283/1995 Coll.
The COMMUNICATION FROM the
Ministry of Foreign Affairs
Ministry of Foreign Affairs says that the 19 July. January 1995 was in
Cairo signed an agreement between the Czech Republic and the Arab
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. The instruments of ratification were exchanged in Prague on
October 4, 1995.
The contract on the basis of its article 28, paragraph 1. 2 entered into force on 4 December 2004.
October 1995.
English translation of the Treaty shall be designated at the same time.
CONTRACT
between the Czech Republic and the Arab Republic of Egypt on the Elimination
of double taxation and prevention of fiscal evasion with respect to taxes on income and
property
Czech Republic and Egyptian Arab Republic, desiring to conclude a
Agreement on avoidance of double taxation and the prevention of fiscal evasion with respect
taxes on income and wealth, 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 property shall be treated as all taxes 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, taxes
the payroll or salaries paid by enterprises as well as taxes on the increment
asset.
3. Current taxes, to which the contract relates, in particular:
and) 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");
(b)) in Egypt:
(i) the tax on income from immovable property (including taxes on agricultural land and
taxes on buildings);
(ii) the associated personal income tax vyměřovaná pursuant to Act No. 157
in 1981, as amended by Act No. 187 of 1993;
(iii) the tax on profits of companies;
(iv) development tax vyměřovaná pursuant to Act No. 147 of 1984, as amended by
applicable regulations;
(v) additional tax imposed as a total percentage of the above
taxes or otherwise; (hereinafter referred to as "Egyptian tax").
4. this Agreement shall also apply to any tax of the same
or, in principle, 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 notify each other of significant changes that will be made in their
the relevant tax laws.
Article 3
General definitions
1. for the purposes of this agreement, unless the context requires a different interpretation:
and) the term "Czech Republic", when used in a geographical sense, means the
the territory on which the Czech Republic may, according to the Czech legislation and
in accordance with international law, to exercise their sovereign rights;
(b)), the term "Egypt" is the Arab Republic of Egypt, and is used in
the geographical sense, the term "Egypt" includes:
(i) territorial waters, and
(ii) the sea bed and subsoil of the submarine zones adjacent to the coast,
However, in their territorial waters, over which it exercises its sovereign Egypt
rights in accordance with international law, for the purpose of exploration and exploitation
the natural resources of the zone, but only if such person, property
or activities to which this agreement applies, is associated with this
the exploration or exploitation;
(c)) the terms "a Contracting State" and "the other Contracting State" mean respectively the Czech
Republic and Egypt, depending on what matters;
(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 "tax" means, as the context of the Czech tax or the
tax;
h) the term "international traffic" means any transport by boat or
the aircraft, which is operated by an undertaking whose place of effective management
It is located in a Contracting State, except when the ship or
the aircraft is operated only between places in the other Contracting State;
I) the term "competent authority" means:
(i) the case of the Czech Republic the Minister of Finance of the Czech Republic or its
authorised representative;
(ii) in the case of Egypt, the Minister of finance or his authorized representative;
j) 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.
2. each expression that is not otherwise defined will have for the application of this
the contract to the Contracting State the importance of it under the law of that
the State, which regulates the taxes covered by this agreement, unless
the link 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 or any other criterion of a similar nature. This expression
However, it does not include a person who is subject to tax in that State, only from the
the reasons of income from sources in that 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
National;
d) if that person is a national of both States or of any
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, it is assumed, that is resident in
the State in which the place of effective management.
Article 5
Permanent establishment
1. For the purposes of this agreement, the term "permanent establishment" means a permanent
device for business, through which the undertaking carries out completely
or part of their activities.
2. the term "permanent establishment" includes especially:
and instead of keeping);
(b)) race;
(c));
(d) a factory;)
e) a workshop;
f) mine, the site of diesel or gas, a quarry or any other place where
mining natural resources;
g) farm or plantation; and
h) facilities and warehouses, used as a selling point.
3. the term "permanent establishment" also includes:
a building site or construction), Assembly or installation project, or surveillance
above them, but only if this building, project or supervision for more than
six months in the 12-month period,
(b)) the provision of services, including consultancy services, by an undertaking
through employees or other personnel, but only where
activities such as last (for the same or a connected project)
on the territory of the State for a period or periods exceeding in the aggregate more than
six months in any 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 or display of goods
belonging to the enterprise;
(b)) the supply of goods belonging to the enterprise solely for the purpose
storage or display;
(c)) the supply of goods belonging to the enterprise solely for the purpose
the processing of another undertaking;
d) 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 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) to (e))), if
the total activity of durable equipment for the business, arising from this
the connection has a preparatory or auxiliary character.
5. If, notwithstanding the provisions of paragraphs 1 and 2, a person--other than
an independent representative, to whom paragraph 7 applies-is acting in a
a Contracting State on behalf of the enterprise of the other Contracting State and has available
and usually uses the power of Attorney, which allows her to enter into contracts on behalf of the
undertaking, it shall be deemed that the enterprise has a permanent establishment in this
State in respect of all the activities that the person performs for the company,
When the activities of such person are not limited to the activities referred to in paragraph
4, which, if they were carried out by means of durable equipment
for business, were not based on the existence of a permanent establishment would be according to the
the provisions of this paragraph.
6. Notwithstanding the preceding provisions of this article, it is assumed
that an insurance enterprise of a Contracting State has--with the exception of
premiums--a permanent establishment in the other Contracting State if it collects
premiums on the territory of that other State or insures risk there
placed by a person other than an independent agent, on which
covered by paragraph 7.
7. Not considered that the enterprise of a Contracting State has a permanent
place of business in the other Contracting State merely because in this second
the State carries on business through a broker, General
agent or any other agent of an independent, if these persons are acting
in the context of its proper operation. However, when the activities of such a representative is
exclusively or almost exclusively performed on behalf of this company, it will not
This representative is considered to be independent within the meaning of this paragraph.
8. 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 such property 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 property, the right to the enjoyment of immovable property
property and rights to variable or fixed salaries for conveying or
consent to the mining of mineral deposits, sources and other natural
resources; ships and aircraft shall not be regarded as immovable property.
3. The provisions of paragraph 1 shall also apply to the income from the direct use,
hire or any other manner of use of immovable property.
4. The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property
the assets of the company and to income from immovable property used for the performance of
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
undertaking, incurred to 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.
4. no permanent establishment of nepřičtou gains based on the fact that
only goods for the company.
5. 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.
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. Profits from the operation of ships or aircraft in international traffic
shall be taxable only in the Contracting State in which the registered office is located
effective management of the enterprise.
2. when the effective centre of management of shipping is on board
the ship, it is considered located in the Contracting State in which the
the home port of the ship, or if there is no such home harbour, in the
the Contracting State in which the operator of the ship is a resident.
3. 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
Contracting State, to a person who is resident in the other Contracting State,
may be taxed in 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.
3. the term "dividends" as used in this article means income from shares,
jouissance shares or jouissance rights, kuksů, founders, shares
or other rights with profit, with the exception of receivables, 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, paid to a resident of
of the other Contracting State, may be taxed in that other State.
2. However, such interest may also be taxed in the Contracting State in which the
have a source, and according to the laws of that State, but if the recipient
is the beneficial owner of the interest, the tax so charged shall not exceed 15% of the gross
the amount of the interest.
3. interest arising in a Contracting State shall be exempt from taxation
in this State, if the interest is paid to:
(i) to the other Contracting State, including its lower administrative departments and
local authorities;
(ii) the Central Bank of the other Contracting State;
(iii) any other financial institution or a public company, if
the Government of the other Contracting State owns more than 50% of the assets of the
institution or company.
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 bonds as well as income assimilated to income from
borrowed money under the law of the State in which the interest of the source.
Penalties for late payment are not regarded as interest for the purpose of this article.
The term "interest" shall not include any item which is treated as a
the distribution of profits in accordance with the provisions of article 10 of this agreement.
5. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of
interest, which is resident in a Contracting State, carries on business in the other
the Contracting State in which they have interest, industrial or commercial source
activity through a permanent establishment situated therein, or
independent profession through a permanent base located there and
If the claim from which the interest is actually paid, it binds 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.
6. It is anticipated that interest to arise in a Contracting State,
When the payer is that State itself, its lower administrative department, local
the 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
establishment or fixed base, in the context of the debt occurred,
from 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, according to the legislation of that
State, but if the recipient is the beneficial owner of the royalties,
the amount of tax thus determined shall not exceed 15% of the gross amount of the license
fees.
3. the term "royalties" as used in this article, indicates the payment
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 tv or
radio broadcasting, any patent, trade mark, design or model,
the plan, secret formula or process, or for the use of, or for the
right to use, industrial, commercial or scientific equipment, or
for information relating to experience gained 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,
When the payer is that State itself, its administrative unit, a local authority
or a resident of that State. However, if the payer of royalties,
whether it is or is not a resident in a Contracting State, has in a Contracting
State a permanent establishment or a fixed base in connection with which it is established
the obligation to pay royalties, which are borne by a permanent establishment
or a permanent base, it is assumed that these license fees are
a source in the State in which the permanent establishment or fixed base
located.
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 or the other, it maintains 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
a Contracting State 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. Gains from the alienation of ships or aircraft operated in international
transport or movable property, that serves the operation of such ships or
aircraft, shall be taxable only in the Contracting State in which it is located
the effective centre of management.
4. Gains from the alienation of shares in a company whose equity is
in particular, either directly or indirectly made up of immovable property located in
a Contracting State may be taxed in that State.
5. Gains from the alienation of shares other than those referred to in paragraph 4, which
represent a market share of 15% on a company that is a resident of
a Contracting State may be taxed in that State.
6. Gains from the alienation of property, other than that referred to in the previous
paragraphs, may be taxed in both Contracting States under their
national legislation.
Article 14
An independent profession
1. Income derived by a resident of a Contracting State receives from the free
profession or other activities of an independent character, shall be subject to taxation
only in that State except in the following cases, when they can be income
taxed in the other Contracting State:
and) if the fixed base regularly available in the other
a Contracting State for the purpose of conducting its activities; in this case,
just a portion of the revenue that is attributable to that fixed base may
be taxed in that other State; or
b) if his stay in the other Contracting State for one or more
period is or exceeds in the aggregate 183 days in any 12-month
period; in this case, may be taxed in that other State only
that portion of the income arising from its activities carried out in this
the second State.
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 and 19 of the 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:
and the recipient is resident in) other State for a period or multiple periods
shall not exceed in the aggregate 183 days in any 12-month period; and
(b)) the rewards are paid by the employer or by the employer, that
is not a resident of the other State; and
(c) the remuneration is not borne by) 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 aboard a ship or aircraft in
international transport taxed in the Contracting State in which the registered office is located
effective management of the enterprise.
Article 16
Royalties
Directors ' fees and other similar remuneration, which a resident of a Contracting State receives
as a member of the management board or other similar body, or as an official
in high managerial capacity of a company that is a resident of the second
a Contracting State may be taxed in that other State.
Article 17
Artists and athletes
1. Income derived by a resident of a Contracting State as to the public
entertainer, such as a theatre, film, radio or television
an 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.
Article 18
Pension and annuity
1. Pensions and annuity arising in a Contracting State paid to
a resident of the other Contracting State may be taxed in both Contracting
States.
2. the term "annuita" means a set amount paid repeatedly in
the time limits for life or during a specified or
discovery of a time period based on the obligation to pay in return for
matching and full payment in cash or Money Express.
Article 19
Public function
1.
and, other than Remuneration) pension, paid by a Contracting State or a lower one
administrative unit or a local authority thereof to an individual in
services rendered to that State or an administrative subdivision or a local
the authority 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; or
(i) is a national of that State; or
(ii) did not become a resident of this State for the provision of
These services.
2. 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
State.
Article 20
Students, professors and researchers
1. a person who is or was immediately before their arrival at
a resident of a Contracting State in the other Contracting State and who is
temporarily resides only in the first-mentioned State:
and as a student at the University) or school;
(b)) as a commercial trainee or apprentice, or;
(c)) as the recipient of gift aid or scholarships to study or
research provided by religious, charitable, scientific or
educational organizations
will not be subject to taxation in this state of such scholarships and aid.
2. Remuneration which a resident of a Contracting State for the implementation of the
research or for teaching during a period of temporary residence not exceeding two
years at a University, Research Institute or other similar institution for the
higher education recognized by the Government of the other Contracting State, it will not be subject to
tax in that Contracting State.
Article 21
Other income
1. the income of a resident of a Contracting State, wherever,
which is not dealt with in the foregoing articles of this Convention shall be subject to
tax 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 article 6 (1). 2 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 performing 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, boats or aircraft, which are
used in international traffic and movable property used to
the operation of such ships, boats or aircraft shall be subject to taxation only
in the Contracting State in which the actual management of the undertaking is located.
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. where a resident of a Contracting State receives revenue or custom
assets that may be in accordance with the provisions of this Treaty are taxed
in the other Contracting State, the first-mentioned State shall allow to reduce the income tax
or property of that resident, an amount equal to the income tax, or
property tax paid in that other State. The amount by which the tax
reduced, however, shall not exceed a percentage of income tax or property tax
calculated before the reduction, that fairly falls on revenue or
property which may be taxed in that other State, depending on
What matters.
2. where in accordance with any provision of this agreement, the income
that accrue to a resident of a Contracting State, or property which
custom, are exempt from tax in that State, that State shall, when
calculate the amount of tax on other income or property of such resident
take into account income or assets that were exempt from taxation.
3. For the purposes of the income tax or reduction of the property in a Contracting State shall
considers that the tax paid in the other Contracting State, the tax, which includes
would be due in the other Contracting State, but has been reduced or
She gave up that Contracting State in accordance with its statutory provisions for
the provision of tax relief.
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 who are in the same situation, in particular as regards the residence.
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, article 11, paragraph 2. 6
or article 12 para. 6, interest, royalties and other expenses
paid by the enterprise of a Contracting State to a resident of the other Contracting
State deductible for purposes of determining the taxable profits of this business
under the same conditions as if they had been paid to a resident of the first-mentioned
State. Similarly, any debts of an enterprise of a Contracting State in respect
a resident of the other Contracting State for the purposes of determining the
of the undertaking's taxable property deductible under the same conditions,
as if they had been contracted to a resident of the first-mentioned State.
4. enterprises of a Contracting State, the capital of which is wholly or partly,
directly or indirectly owned or controlled by one or more
residents of the other Contracting State, shall not be subjected in the first-mentioned
Contracting State to any taxation or duties associated with him that
is other or more burdensome than the taxation and connected requirements to which
are or may be subjected to other similar companies of the first
of that State.
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 provides the national law of those States, present your case
the competent authority of the Contracting State of which he is a resident or, if the
the case falls under article 24, paragraph 1. 1, the Office of the Contracting State of which he is
a national. The case must be presented within three years from the first
notification of the measure, which leads to taxation, which is not in accordance with the
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 solved by mutual agreement with the competent authority of the other Contracting
the State so as to avoid taxation which is not in conformity with this
the Treaty.
3. the competent authorities of the Contracting States shall endeavour to resolve by mutual
the agreement difficulties or concerns that may arise in the interpretation or
the application of this agreement. They may also consult together for the purpose of
Elimination of double taxation in cases not covered by the contract.
4. A Contracting State does not increase after expiry of the period laid down in the
national regulations and in any case, after five years from the end of
the tax year in which the income was obtained, the tax
the basis for any Contracting State to a resident of that to him
include income that has already been taxed in the other Contracting State. This
paragraph shall not apply in the case of fraud, wilful default or
negligence.
5. 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 implementation of 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 information obtained under the domestic laws of that State and shall be
disclosed only to persons or authorities (including courts and administrative authorities),
dealing with the charge of the assessment or collection of the taxes covered by the
This agreement, the enforcement or prosecution in case of such taxes, or
decisions on appeals. Such persons or authorities shall use such
information only for these purposes. Can use this information when
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
the administrative practice of that or of the other 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 Contracting
State;
(c)) to divulge information which would reveal the commercial, corporate, industrial,
commercial or professional secret or trade process, or information,
the disclosure of which 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. this Treaty is subject to ratification and the instruments of ratification shall be exchanged
in Prague as soon as possible.
2. the contract shall enter into force by the exchange of instruments of ratification and its
the provisions will apply:
and) with regard to taxes withheld at source, on income paid or
attributed to a 1. January or later in the calendar year following the
year in which the Agreement enters into force;
(b)) in respect of other taxes on income and property taxes, 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. Any Contracting State may withdraw from the Contract in writing
through diplomatic channels, at least six months before the end of each
the calendar year following the expiry of five years from the date of entry into
into force of this agreement. In this case, the contract shall cease to apply:
and) with regard to taxes withheld at source, on income paid or
attributed to a 1. January or later in the calendar year following the
year in which the notice of termination has been given;
(b)) in respect of other taxes on income and property taxes, 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 Cairo on 19 December. January 1995 in English
language.
For the Czech Republic:
Václav Klaus in r.
the Prime Minister
For the Arab Republic of Egypt:
Sedki Átef in r.
the Prime Minister
