The Treaty Between The Czechoslovak Socialist Republic And Sri Lanka On Avoidance Of Double Taxation

Original Language Title: o Smlouvě mezi ČSSR a Srí Lankou o zamezení dvojího zdanění příjmů

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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.

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