229/1995 Coll.
COMMUNICATION
Ministry of Foreign Affairs
Ministry of Foreign Affairs informs that on 12 February 1994 in Bangkok
signed treaty between the Czech Republic and
Royal Government of Thailand for the avoidance of double taxation and prevention
Fiscal Evasion with respect to Taxes on Income .
With the Treaty approved by the Parliament of the Czech Republic and President of the Republic ratified
. The instruments of ratification were exchanged in Prague on
14th August 1995.
Contract by virtue of Article 28, paragraph. 2 entered into force on
14th August 1995.
Czech version of the Treaty shall be open simultaneously.
AGREEMENT
Between the Czech Republic and the Royal Government of the Kingdom of Thailand on
Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to taxes on income
Government of the Czech Republic and the Royal Government of the Kingdom of Thailand,
Desiring to conclude an agreement on the avoidance of double taxation and the prevention
Fiscal Evasion with respect to Taxes on Income,
Agree as follows:
Article 1
Persons to which the Convention applies
This Agreement shall apply to persons who are resident in
one or both of the Contracting States (residents).
Article 2
Taxes to which the Convention applies
First This Convention shall apply to taxes on income imposed on behalf
Contracting State or its political subdivisions or local authorities
, irrespective of the manner levied.
Second Taxes on income are considered all taxes imposed on total
income or on elements of income, including taxes on gains from the alienation of movable or
immovable property, taxes on the amounts of salaries and wages paid by the enterprise
well as taxes on capital .
Third The existing taxes to which the Convention applies are:
A) in the case of the Czech Republic:
- A tax on income of individuals; and
- The tax on corporate income;
(Hereinafter referred to as "Czech tax");
B) in the case of Thailand:
- Income tax; and
- Income tax on fuel;
(Hereinafter referred to as "Thai tax").
Fourth This agreement will also apply to taxes
same or similar kind which are imposed after the signature of this contract
alongside or in place of existing taxes. The competent authorities of the Contracting States shall notify each other
substantial changes which have been made in their respective taxation laws
.
Article 3
General Definitions
First For the purposes of this Agreement, unless the context otherwise requires:
A) the term "Czech Republic" means the territory of the Czech Republic, which according
Czech laws and in accordance with international law falls under the legislation
Czech Republic;
B) the term "Thailand" means the Kingdom of Thailand and includes any
area adjacent to the territorial waters of the Kingdom of Thailand which by Thai
laws and in accordance with international law falls under
legislation Kingdom of Thailand;
C) the terms "a Contracting State" and "the other Contracting State" mean
case of Thailand or the Czech Republic;
D) the term "person" includes an individual, a company and any other body of persons
well as any entity considered the taxpayer
under applicable tax law of each Contracting State;
E) the term "company" means any body corporate or any entity,
is treated for tax purposes as a legal entity;
F) the terms "enterprise of a Contracting State" and "enterprise of the other Contracting State
" mean the situation enterprise carried on by a resident of a Contracting State
an enterprise carried on by a resident of the other Contracting State
;
G) the term "tax" mean the Czech tax or Thai tax;
H) the term "national" means:
(I) any natural person who is a citizen of a Contracting State
;
(Ii) any legal person, partnership, association or any
entity created under the laws of a Contracting State;
I) the term "international traffic" means any transport
by a ship or aircraft operated by an enterprise of a Contracting State
if such transportation is solely between places
in the other Contracting State; and
J) the term "competent authority" means in the case of the Czech Republic
Minister of Finance or his authorized representative and in the case of Thailand, the Minister
Finance or his authorized representative.
Second Any term not otherwise defined, shall have to apply to this contract
Contracting State the meaning which it has under the law of that
State concerning the taxes covered by this Agreement, unless the context otherwise requires
interpretation.
Article 4
Resident
First For the purposes of this Convention, the term "resident of a Contracting State"
means any person who, under the law of that State
undergone in the State of taxation by reason of his domicile, residence, place
registration, place of management or any other similar criteria.
This term does not include any person who is in this state
subjected to tax only on income from sources in that State.
Second If the individual is under the provisions of paragraph 1
resident of both Contracting States, then his status shall be determined as follows
way:
A) It is assumed that this person is a resident of the State in which he has a permanent home
; if he has a permanent home in both States, it is assumed that
a resident of the state, which has closer personal and economic relations
(center of vital interests);
B) if it can not be determined, the State in which he has his center of vital interests
, or if he has a permanent home in any state
assumed that a resident of the State in which they are usually
resides;
C) if he has an habitual abode in both States or in neither of them
, it is assumed that a resident of the State whose nationality
national;
D) if he is a national of both States or of neither
of them, the competent authorities of the Contracting States
question by mutual agreement.
Third If a person other than an individual under the provisions of paragraph 1
resident of both Contracting States, the competent authorities of the Contracting States
question by mutual agreement.
Article 5
Permanent establishment
First For the purposes of this Convention, the term "permanent establishment" means a fixed place of business
in which the enterprise is wholly or partly
its activities.
Second The term "permanent establishment" includes especially:
A) a place of management;
B) plant;
C) an office;
D) a factory;
E) a workshop;
F) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources
;
G) a farm or plantation;
H) warehouse belonging to the person providing storage facilities for others;
I) a building site or construction, assembly or installation project or supervisory
related activities, perma- if such site, project or activity
for a period or periods exceeding in the aggregate six months
;
J) services, including consulting,
resident of a Contracting State through employees or other personnel
if such activities continue within the other Contracting
State for a period or periods exceeding in the aggregate six months
in any twelve month period.
Third Notwithstanding the preceding provisions of this Article,
the term "permanent establishment" shall not include:
A) equipment which is used only for storage or display of goods
belonging to the enterprise;
B) the supply of goods or merchandise belonging to the enterprise solely for the purpose
storage or display;
C) the supply of goods or merchandise belonging to the enterprise solely for the purpose
processing by another enterprise;
D) the maintenance of a fixed place of business solely for the purpose
purchasing goods or collecting information for the enterprise; B
E) the maintenance of a fixed place of business maintained for the enterprise solely for the purpose
advertising, providing information, scientific research or similar
activities which have for preparatory or auxiliary character;
F) the maintenance of a fixed place of business solely for
any combination of activities mentioned in subparagraphs a) - e) if
overall activity of the fixed place of business resulting from this combination
a preparatory or auxiliary character.
Fourth Notwithstanding the provisions of paragraphs 1 and 2, a person - other than
independent agent to whom paragraph 6 applies - is acting in
Contracting State on behalf of an enterprise of the other Contracting State, it is considered that
enterprise has a permanent establishment in the first-mentioned Contracting State, if such person
:
A) it has, and habitually exercises in the first-mentioned State power of attorney
which to conclude contracts on behalf of the enterprise, unless the activities of such
person are limited to the purchase of goods for the enterprise;
B) has no such power of attorney, but habitually maintains in the first-mentioned State
stock of goods belonging to the enterprise from which he regularly carries out
orders or deliveries carried out on behalf of the company; or
C) has no such power of attorney, but usually ensures orders in the first-mentioned State
exclusively or almost exclusively for the enterprise or for the enterprise
and other enterprises which are controlled by it or have their decisive
share.
Fifth Not considered that an enterprise of a Contracting State has a permanent
establishment in the other Contracting State merely because in this second
State carries on business through a broker, general commission agent or any other
independent representative, provided that such persons
acting in the ordinary course of their business. However, if the activity of such representative
operated exclusively or almost exclusively on behalf of this company or
behalf of that enterprise and other enterprises which are controlled by it or
It has a controlling interest, are not considered that it
by an independent representative within the meaning of this paragraph.
6th The fact that a company which is a resident of a Contracting
State controls or is controlled by a company which is
resident of the other Contracting State, or which carries on business in
that other State (whether through a permanent establishment or otherwise)
not of itself constitute either company a permanent establishment
other.
Article 6
Income from immovable property
First Income derived by a resident of a Contracting State from immovable
property (including income from agriculture or forestry) situated in the other
Contracting State may be taxed in that other State.
Second The term "immovable property" shall have the meaning which it has under the law
Contracting State in which the property in question is situated. The term shall in any case
accessory to immovable property, livestock and equipment
used in agriculture and forestry, rights to which the provisions
civil law relating to immovable property, usufruct
immovable property and rights to variable or fixed payments as consideration for the working
or consent to work, mineral deposits, sources and other natural resources
; ships, boats and aircraft shall not be regarded as immovable
property.
Third The provisions of paragraph 1 shall apply to income derived from the direct use, letting
or any other form of immovable property.
Fourth The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property
enterprise and to income from immovable property used for the performance of independent personal
.
Article 7
Business Profits
First Revenues or profits of an enterprise of a Contracting State shall be taxable
only in that State unless the enterprise carries on business in the other Contracting State
through a permanent establishment situated therein.
If the enterprise carries on business as aforesaid, the income may be
or profits of the enterprise taxed in that other State, but only so
extent that it is attributable to that permanent establishment.
Second If an enterprise of a Contracting State, carries on business in
other Contracting State through a permanent establishment situated therein
located, attributed to subject to the provisions of paragraph 3
in each Contracting State to that permanent establishment income or profits which would
could have been achieved if it were a separate enterprise engaged in 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.
Third In determining the profits of a permanent establishment is permitted to deduct the cost
company incurred for the purposes of the permanent establishment, including
management expenses and general administrative expenses so incurred, whether
incurred in the State in which the permanent establishment is situated or elsewhere.
Do not allow, however, deduct the amounts that were paid (otherwise than as a substitute
actual expenses) by the permanent establishment or management
some of his other office in the form of royalties, compensation or other similar
salaries for use patents or other rights, or
way of commission for specific services, administrative management, or,
Unless the banking business, in the form of interest on money loaned
permanent establishment. Similarly, in determining the profits of a permanent establishment shall be disregarded
to the amounts by which the permanent establishment Lumber (other than for actual expenses)
management of the company or one of its other office in the form of royalties
fee, compensation or other similar salaries for use
patents or other rights, or by way of commission for specific services, for
governance, or, if not a banking institution in the form of interest on money loaned
management or some other office.
Fourth If in a Contracting State to determine the profits
be attributed to a permanent establishment on the basis of a certain percentage
commission on gross income of the company or permanent establishment or division
total profits of the enterprise to its various parts, the provisions of paragraph 2 to
Contracting state from determining the profits to be taxed by the usual
division; The method of apportionment must, however, be such that
result was in line with the principles set out in this article.
Fifth Permanent establishment is nepřičtou any income or gains
based on the fact that the mere purchase of goods for the enterprise.
6th Income or profits to be attributed to a permanent establishment for the purposes of the preceding paragraphs
set each year by the same way if
there is not sufficient reason to the contrary.
7th Where income or profits include items of income which is
dealt with separately in other Articles of this Convention, the provisions of Articles
those affected by the provisions of this Article.
Article 8
Shipping and Air Transport
First Revenues or profits of an enterprise of a Contracting State from the operation
aircraft in international traffic shall be taxable only in that Contracting State
.
Second Revenues or profits of an enterprise of a Contracting State from the operation of ships
in international traffic may be taxed in the other Contracting State but
tax imposed in that other State shall be reduced by an amount corresponding to 50% of the tax
.
Third The provisions of paragraphs 1 and 2 shall also apply to income or profits from the participation
pool, a joint business or an international operating organization.
Article 9
Associated companies
If
A) an enterprise of a Contracting State participates directly or indirectly in
management, control or capital of an enterprise of the other Contracting State, or
B) the same persons participate directly or indirectly in the management, control or capital of an enterprise
a Contracting State and an enterprise of the other Contracting State
and in either case the two enterprises in their commercial or financial relations
bound by the terms agreed to or imposed on them
which differ from those which would be made between independent enterprises
, then any income or profits which would, but
those conditions, have accrued to one of the businesses, but due to these
conditions have not so accrued, may be included in the income or profits of
enterprise and taxed accordingly.
Article 10
Dividends
First Dividends paid by a company which is a resident of a Contracting State
resident of the other Contracting State may be taxed in that other Contracting
State.
Second However, such dividends may also be taxed in the Contracting State in
which the company paying the dividends is a resident and according to the law
law of that State, but if the recipient is the beneficial owner
dividend tax so charged shall not exceed 10% of the gross amount of the dividends.
Competent authorities of the Contracting States shall by mutual agreement settle the mode
application of this limitation.
This paragraph shall not affect the taxation of company profits from which dividends are paid
.
Third The term "dividends" as used in this Article means income from shares or other rights
, with the exception of claims, participating in profits, as well
income from other corporate rights which is subjected to the same taxation
as income from shares under the laws of the State in which the company
which the distribution is a resident.
Fourth The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends
who is a resident of a Contracting State, carries
in the other Contracting State in which the resident company paying the dividends
, industrial or commercial activity through a fixed
Establishment situated therein, or performs in that other State independent personal
a fixed base situated therein, and
the holding in respect of which the dividends are paid is effectively connected with such permanent establishment
or fixed base. In this case
provisions of Article 7 or 14, depending on what goes
.
Fifth Where a company which is a resident of a Contracting State
derives profits or income from the other Contracting State, that other State
tax on the dividends paid by the company, unless such
dividends are paid to a resident of that other State or that participation ,
which the dividends are paid is effectively connected with a permanent establishment or a fixed base
which is situated in that other State, nor
subject the company's undistributed profits tax on undistributed profits, even if the dividends paid
or the undistributed profits consist wholly or partly of
profits or income arising in that other State.
Nothing in this paragraph shall prevent a Contracting State to tax under the law of that State
on transfer of profits made by a permanent establishment situated therein.
Article 11
Interest
First Interest arising in a Contracting State and paid to a resident
other Contracting State may be taxed in that other State.
Second However, such interest may also be taxed in the Contracting State in
which is their source, in accordance with the laws of that State
but if the recipient is the beneficial owner of the interest and if
company that a resident of the other Contracting State tax
so payable shall not exceed 10% of the gross amount of interest, if they are accepted
any financial institution (including insurance companies).
Competent authorities of the Contracting States shall determine by mutual agreement the way
application of this limitation.
Third Notwithstanding the provisions of paragraph 2, the interest that arises in
a Contracting State and paid to the Government of the other Contracting State shall be
exempt from tax in the first-mentioned State. For the purposes of this paragraph
term "government"
A) in the case of Thailand, means the Royal Government of the Kingdom of Thailand and includes
:
(I) the Bank of Thailand;
(Ii) Export-Import Bank of Thailand;
(Iii) local authorities; and
(Iv) such institutions, the capital of which is wholly owned by the Royal
Government of the Kingdom of Thailand or any local authorities as may be from time to time
approved by the competent authorities of both Contracting States;
B) in the case of the Czech Republic is the Czech government and includes:
(I) the Czech National Bank;
(Ii) Consolidation Bank;
(Iii) local authorities; and
(Iv) such institutions, the capital of which is fully owned by the Government of the Czech Republic
or any local authority as may be from time to time
approved by the competent authorities of the Contracting States.
Fourth The term "interest" as used in this Article means income from debt-claims of every kind
not secured by a lien on the property
or having or not carrying a right to participate in profits
borrower and in particular, income from government securities and income
from bonds or debentures, including premiums and rewards associated with these securities
bonds or debentures as well as income tax laws
Contracting State in which such income source, they deemed similar income
on loans. Penalties for late payment are also considered
interest for the purposes of this article.
Fifth The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner
interest, being a resident of a Contracting State, carries on business in the other
Contracting State in which the interest arises,
business through a permanent establishment, situated therein, or
independent personal services from a fixed base situated therein and the debt
, of which the interest is paid is effectively connected
such permanent establishment or fixed base. In this case
provisions of Article 7 or 14, depending on what goes
.
6th It is believed that the interest arising in a Contracting State when the payer
is that State itself, a political subdivision, a local
authority or a resident of that State. If, however, the person paying the interest, whether he is
resident of a Contracting State or not, has in a Contracting State a permanent
Establishment or fixed base in connection with which the indebtedness
from which the interest is paid, and such interest is borne by such permanent
establishment or fixed base, then such interest shall be deemed
state in which the permanent establishment or fixed base
located.
7th If the amount of interest related to the debt for which it is paid
exceeds the result of a special relationship between
payer and the beneficial owner of the interest or even one second to maintain
third party, the amount which would was agreed upon by the payer and the beneficial owner
absence of such relationship, the provisions of this article
only on the latter amount. The amount of salary that exceeds
it will in this case remain taxable according to the laws of each Contracting State
with regard to the other provisions of this Treaty.
Article 12
Royalties
First Royalties arising in a Contracting State and paid
resident of the other Contracting State may be taxed in that other State
.
Second However, such royalties may also be taxed in the Contracting
State in which they arise, and in accordance with the laws
that State, but if the recipient is the beneficial owner of the royalties
taxes, the tax so determined not exceed:
A) 5% of the gross amount of the royalties if they are paid for
alienation or the use or provision of the right to use any copyright
literary, artistic or scientific work excluding cinematograph films, films or tapes
used for radio or television broadcasting;
B) 10% of the gross amount of the royalties if they are paid for theft
patents, trademarks, designs or models, plans, secret formulas or processes
;
C) 15% of the gross amount of the royalties in all other cases.
Competent authorities of the Contracting States shall by mutual agreement settle the mode of application of these limitations
.
Third The term "royalties" as used in this Article means payments
any kind received as compensation for theft or for the use or
for granting the right to use, any copyright of literary, artistic or scientific
including cinematograph films and films
or recordings for radio or television broadcasting, any patent,
trade mark, design or model, computer program, plan
secret formula or process, or any industrial, commercial or scientific
device, or for information that
relate to the experience acquired in the industrial, commercial or scientific
.
Fourth The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner
royalties, being a resident of a Contracting State
exercised in the other Contracting State in which the royalties
arise a business through a permanent
establishment situated therein, or performs independent personal
through a permanent establishment situated therein and the right or
assets, of which the royalties are paid is effectively connected
such permanent establishment or fixed base . In these cases
provisions of Article 7 or 14, depending on what goes
.
Fifth It is assumed that the royalties to arise in a Contracting State when the payer
is that State itself, a political subdivision, a local authority or
resident of that State. However, if paying the royalties,
whether or not a resident of a Contracting State, has in a Contracting State
permanent establishment or fixed base in connection with which arose
obligation to pay royalties, which are borne by the permanent
establishment or fixed base, then such royalties shall
arise in the Contracting State in which the permanent establishment or fixed base is situated
.
6th If the amount of royalties that apply to the use,
right or information for which they are paid, exceeds
due to the special relationship between the payer and the beneficial owner
or the second one maintains with third party , the amount which would have been
agreed upon by the payer and the beneficial owner in the absence of such relationship,
the provisions of this Article shall apply only to the latter amount
. The amount of the salary, the excess will be taxed in this case
Under the laws of each Contracting State, taking into account
other provisions of this Agreement.
Article 13
Gains from the alienation of property
First Profits derived by a resident of a Contracting State from the alienation
immovable property referred to in Article 6, which is located on the second
Contracting State may be taxed in that other State.
Second Gains from the alienation of movable property forming part of the business assets
permanent establishment which an enterprise of a Contracting State in the other
Contracting State or movable property pertaining to a fixed base,
by a resident of a Contracting State has in the other Contracting State to
performance of professional services, including such gains from the alienation
such a permanent establishment (alone or with the whole enterprise)
or of such fixed base, may be taxed in that other State.
Third Profits derived by an enterprise of a Contracting State from the alienation of ships
or aircraft operated in international traffic or movable property,
the operation of such ships or aircraft shall be taxable only in that State
.
Fourth Gains from the alienation of any property or assets other than
referred to in paragraphs 1, 2 and 3 of this article and paragraph 3 of Article 12
shall be taxable only in the Contracting State of which the alienator
resident. Nothing in this paragraph shall prevent the Contracting States from taxing
profits or income from the sale or transfer of shares or other securities
securities.
Article 14
Independent Personal
First If a resident of a Contracting State derives income from a free
profession or other independent activities of a similar nature
other Contracting State shall be taxable in that other State, but only
the extent that such income can be attributed to services provided
in that State. When determining the income přisouditelného these services will permit
deduct the costs incurred in providing those services, including
reasonable administrative expenses and management expenses so incurred, whether
incurred in the State in which the services are provided or elsewhere.
Second The term "professional services" includes especially independent
scientific, literary, artistic, educational or teaching activities as well as
independent activities of physicians, lawyers, engineers, architects, dentists and accountants
.
Article 15
Occupation
First Salaries, wages and other similar remuneration derived by a resident of a Contracting State
respect of an employment shall be subject to the provisions
Articles 16, 18 and 19 shall be taxable only in that State unless the employment is
exercised in the other Contracting State. If the employment is so exercised, such remuneration
may be adopted for them taxed in that other State.
Second Remuneration which a resident of a Contracting State in respect of an employment exercised
in the other Contracting State shall
notwithstanding the provisions of paragraph 1 shall be taxable only in the first-mentioned State if:
A) the recipient is present in the other State for a period or periods exceeding in the aggregate
183 days in any twelve month period; and
B) the remuneration is paid by the employer or the employer who
not a resident of the other State; and
C) the remuneration is not borne by a permanent establishment or a fixed base which the employer
in the other State.
Third Notwithstanding the preceding provisions of this Article, remuneration in respect of an employment exercised
aboard a ship or aircraft
operated in international traffic by an enterprise of a Contracting State
be taxable only in that State.
Article 16
Royalties
Fees and other similar payments derived by a resident of a Contracting State
his capacity as board member who is a resident of the other
Contracting State may be taxed in that other State.
Article 17
Artists and athletes
First Income derived by a resident of a Contracting State as an entertainer
such as theater, film, radio or television
artist or a musician or as a sportsman from such person
activities performed in the other Contracting State, may be regardless
to the provisions of Articles 14 and 15, be taxed in that other State.
Second If revenues from personal activities exercised by an entertainer or an athlete
accrues not to the entertainer or athlete himself but to another
Person, that income may, notwithstanding the provisions of Articles 7, 14 and 15
taxed in the Contracting State in which the entertainer or athlete are exercised
its activities.
Third The provisions of paragraphs 1 and 2 of this Article shall not apply to remuneration or
profits, salaries, wages and other similar remuneration derived from activities
operated in a Contracting State by an entertainer or sportsman if the visit
in that Contracting State is substantially often borne by public funds
other Contracting State, including local authorities and statutory bodies
.
Article 18
Pensions
Pensions and other similar remuneration paid in consideration of past employment
resident of a Contracting State shall be subject to the provisions of paragraph 2 of Article
19 taxable only in that State.
Article 19
Public functions
First
A) Remuneration, other than a pension, paid by a Contracting State or
subdivision or a local authority thereof to an individual in respect of services rendered to that
State or subdivision or local authority
be taxable only in that State.
B) However, such remuneration shall be taxable only in the other Contracting State
if the services are rendered in that State and the individual who
is a resident of that State:
(I) is a national of that State or
(Ii) did not become a resident of that State solely for the purpose of rendering those services
.
Second
A) Any pension paid by, or out of funds created a
Contracting State, political subdivision or local authority thereof, physical
respect of services rendered to that State or subdivision or local authority
shall be taxable only in that State.
B) However, such pension shall be taxable only in the other Contracting State
if the individual is a resident and a national of that State
.
Third To remuneration and pensions in respect of services rendered in connection with business or
industrial activities carried on by a Contracting State
administrative subdivision or local authority thereof shall apply
Articles 15, 16 and 18.
Article 20
Students and apprentices
First A natural person who immediately before visiting a Contracting State
was a resident of the other Contracting State and whose visit to the first-mentioned State
held solely for the purpose of:
A) studying at a university or other recognized educational institution; or
B) apprenticeship with a view to exercising a craft or trade; or
C) studying or doing research as a recipient of donations, contributions or premiums
from governmental, religious, charitable, scientific, literary or educational organizations
; will be excluded from taxation in the first-mentioned State of
:
(I) salaries to pay for food, education, study, research or training
received from abroad;
(Ii) donations, contributions or premiums.
Second Student or apprentice referred to in paragraph 1 shall, with respect to income from personal services
to enjoy during this study or training
same exemptions, relief or tax cuts, as are residents of that state, who visited
.
Article 21
Professors, teachers and researchers
First A natural person who is a resident of a Contracting State immediately before executing
visits in the other Contracting State and who
at the invitation of universities, colleges, schools or similar
recognized educational institution in that other Contracting State visits || | the other Contracting State for a period not exceeding two years solely for the purpose
teaching or research or both at such educational institution
will be exempted from taxation in that other Contracting State on any
salaries for such teaching or research.
Second To income from research, this article applies only if such natural person
research performed for the public interest and not primarily for the benefit
other private person or persons.
Article 22
Other income
Of income of a resident of a Contracting State not dealt
in the foregoing Articles of this Convention, may be taxed in the State
which they arise.
Article 23
Avoidance of double taxation
First In the Czech Republic, double taxation shall be eliminated as follows:
A) Where a resident of the Czech Republic receives income which may be
provisions of this Treaty taxed in Thailand, the Czech Republic permit
Reduce the amount of Czech tax computed on the income of that resident an amount
equal to the tax paid in Thailand. Such reduction shall not exceed
that part of the Czech tax, as computed before the deduction, which is attributable to such income
.
B) For purposes of subparagraph a), it is considered that the term "tax paid in Thailand"
includes the amount of Thai tax which would have been paid if her
been granted exemptions or reductions under a special legal
provisions prepared for the purpose of promoting economic development in Thailand
applicable on the date of signature of this agreement or introduced later
such modification or amendment of this provision.
Second In Thailand, double taxation shall be eliminated as follows:
A) Where a resident of Thailand receives income that can be
provisions of this Treaty taxed in the Czech Republic, Thailand permit
Thai reduce the amount of tax calculated on the income of that resident an
amount equal to the tax paid in Czech republic. Such a reduction
however, exceed that part of the Thai tax, as computed before the deduction,
which is attributable to such income.
B) For purposes of subparagraph a), it is considered that the term "tax paid in the Czech Republic
" includes the amount of Czech tax which would have been paid if
her was not granted exemption or reduction under special
statutory provisions prepared to promote economic development
in the Czech Republic for the date of signature of this agreement or
introduced later as a modification or amendment of this provision.
Article 24
The principle of equal treatment
First Nationals of a Contracting State shall not be subjected in the other Contracting State
any taxation or any requirement connected therewith,
which is other or more burdensome than the taxation and connected requirements
which are or may be subjected nationals of that other
State who are in the same situation.
Second Taxation on a permanent establishment which an enterprise of a Contracting State has in
other Contracting State shall not be in that other State
favorable than the taxation of enterprises of that other State carrying on the same activities.
Third Enterprises of a Contracting State, the capital of which is wholly or partly
directly or indirectly owned or controlled by a person or persons
resident of the other Contracting State shall not be subjected in the first
mentioned Contracting State to any taxation or any requirement
associated with it, which is other or more burdensome than the taxation and connected
obligations are or may be subjected to other similar enterprises
first-mentioned State.
Fourth The provisions of this article shall not be construed as obliging a
Contracting State to grant to residents of the other Contracting State
personal allowances, reliefs and reductions of tax on account of civil status or family responsibilities
which it grants to its own residents.
Fifth The term "taxes" in this Article means taxes which are the subject
thereof.
Article 25
Mutual agreement
First Where a resident of a Contracting State considers that the actions
one or both of the Contracting States result or will result for him in taxation
not in accordance with the provisions of this Treaty may independently
remedies provided by the domestic
right of those States, present his case to the competent authority of the Contracting State of which he is a resident
. The case must be presented within three years from the first notification
action resulting in taxation not in accordance with the provisions of this contract
.
Second The competent authority shall objection be justified and
if it is not itself able to arrive at a satisfactory solution, it will try to
case by mutual agreement with the competent authority of the other Contracting State,
to the avoidance of taxation which is not in accordance with this agreement.
Third The competent authorities of the Contracting States shall endeavor to resolve by mutual agreement
difficulties or doubts that may arise regarding the interpretation or application of this Agreement
. They may also consult together for the avoidance of double taxation
in cases not provided for in the contract.
Fourth The competent authorities of the Contracting States may communicate with each other directly for the purpose
reaching an agreement in the sense of the preceding paragraphs.
Article 26
Exchange of information
First The competent authorities of the Contracting States shall exchange the information necessary
For the application of the provisions of this Agreement or national laws
laws of the Contracting States concerning taxes covered by
thereof, insofar as the taxation thereunder is not contrary to this
contract. Any information received by a Contracting State shall be treated as secret
same manner as information obtained under the domestic
of that State and shall be disclosed only to persons or authorities (including
courts and administrative bodies) involved in the assessment or collection | || taxes covered by this agreement, enforcement or prosecution in respect of,
taxes or the determination of appeals. Such persons or authorities shall use
such information only for such purposes. They may disclose the information
in public court proceedings or in judicial decisions.
Second The provisions of paragraph 1 shall in no case be interpreted as meaning that
impose on a Contracting State the obligation:
A) to carry out administrative measures at variance with the laws or
administrative practice of that or the other Contracting State;
B) to supply information which is not obtainable under the laws or regulations
normal administration of that or the other Contracting State
;
C) to supply information which would disclose any trade, business, industrial,
commercial or professional secret or trade process, or information the disclosure of which
would be contrary to public policy.
Article 27
Diplomats and consular officials
Nothing in this Agreement shall affect the fiscal privileges
of diplomatic or consular officials under the general rules
international law or under the provisions of special agreements.
Article 28
Entry into force
First This Treaty shall be ratified and instruments of ratification shall be exchanged
in Prague as soon as possible.
Second The Treaty will enter into force upon the exchange of instruments of ratification and its
provisions shall apply:
A) in respect of taxes withheld at source on amounts paid or credited on
or after 1st January of the year following the year in which
Agreement enters into force;
B) in respect of other taxes on income, for taxable years or
taxable periods beginning on or after 1st January of the year following the year in
which the Convention enters into force.
Article 29
Termination
First This Agreement shall remain in force indefinitely, but each of
Contracting States may, no later than June 30 of each calendar year
beginning after the expiration of five years from the date when the Treaty entered into force
, give the other Contracting State
diplomatic channels written notice. In this case, the Agreement shall cease to apply:
A) in respect of taxes withheld at source on amounts paid or credited on
or after 1st January in the calendar year following
year in which the notice is given;
B) in respect of other taxes on income, for taxable years or
taxable periods beginning on or after 1st January of the calendar year following
after a year in which the notice is given.
IN WITNESS WHEREOF the undersigned, being duly authorized thereto, have signed this Agreement.
Done in duplicate in Bangkok on February 12, 1994 in the English language
.
For the Government of the Czech Republic:
Ivan Kočárník vr
Deputy Prime Minister and Minister of Finance
For the Government of the Kingdom of Thailand:
Prasong Soonsiri vr
Foreign Minister
