
or television.
4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of
royalties, who is resident in one Contracting State,
exercised in the other Contracting State in which the royalties
source, industrial or commercial activity through a fixed
the establishment, which is located there, or independent profession
through a permanent base located there, and if a right or
the assets that give rise to the license fees actually bind to the
This permanent establishment or a permanent base. In this case,
the provisions of article 7 or article 14, depending on what matters.
5. It is assumed that the licence fees have a source in a Contracting State,
If the payer is that Contracting State itself, its administrative department, local
authority or a resident of that State. However, if the payer of royalty
the charges, whether or not resident in a Contracting State, has in the
a Contracting State a permanent establishment or a permanent base in connection with which
established the obligation to pay the license fees, which shall be charged to the Permanent
the establishment, it is assumed that these license fees are in the source
the Contracting State in which the permanent establishment or fixed base
located.
6. If the amount of license fees that apply to the use,
the law 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 with a third party for any reason, the amount
that would be the scheme of the Bill is the beneficial owner, if not
such relations, the provisions of this article shall apply only to that
latter amount. The amount of the salaries that it exceeds, in
this case taxed in accordance with the legislation of each Contracting State to the
reference to the other provisions of this Treaty.
Article 13
Profits from the disposal of assets
1. The profits of a resident of a Contracting State from the alienation of one immovable
assets referred to in article 6 and situated in the other Contracting State,
may be taxed in that other Contracting State.
2. Gains from the alienation of movable property forming part of the assets of the Permanent
the establishment, that the undertaking has a Contracting State in the other Contracting
State, or movable property, which belongs to the permanent base
a resident of a Contracting State has in the other Contracting State for the performance of
the independent professions, including such gains from the alienation of realised
such a permanent establishment (alone or together with the whole enterprise) or
such a permanent base, may be taxed in that other State.
3. Gains from the alienation of ships and aircraft operated in international traffic
and movable property, that serves the operation of such ships and aircraft, shall be
taxed in the Contracting State of which the enterprise is a resident.
4. Gains from the alienation of property, other than that referred to in paragraphs 1,
2 and 3, shall be subject to taxation in the Contracting State in which the alienator
resident.
Article 14
Independent of the profession
1. the income, which a resident of one Contracting State receives from the free
the profession or other activities of an independent character, shall be taxed only in the
This State, if the recipient does not usually available in the other Contracting
the State of a permanent base for the performance of its activities. If the available
such a permanent base, the income may be taxed in the other Contracting
State, but only to the extent to which it can be attributed to that permanent
the base.
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, which a resident of one of the Contracting
the State is receiving due to paid employment, shall, subject to
the provisions of articles 16, 18, 19, 20 and 21 of the taxation only in this State, if the
employment is exercised in the other Contracting State. If there is
employment exercised, can be taxed for them received rewards in this
the second State.
2. Remuneration which a resident of a Contracting State shall receive due
employment exercised in the other Contracting State, irrespective of the
the provisions of paragraph 1, be taxed only in the first mentioned State if
all the following conditions are met:
and the recipient is resident in) the second State for one or more periods, which
shall not exceed in the aggregate 183 days in any 12-month period, and
(b)) the rewards are paid by the employer or employers, who
is not resident in the other State, and
(c)) do not go to the debit rewards, a permanent establishment or a permanent base, which has
employer in the second State.
3. Notwithstanding the preceding provisions of this article, remuneration received from
reason of employment exercised aboard a ship or aircraft
operated in international traffic by the enterprise of a Contracting State shall be subject to
taxation in that State.
Article 16
Royalties
Royalties and other similar rewards, which a resident of a Contracting State
he receives as a member of the Management Board of the company or another similar body
the company, which is resident in the other Contracting State, may be
taxed in that other State.
Article 17
Artists and athletes
1. the revenue, which is receiving a resident of one Contracting State as to the
the public acting artist, such as a theatre, film, radio or
television artist, or a musician, or as an athlete of such personally
the activities performed in the other Contracting State, may be, regardless of the
the provisions of articles 14 and 15, be taxed in that other Contracting State.
2. If the income from artistic or sporting activities, that person
performs an artist or an athlete, does not generate this artists or athletes
itself, but to another person, may be those revenues regardless of the
the provisions of articles 7, 14 and 15, be taxed in the Contracting State in which the
an artist or an athlete performs its activities.
3. The revenue of the receiving artists or sportsmen who are residents
one Contracting State from activities carried on in the other Contracting
the State on the basis of a special programme of cultural exchange agreed between
the Governments of both Contracting States, notwithstanding the provisions of paragraphs 1
and 2 excluded from taxation in that other Contracting State.
Article 18
Pension
Pensions and other similar salaries paid by reason of a previous employment
resident of a Contracting State shall be subject to the provisions of paragraph 1 of article
19 this contract taxed only in that State.
Article 19
Public function
1.
and, other than Remuneration) pension, paid by a Contracting State or a lower one
the Administrative Department or local authority of that State, of a natural person for
Service prokazované that State or an administrative department or the local
the authority shall be subject to tax only in that State.
(b) However, Such remuneration) will be taxed only in the other Contracting State,
If the services are demonstrated in this State and any natural person who
It is a resident of this State:
(i) is a national of that State; or
(ii) did not become a resident of this State only because of the provision of
These services.
2.
and Pension paid by one) Contracting State, lower administrative department
or local authority of that Member State, either directly or from the funds, which
set up the physical person for services of proven that State, the administrative
the Department or a local authority, are subject to tax only in that State.
(b) However, Such pension) will be taxed only in the other Contracting State,
If the individual is a resident of, and a national of that
State.
3. The provisions of articles 15, 16 and 18 shall apply to remuneration and pensions in respect of services
proven in the context of the industrial or commercial activities carried out by the
any Contracting State, less an administrative department or local authority
of this State.
4. The provisions of paragraphs 1 and 2 of this article shall also apply to remuneration
or pensions paid, in the case of Korea, the Bank of Korea and the Korean
the society for the promotion of trade and, in the case of Czechoslovakia,
The Czechoslovak State Bank and the Czechoslovak commercial centre.
Article 20
Students
1. The salaries, that a student or an apprentice who is or was immediately before the
his arrival to one resident of a Contracting State in the other Contracting
State and resides in the first mentioned State solely for the purpose of study
or training, receives for the payment of the cost of food, study or training,
will not be taxed in that State, provided that such salaries are
paid from sources outside that State.
2. Studying at a university or other higher education institution in the
one Contracting State or the apprentice, who is staying in the other Contracting
State for one or more periods not exceeding 183 days in any
the 12-month period and who is or was immediately before his
arrival of the first resident of that State, will not be in this latter State
taxed from the remuneration for services rendered in that other State for the
provided that these services are associated with his studies or training and
This creates the necessary earnings to reward his nutrition.
Article 21
Professors and researchers
A natural person who is or has been a resident of a Contracting State
immediately before arriving in the other Contracting State and who
visit the second Contracting State at the invitation of University, high school,
the Research Institute or other similar institution, recognized by the Government in this
the second Contracting State for a period not exceeding two years solely for the
the purpose of teaching or research, or both in such an institution will be
shall be exempt from tax in that other Contracting State from the remuneration for such
teaching or research.
Article 22
Other revenue
1. the income of a person who is resident in one Contracting State, whether they are
source anywhere that is not addressed in the preceding articles of this
the contract will be taxed only in that State.
2. The provisions of paragraph 1 shall not apply to income, other than income from
immovable property as defined in paragraph 2 of article 6, if the
the recipient of such income, which is a resident of a Contracting State,
industrial or commercial activity exercised in the other Contracting State
through a permanent establishment located there or exercises in this
the second State independent of the profession through a permanent base there
placed, and if the right or property giving rise to this
income, are actually connected with such permanent establishment or a permanent
the base. In such a case, the provisions of article 7 or article
14, depending on what matters.
Article 23
Avoidance of double taxation
1. In the case of a resident of Korea, double taxation shall be avoided as follows:
In accordance with the provisions of the Korean tax rules governing
credit tax paid in a country other than Korea in Korea (tax which
shall not affect the principles listed below), the Czechoslovak tax (with the exception of
in the case of dividends paid from profits tax, which is paid
dividends) paid on the basis of Ms. legislation and in accordance with this
the Treaty, whether directly or by deduction from income from sources in Czechoslovakia
offset on tax, Korea, to be paid from the revenue.
Credit, however, shall not exceed the proportion of the Korean tax are
income from sources in Czechoslovakia charged relative to the total income
under the Korean tax.
2. In the case of a resident of Czechoslovakia, double taxation will be avoided
as follows:
Czechoslovakia may, when depositing the taxes residents included in the base,
from which such taxes are imposed, the revenue that can be
the provisions of the articles of this Treaty also taxed in Korea, but enables
reduce the amount of tax calculated from such a base an amount equal to
tax paid in Korea. The amount of tax to be reduced, however, shall not exceed
a part of the Czechoslovak tax calculated prior to its reduction, which
fairly falls on revenue that may be according to the provisions of this
the contract taxed in Korea.
3. For the purposes of paragraphs 1 and 2 will be considered, that the tax paid from the
dividends, interest and royalties in one Contracting State, includes
the tax, which would otherwise have been paid in this State in accordance with
the provisions of this Treaty, however, was reduced, and income was liberated
in this State, according to its tax program to promote economic
the development of.
Article 24
The principle of equal treatment
1. nationals of one Contracting State shall not be subjected in the
the second Contracting State to any taxation or duties associated with him,
that are different or more troubling than the taxation and connected with it obligations,
which are or may be subjected to the nationals of the other
State, who are in the same situation. Notwithstanding the provisions of article 1,
This provision also applies to persons who are not residents of one
or both of the Contracting States.
2. the taxation on a permanent establishment which an enterprise of one, a Contracting State has in the
the second Contracting State, it will not be more detrimental in this second State than
This second state taxation of enterprises, which carry out the same activity.
This provision shall be construed as a commitment to a single State,
to residents of the other Contracting State admitted personal credits, deductions and
tax reduction for reasons of status or family obligations, which
He admits to its residents.
3. If you do not apply the provisions of article 9, article 11 (2). 8 and
Article 12, paragraph 2(a). 6, interest, royalties and other expenses paid
undertaking a single State to a person who is resident in the second
Contracting State, for the purposes of determining the deductible taxable profits
This undertaking under the same conditions as if they had been paid by the person,
which is resident in that State for the first time.
4. Enterprises of a Contracting State, the capital of which is wholly or partly,
directly or indirectly owned or controlled by a person or persons,
that are resident in the other Contracting State, shall not be subjected in the first
that State to any taxation or duties associated with him, that
others are more troubling than taxation and or related duties, which
are or may be subjected to other similar businesses for the first time
of the said State.
5. The provisions of this article shall, notwithstanding the provisions of article 2,
apply to taxes of every kind and name.
Article 25
Resolving cases by way of the agreement
1. where a person considers that the actions of one or both of the Contracting
States lead or lead it to taxation, which is not in accordance with the
the provisions of this Treaty, may, notwithstanding the remedies that
provides the national law of those States, present his case to the
the competent authority of the Contracting State of which he is a resident or, if his
the case comes under paragraph 1 of article 24, to that of the Contracting State of which he is
a national. The case must be presented within three years from the notification of
measure the head of taxation which is not in accordance with the provisions of this
of the Treaty.
2. If the competent authority is to consider the objection as justified and
If it is not itself able to find a satisfactory solution, it will try to
the 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.
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 Treaty. They can also spolukonzultovat avoidance of double
taxation in cases, which is not addressed in this agreement.
4. the competent authorities of the Contracting States may come in direct contact with the purpose of
reaching an agreement in the sense of the preceding paragraphs. If oral
Exchange of views appears useful for the achievement of the agreement, the Exchange
views held in 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 of the provisions of this Treaty or national legislation
the laws of the Contracting States shall apply to the taxes which are the subject
This Treaty, if the taxation of that edit, it is not in conflict with this
the Treaty. Exchange of information is not restricted by article 1. The information received
a Contracting State will be kept secret, as well as information
adopted in accordance with the national law of that State and may be
disclosed only to persons or authorities (including courts and administrative authorities), which
dealing with the vyměřováním or the collecting of taxes covered by this
the Treaty, enforcement or prosecution in respect of those taxes or
decisions on appeals. Such persons or authorities shall use the
such information only for the following purposes. They can apply this information
in public court proceedings or in legal decisions.
2. The provisions of paragraph 1 shall not in any way be interpreted so that the
saved to the competent authorities of a Contracting State the obligation:
and perform administrative measures) that would violate the law or
administrative practice of a Contracting State;
(b)) to divulge information which 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 communicate the information that would have revealed the commercial, industrial,
economic or professional secret or of a commercial process, or whose
the communication would be contrary to public policy.
Article 27
Diplomatic and consular officials
No provision of this Agreement shall not affect the tax privileges, which
It is for the diplomatic and consular officials under the General rules of
international law or on the basis of specific agreements.
Article 28
Entry into force of the
1. this Treaty is subject to ratification and the instruments of ratification shall be exchanged
in Prague as soon as possible. The contract takes effect the exchange of instruments of ratification
of the instruments.
2. the agreement shall be applied:
and) with regard to taxes withheld at the source on amounts paid or
remitted to persons who are not resident on the date when the Agreement becomes
of validity;
(b)) in respect of other taxes, for taxation years beginning with 1. January or
later in the calendar year in which the Agreement enters into force.
Article 29
Notice of termination
This agreement is concluded for an indefinite period, but each of the Contracting
States may terminate the Contract in writing through diplomatic channels in a day or
before the 30 June 2005. June of each calendar year from the fifth year
following the year in which the instruments of ratification have been exchanged, and in the
this case, the Contract will cease to apply:
and) with regard to taxes withheld at source, on amounts paid or
remitted to persons who are not residents, day 1. January or later in
the calendar year following the year in which the notice of termination has been given;
(b)) in respect of other taxes, for taxation years beginning with 1. January or
later in the calendar year following the year in which it was given
notice of termination.
On the evidence of subscribers, duly authorised thereto, have signed this Treaty.
Done in duplicate at Seoul, June 27. April of the year one thousand
devítistého 90th second in Czech, Korean and English
languages, all texts being equally authentic. In the case of
any differences of interpretation, the English text will be decisive.
For the Czech and Slovak Federal Republic:
Vladimir Dlouhy in r.
the Minister of economy
For the Republic of Korea:
Lee Sang Ock in r.
Minister of Foreign Affairs
