Law On The Conclusion Of Double Taxation Treaty Between Denmark And The Czech Republic

Original Language Title: Lov om indgåelse af dobbeltbeskatningsoverenskomst mellem Danmark og Tjekkiet

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Annex 1








The full text of the Law on the conclusion of double taxation treaty between Denmark and the Czech Republic

WE, MARGRETHE the SECOND, by the grace of God Queen of Denmark, do indeed:

The Danish Parliament has adopted and we know Our consent confirmed the following law: § 1. The provisions of the agreement of 25. August 2011 between the Kingdom of Denmark and the Czech Republic for the avoidance of double taxation and prevention of tax evasion with respect to income taxes, associated with the Protocol referred to in article 6. Annex 1, applies here in the country.

§ 2. Tax Minister shall determine the time of the entry into force of the Act.

§ 3. For individuals, as the 14. November 2012 was domiciled in the Czech Republic and on this date received pension derived from Denmark, covered by article 18, paragraph 1, or article 21, paragraph 1, of the agreement of 5. May 1982 between Denmark and Czechoslovakia on avoidance of double taxation with respect to taxes on income and on capital, pension, covered by article 17, paragraph 2, of the Convention, referred to in paragraph 1, taxable only in Czech Republic. 1. paragraph shall only apply as long as the person concerned remains resident in the Czech Republic.

Given at Christiansborg Palace, the 18. December 2012 Under Our Royal hand and Seal MARGRETHE r./Holger k. Nielsen



Annex 1 AGREEMENT

BETWEEN THE KINGDOM OF DENMARK AND THE CZECH REPUBLIC FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO INCOME TAXES

The Kingdom of Denmark and the Czech Republic, who wishes to terminate an agreement for the avoidance of double taxation and prevention of tax evasion with respect to income taxes,

have agreed upon the following:

Article 1

PERSONS COVERED BY THE AGREEMENT

This agreement shall apply to persons who are residents of one or both of the Contracting States.

Article 2

TAXES COVERED BY THE AGREEMENT

1. This agreement shall apply to income taxes levied on behalf of a Contracting State or of its political subdivisions or local authorities, irrespective of the manner in which they are levied.

2. Which income taxes are to be regarded as all taxes levied all income or part of income, including taxes on profits from the sale of movable or immovable property, taxes on the total amounts of wages or salaries paid by enterprises, as well as taxes on capital appreciation.

3. The existing taxes to which the agreement shall apply are: (a)) in Denmark:



(i) the income tax to the State;



(ii) the municipal income tax;





(hereinafter referred to as ' the Danish tax ');



(b)) in the Czech Republic:



(i) the income tax on individuals;



(ii) the income tax on legal persons;





(hereinafter referred to as ' Czech tax ').

4. The agreement shall also apply to the taxes of the same or substantially the same kind after the date of signature of the agreement, which is imposed in addition to, or instead of, the existing taxes. The competent authorities of the Contracting States shall notify each other of important changes which have been made in their respective tax laws.

Article 3

COMMON DEFINITIONS

1. Unless otherwise stated in the context, the following terms in this agreement have the meaning specified below: a) the terms "a Contracting State" and "the other Contracting State '' means Denmark or the Czech Republic, depending on context;



(b)) the term ' Denmark ' means the Kingdom of Denmark including any area outside the territorial sea of Denmark which in accordance with international law and according to Danish law is or later may be designated as an area within which Denmark may exercise sovereign rights with respect to the exploration and exploitation of natural deposits on the seabed or its subsoil and the overlying waters and with regard to other activities for the purpose of exploration and economic exploitation of the area; the term does not include the Faroe Islands and Greenland;



c) whereas the term ' Czech Republic ' means the territory of the Czech Republic, of which the Czech Republic in accordance with Czech legislation and in accordance with international law, exercises sovereign rights;



(d)) the term ' person ' includes an individual, a company and any other Association of persons;



(e)), the term ' company ' means any legal person or any association, which for tax purposes is treated as a legal person;



f) the term ' undertaking ' is used on any kind of professional activity;



g) the terms "enterprise of a Contracting State" and "enterprise of the other Contracting State" mean respectively an enterprise operated by a person who is domiciled in a Contracting State and an enterprise operated by a person who is resident in the other Contracting State;



(h) the term "international traffic") means any transport by ship or aircraft used by an undertaking whose real leadership has its seat in a Contracting State, except where the ship or aircraft are used exclusively between places in the other Contracting State;



in) the term ' competent authority ' means:



(i) in Denmark:





skatteministeren or his authorized delegate;



(ii) in the Czech Republic:





the Minister of finance or his authorized delegate;



(j)), the term ' citizen ' means:



(i) any natural person who has the nationality of a Contracting State;



(ii) any legal person, any partnership or any association that consists in force of the legislation in force in a Contracting State;



k) whereas the term ' economic activities ' shall include the exercise of free professions and of other activities of an independent character.

2. when a Contracting State-application of the agreement at any time, any term not defined herein, unless otherwise follows from the context, be attributed to the importance, as it has at this point in the legislation of that State for the purposes of the taxes to which the agreement applies, any meaning in this state tax laws must precede the meaning, this expression is attributed in that State's other laws.

Article 4

TAX HOME

1. In this agreement the term ' means a person who is domiciled in a Contracting State ' shall mean any person who, under the law of that State, is liable to tax therein by reason of domicile, residence, seat of management or any other criterion of a similar nature, and also includes that State and any political subdivision or the corresponding local authority. This term does not, however, a person who is liable to tax in that State only of income from sources in that State.

2. If a natural person in accordance with the provisions of paragraph 1 is a resident of both Contracting States, his status shall be determined according to the following rules: (a)), he shall be deemed to be a resident only of the State in which he has a permanent home available; If he has a permanent home available in both States, he shall be deemed to be a resident only of the State in which he has the strongest personal and economic relations (at the Centre of his life interests);



(b)) if it cannot be determined, in which State he has at the Centre of his life interests, or if he has not a permanent home available in any of the States, he shall be deemed to be a resident only of the State in which he habitually resides;



c) if he has usually stay in both States, or if he does not have such stay in any of them, he shall be deemed to be a resident only of the State in which he is a national;



d) if he is a national of both States, or if he is not a national of any of them, the competent authorities of the Contracting States shall settle the question by mutual agreement.

3. If a non-physical person in accordance with the provisions of paragraph 1 is a resident of both Contracting States, it shall be deemed to be a resident only of the State in which the seat of the real management exists.

Article 5

PERMANENT ESTABLISHMENT

1. In this agreement the term ' permanent establishment ' means a fixed place of business through which the business of an enterprise wholly or partly carried on.

2. The term "permanent establishment" includes especially: (a)) a place from where part of an undertaking is managed;



b) a branch;



c) an Office;



d) a factory;



e) a workshop;



f) a mine, an oil or gas well, a quarry or any other place where natural deposits are mined.

3. The term "permanent establishment" also includes: a) a building site or a construction, Assembly or installation work or associated regulatory activities, but only where such a space, work or activities lasts for more than 12 months;



(b)) the supply of services, including advisory or management assistance, by an enterprise of a Contracting State or by using employees or other personnel engaged by the enterprise for that purpose, but only where activities of that nature continue in the territory of the other Contracting State for a period or periods that are combined represents more than 6 months within a 12-month period.


4. An installation, a drilling rig or ship used for the exploration of natural occurrences, shall be deemed to constitute a permanent establishment, but only if the company persists for more than 12 months. For the purposes of this provision, the business carried on by an enterprise associated with another enterprise shall be regarded as carried on by the enterprise with which it is associated if the activities in question: (a)) is essentially the same as that carried on by the latter undertaking, and



(b)) are involved in the same project or the same operation, unless those activities carried on at the same time. For the purposes of this paragraph, entities are deemed to be associated if one enterprise directly or indirectly share in the management of, control over, or capital of another undertaking, or the same persons directly or indirectly share in the management of, control over, or capital of both enterprises.

5. Notwithstanding the preceding provisions of this article, the term ' permanent establishment ' shall be deemed not to include: a) the use of facilities solely for the purpose of storage or display of goods belonging to the enterprise;



(b)) the maintenance of a stock in trade related undertaking solely for the purpose of storage or display;



(c)) the maintenance of a stock in trade solely for the purpose of undertaking processing associated with another undertaking;



d) the maintenance of a fixed place of business solely for the purpose of making the procurement of any goods or collect information for the enterprise;



e) the maintenance of a fixed place of business solely for the purpose of exercising any other business of the preparatory or auxiliary character, for the enterprise;



f) the maintenance of a fixed place of business solely for the purpose of exercising any combination of the activities mentioned in (a) to (e), provided that the permanent establishment overall business resulting from this combination is of a preparatory or auxiliary character.

6. If a person who is not an independent representative as referred to in paragraph 7, is acting in a Contracting State on behalf of an enterprise of the other Contracting State shall, notwithstanding the provisions referred to in this enterprise piece 1 and 2 are deemed to have a permanent establishment in the first-mentioned State with respect to any activities which that person undertakes for the enterprise If that person: (a)) have and usually engaged in this State in a full power to enter into contracts in the name of the undertaking, unless this person's business is limited to such undertaking, as referred to in paragraph 5, and which, if it was exercised through a fixed place of business, would not make this fixed place of business a permanent establishment under the provisions of this paragraph; or



(b)) do not have such a power of Attorney, but usually in the first-mentioned State from maintaining an inventory, from which he regularly hands over goods on behalf of the enterprise.

7. An enterprise shall not be deemed to have a permanent establishment in a Contracting State merely because it operates the business in that State through a broker, the Commissioner or any other independent representative, provided that such persons are acting within the scope of their normal professional activities.

8. the fact that a company which is domiciled in a Contracting State, master or dominated by a company which is a resident of the other Contracting State, or which operates business in that other State (whether through a permanent establishment or otherwise), shall not of itself cause that one company is considered a permanent establishment of the other.

Article 6

INCOME OF REAL ESTATE

1. Income, as a person who is domiciled in a Contracting State, the acquirer of the immovable property (including income from agriculture or forestry) situated in the other Contracting State, may be taxed in that other State.

2. the term ' property ' must be attributed to the importance it has in the law of the Contracting State in which the property in question is situated. The term shall in any case include accessory to immovable property, crew, and equipment used in agriculture and forestry, rights to which the provisions of civil law relating to immovable property apply, usufruct of immovable property and rights to variable or fixed payments as consideration for the use of, or the right to exploit, my instances, sources and other natural occurrences; ships and aircraft shall not be regarded as immovable property.

3. the provisions of paragraph 1 shall apply to income derived from the direct use, rent or use in any form of real estate.

4. the provisions of paragraphs 1 and 3 shall also apply to the income from immovable property belonging to an undertaking.

Article 7

PROFITS FROM BUSINESS ACTIVITIES

1. Profit, as acquired by an enterprise of a Contracting State shall be taxable only in that State unless the enterprise operates professional activities in the other Contracting State through a permanent establishment situated therein. If the undertaking operates the aforementioned business activities, can the operator's profit is taxed in the other State, but only the part thereof as is attributable to that permanent establishment.

2. where an enterprise of a Contracting State operates business in the other Contracting State through a permanent establishment situated therein, there shall, unless the provisions of paragraph 3 entails the other, in each Contracting State be attributed to that permanent establishment the profits which it might be expected to achieve, if it had been a free and independent undertaking was engaged in the same or similar activities under the same or similar conditions and as in full free relationship did business with the entity, if it is a permanent establishment.

3. for the appointment of a permanent establishment profits shall be allowed to deduct the costs incurred for the permanent establishment, including general expenses incurred for management and administration, whether the costs are incurred in the State in which the permanent establishment is situated or elsewhere.

4. No profits shall be attributed to a permanent establishment, simply because this establishment has made procurement of products for the enterprise.

5. for the purposes of the preceding paragraphs, the profits attributable to the permanent establishment shall be valued according to the same method year by year unless there is good and sufficient reason to use a different approach.

6. where profits include income referred to separately in other articles of this agreement, the provisions of those articles shall not be affected by the provisions of this article.

Article 8

PROFIT FROM INTERNATIONAL TRAFFIC

1. Profits from operations of ships or aircraft in international traffic may be taxed in the Contracting State in which the operator's real leadership has its seat.

2. for the purposes of this article, profits from operations of ships or aircraft in international traffic include: a) profit by renting out of ships or aircraft with crew (' time ' or ' voyage '),



b) profit by renting out of ships or aircraft without crew (' bareboat '), and



c) profit from use, making available or rental of containers (including trailers, barges and similar equipment for the transport of containers) used for the transport of goods.

3. the provisions of paragraph 1 shall also apply to profits from the participation in a pool, a business community or an international operating agency.

4. If enterprises from different countries have agreed to operate ships or aircraft in international traffic through a Business Consortium, the provisions of this article shall apply only to that part of the profits as corresponds to the share of the Consortium, which is owned by an enterprise with the seat of the real management in a Contracting State.

Article 9

ASSOCIATED ENTERPRISES

1. If a) an enterprise of a Contracting State participates directly or indirectly in the management of, control over, or capital of an undertaking in the other Contracting State, or



(b)) the same persons participate directly or indirectly in the management of, control over, or capital of an enterprise of a Contracting State, as well as an undertaking in another Contracting State, and in some of these cases between the two undertakings has been agreed or laid down conditions relating to their commercial or financial relations which differ from the terms, which would have been agreed between independent undertakings , any profits, as if these terms had not been available, would be given to this, shall be taken into account for this enterprise profit and taxed accordingly.

2. If a Contracting State to a firm profit in this State considers – and taxes accordingly – profits on which an enterprise of the other Contracting State has been taxed in that other State and the profits so included are profits which would have accrued to the enterprise of the first-mentioned State if the conditions agreed between the two enterprises had been those same which would have been agreed between independent enterprises, then that other State shall make an appropriate adjustment of the tax amount calculated there of the profit. In determining such adjustment due regard shall be had to the other provisions of this agreement and the competent authorities of the Contracting States shall if necessary consult each other.

Article 10

YIELD


1. Dividends paid by a company which is domiciled in a 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 the company that payor, a resident, and according to the legislation of that State, but if the beneficial owner of the dividends is a resident of the other Contracting State, the tax does not exceed pålignede as follows: (a)) 0% of the gross amount of the dividends if the beneficial owner is a company (other than a partnership) , which directly owns at least 10 per cent of the capital of the company paying the dividend.



b) 0% of the gross amount of the dividends if the beneficial owner is a pension fund or other similar institution, providing a pension scheme, as natural persons can join in order to secure retirement benefits when such a pension fund or other similar institution providing a scheme that is recognised for tax purposes in that other State in accordance with article 17, paragraph 2.



c) 15 per cent of the gross amount of the dividends in all other cases.

The competent authorities of the Contracting States shall by mutual agreement determine the detailed rules for the implementation of these restrictions.

This paragraph shall not affect access to tax the profits of the company, of which the dividend is paid.

3. The term "dividends" as used in this article means income from shares or other rights, not being debt-claims, and which give a right to share in profits, as well as other income, which is subject to the same taxation treatment as income from shares under the laws of the State of which the company making the payment is located.

4. the provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of dividends, which is domiciled in a Contracting State operates the business activities in the other Contracting State of which the company paying the dividends is a resident, through a permanent establishment situated therein, and the holding in respect of which the payment of the proceeds, directly connected with such permanent establishment. In such a case, the provisions of article 7 shall apply.

5. where a company which is domiciled in a Contracting State, acquires profits or income from the other Contracting State, that other State may not impose on any tax on the dividends paid by the company, unless the proceeds shall be paid to a person who is a resident of that other State, or unless the shareholding, which are the basis for the disbursement of the proceeds, directly connected with a permanent establishment situated in that other State, or make the company's non-distributed profits of a tax on the company's non-distributed profits, even if the dividends paid or the non-distributed profit consists wholly or partly of profits or income arising from that other State.

Article 11

INTEREST RATES

1. Interest generated from a Contracting State and legitimately owned by a person who is resident in the other Contracting State, may be taxed in that other State only.

2. The term "interest" means income from debt-claims in this article of any kind, whether they are secured by a mortgage on immovable property or not, and whether they have a right to a share in the debtor's profits or not, and in particular income from bills and income from bonds or the promissory notes, including agiobeløb and gains associated with such debt securities , bonds or the promissory notes. Penalty surcharge by late payment shall not be regarded as interest in relation to this article. The term "interest" shall not include any item of income, as deemed dividend under article 10, paragraph 3.

3. the provisions of paragraph 1 shall not apply where the rivals ' rightful owner who is domiciled in a Contracting State operates the business activities in the other Contracting State in which the interest arises, through a permanent establishment situated therein, and the debt-claim, which underlie any unpaid interest, directly connected with such permanent establishment. In such a case, the provisions of article 7 shall apply.

4. Interest shall be deemed to arise from a Contracting State, when they are paid by a person who is a resident of that Contracting State. If the person paying the interest, whether he is domiciled in a Contracting State or not, has a permanent establishment in a Contracting State, in connection with which the debt-to-GDP ratio, of which the interest is paid, was founded, and such interest shall be the responsibility of such a permanent establishment However, such interest shall be deemed to arise from the Contracting State in which the permanent establishment is situated.

5. If a special connection between the payor and the beneficial owner or between these and a third person has resulted in interest rates seen in relation to the debt-claim for which it is paid, exceeds the amount which would have been agreed between the payer and the beneficial owner, if such a connection had not been available, the provisions of this article shall apply only to the last-mentioned amount. In that case, the excess amount is taxed in accordance with the legislation of each of the Contracting States, with due regard to the other provisions of this agreement.

Article 12

ROYALTIES

1. Royalties arising from a Contracting State and paid to a person who is resident in the other Contracting State, may be taxed in that other State.

2. Royalties referred to in paragraph 3, subparagraphs (a), however, may also be taxed in the Contracting State from which they are derived, and in accordance with the legislation of that State, but if the beneficial owner of the royalties is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the gross amount of the royalty amount.

The competent authorities of the Contracting States shall by mutual agreement determine the detailed rules for the implementation of this restriction.

3. The term "royalties" in this article means payments of any kind received as a consideration for the use of, or the right to use: (a)), any patent, trade mark, design or model, plan, secret formula or method of production, computer software or any industrial, commercial or scientific equipment or for information concerning industrial, commercial or scientific experience;



(b)) any copyright to a literary, artistic or scientific work, including cinematograph films and films or tapes designed to broadcast in television or radio.

The term ' royalties ' does not, however, cover income covered by article 8.

4. the provisions of paragraphs 1 and 2 shall not apply if the beneficial owner, that is the amount of the royalty domiciled in a Contracting State operates the business activities in the other Contracting State in which the royalty amount arises, through a permanent establishment situated therein, and the right that lies at the root of the royalties paid, directly connected with such permanent establishment. In such a case, the provisions of article 7 shall apply.

5. Royalties shall be deemed to arise from a Contracting State, when they are paid by a person who is a resident of that Contracting State. If the person who pays the amount of the royalties, whether he is domiciled in a Contracting State or not, has a permanent establishment in a Contracting State, in connection with which the obligation to pay the royalty amount was founded, and such royalties shall be the responsibility of such a permanent establishment However, such royalties shall be deemed to arise from the Contracting State in which the permanent establishment is situated.

6. If a special connection between the payor and the beneficial owner or between these and a third person has caused the royalty amount seen in relation to the use, right or information for which it is paid, exceeds the amount which would have been agreed between the payer and the beneficial owner, if such a connection had not been available, the provisions of this article shall apply only to the last-mentioned amount. In that case, the excess amount is taxed in accordance with the legislation of each of the Contracting States, with due regard to the other provisions of this agreement.

Article 13

CAPITAL GAINS

1. the net profit, as a person who is domiciled in a Contracting State, acquired through the sale of immovable property, as referred to in article 6 and situated in the other Contracting State, may be taxed by that other State.

2. Profits from the sale of movable property forming part of the business assets of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State, including profits from the sale of such a permanent establishment (separately or together with the whole enterprise), may be taxed in that other State.

3. Profit on the sale of ships or aircraft used in international traffic, or movable property, which belongs to the operation of such ships or aircraft, can only be taxed in the Contracting State in which the operator's real leadership has its seat.

4. Profit on the sale of containers (including trailers, barges and similar equipment for the transport of containers) used for the transport of goods in international traffic, may be taxed in the Contracting State in which the operator's real leadership has its seat.


5. Profit as a person who is domiciled in a Contracting State, acquired through the sale of shares or other rights, whose value for more than 50 per cent s he/she directly or indirectly derived from immovable property situated in the other Contracting State, may be taxed in that other State.

6. Profit on the sale of all assets other than those referred to in paragraphs 1, 2, 3, 4 and 5 can only be taxed in the Contracting State of which the alienator is a resident.

7. If enterprises from different countries have agreed to operate ships or aircraft in international traffic through a Business Consortium, the provisions of this article shall apply only to that part of the profits as corresponds to the share of the Consortium, which is owned by an enterprise with the seat of the real management in a Contracting State.

Article 14

INCOME FROM PERSONAL WORK IN THE EMPLOYMENT RELATIONSHIP

1. subject to the provisions of articles 15, 17 and 18 causes second, gage, wages and other similar remuneration, which is acquired by a person who is domiciled in a Contracting State for personal work only be taxed in that State, unless the work is performed in the other Contracting State. Is the work performed there, can the remuneration obtained therefor, be taxed in that other State.

2. Notwithstanding the provisions of paragraph 1, remuneration which can be acquired by a person who is domiciled in a Contracting State for personal work performed in the other Contracting State, only subject to taxation in the first-mentioned State, if all the following conditions are met: (a)) the receiver performs personal work in the other State in one or several periods which together do not exceed 183 days in a 12-month period that begins or ends in the tax year, and



(b) the remuneration is paid by, or on behalf of) an employer who is not a resident of the other State, and



(c)) the royalty is not for a permanent establishment which the employer has in the other State.

3. In determining periods, as referred to in paragraph 2 (a), account shall be taken of the following days: (a)) all days with physical presence, including arrival and departure days, and



b) days spent outside the State in which the work is performed, so personal as Saturdays and Sundays, national holidays, holidays and business trips, which are directly related to the recipient's personal work in this State, but which is made after the end of the recipient's activity on the territory of that State.

4. Paragraph 2 shall not apply to remuneration, which is acquired by a person who is domiciled in a Contracting State for personal work performed in the other Contracting State and where the royalty paid by, or on behalf of, an employer who is not a resident of that other State if: a the recipient performs duties) during that personal work for someone other than the employer supervises, directly or indirectly, supervises or controls the manner in which these duties are carried out; and



(b)) the employer is not responsible for the provision of the results, as they performed the task must ensure.

5. Notwithstanding the preceding provisions of this article, remuneration for personal work performed aboard a ship or aircraft used in international traffic, be taxed in the Contracting State in which the operator's real leadership has its seat.

6. Notwithstanding the provisions of paragraph 5, the income obtained from a permanent establishment situated in Denmark by the Danish, Norwegian and Swedish air transport Consortium Scandinavian Airlines System (SAS) for personal work aboard an aircraft in international traffic, will be taxed in Denmark.

Article 15

DIRECTORS ' FEES

Directors ' fees and other similar remuneration, which is acquired by a person who is domiciled in a Contracting State in his capacity as a member of the Board of directors or any other similar organ of a company which is a resident of the other Contracting State, may be taxed in that other State.

Article 16

ARTISTS AND ATHLETES

1. Notwithstanding the provisions of articles 7 and 14, income which can be acquired by a person who is domiciled in a Contracting State, as performer, such as theater, film, radio or television artist, or a musician, or as an athlete by his personally operated as such in the other Contracting State, be taxed in that State.

2. If income from personal activity as a performer or athlete, does not accrue to the artist or athlete himself, but another person, that income may, notwithstanding the provisions of articles 7 and 14, be taxed in the Contracting State in which the artists or sportsmen company is exercised.

Article 17

PENSIONS, SOCIAL SECURITY BENEFITS AND SIMILAR PAYMENTS

1. Except where the provisions of article 18, paragraph 2, second, can result in payments, as a natural person who is domiciled in a Contracting State receives for the social security legislation of the other Contracting State or by any other arrangement from funds provided by that other State or a political subdivision or local relevant authority, be taxed in that other State.

2. except where the provisions of paragraph 1 of this article and article 18, paragraph 2, second, can result in pensions and other similar remuneration derived by a Contracting State and paid to a person who is resident in the other Contracting State, whether this is done for past services or not, only be taxed in that other Contracting State pensions and other similar remuneration may, however, be taxed in the first-mentioned Contracting State If the scheme is recognised for tax purposes in that State, meaning that: a) contributions paid by the consignee to the pension scheme are deducted in whole or in part the beneficiary's taxable income in that Member State under the legislation of that State; or



(b)) the full contribution paid by an employer are not included in the recipient's taxable income in that Member State under the legislation of that State.

Article 18

PUBLIC FUNCTIONS 1.





(a))





Salary, wages and other similar remuneration paid by a Contracting State or a political subdivision thereto or a local authority thereof to an individual for the execution of the duties of that State or subdivision or authority may be taxed in that State.





 



(b))





How to gage, payroll or other similar remuneration may however only be taxed in the other Contracting State if the duties are performed in this State, and that is a person resident in that State, that:





 

 



(i)





is a national of that State; or





 

 



(ii)





was not a resident of that State solely for the purpose of conducting duties.





 

 

 

 





2.





(a))





Notwithstanding the provisions of paragraph 1, pensions and other similar remuneration paid by a Contracting State or a political subdivision thereto or a local authority thereof, or from funds provided by these to a natural person for carrying out duties for that State or subdivision or authority may be taxed in that State only.





 



(b))





Such pensions and other similar remuneration may however only be taxed in the other Contracting State if the recipient is a resident of, and a national of this State.











3. The provisions of articles 14, 15, 16 and 17 shall apply to gage, payroll, pensions and other similar remuneration paid for the performance of duties in connection with business activities operated by a Contracting State or a political subdivision thereto or a local authority thereof.

Article 19

STUDENTS

Amounts received for the purpose of subsistence, study or similar training of a student or an apprentice who is, or immediately before visiting a Contracting State was domiciled in another Contracting State, and who are staying in the first-mentioned State exclusively in the study or educational purposes, not subject to taxation in that State, provided that such amounts arise from sources outside that State.

Article 20

OTHER INKOMSTER

1. Incomes acquired by a person who is domiciled in a Contracting State and which are not dealt with in the foregoing articles of this agreement, can, no matter from where they come, only be taxed in that State.


2. the provisions of paragraph 1 shall not apply to income, other than income from immovable property as defined in article 6, paragraph 2, if the Contracting State a resident of the recipient of such income driver business in the other Contracting State through a permanent establishment situated therein and the right or property in respect of which the income is paid to the , directly connected with such permanent establishment. In such a case, the provisions of article 7 shall apply.

Article 21

THE ELIMINATION OF DOUBLE TAXATION

1. In Denmark double taxation shall be avoided as follows: a) If a person who is resident in Denmark, acquired income, which in accordance with the provisions of this agreement may be taxed in the Czech Republic, Denmark, unless the provisions of subparagraph (c) leads to the second, set up that person's income tax by an amount equal to the income tax paid in the Czech Republic.



(b)) this reduction may not, however, exceed that part of the income tax rate, calculated before the deduction is given, which is attributable to the income which is taxed in the Czech Republic.



c) If a person who is resident in Denmark, acquired income, which in accordance with the provisions of this agreement may be taxed only in the Czech Republic, Denmark may include this income in the tax base, but must reduce income taxes with the share of income tax, which is attributable to the income derived from the Czech Republic.

2. except where the provisions of the Czech Republic's legislation on avoidance of double taxation, double taxation, other causes for a person who is resident in the Czech Republic, be avoided as follows: a) the Czech Republic can, when the tax persons who are resident in the Czech Republic take into income in the tax base, which in accordance with the provisions of this agreement may also be taxed in Denmark but should reduce the incremental income tax by an amount equal to the income tax paid in Denmark. This reduction may not, however, exceed that part of the Czech tax, as calculated before the deduction is given, which is attributable to the income which, in accordance with the provisions of this agreement may be taxed in Denmark.



b) If a person who is resident in the Czech Republic, acquires income, which in accordance with the provisions of this agreement can only be taxed in Denmark, the Czech Republic may include this income in the tax base, but must reduce income taxes with the share of income tax, which is attributable to the income derived from Denmark.

Article 22

NON-DISCRIMINATION

1. Nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or related requirements that are different or more burdensome than the taxation and connected requirements to which nationals of that other State under the same conditions, particularly with regard to tax home, is or may be subject. Notwithstanding the provisions of article 1, this provision also apply to persons who are not residents of one or both of the Contracting States.

2. Stateless persons who are residents of a Contracting State may not in any of the Contracting States shall be subject to any taxation or related requirements that are different or more burdensome than the taxation and connected requirements to which nationals of the State in question under the same circumstances, in particular with regard to tax home, is or may be subject.

3. the taxation on a permanent establishment which an enterprise of a Contracting State has in the other Contracting State, shall not be less advantageous in that other State than the taxation of undertakings in that other State, which operates the same business. This provision shall not be interpreted as binding a Contracting State to grant to individuals who are resident in the other Contracting State, the personal tax concessions, concessions and reductions, as the resulting from marital or dependent family admits persons resident within its own territory.

4. Except where the provisions of article 9, paragraph 1, article 11, paragraph 5, article 12, paragraph 6, or apply, interest, royalties and other disbursements paid by an enterprise of a Contracting State to a person who is resident in the other Contracting State, shall be deducted when calculating the taxable income of such an undertaking, under the same conditions as if they had been paid to a person who is a resident of the first-mentioned State.

5. Enterprises of a Contracting State, whose capital wholly or partly owned or controlled, directly or indirectly, by one or more persons who are resident in the other Contracting State, not in the former State shall be subject to any taxation and related requirements that are different or more burdensome than the taxation and connected requirements to which other similar enterprises of the first-mentioned State are or may be subject.

6. Notwithstanding the provisions of article 2, the provisions of this article shall apply to taxes of every kind and description.

Article 23

THE PROCEDURE FOR THE CONCLUSION OF RECIPROCAL AGREEMENTS

1. where a person considers that the actions taken by one or both of the Contracting States for him makes it or will result in taxation not in accordance with the terms of this agreement, he may, irrespective of the remedies that may be required by those States ' internal law may refer his case to the competent authority of the Contracting State of which he is a resident or If his case is covered by article 22, paragraph 1, of the competent authority, of which he is a national. The case must be brought within 3 years from the day on which there is given him the first notification of the action resulting in taxation not in accordance with the terms of this agreement.

2. the competent authority must, where the opposition seems to be justified and if it is not itself able to reach a reasonable solution, seek to resolve the case by mutual agreement with the competent authority of the other Contracting State for the purpose of avoiding taxation, which is not in accordance with this agreement. Any agreement must be implemented without regard to the time limits set in the Contracting States ' internal legislation.

3. The competent authorities of the Contracting States must apply by mutual agreement to solve difficulties or doubts that might arise concerning the interpretation or application of this agreement. They can also negotiate on the avoidance of double taxation in cases not provided for in the agreement.

4. The competent authorities of the Contracting States may enter into direct connection with each other, including through a joint Commission consisting of themselves or their representatives, with a view to the conclusion of an agreement in accordance with the preceding paragraphs.

Article 24

THE EXCHANGE OF INFORMATION

1. The competent authorities of the Contracting States shall exchange such information as can be predicted to be relevant for the implementation of the provisions of this agreement or to the administration or enforcement of internal legislation concerning taxes of every kind and description imposed on behalf of the Contracting States or their political subdivisions or local authorities, insofar as such taxation is not contrary to the agreement. The exchange of information is not restricted by articles 1 and 2.

2. Any information that a State party has been received pursuant to paragraph 1 must be kept secret in the same manner as information obtained under the domestic law of that State and shall be granted only to persons or authorities (including courts and administrative authorities) involved in the equation, collection, enforcement, prosecution or settlement of complaints with respect to the taxes referred to in paragraph 1, or the oversight of the above. Such persons or authorities shall use the information only for such purposes. They must notify the information under public acts or judgments. Regardless of the front listed can information that a State party has received, be used for other purposes when such information may be used for such other purposes under the laws of both States and provided that the competent authority of the State, that provides information, gives permission to do so.

3. the provisions of paragraphs 1 and 2 may in no case be interpreted as imposing an obligation to a Contracting State: (a)) to carry out administrative acts contrary to this or the other Contracting State legislation and administrative practice;



(b)) to provide information that cannot be obtained in accordance with the provisions of this or the other Contracting State or normal administrative practice;



c) to supply information which would disclose any commercial, business, industrial, commercial or professional secret or information whose disclosure would be contrary to the public interest (' ordre public ').


4. If a State party requesting information in accordance with this article, the other Contracting State shall use its measures for the collection of information in order to obtain the information requested, even though that other State may not need such information for its own tax purposes. The obligation under the preceding sentence shall apply without prejudice to the limitations of paragraph 3 but in no case shall such limitations be construed that they make it possible for a Contracting State to decline to supply information solely because it does not even have any fiscal interest in such information.

5. In no case shall the provisions of paragraph 3 be interpreted as meaning that they make it possible for a Contracting State to decline to supply information solely because the information is held by a bank, other financial institution, representative, or a person acting in the capacity of authorized or as trustee, or because the information relates to the ownership of a person.

Article 25

MEMBERS OF DIPLOMATIC MISSIONS AND CONSULAR POSTS

Nothing in this Agreement shall affect the fiscal privileges of members of diplomatic missions or consular offices shall enjoy, in accordance with the General rules of international law or special agreements.

Article 26

TERRITORIAL EXTENSION

1. This agreement, either in its entirety or mutatis mutandis extended to any part of the territory of the Kingdom of Denmark, which is specifically excluded from the scope of the agreement, and which imposes taxes of similar nature as those covered by the agreement. Any such extension shall take effect from the date and be subject to such modifications and conditions, including conditions relating to termination, as may be specified and agreed between the Contracting States in notes to be exchanged through diplomatic channels or other means in accordance with their respective constitutional rules.

2. Unless the Contracting Parties agree otherwise, include the termination of the agreement by one of them under article 28 also, in the same manner as set out in that article, the application of the agreement on those parts of the territory of the Kingdom of Denmark, for which it has been extended under this article.

Article 27

DATE of ENTRY INTO FORCE of

1. the Contracting States shall each by diplomatic means, give notification to the other of the completion of the procedures required by their internal legislation in order that the agreement can come into force. The agreement shall enter into force on the date of the last of these notifications and its provisions have effect: (a)) in respect of taxes contained at source, on income paid or credited on or after the 1. January in the calendar year following that in which the agreement enters into force.



(b)) in respect of other taxes on income, for income in any tax year beginning on or after 1 January 2005. January in the calendar year following that in which the agreement enters into force.

2. The agreement between The Czechoslovak Socialist Republic and the Government of the Kingdom of Denmark on the avoidance of double taxation with respect to taxes on income and on capital, signed at Prague on 5. May 1982 (integrated with the Protocol, which was signed in Prague on september 11, 1992), ceases to be in force and have effect in the relationship between the Czech Republic and the Kingdom of Denmark from the date on which this Convention has effect.

Article 28

TERMINATION

This agreement shall remain in force until terminated by a Contracting State. Each of the Contracting States may terminate the agreement, through diplomatic channels, by giving notice of termination at least six months before the end of any calendar year after a period of 5 years from the date of entry into force of the agreement. In such a case, the agreement shall cease to have effect: a in respect of taxes included) at source income paid or credited on or after the 1. January in the calendar year following that in which the notice is given;



(b)) in respect of other taxes on income, for income in any tax year beginning on or after 1 January 2005. January in the calendar year following that in which the notice is given.

In witness whereof the undersigned, duly authorised thereto, have signed this agreement.

Done in duplicate in Prague, 25. August 2011, in English.







 

 





In The Case Of The Kingdom Of Denmark





For The Czech Republic







Ole Moesby





Miroslav Kalousek





 

 









PROTOCOL

Upon signing of the agreement between the Kingdom of Denmark and the Czech Republic for the avoidance of double taxation and the prevention of fiscal evasion with respect to income taxes, both parties agreed that this Protocol shall form an integral part of the agreement:

1. For the purposes of article 4

Both States confirms that a legal person established in a Contracting State in accordance with the legislation of that State, and which are generally tax-exempt in this State shall be deemed to be a resident of that State for the purposes of this agreement.

2. For the purposes of article 12, paragraph 2

If the Czech Republic after the signing of this agreement, sign an agreement with another Member State of the European Union, which leads to a taxation of royalties arising from the Czech Republic, at a lower rate, including tax exemption, than the rate resulting from the application of this article, so would the lower rate or tax exemption, automatically apply for the purposes of this article, from the date on which the agreement between the Czech Republic and the respective EU Member State have effect.

In witness whereof the undersigned, duly authorised thereto, have signed this agreement.

Done in duplicate in Prague, 25. August 2011, in English.







 

 





In The Case Of The Kingdom Of Denmark





For The Czech Republic







Ole Moesby





Miroslav Kalousek





 

 

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