108/1998 Coll.
The COMMUNICATION FROM the
Ministry of Foreign Affairs
Ministry of Foreign Affairs says that the 23 July. in May 1997, in
Prague signed an agreement between the Government of the United Kingdom and the Government of the
Socialist Republic of Vietnam on avoidance of double taxation and prevention of fiscal
evasion with respect to taxes on income and on capital.
With the Treaty, its assent, Parliament of the Czech Republic and the President of the
the Republic has ratified it.
Treaty has entered into force pursuant to its article 28, paragraph 1. 1 day 3.
February 1998.
The Czech version of the Treaty shall be designated at the same time. In the English version of the Treaty,
for its interpretation of the applicable, can be consulted at the Ministry of
Foreign Affairs and the Ministry of finance.
CONTRACT
between the Government of the United Kingdom and the Government of the Socialist Republic of
for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on
income and assets
The Government of the United Kingdom and the Government of the Socialist Republic of
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 person to which the contract relates
This agreement shall apply to persons who are residents of one or
both of the Contracting States.
Article 2
The tax, to which the contract relates
1. this Agreement shall apply to taxes on income and on capital imposed by the
on behalf of each Contracting State or of its lower administrative departments
or local authorities, irrespective of the method of selecting any.
2. taxes on income and on capital all taxes shall be levied on
total income, on total capital, or on elements of income or of property
including taxes on gains from the alienation of movable or immovable property, taxes
of the total volume of wages or salaries paid by enterprises as well as taxes on
the increment property.
3. Current taxes, to which the contract relates are:
and) in Vietnam:
(i) the personal income tax;
(ii) the profit tax; and
(iii) the tax on profit transfer;
(hereinafter referred to as "Vietnamese tax");
(b)) in the Czech Republic:
(i) the tax on income of individuals;
(ii) the tax on income of legal persons; and
(iii) tax on immovable property;
(hereinafter referred to as "Czech tax").
4. the agreement shall also apply to any tax of the same or
the principle of a similar kind, that will be stored after the signature of this contract
In addition to or instead of the current taxes. The competent authorities of the Contracting States
shall communicate the important changes that will be made in their
the relevant tax laws.
Article 3
General definitions
1. for the purposes of this agreement, unless the context requires a different interpretation:
and) the term "Viet Nam" refers to the Socialist Republic; If
It is used in a geographical meaning, indicates his entire national territory, including
its territorial sea, and any area beyond its
the territorial sea where the Viet Nam according to Vietnamese laws,
regulations and in accordance with international law, sovereign rights of exploration and
the use of the natural resources of the seabed and its subsoil and water over this
on the day;
(b)), the term "Czech Republic" refers to the territory of the Czech Republic, which the
may be according to the Czech legislation and in accordance with international
the law of the sovereign rights of the United States;
(c)) the terms "a Contracting State" and "the other Contracting State" mean, as
context, Viet Nam or the Czech Republic;
(d)) the term "person" includes an individual, a company and any other
an Association of persons;
(e)) the term "company" refers to any legal entity or
the rightholder considered for the purposes of taxation under the legal person;
(f)) the terms "enterprise of a Contracting State" and "enterprise of the other Contracting
State "means, according to the context, the enterprise carried on by a resident
of a Contracting State and an enterprise carried on by a resident of the other
Contracting State;
(g)) the term "national" means:
(i) any natural person who is a citizen of the některéhosmluvního
State;
(ii) any legal person, partnership or association established
According to the law in force in a Contracting State;
h) the term "international traffic" means any transport by boat or
the aircraft, which is operated by an undertaking which has its place of
effective management in a Contracting State, except when the ship is
or aircraft operated only between places in the other Contracting State; and
I) the term "competent authority" means:
(i) in the case of Vietnam, the Minister of finance or his zmocněnéhozástupce; and
(ii) in the case of the Czech Republic the Minister of finance or his authorized
representative.
2. As regards the implementation of the Treaty by a Contracting State, it will have any expression
that it is not defined, of such importance that it has under the law of
This State, which regulates the taxes to which the Agreement relates, if the
the link does not require a different interpretation.
Article 4
A resident of the
1. for the purposes of this agreement, the term "resident of a Contracting State"
indicates any person who under the law of that State
subject to taxation in that State by reason of his residence, the Standing
residence, place of management, place of registration or any other similar
criteria. However, this term does not include any person who is subjected to
taxation in this State solely because of the income from sources in that State
or assets located in that State.
2. If the individual is under the provisions of paragraph 1, a resident in the
both of the Contracting States, its position will be addressed to the following
follows:
and it is assumed that) this person is resident in the State in which the
He has a permanent home; If he has a permanent home in both States, it is assumed that
It is resident in the State, which has a strong personal and economic
relations (Centre of vital interests);
(b)) if it cannot be determined which state the person Center
their vital interests, or if it does not have a permanent home in any State
It is assumed that it is resident in the State in which it is usually
resides;
(c)) If this person usually resides in both States, or in any
of them, it is assumed that it is resident in the State of which he is a
National;
d) if that person is a national of both States or of any
of them, the competent authorities of the Contracting States shall adjust the question by mutual
by the agreement.
3. If a person other than an individual is subject to the provisions of paragraph 1,
a resident of both Contracting States, it is assumed, that is resident in
the State in which the place of effective management.
Article 5
Permanent establishment
1. For the purposes of this agreement, the term "permanent establishment" means a permanent
place to do business, through which is wholly or partly
carried on the business.
2. the term "permanent establishment" includes especially:
and instead of keeping);
(b)) race;
(c));
(d) a factory;)
e) a workshop; and
f) mine, the site of diesel or gas, a quarry or any other place of extraction
or exploration of natural resources.
3. the term "permanent establishment" also includes:
construction site, construction), Assembly or installation project or supervision with
associated, but only if this building, project or supervision for more than
six months;
(b)) the provision of services, including consultancy or managerial services,
the enterprise of a Contracting State through employees or
other workers hired by the enterprise for such purpose, but only if
activities such as to insist on the territory of the other Contracting State after
one or more periods exceeding in the aggregate six months within any
the 12-month period.
4. Notwithstanding the preceding provisions of this article, it is assumed
the term "permanent establishment" shall not include:
and) device that is used only for the purpose of storage or display
goods belonging to the enterprise;
(b)) the supply of goods belonging to the enterprise solely for the purpose
storage or display;
(c)) the supply of goods belonging to the enterprise solely for the purpose
the processing of another undertaking;
d) permanent place to do business, solely for the purpose of purchasing
goods, or collecting information for the enterprise;
e) permanent place for business, solely for the purpose of
advertising, information, scientific research or similar
activities which have a preparatory or auxiliary to the business nature;
f) permanent place for business, solely for the performance of
any combination of activities mentioned in subparagraphs (a) to (e))), if
the overall activity of the fixed place of business resulting from this
the connection is of a preparatory or auxiliary character.
5. Notwithstanding the provisions of paragraphs 1 and 2, a person-other than
an independent representative, to whom paragraph 7 applies-is acting in a
a Contracting State on behalf of the company of the other Contracting State, it shall be deemed that the
This enterprise has a permanent establishment in the first-mentioned Contracting State in
respect of all the activities that the person performs for the company if
such a person:
and) has available and typically used in that State permission
allows you to enter into contracts on behalf of the enterprise, unless the activities of such person
No-are limited to the activities listed in paragraph 4 which, if they were
made through a fixed place of business, would
This did not constitute a fixed place of business a permanent establishment
According to the provisions of this paragraph; or
(b)) does not have such privileges, but typically maintains in the first-mentioned State
the supply of goods, of which regularly delivers the goods on behalf of the company.
6. Notwithstanding the preceding provisions of this article, it is assumed
that an insurance enterprise of a Contracting State has, with the exception of
premiums, a permanent establishment in the other Contracting State if it collects
premiums on the territory of that other State or insures risk there
placed by a person other than an independent agent, on which
covered by paragraph 7.
7. Not considered that the enterprise has a permanent establishment in a Contracting State
just because in this State, carries on business through a
a broker, General Commission agent or any other independent
the representative, if such persons are acting within their proper operation. However,
If such activities are wholly or almost wholly dedicated to
the interests of this business, this is not considered an independent representative
within the meaning of this paragraph.
8. the fact that a company which is resident in a Contracting
State, controlled by the company or is controlled by a company which is
a resident of the other Contracting State, or which in the latter State
carries on business (whether through a permanent establishment, or
otherwise), will not make itself from any of the company's permanent
the establishment of the second company.
Article 6
Income from immovable property
1. Income derived by a resident of a Contracting State from immovable
property (including income from agriculture or forestry) situated in the
the other Contracting State, may be taxed in that other State.
2. the term "immovable property" has such importance under the laws
the Contracting State in which such property is located. The term includes in
any case, accessories of immovable property, the living and the dead inventory
used in agriculture and forestry, rights to which the provisions of the
civil law relating to property, the right to the enjoyment of immovable property
property and rights to variable or fixed payments for mining or
consent to the mining of mineral deposits, sources and other natural
resources; ships, boats and aircraft shall not be regarded as immovable property.
3. The provisions of paragraph 1 shall apply to income derived from the direct use,
hire or any other manner of use of immovable property.
4. The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property
the assets of the company and to income from immovable property used for
the exercise of an independent profession.
Article 7
The profits of enterprises
1. The profits of an enterprise of a Contracting State shall be taxable only in that
State if the undertaking does not pursue its activities in the other Contracting State
through a permanent establishment that is located there. If
the enterprise carries on business in this way, the profits of the enterprise may be
taxed in the other State, but only to the extent that they can be
attributable to that permanent operationally.
2. If an enterprise of a Contracting State, carries on business in the
the other Contracting State through a permanent establishment that is there
placed, attach, subject to the provisions of paragraph 3 in any
Contracting State of such permanent establishment profits which could
so if it were a separate enterprise carried out the same or
similar activities under the same or similar conditions and was completely
independent contact with the enterprise of which it is a permanent establishment.
3. when calculating the profits of a permanent establishment shall be allowed to deduct the costs of
incurred for the purposes of the business of the permanent establishment, including Executive and
General administrative expenses, whether incurred in this way in the State
the permanent establishment is situated or elsewhere. However, such deduction
shall not be authorised for the amounts, if any, paid (otherwise than against
reimbursement of actual expenses) permanent establishment of the headquarters of the undertaking or
some other of his Office in the form of licence fees, refunds or
other similar payments in return for the use of patents or other rights, or
in the form of commissions for services rendered or for a separate control services
or, except in the case of the banking business, in the form of interest on the money
rented permanent establishment. Likewise, no account in the calculation of profits
the permanent establishment of the amounts charged (otherwise than against reimbursement of the actual
expenditure) permanent establishment of the enterprise headquarters or some other
the Office, in the form of licence fees, refunds or other similar
payments in return for the use of patents or other rights, or in the form of a Commission
particularly service rendered or for the control of the service or, except in the case
the banking company, in the form of interest on the money borrowed headquarter
or some other Office.
4. nothing in this article affects the application of any law of a Contracting
the State, as regards the determination of the tax liability of a person in cases where the
is the information that the competent authority of that State has available,
inadequate for the calculation of the profits to be attributed to a permanent
the establishment, provided that this law will be applied, if it
the information that is available to the competent authority permits, in accordance with the
the principles of this article.
5. If a Contracting State determine the gains that
to be attributed to a permanent establishment on the basis of allocation of the total
the profits of the enterprise to its various parts, nothing in paragraph 2 shall not preclude the
This Contracting State the profits to be taxed by the usual
the Division; the method of distribution must, however, be such that the result of the
in accordance with the principles laid down in this article.
6. no permanent establishment of nepřičtou gains based on the fact that
only goods for the company.
7. The profits to be attributed to a permanent establishment for purposes of
the preceding paragraphs shall each year, in the same way, if the
There are insufficient grounds for a different procedure.
8. where profits include the part of the income which are dealt with separately
in the other articles of this agreement, the provisions of those articles shall not affect the
the provisions of this article.
Article 8
Shipping and air transport
1. Profits from the operation of ships, boats or aircraft in international traffic
shall be taxable only in the Contracting State in which the place of
effective management of the enterprise.
2. If the place of effective management of shipping is on board
a ship or boat, it is considered located in the Contracting State in which the
is the home port of the ship or boat, or, if no such
the home port, in the Contracting State in which the operator of a ship or
the boat is a resident.
3. The provisions of paragraph 1 shall also apply to profits derived from the participation in the
pool, joint operation or an international operating organization.
Article 9
Associated enterprises
If
and the company) of a Contracting State participates directly or indirectly in the
management, control or capital of an undertaking of the other Contracting State, or
(b)) the same persons participate directly or indirectly in the management, control or
the assets of the enterprise of a Contracting State and enterprise of the other Contracting State
and if in these cases are both enterprises in their commercial or
financial relations terms that agree or they were
stored and which differ from those which would have been agreed upon between the
companies independent, can any profits which would, but for those
conditions have been accrued to one of the enterprises, but due to these
conditions were not achieved, be included in the profits of this business and
subsequently taxed.
Article 10
Dividends
1. dividends paid by a company which is resident in the same
Contracting State, to a person who is resident in the other Contracting State,
may be taxed in that other State.
2. However, such dividends may also be taxed in the Contracting State in
which is a company that is paid, a resident, and according to the laws
laws of that State, but if the recipient is the beneficial owner
dividends, the tax so determined shall not exceed 10% of the gross amount of the dividends.
The competent authorities of the Contracting States shall by mutual agreement settle the mode
the application of this restriction.
This paragraph shall not affect the taxation of the profits of the company, from which they are
dividends are paid.
3. the term "dividends" as used in this article means income from shares
or other rights, with the exception of receivables, with a share of the profits, as well as
income from other rights to companies which are subjected to the same
tax system, such as income from shares by the laws of the State in
which is a company that rozdílí profit, a resident.
4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of
of the dividends, being a resident in a Contracting State, carries on business in the
the other Contracting State in which the resident company paying
dividends, industrial or commercial activity through a fixed
the establishment, which is located there, or performs in that other State
independent profession from a permanent base located there and if the participation, for the
which the dividends are paid is effectively connected to such permanent establishment
or a permanent base. In such a case, the provisions of article 7
or article 14, depending on what matters.
5. Where a company which is resident in a Contracting State,
achieves profits or income from the other Contracting State, that
the second State to tax dividends paid by the company, unless such
dividends are paid to a resident of that other State or to participate,
for which the dividends are paid is effectively binds to a permanent establishment
or a permanent base, which is located in that other State, nor
subject to the company's retained profits tax on retained earnings
the company, even if the dividends paid or the undistributed profits
consists wholly or partly of profits or income with a source in the
that other State.
Article 11
Interest
1. interest arising in a Contracting State and paid to a resident of the
of the other Contracting State, may be taxed in that other State.
2. However, such interest may also be taxed in the Contracting State in which the
have a source, according to the laws of that State, but if the
the recipient is the beneficial owner of the interest, the tax so determined shall not exceed the
10% of the gross amount of the interest. The competent authorities of the Contracting States shall
by mutual agreement the mode of application of this limitation.
3. Notwithstanding the provisions of paragraph 2
and) interest arising in a Contracting State will be exempt from
taxation in that State, if they are actually received and owned by:
(i) a Government, a political subdivision or local úřademdruhého
Contracting State; or
(ii) the Central Bank of the other Contracting State;
(b)) interest arising in a Contracting State will be exempt from
taxation in this State, up to the amount approved by the Government of that State, if they are
sickness and actually owned by any person [other than that indicated in the
(a))], which is a resident of the other Contracting State, if the
the transaction under which the claim arises from, was in this sense
approved by the Government of the former Contracting State.
4. The term "interest" as used in this article means income from debt-claims
of any kind, whether or not secured by the law on the
real estate or whether or not carrying a right to participate in the debtor's profits
and in particular, income from government securities and income from bonds or
debentures, including premiums and fees associated with those securities,
bonds or bonds. Penalties imposed for late payment shall
not be regarded as interest for the purpose of this article.
5. The provisions of paragraphs 1, 2 and 3 shall not apply if the beneficial
owner of the interest, being a resident in a Contracting State, carries on business in the
the other Contracting State in which they have interest, industrial or source
business through a permanent establishment that is there
located, or performs in that other State independent of the profession of
a permanent base located there, and if the claim from which the interest
paid, it is actually tied to such permanent establishment or fixed base.
In such a case, the provisions of article 7 or article 14, as
of this, about what matters.
6. It is anticipated that interest to arise in a Contracting State when the
the payer is that State itself, a lower administrative unit, a local authority or
a resident of that State. However, if the payer of interest, whether or not
a resident of a Contracting State, has in a Contracting State a permanent
establishment or a fixed base in connection with which there has been a debt of
which are interest paid, and such interest shall be charged to such permanent
establishment or fixed base, it is assumed that such interest should
a source in the State in which the permanent establishment or fixed base
located.
7. If the amount of interest that are applicable to the claim from which they are
paid, exceeds as a result of special relationship between the payer and the
the beneficial owner or between both of them and some other person,
the amount you would have been had given the Bill-to customer is the beneficial owner, if
There was no such relationship, the provisions of this article shall apply only to that
latter amount. The amount of the payments, which will be in excess
this case taxed in accordance with the laws of each Contracting
State with regard to the other provisions of this Treaty.
Article 12
License fees
1. Royalties arising in a Contracting State and paid to the
a resident of the other Contracting State may be taxed in that other
Contracting State.
2. However, Such royalties may also be taxed in the Contracting
State in which they arise, and according to the laws of that State,
However, if the recipient is the beneficial owner of the royalties and
is a resident of the other Contracting State, the tax so determined shall not exceed the
10% of the gross amount of the royalties. The competent authorities of the Contracting States
adjusted by mutual agreement the mode of application of this limitation.
3. the term "royalties" as used in this article means payments
of any kind received as a consideration for the use of, or the right to use
any copyright for literary, artistic or
scientific, including cinematograph films, or films or recordings for
radio or television broadcasting, any patent, trade
mark, design or model, plan, secret formula or production
procedure, or for the use of, or the right to use, industrial, commercial
or scientific equipment, or for information, which apply to
experience gained in the field of industrial, commercial or scientific.
4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of
of the royalties, being a resident in a Contracting State,
carries on in the other Contracting State in which the royalties
source, industrial or commercial activity through a fixed
the establishment, which is located there, or performs in that other State
independent profession from a permanent base located there, and if the right or
assets that give the emergence of royalty actually bind to
such permanent establishment or fixed base. In that case, shall apply
the provisions of article 7 or article 14, depending on what matters.
5. It is assumed that the licence fees to arise in a Contracting State,
When the payer is that State itself, a lower administrative unit, a local authority
or a resident of that State. However, if the payer of royalties, whether
is, or is not a resident of a Contracting State, has in a Contracting
State a permanent establishment or a fixed base in connection with which it is established
the obligation to pay royalties, and these license fees go to the
borne by such permanent establishment or fixed base, it is assumed that
these license fees are to arise in the State in which the Permanent
the establishment or the fixed base is situated.
6. If the amount of the license fees that are related to the use,
law or information for which they are paid, exceeds the due
the special relationship between the payer and the beneficial owner or between both of
them and some other person, the amount which would have been had given the Bill-to customer is
the beneficial owner, if it wasn't for such relationships, the
the provisions of this article to the latter amount. The amount of the
payments that it exceeds, in this case, will be taxed in accordance with the
the laws of each Contracting State, taking into account the other
the provisions of this agreement.
Article 13
Gains from the alienation of property
1. the Profits that accrue to a resident of a Contracting State from the alienation of
immovable property referred to in article 6, which is located on the second
a Contracting State may be taxed in that other State.
2. Gains from the alienation of movable property forming part of the business property of a
a permanent establishment which an enterprise of a Contracting State in the other
Contracting State or of movable property belonging to the permanent base
by a resident of a Contracting State has in the other Contracting State for the
the purpose of the exercise of an independent profession, including such gains from the
the alienation of such a permanent establishment (alone or together with the whole enterprise)
or such a permanent base, may be taxed in that other State.
3. Gains from the alienation of ships, boats or aircraft operated in
international traffic, or movable property, that serves to operate the
such ships, boats or aircraft shall be taxable only in the Contracting
State in which the place of effective management of the enterprise.
4. the Profits that accrue to a resident of a Contracting State from the alienation of
shares or comparable participation in a company whose Fortune consists
wholly or principally of immovable property situated in the other Contracting
the State, may be taxed in that other State.
5. Gains from the alienation of any property, other than that referred to in
paragraphs 1, 2, 3 and 4, shall be taxable only in the Contracting State in which the
the alienator is a resident.
Article 14
An independent profession
1. Income derived by a resident of a Contracting State receives from the free
profession or other activities of an independent character, shall be subject to
taxable only in that State except in the following cases, when they can be
such income to be taxed in the other Contracting State:
and) if the fixed base regularly available in the other
a Contracting State for the purpose of carrying out its activities; in this case,
It may be in that other Contracting State taxed just a portion of the revenue,
attributable to that fixed base; or
b) if his stay in the other Contracting State for one or more
period exceeding in the aggregate 183 days in any 12-month period; in
this case may be taxed in that State only that portion of the income,
arising from its activities carried on in that other State.
2. The expression "liberal profession" includes especially independent activity
scientific, literary, artistic, educational or teaching, as well as
the independent activities of physicians, lawyers, engineers, architects, dentists and
accounting experts.
Article 15
Employment
1. a salaries, wages and other similar remuneration derived by a resident of a Contracting
the State is receiving due to employment, shall, subject to the provisions of
articles 16, 18, 19 and 20 taxable only in that State unless the employment is not
exercised in the other Contracting State. If there is a job to be exercised,
the rewards from it may be taxed in that other State.
2. remuneration which a resident of a Contracting State is receiving because of the
employment exercised in the other Contracting State, shall be subject to whatever
the provisions of paragraph 1, taxable only in the first-mentioned State if
all the following conditions are true:
and the recipient is resident in) other State for a period or multiple periods
shall not exceed in the aggregate 183 days in any 12-month period, and
(b)) the rewards are paid by the employer or by the employer, that
is not a resident of the other State, and
(c) the remuneration is not borne by) of a permanent establishment or a fixed base, which has
employer in the other State.
3. Notwithstanding the preceding provisions of this article may be rewards
received because of employment exercised aboard a ship or boat
the aircraft operated in international traffic are taxed in a Contracting State,
in which the place of effective management of the enterprise.
Article 16
Royalties
Directors ' fees and other similar payments to a resident of a Contracting State
he receives as a member of the Board of directors or any other similar authority
the company, which is resident in the other Contracting State, may be
taxed in that other State.
Article 17
Artists and athletes
1. Income derived by a resident of a Contracting State as to the
public entertainer, such as a theatre, film, radio or
television artist, or a musician, or as an athlete of such personally
activities in the other Contracting State, may be, regardless of the
the provisions of articles 14 and 15 of the taxed in that other State.
2. If the income from the activities carried out by the artist in person or
athlete accrues not artists or athletes, but to another person,
This revenue may be, notwithstanding the provisions of articles 7, 14 and 15
taxed in the Contracting State in which the activities of the artist or
athletes performed.
3. the revenue referred to in this article shall, notwithstanding the provisions
paragraphs 1 and 2 of this article shall be exempt from tax in the Contracting State in
which artist or athlete exercised, provided that the
This activity is covered by a substantial part of the public funds of this
State or of the other State or the activity is exercised on the basis of the
cultural agreement or arrangement between the Contracting States.
Article 18
Board
Pensions and other similar salaries paid by reason of past employment
a resident of a Contracting State shall, subject to the provisions of
Article 19, paragraph 2. 2 taxation only in that State.
Article 19
Public function
1.
and Remuneration other than pensions) paid by one Contracting State or lower
administrative unit or a local authority thereof to an individual in
services rendered to that State or an administrative subdivision or authority
shall be taxable only in that State.
(b) However, Such remuneration) are subject to taxation only in the other Contracting State,
If the services are rendered in that State and the individual who
is a resident of this State:
(i) is a national of that State; or
(ii) did not become a resident of that State for the provision of such
services.
2.
and pension paid by one) of any Contracting State or lower administrative
Department or local authority thereof or payable out of funds that
set up the physical person for services rendered to that State or an administrative
subdivision or authority shall be taxable only in that State.
(b) However, Such pension) are subject to taxation only in the other Contracting State,
If the individual is a resident of, and a national of that
the second Member State.
3. the provisions of articles 15, 16 and 18 shall apply to remuneration and pensions for services
proven in the context of industrial or commercial activities carried out by
any Contracting State or a political subdivision or local
the authority of this State.
Article 20
Students and apprentices
1. Payments which a student or an apprentice who is or was immediately
prior to his arrival in a Contracting State a resident of the other
a Contracting State and who is present in the first-mentioned State solely for the
the purpose of his education or training receives for the purpose of cost recovery
their food, education or training shall not be taxed in that State under the
provided that such payments are made to him from sources outside that
State.
2. As regards the aid, scholarships and remuneration from employment, to which the
not covered by paragraph 1, it will have a student or apprentice referred to in paragraph 1
Moreover, the claim in the course of this education or training to the same tax
the exemption, remission or reduction that pertain to residents of the State which
He visits.
Article 21
Other income
1. Part of the income of a resident of a Contracting State, wherever
anywhere, which are not dealt with in the foregoing articles of this
of the Treaty, shall be taxable only in that State.
2. The provisions of paragraph 1 shall not apply to income, other than income from
immovable property, which is defined in article 6 (1). 2 If the
the recipient of such income, being a resident in a Contracting State,
carries on in the other Contracting State having an industrial or commercial activity
through a permanent establishment situated therein, or performs
in that other State independent of the profession of a permanent base located there
and if the right or property in respect of which the income is paid is effectively
attaching to such permanent establishment or fixed base. In this case,
provisions of article 7 or article 14, depending on which case
it comes.
Article 22
Property
1. Capital represented by immovable property referred to in article 6, which
own a resident of a Contracting State and which is located on the second
a Contracting State may be taxed in that other State.
2. M ajetek, represented by movable property that is part of the business
property of a permanent establishment which an enterprise of a Contracting State in the
the other Contracting State or movable property, which belongs to the Permanent
the base, which is a resident of a Contracting State in the other Contracting
State in order to exercise an independent profession, may be taxed in the
that other State.
3. Capital represented by ships, boats and aircraft, which are
operated in international traffic and movable property used to
the operation of such ships, boats and aircraft shall be subject to taxation only in
the Contracting State in which the place of effective management of the undertaking.
4. All other elements of property of a resident of a Contracting State shall be subject to
tax only in that State.
Article 23
Methods of elimination of double taxation
1. In Vietnam, double taxation will be avoided as follows:
If a resident of Vietnam shall receive the income or profits or custom
assets that may be available under the law of the Czech Republic and in accordance with this
the contract taxed in the United Kingdom, Viet Nam shall authorise the credit on his tax on
These revenues or profits or assets equal to the tax
paid in the Czech Republic. The amount of the credit, however, shall not exceed the amount
Vietnamese tax revenue or profits from these or from those assets
calculated before it was credit provided in accordance with the tax
rules and regulations of Vietnam.
2. In the Czech Republic, double taxation will be avoided as follows:
and Czech Republic) may, when depositing taxes its residents included in the
the tax base from which such a tax imposed under the revenue or
assets that may be subject to the provisions of this Treaty also taxed
in Vietnam, however, allows to reduce the amount of tax calculated from such
an amount equal to the tax paid in Vietnam. The amount of the
the tax to be reduced, however, shall not exceed that part of the Czech taxes calculated before
the reduction, which rather falls on income or assets that
may be taxed in accordance with the provisions of this contract in Vietnam.
(b)) for the purposes of paragraph 2 (a). and this article will) consider that the
income tax paid to a resident of the United States in Vietnam on profits
the company achieved through a permanent establishment located in
Vietnam includes any amount of tax that would have been payable as
Vietnamese tax for any year but for an exemption or reduction of taxes
provided for that year or any part thereof under the provisions of
Vietnamese law intended to provide time-limited tax
credits to promote foreign investment in order to develop.
(c)) for the purposes of paragraph 2 (a). and this article will) consider that the
tax paid in Vietnam from dividends, which are covered by article 10 of the
paragraph. 2, out of interest, which is covered by article 11 (1) 2, and of
royalties, which are covered by article 12, paragraph 1. 2, a 10%
the gross amount of the dividends, to 10% of the gross amount of the interest, and 10%
the gross amount of the royalties.
Article 24
Prohibition of discrimination
1. nationals of a Contracting State shall not be subjected in the
the other Contracting State to any taxation or any requirement connected therewith
United, which is other or more burdensome than the taxation and connected with it
the obligations to which they are or may be subjected by nationals
This second State, in particular with respect to residence, in
the same situation. This provision shall, notwithstanding the provisions of article 1 of
also apply to persons who are not residents of one or both of the
of the Contracting States.
2. the taxation on a permanent establishment which an enterprise of a Contracting State has in the
the other Contracting State, that other State will not be less favourable than
taxation of enterprises of that other State carrying out the same activities.
This provision shall not be construed as an obligation of a Contracting State,
admitting to residents of the other Contracting State any personal relief,
discounts and reductions because of the status or obligations to the family,
which it grants to its own residents.
3. If you will apply the provisions of article 9, article 11, paragraph 2. 7
or article 12 para. 6, interest, royalties and other expenses
paid by the enterprise of a Contracting State to a resident of the other Contracting
State deductible for purposes of determining the taxable profits of this business
under the same conditions as if they had been paid to a resident of the first-mentioned
State. Similarly, any debts of an enterprise of a Contracting State in respect
a resident of the other Contracting State for the purposes of determining the
of the undertaking's taxable property deductible under the same conditions,
as if they had been contracted to a resident of the first-mentioned State.
4. enterprises of a Contracting State, the capital of which is wholly or partly,
directly or indirectly owned or controlled by one or more
residents of the other Contracting State, shall not be subjected in the first-mentioned
State to any taxation or any requirement connected therewith, which
is other or more burdensome than the taxation and connected requirements to which
are or may be subjected to other similar businesses of former
State.
5. the provisions of paragraphs 2 and 3 of this article shall not apply to the
tax on profit transfer and Vietnamese taxation of agricultural production
activities.
6. The provisions of this article shall apply only to taxes which are
covered by this agreement.
Article 25
Resolving cases by agreement
1. where a person considers that the actions of one or both of the Contracting
States lead or lead it to taxation not in accordance with the
the provisions of this agreement, he may, irrespective of the remedies
that provides the national law of those States, present your case
the competent authority of the Contracting State of which he is a resident or, if the
her case falls under article 24, paragraph 1. 1, the Office of the Contracting State of which the
He is a national. The case must be presented within three years from the first
notification of the measure, which leads to taxation, which is not in accordance with the
provisions of the Treaty.
2. If the competent authority of the objection to be justified and
If it is not itself able to find a satisfactory solution, it will try to
case solved by mutual agreement with the competent authority of the other Contracting
the State so as to avoid taxation which is not in accordance with this
the Treaty. Any agreement reached will be implemented regardless of the
any time limits in the domestic law of the Contracting
States.
3. the competent authorities of the Contracting States will together try to resolve
any difficulties or concerns that may arise in the interpretation of
or implementation of the contract. They may also consult together for the purpose of
Elimination of double taxation in cases not covered by the contract.
4. the competent authorities of the Contracting States may come in direct contact with a view to
reaching an agreement in the sense of the preceding paragraphs. If oral
Exchange of views appears to be effective for the achievement of the agreement, can such exchange
opinions to take place through the Commission, composed of representatives of
the competent authorities of the Contracting States.
Article 26
The exchange of information
1. the competent authorities of the Contracting States shall exchange the information necessary
for the implementation of the provisions of this agreement or of national laws
regulations of the Contracting States shall apply to the taxes which are the subject
The contract, if the taxation thereunder is not contrary to the agreement.
Exchange of information is not restricted by article 1. All information received
a Contracting State shall be kept secret in the same manner as
the information obtained under the domestic laws of that State
and will be disclosed only to persons or authorities (including courts and administrative
offices), dealing with the charge of the assessment or collection of taxes, the recovery of
or criminal prosecution in the case of taxes or making decisions on appeals in
relation to the taxes to which the Agreement applies. Such persons or authorities
such information shall be used only for such purposes. Can communicate these
the information in public court proceedings or in legal decisions.
2. The provisions of paragraph 1 shall not be in any way interpreted as
store a Contracting State the obligation:
and perform administrative measures) that would infringe on the laws and
the administrative practice of that or of the other Contracting State;
(b)) to provide information that could not be obtained on the basis of the
the laws or in the normal administrative proceedings of this or the other
Contracting State;
c) to supply information which would disclose any trade,
corporate, industrial, commercial or professional secret or of a commercial
procedure or 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 that pertain
diplomats or consular officials under the General rules of
of international law or under the provisions of special agreements.
Article 28
Entry into force
1. the Contracting States shall notify each other in writing through diplomatic channels that the
procedures required have been complied with their legal systems, to enter this
the Treaty enters into force. This agreement shall enter into force on the date of the later of the
These notifications.
2. This agreement shall be implemented by:
and) with regard to taxes withheld at source, to amounts received for 1.
January or later in the calendar year following the year in which the
The Treaty enters into force.
(b)) in respect of other taxes on income and property taxes, the taxes imposed by
for each tax year beginning with 1. January or later calendar year
following the year in which the Agreement enters into force.
Article 29
Notice of termination
This agreement shall remain in force until denounced by one
Contracting State. Each State party may terminate the contract
through diplomatic channels to the other Contracting State written submission the note about
termination at least six months before the end of each calendar year
beginning after the expiration of five years from the date of entry into force of the Treaty. In
this case, the contract ceases to perform:
and) with regard to taxes withheld at source, to amounts received for 1.
January or later in the calendar year following the year in which the
given notice of termination;
(b)) in respect of other taxes on income and property taxes, the taxes imposed by
for each tax year beginning with 1. January or later calendar year
following the year in which the notice of termination has been given.
In witness whereof, the duly authorised thereto, have signed this agreement.
Given in duplicate in Prague on 23. May 1997 in the Czech,
Vietnamese and English languages, all the texts are authentic.
In the case of differences of interpretation, the English text will be decisive.
For the Government of the United States:
Ing. Ivan Kočárník, CSc. v. r.
Deputy Prime Minister and Minister of finance
For the Government of the Socialist Republic of Vietnam:
Nguyen Sinh Hung in r.
the Minister of finance
