170/1995 Sb.
The COMMUNICATION FROM the
Ministry of Foreign Affairs
Ministry of Foreign Affairs says that the 25 May. October 1994 was in
Riga signed Treaty between the Czech Republic and the Republic of Latvia on the
avoidance of double taxation and prevention of tax leakage in the field of taxes from
income and assets.
With the Treaty, its assent, Parliament of the Czech Republic and the President of the
Republic has ratified it.
Treaty has entered into force pursuant to its article 28, paragraph 2(a). 2 day
May 22, 1995.
Czech translation of the contract shall be published 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 the Ministry of finance.
CONTRACT
between the Czech Republic and the Republic of Latvia for the avoidance of double
taxation and prevent tax leakage in the field of taxes on income and on capital
Czech Republic and the Republic of Latvia,
Desiring to conclude a Convention for the avoidance of double taxation and the prevention of
tax leakage in the field of taxes on income and on capital, 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 and on capital imposed by the
on behalf of each Contracting State or of its lower administrative departments
or local authorities, whether it is a way of selecting any.
2. taxes on income and on capital all taxes shall be levied from the
total income, total assets or part of the income or assets of the
including taxes on profits from the alienation of movable or immovable property and
also increase taxes of the assets.
3. The current tax, to which the Treaty applies are:
and in the Republic of Latvia):
(i) the income tax;
(ii) the tax on land;
(hereinafter referred to as "Latvian tax");
(b)) in the Czech Republic:
(i) the income tax on natural persons;
(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, which 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 to each other
shall notify substantial changes, which will be carried out in their respective
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 "Latvia" means the Republic of Latvia and if it is used in the
the geographical importance, means the territory of the Republic of Latvia and any
the area adjacent to their territorial waters of the Republic of Latvia, which may
be in accordance with the laws of the Republic of Latvia and in accordance with international law,
exercised the rights of Latvia relating to the seabed and its subsoil and
their natural resources;
(b)), the term "Czech Republic" means the territory of the Czech Republic, which the
According to the Czech legislation and in accordance with international law,
exercised the sovereign rights of the Czech Republic;
(c)) the expressions "one Contracting State" and "the other Contracting State" referred to in
the case of the Czech Republic or Latvia;
(d)), the term "person" includes a natural person, the company and any other
an Association of persons;
(e)), the expression "company" refers to any legal entity or
the rightholder, which, for the purposes of taxation under the legal person;
(f) the terms "enterprise of one) of a Contracting State" and "enterprise of the other Contracting
the State-run company "refer to 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, company or association established by the personal
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
one 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 Latvia, the Minister of finance or his authorised representative;
(ii) in the case of the Czech Republic 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
A resident of the
1. for the purposes of this agreement, the term "resident of a Contracting State"
refers to 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 management of the place of establishment, or any other similar criteria. This
the statement, 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 Treaty, the Government of a Contracting State, its lower administrative
departments and local authorities to be considered a resident of a Contracting State.
2. If the individual is in accordance with the provisions of paragraph 1 of the resident in
both of the Contracting States, shall be addressed to the following position
way:
and) that this person is resident in the State in which the
has a permanent apartment; If he has a permanent apartment in both States, it is assumed that the
It is resident in the State, which has closer personal and economic
relations (Centre of vital interests);
(b)) if it cannot be determined where the State has this person Center
their vital interests, or if it does not have a permanent apartment in any State,
It is assumed that it is resident in the State in which it is usually
staying;
(c)) If this person usually resides in both States, or in any
of them, it is assumed, that is resident in the State of which he is a
citizen;
(d)) If this person is a citizen of both States or of any of the
of them, the competent authorities of the Contracting States shall adapt this question mutual
the agreement.
3. If a person other than a natural person is, under 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 method of application of the Treaty the person.
Article 5
Permanent establishment
1. For the purposes of this Treaty, the expression "permanent establishment" means a 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. The term "permanent establishment" also includes:
and the construction site, construction), Assembly or installation project or a supervisory
or consultancy activities connected with them, but only if this
the construction of the project or activity for more than nine months;
(b)) the provision of services, including consultancy and managerial services
undertaking of one Contracting State through employees or
other workers hired by the enterprise for such purpose, 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, 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 kept only for the purpose of
purchase of goods, or collecting information for the enterprise;
e) durable equipment for the business, which maintains only for the enterprise
the purpose of the ads, the provision of 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 (a))-e), if the
the total activity of the permanent establishment, resulting from this concentration 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-is acting in a
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 relation to 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
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 in this State shall exercise its activities through
broker, General Agent, or other independent agent,
If these persons are acting within their proper operation. However, if the
the activities of such an agent are entirely or largely devoted to
the interests of the company, it will not be considered an independent representative in the
the meaning of this paragraph.
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), it does not make herself
about myself from any of this company a permanent establishment of the other
the company.
Article 6
Income from immovable property
1. the revenue, which is receiving a 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 property concerned is located. The statement includes, in
any case, accessories of immovable property, alive and dead inventory
used in agriculture and forestry, rights to which the provisions of the
the civil law relating to land, buildings, villages or similar
the right to acquire immovable property, the right to the enjoyment of immovable property and
the right to the variable or fixed salaries for grit or přivolení to
grit, mineral springs and other natural resources; the ships,
boats and aircraft shall not be regarded as immovable property.
3. The provisions of paragraph 1 apply to the income from the direct use, letting, or
any other 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
the assets of the undertaking and to income from immovable property used for the performance of
an independent profession.
Article 7
The profits of enterprises
1. Profits of an undertaking of a single State is subject to tax 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
placed, attach, subject to the provisions of paragraph 3 in any
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.
The cost, which allows a Contracting State to deduct, shall include only
the cost of the deductible in accordance with the national rules of that State.
4. If in a Contracting State to provide for the normal profits, which
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, this normal
the Division; the method of distribution of profits must, however, be such that the
the result was in accordance with the principles laid down in 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
International transport
1. Profits of an undertaking of one Contracting State from the operation of ships or
aircraft in international traffic shall be subject to tax only in that 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
the 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, a resident of the other Contracting State, may be taxed
in the latter 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
company (other than a partnership) which holds directly 25
% assets of the company paying the dividends;
b) 15% of the gross amount of dividends in all other cases. The competent
the authorities of the Contracting States may by mutual agreement, method of application edit
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, refers to income from shares
or other rights, with the exception of the claims, with a share of the profits, as well as
revenue from the company's rights under the tax legislation of the State
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
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 performs in that other State
independent of the profession through a permanent base located there, and
If the participation, for which the dividends paid, 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.
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 State, or that the participation,
for which the dividends paid, actually belongs to the permanent establishment
or a permanent base, which is located in the latter State, nor
to submit to the retained profits of the company profits tax, and
When dividends paid or the undistributed profits wholly or pozůstávají
partly of profits or income realised in the latter 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, the interest referred to in paragraph 1 of this article may be taxed
also in the Contracting State in which the source of, and in accordance with the legislation of the
of that State, but if the recipient is the beneficial owner of the interest, the tax
This stored does not exceed 10% of the gross amount of the interest.
The competent authorities of the Contracting States may by mutual agreement a way to edit the
the application of these restrictions.
3. Notwithstanding the provisions of paragraph 2, interest, that have a source in the
one 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
This Government or interest arising from loans guaranteed by the Government,
they will be exempt from taxation in the first mentioned State.
4. The term "interest" as used in this article, refers to income from debt claims
any kind of secured and non-secured lien on the
the property or having or not the 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 these
securities, bonds or debentures. The late charge is
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, which is resident in one Contracting State, carries on in the
the second 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
and if the claim from which the interest is paid,
actually binds to that permanent establishment or that fixed base. In
such a case, the provisions of article 7 or article 14, as
of this, about what matters.
6. It is envisaged that interest to the source in one Contracting State,
If the payer is a resident of this 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 a permanent basis, in the context of an
debt, of which the interest is paid, and such interest shall be charged to such
a permanent establishment or a permanent base, then a source of such interest will be
considered to be the State in which the permanent establishment or fixed base
located.
7. 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, the amount which would have been had given the payer with the actual
owner, if it wasn't for such relationship, the provisions of this
article just on this latter amount. The amount of the remuneration, which
beyond, 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, with the source in one Contracting State, paid
resident of the other Contracting State, may be taxed in that other
State.
2. However, such royalties may also be taxed in the Contracting
the State, which is the source of, and in accordance with the law
in this State, but if the recipient is the beneficial owner of the license
the fees, the amount of tax thus determined shall not exceed 10% of the gross amount of
license fees.
The competent authorities of the Contracting States may by mutual agreement a way to edit the
the application of these restrictions.
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
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
for the right to use, industrial, commercial or scientific equipment,
or for information relating to experience gained in the area of
industrial, commercial or scientific.
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 performs independent professions
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 a resident of this State. However, if the payer
royalties, whether or not resident in one of the Contracting
State, has in a Contracting State a permanent establishment or a permanent basis, in the
the connection with which the obligation to pay the license fees was that go to
borne by a permanent establishment or a permanent base, it is assumed that these
licensing fees have a source in the Contracting State in which the Permanent
establishment or fixed base is situated.
6. If the amount of license fees that apply to the use,
the 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 second with the third party, the amount which would have been
scheme of the Bill is the beneficial owner, if it wasn't for such relations,
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
other provisions of this Treaty.
Article 13
Profits from the disposal of assets
1. the Profits that accrue to the resident company of a Contracting State from the alienation of one
immovable property referred to in article 6, which is located in the second
Contracting State or shares in a company whose Fortune consists of
mostly such property, may be taxed in that other State.
2. Gains from the alienation of movable property forming part of the operational assets
the permanent establishment which an enterprise of one Contracting State has in the other
Contracting State or movable property, which belongs to the permanent base
the resident of one Contracting State has in the other Contracting State to the
the performance of an independent profession, including such profits realised from
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 the firm of a Contracting State from the alienation of one of the ships
or aircraft operated in international traffic, or movable property,
that serves the operation of such ships or aircraft, shall be subject to taxation only in
This state.
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 revenues received by the natural person who is a resident of one
Contracting State of the profession or other independent activity,
are subject to tax only in that State unless such person for the purposes of
the pursuit of their activities regularly available a permanent base in the
the second Contracting State. If he has or had such a permanent 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 that 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, which a resident of one of the Contracting
the State is receiving due to employment, shall, subject to the provisions of the
articles 16, 18, 19 and 20 of taxation only in that State unless the employment is not
exercised in the other Contracting State. If there is a job to be exercised,
the rewards can be received for them taxed in that other State.
2. Remuneration which a resident of a Contracting State shall receive due
employment exercised in the other Contracting State, shall be subject to whatever
the provisions of paragraph 1, the tax only in the first mentioned State if
all of 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
beginning or ending in the relevant financial year, 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 may be rewards
received by reason of the employment of the current resident of one of the Contracting
State on board a ship or aircraft in international traffic are taxed in this
State.
Article 16
Royalties
Royalties and other similar rewards, which a resident of a Contracting State
he receives as a member of the Board of directors or any similar body of a company,
which is resident in the other Contracting State, may be taxed in this
the second State.
Article 17
Artists and athletes
1. the revenue, which is receiving a resident of a Contracting State as to the public
rising artist, such as a theatre, film, radio or television
an 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 State.
2. If the income from the activities carried out by the artist personally, or
athlete do this artists or athletes, 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 the artist or athlete exercised
their activity.
3. the revenue of which is mentioned 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
activity is paid from the substantial part of the public funds of this State,
its lower administrative department or the local authority.
Article 18
Pension
1. Pensions and other similar salaries paid by reason of a previous employment
a resident of a Contracting State shall, subject to the provisions of the
paragraph 2 of article 19 taxation only in that State.
2. Notwithstanding the provisions of paragraph 1 and the provisions of paragraph 2 of article
19, pensions paid and other benefits, whether periodic
or a one-time reward based on the laws of social
the security of a single State or on the basis of the public system
organized in one Contracting State for social welfare purposes, will be
taxed only in that State.
Article 19
Public function
1.
and, other than Remuneration) pension, paid by a Contracting State or one
the Administrative Department or local authority of that State or the Agency, or
institution wholly owned by the State, the Administrative Department or local Office
the physical person for services prokazované this State or administrative unit
or local authority or to the agency or institution shall be subject to taxation
only in that State.
(b) However, Such remuneration shall be subject to) the taxation of only the second 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 citizen of that State, or
(ii) did not become a resident of this State only because of the provision of
These services.
2.
and Pensions paid to) 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 the physical person for services of the dependent nature of the proven
that State, an administrative body or a local authority or agency, or
the institution shall be subject to tax only in that State.
(b) However, Such pension shall be subject to) the taxation of only the second Contracting State,
If the individual is a resident of, and a citizen of this 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, an administrative department or the local Office of the
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 student, or an apprentice or trainee, who is or has been
immediately prior to his arrival in one Contracting State of residence
in the other Contracting State and who is staying in the first mentioned State only
for the purpose of study or training, receives for the payment of the cost of food, study
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 who 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 of 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 primarily for the private benefit of a specific person or persons.
Article 21
Other revenue
1. the income of a person who is resident in one Contracting State, and which
have a source anywhere, which is not addressed in the previous articles
This agreement 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 paragraph 2 of article 6, if the
the recipient of such income, which is resident in a Contracting
State, industrial or commercial activity exercised in the other Contracting
State through a permanent establishment located there, or in the
This second State independent of the profession of 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 a permanent base. In such a
If the provisions of article 7 or article 14, depending on
What matters.
Article 22
Property
1. property represented by immovable property referred to in article 6, which
custom resident of one Contracting State and which is located in the second
a Contracting State may be taxed in that other State.
2. property represented by movable property forming part of the operational
property of the permanent establishment which an enterprise of one Contracting State has in the
the second Contracting State or movable property, which belongs 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. property represented by ships or aircraft operated in international
transport undertaking in one Contracting State and movable property used to
the operation of such ships or aircraft shall be subject to taxation only in this
State.
4. All other parts of the property are subject to the Contracting State resident
tax only in that State.
Article 23
The exclusion of double taxation
1. In the case of a resident of Latvia, double taxation will be avoided
as follows: If a resident of Latvia receives income or own
assets in accordance with this agreement may be taxed in the Czech
the Republic of Latvia, if its national provisions do not provide
more favourable treatment, enables:
and as the tax reduction) from the income of a resident, an amount equal to
income tax paid in the Czech Republic;
(b)) as the tax reduction from the assets of the resident, an amount equal to
tax on property paid in the Czech Republic.
Such a reduction, however, in no case shall not exceed such portion of the tax
the income from the assets in Latvia or calculated before the reduction, which
fairly falls on revenue that may be according to the provisions of this
the contract taxed in the Czech Republic.
2. In the case of a resident of the Czech Republic, double taxation will be avoided
as follows:
and the Czech Republic may, when depositing) taxes its residents include
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
Latvia, however, allows to reduce the amount of tax calculated on the basis of such
the amount of tax paid in Latvia. This reduction, however, shall not exceed
a part of the Czech tax calculated before the reduction, rather it seems to
on income or assets that may be according to the provisions of this Treaty
taxed in Latvia;
(b)) If, in accordance with the provisions of this Treaty or national
legislation is the income or property owned by a resident of pobíraný of the Czech
Republic freed from taxation in the Czech Republic, the Czech Republic may
When calculating the taxes from the rest of the income or assets of this 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 Latvia ", includes
any tax that would have been due if under the laws of the Czech
Republic or Latvia in support of economic development has not been
granted an exemption or reduction of taxes.
Article 24
Prohibition of discrimination
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, in particular with regard 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 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, discounts and
tax reductions due to personal or family obligations, which
He admits to its own residents.
3. If you do not 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 one Contracting State to a resident of the other Contracting
State, the deductible for the 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 in the first mentioned State. Similarly, any debts of an undertaking
one Contracting State against a resident of the other Contracting State shall be
for the purposes of determining the taxable assets of deductible
under the same conditions as if they were the first to have the resident company
of the said State.
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
the said Contracting State to any taxation or duties with him
United, which are different or more troubling than the taxation and connected with it
the obligations to which they are or may be subjected to other similar businesses
the first mentioned 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 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, independently of the legal remedies
that under 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, which is a national. The case must be presented within three
years from the first notification of the action which leads to taxation, which is not in the
accordance with the provisions of this 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.
Any agreement reached shall be implemented 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 Treaty. They may also consult in order to avoid
double taxation in cases not covered by the Treaty.
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
of views to take place through a Commission consisting of representatives of the
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. 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
authorities), which deal with the vyměřováním or the collecting of taxes covered
covered by this contract, criminal prosecution in the case of these 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
a Contracting State the obligation to impose:
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, corporate, industrial,
commercial or professional secret or of a commercial process, or whose
the 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 of the
1. the Governments of the Contracting States shall notify each other that they were satisfied the constitutional
the 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 tax imposed
for each tax year beginning with 1. January or later in the calendar year
following the year in which the agreement enters into force.
Article 29
Notice of termination
This agreement will remain in force until denounced by one
Contracting State. Each Contracting State may terminate the contract
through diplomatic channels by filing a written notice of 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 tax imposed
for each tax year from 1 January 2006. January or later in the calendar year
following the year in which the notice of termination has been given.
On the evidence of subscribers, duly authorised thereto, have signed this Treaty.
Done in duplicate at Riga April 25. October 1994 in the English language.
For the Czech Republic:
Ivan Kočárník, in r.
the Deputy Prime Minister
For the Republic of Latvia:
Andris Piebalgs in r.
the Minister of finance
