Treaty On Avoidance Of Double Taxation With Vietnam

Original Language Title: Smlouva o zamezení dvojího zdanění s Vietnamem

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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

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