132/1979 Sb.
DECREE
Minister of Foreign Affairs
of 12 October. October 1979
the Agreement between the Government of the Czechoslovak Socialist Republic and the Government
The Republic of Sri Lanka on the avoidance of double taxation and prevention of fiscal
evasion with respect to taxes on income and on capital
On 26 April. July 1978 was in Colombo signed an agreement between the Government of
The Czechoslovak Socialist Republic and the Government of the Republic of Sri Lanka on the
avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on
income and capital.
With the Treaty, expressed its approval of the Federal Assembly of the Czechoslovak
Socialist Republic and the President of the Republic has ratified it.
Treaty has entered under article 23 on the day of 19. June 1979
force.
The Czech version of the Treaty shall be designated at the same time.
Minister:
Ing. Chňoupek v.r.
CONTRACT
between the Government of the Czechoslovak Socialist Republic and the Government of the Republic of
Sri Lanka on the avoidance of double taxation and the prevention of fiscal evasion with respect
taxes on income and on capital
The Government of the Czechoslovak Socialist Republic and the Government of the Republic of Sri
Lanka,
Desiring to conclude an agreement on avoidance of double taxation and the prevention of
fiscal evasion with respect to taxes on income and on capital,
have agreed as follows:
Article 1
The tax, to which the contract relates
(1) the taxes which are the subject of this agreement are:
and) In Sri Lanka:
income tax and
property tax
(hereinafter referred to as "Sri Lanka tax").
(b)):
extraction of profit and the profit tax;
payroll tax;
income tax from the literary and artistic work;
agricultural tax;
income tax the population;
Toll House;
exhaust from the equity and
payroll tax
(hereinafter referred to as "Czechoslovak tax").
(2) this Agreement shall also apply to any other taxes of a substantially
of a similar nature that will be saved in Sri Lanka or in Czechoslovakia
After the signature of this agreement.
Article 2
General definitions
(1) in this agreement, unless the context requires a different interpretation:
and) the term "Sri Lanka" refers to the Republic of Sri Lanka and the expression
"Czechoslovakia" refers to the Czechoslovak Socialist Republic.
(b)) the terms "a Contracting State" and "the other Contracting State" mean Sri
Lanka or Czechoslovakia, as it requires a link.
(c)) the term "tax" means a tax of Sri Lanka or the Czechoslovak tax, as it
requires a link.
(d)) the term "person" includes natural persons, companies and other legal
separate a little needy and an Association of persons.
(e)) the term "company" means a legal person, and includes any
the essence of which is considered as the legal entity for tax purposes.
(f)) the terms "enterprise of a Contracting State" and "enterprise of the other Contracting
State "means the enterprise carried on by a person residing or established in
one State party, where appropriate, the enterprise carried on by a person having
resident or established in the other Contracting State.
(g)) the term "competent authorities" means, in the case of Sri Lanka, General
State revenue Commissioner and Minister of finance in the case of Czechoslovakia
The Czechoslovak Socialist Republic or by his authorised representative.
(h) the term "Member") may refer to:
AA) any natural person who is a citizen of a Contracting
State;
BB) any other person whose status is based on the law in force at the
any Contracting State.
(2) each expression that is not otherwise defined in this agreement,
application the provisions of this agreement in one of the Contracting States of the importance
which is determined by the law of that Contracting State, that
adjusting the taxes which are the subject of this agreement, unless the context
does not require a different interpretation.
Article 3
Tax residence
(1) the terms "person residing or established in a Contracting State" and
"person residing or established in the other Contracting State" mean
person residing or established in Sri Lanka or person residing
or the seat in Czechoslovakia, as it requires a link.
(2) the terms "person residing or established in Sri Lanka" and "person
residing or established in Czechoslovakia "means for the purposes of this
the Treaty, a person who is resident or established in Sri Lanka, for the purposes of the tax
Sri Lanka does not have a domicile or registered office and in Czechoslovakia for the purposes
the Czechoslovak tax, where applicable, the person who has a domicile or registered office in the
Czechoslovakia for the purposes of the Czechoslovak tax and does not have a domicile or registered office of the
in Sri Lanka, for the purposes of taxation in Sri Lanka.
It will assume that the company has its registered office in Sri Lanka, if either
It was established under the law of Sri Lanka, or is controlled by, or
operated from Sri Lanka, and in both cases, does not have the lines or the main administration
in Czechoslovakia; It will assume that the company has its registered office in
Czechoslovakia, if the management or the main administration in Czechoslovakia
and not managed or controlled from Sri Lanka, nor was established under the law of
Sri Lanka.
Article 4
Permanent establishment
(1) the term "permanent establishment" in respect of the undertaking indicates that for the purposes of
This Treaty permanent facilities for the business in which the company carries out
in whole or in part of their activity.
(2) the term "permanent establishment" includes in any case:
and instead of keeping);
(b)) race;
(c));
(d) a factory;)
e) a workshop;
f) storage;
g) mine, diesel spring, Quarry or other place of extraction of natural
wealth;
h) agricultural economy, farm or plantation;
I) device or construction used for the exploration of natural resources;
j) a building site or Assembly, which last longer than 183 days.
(3) the expression "permanent establishment does not include:
and) device that is used only for storage or to keep
inventory of the goods, whether in storage or otherwise, only to facilitate the supply of
goods belonging to the enterprise;
(b)) the supply of goods belonging to the enterprise solely for the purpose
storage;
c) permanent equipment business, which is solely for the purpose
purchase of goods, or collecting information for the enterprise;
d) permanent equipment business, which is solely for the purpose
advertising and exhibitions of goods, the provision of information, the conduct of scientific
research or similar activities for the company, which have a preparatory or
auxiliary character;
e) activities carried out by the enterprise of a Contracting State in connection with the
the delivery of the machines or devices in this State to the other Contracting State.
(4) a person acting in a Contracting State to the enterprise of the second
a Contracting State shall be considered a permanent establishment of the business in the first
Contracting State if the latter is equipped with a power of Attorney that her
allows you to enter into contracts on behalf of the enterprise in this first
latter Contracting State usually uses, if the activities of that person
is not limited to purchases of goods for the company.
(5) does not anticipate that the enterprise of a Contracting State has a permanent
establishment in the other Contracting State merely because in this second
Contracting State carries on business through a broker,
General Agent or other independent agent, if such
persons acting in the proper context of their activities.
(6) the fact that a company which has its head office in one Contracting State
controlled by the company or is controlled by a company which has its head office in the second
Contracting State, or which carries on business in the other Contracting
State (whether through a permanent establishment or otherwise), will not make itself
each other from any of this company a permanent establishment of the other company.
Article 5
The profits of enterprises
(1) the profits of an enterprise of a Contracting State shall be taxable only in the
This Contracting State if the undertaking does not carry out activities in the other Contracting
State through a permanent establishment that is located there. If
the enterprise carries out the activity in this manner, the profits of the enterprise may be taxed
in the other Contracting State but only to the extent that they can be
attributable to that permanent establishment.
(2) If an enterprise of a Contracting State, carries on business in the other
Contracting State through a permanent establishment situated therein,
attribute in each Contracting State of such permanent establishment profits which
could do if as expected as a separate enterprise
carried out the identical or similar activities under the same or similar
terms and conditions and traded quite independently with the enterprise of which it is a permanent
establishment.
Nothing in this paragraph shall not affect the calculation of profits achieved
the Czechoslovak firm of tea or other agricultural production
product in Sri Lanka which is carried out according to the provisions of
the laws of Sri Lanka, existing on the date of signature of this agreement.
(3) in determining the profits of a permanent establishment shall be allowed to deduct the costs of
spent on the objectives of the permanent establishment including expenses
management and general administrative expenses, whether incurred in the Contracting State in
where the permanent establishment is situated or elsewhere.
(4) if any Contracting State to determine the profits
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, in such a
the Division, what is normal; split method adopted must, however, be
such that the result was in accordance with the principles laid down in this
article.
(5) permanent establishment nepřičtou no gains on the basis of the fact
that only goods for the company.
(6) the Profits to be attributed to a permanent establishment for purposes of the
the preceding paragraphs shall each year, by the same method, if not
serious and reasonable 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 6
Associated enterprises
If
and the company) of a Contracting State participates directly or indirectly in the
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 one and the second case were between the two enterprises in their
commercial or financial relations negotiated or imposed conditions,
which differ from those which would have been agreed between independent
businesses may be the profits that would have accrued to one of the businesses
but for these terms, but that because of these conditions, the accrued
have not been included in the profits of that enterprise and taxed as a result.
Article 7
Maritime transport
Profits from the operation of ships in international traffic shall be taxable in the
the Contracting State in which the place of effective management of the undertaking in
the Contracting State in which the operation of ships is made; but the tax, which
to pay in the other Contracting State, shall be reduced by 50%.
Article 8
Dividends
(1) the rate of tax on dividends paid by the Czechoslovakian company having
the registered office of the company established in Czechoslovakia in Sri Lanka does not exceed
15%.
(2) dividends paid by a company which has its registered office in Sri Lanka,
the company, which has its registered office in the UK, will be exempt from all
Sri Lanka in addition to taxes taxes levied on income of Sri Lanka society
that paid dividends, and in addition to the additional taxes levied pursuant to paragraph
4 of article 26 of the financial law of Sri Lanka, which is levied on companies
whose shares are not movable property located in Sri Lanka for the purpose of
legislation of Sri Lanka governing probate fees; However, the rate of
This last mentioned the additional tax shall not exceed, in respect of
the company, whose headquarters are in Czechoslovakia, 6%.
If a company whose head office is in Czechoslovakia, after
entry into force of this agreement, new share capital of the company whose
its seat is in Sri Lanka, does not exceed the rate of tax levied at source of
dividends paid by the companies in Sri Lanka, and relating to the
paid up share capital thus 15%.
Article 9
License fees
(1) royalties or other amounts to be paid as compensation for
use of, or the right to use the copyright or cinematographic
movies and that he receives from sources in one Contracting State of a person holding a
resident or established in the other Contracting State shall be exempt from tax in the
the first-mentioned Contracting State.
(2) royalties or other amounts to be paid after the acquisition of the
the validity of this agreement as a substitute for the use of, or the right to use
patents, designs or models, plans, secret procedures or formulas,
trade marks or other proprietary rights, and that he receives from sources in
one Contracting State a person residing or established in the other Contracting
State may be taxed in that other Contracting State.
However, such royalties may also be taxed in the first-mentioned
Contracting State, and according to the laws of that State, but the tax
that is, as follows from the license fees paid by stores for the first time after the acquisition of the
the validity of this agreement, shall not exceed 10% of the amount of the royalties.
As the license fees will be assessed rent and similar salaries
received as a consideration for the use or right to use, industrial,
commercial or scientific equipment
.
(3) the provisions of this article shall not apply if the person holding
place of residence or registered office in one Contracting State has a permanent establishment in the other
Contracting State and if such permanent establishment shall be attributed income
dealt with in this article; in that case, shall apply
the provisions of article 5 of this Treaty.
Article 10
Interest
(1) interest received by a banking institution which has its head office in one Contracting
State, shall be exempt from tax in the other Contracting State.
(2) interest received from a Contracting State by the Government of the other Contracting
the State either directly or through any person acting on behalf of the
the Government shall be exempt from tax in the first-mentioned State.
(3) interest received by a legal person, company or other personal
associations of persons which have their registered office in one Contracting State, from loans
provided in money, goods or services, or in any
another form of this legal person, personal companies or associations
people to the Government of the other Contracting State or State Corporation or any
Government or any other institution to which the other Contracting
State capital involved, or úvěrnímu of the Institute or the company in this
other Contracting State with the approval of the Government of that State, shall be exempt
in this last-mentioned State.
(4) the provisions of this article shall not apply if the person holding
place of residence or registered office in one Contracting State has a permanent establishment in the other
Contracting State and shall be attributed to that permanent establishment the revenues which are
discusses in this article; in such a case, the provisions of
Article 5 of the Treaty.
(5) any other interest received by a person resident or established in
one Contracting State, from persons resident or established in other
a Contracting State shall be taxable in both Contracting States; However, tax,
to pay in the Contracting State in which the source of interest,
do not exceed, in respect of claims which arose for the first time after the acquisition of the
the validity of this agreement, 10%.
Article 11
Income from immovable property
Income from immovable property (including gains from the sale or shift like that
assets) is subject to taxation only in the Contracting State in which the
the property is located.
Article 12
Public function
(1) the salaries, including pension, which is paid in one Contracting State
or from funds established by a Contracting State of a natural person for services
proven this Contracting State, in the exercise of functions in the public administration,
be exempt from tax in the other Contracting State if the natural person
unparalleled in the other Contracting State of residence, or (in the case that the salary of the
There is no Board) is domiciled in this State only for the purpose of the performance of these
services.
(2) the provisions of this article shall not apply to salaries for the services rendered
in connection with any industrial or commercial activities, that is
performed by one Contracting State for profit.
Article 13
Personal services
(1) the Profits or remuneration, from the exercise of an independent profession or from
employment by a natural person resident in one Contracting State
may be taxed in the other Contracting State, only if such
services are performed in that other State.
(2) a natural person who is resident in a Contracting State, it will be
in the other Contracting State shall be exempt from tax on profit or reward,
dealt with in paragraph 1, if the
and will be present in) the other Contracting State during one or more periods
not exceeding in the aggregate 183 days in the tax year,
(b) the services will be carried out for) the person or on behalf of persons who have
place of residence or registered office in the first-mentioned State.
Article 14
Artists and athletes
Income realised by theatrical, film, radio or television
artists, musicians and athletes, from their personal activities might be,
Notwithstanding the provisions of article 13, is taxed in the Contracting State in which the
These activities are carried out.
Article 15
Board
Any Board (other than those covered by article 12) or
the income received from sources in one Contracting State of a physical
person resident in the other Contracting State shall be taxable only
in that other State.
Article 16
Teachers
Professors, teachers or researchers from one Contracting State to
who receive remuneration for teaching or research at a University, College,
school or any other educational or Research Institute in the other Contracting
State for a period not exceeding two years, shall be exempt in this second
State from the tax on such earnings.
Article 17
Students
Salaries that students or apprentices, who are or were previously domiciled in
a Contracting State and who are now present in the other Contracting State
only for the purpose of his education or training, shall receive to cover their
nutrition, education, or training with the nezdaní in that other State,
If such salaries will be paid from sources outside this second
Contracting State.
Article 18
Taxation of property
(1) immovable property may be taxed in the Contracting State in which the
such property is located.
(2) the movable property that is part of the business property of a permanent establishment
the enterprise may be taxed in the Contracting State in which the Permanent
establishment is situated.
(3) a ship that is used in international transport and chattel belonging to operate
such ships are subject to, notwithstanding the provisions of paragraph 2, taxation
only in the Contracting State in which the place of effective management of the undertaking.
Article 19
Avoidance of double taxation
(1) the legislation in force in the other Contracting State, and
continue to govern the taxation of income and assets in a Contracting State, if the
This agreement does not have express provisions are different.
(2) in Sri Lanka with double taxation eliminates this way:
Czechoslovak tax, which will apply directly or by deduction persons having
place of residence or registered office in Sri Lanka on income from sources located in the
Czechoslovakia, count on the tax is allowed in Sri Lanka, which has
pay from such income.
(3) in Czechoslovakia, double taxation eliminates this way:
a) if the person residing or established in Czechoslovakia he receives
income or assets that may be subject to the provisions of this
the contract taxed in Sri Lanka, cuts the Czechoslovakia, subject to
the provisions referred to in (b)) of this paragraph, such income or
such property from taxation, but when calculating taxes on other income
or property of that person can use the tax rate that would apply,
If the exempted income or property not exempted from taxation as follows.
b) Czechoslovakia may, when depositing taxes for persons who are
the territory of residence or registered office, include in the tax base of those parts of the income,
that may be in accordance with the provisions of articles 8, 9 and 10 of this agreement also
taxed in Sri Lanka. Czechoslovakia, however, allows to reduce the amount of tax
calculated from such a base an amount equal to the tax paid in
Sri Lanka.
Where, pursuant to the provisions of articles 8, 9 and 10 of this agreement, the amount
withheld or selected taxes of Sri Lanka less than the amount of the tax which is to be
pay according to the fiscal legislation of Sri Lanka, will be the amount by which the
enables to reduce equal to either the amount of tax, a tax that should be paid in
Sri Lanka, if it wasn't for this contract, or the amount equaling 25% of income
Depending on how the Czechoslovak tax authorities shall decide.
The amount of the tax is to be reduced, however, such part shall not exceed
the Czechoslovak tax, calculated before tax reduction was
enabled that quite falls on income that was subject to the provisions
articles 8, 9 and 10 of this agreement in Sri Lanka is taxed.
Article 20
The exchange of information
The competent authorities of the Contracting States shall exchange information
available to them on the basis of their respective tax laws when
normal operation and management that are necessary for the implementation of the provisions of this
contract, or for the purpose of prevention of fraud or for the purpose of
the implementation of legal measures against the legal fiscal evasion with regard
the taxes which are the subject of this agreement. All of the information as follows
exchanged will be treated as confidential and will not be divulged to anyone other than
persons (and also the courts and authorities) which are entrusted with the charge of the assessment,
collection, enforcement or criminal prosecution in the case of taxes, which are
the subject of this agreement. Do not provide such information to
revealed any manufacturing, commercial, industrial or professional
secret or the manufacturing process.
Article 21
Prohibition of discrimination
(1) nationals of a Contracting State shall not be subjected in the other
Contracting State to any taxation or duties associated with him that
If they were other, higher or more burdensome than the taxation and connected with it
obligations to which they are or may be subjected members of this
of the other Contracting State.
(2) enterprises of a Contracting State shall not be subjected in the other Contracting
State to any taxation of profits attributable to the permanent establishment
situated in that other Contracting State, that other, higher or
more burdensome than the taxation of similar gains, which are or may be
subject to the undertakings of the second State.
(3) the term "tax" in this article means taxes of every kind and
the name of the levied for the benefit of any government authority.
(4) Nothing in this article shall be construed so that it commits one or
the second Contracting State to provide persons resident in the other Contracting
State personal discounts, benefits, and relief for tax purposes, which provides
persons resident on its territory.
Article 22
Resolving cases by mutual agreement
(1) a taxpayer, which proves that the measures of tax offices of one or
of the other Contracting State has or will result in double taxation,
When it comes to taxes which are the subject of this contract, may exercise its
the right to the competent authority of the Contracting State in which he resides or
registered office. If the law of the Czechoslovak Academy of science, the competent authority may agree with the
the competent authority of the other Contracting State for the purpose of exclusion of taxation,
that is not in accordance with this agreement.
(2) 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 can also consult for the purpose of exclusion
double taxation in cases not covered by this agreement.
(3) the competent authorities of the Contracting States may act directly, in order to
reaching an agreement in the sense of the preceding paragraphs.
Article 23
Entry into force of
This agreement shall enter into force on the date on which the Contracting Parties
be notified in writing that the contract was approved by their respective
constitutional law, and its provisions will be applied to taxes
charged for all tax years that start 1. January calendar
the year in which this agreement enters into force, or later.
Article 24
Notice of termination
This agreement is concluded for an indefinite period of time, however, each of the Contracting
the parties may, at the earliest in 1981 may terminate the contract by notice sent
the other Contracting Party 30. June of each calendar year. In such a
the case of the contract will expire on all tax years
begin the 1. January 1 of the calendar year following the year in which the
notice has been given, or later.
In witness whereof, who were duly authorised thereto, have signed the
This contract.
Due in Colombo on 26 April. July 12, 1978 in two original copies, each in the
the Czech language, in the language of Sinhala and in English, with all
the three texts being equally authentic. If there is a different interpretation, the
a critical text of the English.
For the Government of
The Czechoslovak Socialist Republic:
Dr. Jaromir Sedlak v.r.
For the Government of
The Republic Of Sri Lanka:
Dr. w. m. Tilakaratna v.r.
