Key Benefits:
MOTION FOR RESOLUTION No. 36 /X
Considering that the 10 new Member States of the European Union if
have committed, pursuant to Article 5 (2) of the Act of Accession, to accede to the
Convention on the elimination of double taxation in the event of a correction of profits
between associated companies (Convention of Arbitration);
This Convention concretizes the commitment made by introducing, to the effect,
the necessary adaptations and amendments to the text of the Convention of Arbitration.
Thus:
Under the terms of the paragraph d) of Article 197 (1) of the Constitution the Government presents to the
Assembly of the Republic the following motion for a resolution:
Approves, for ratification, the Convention on the accession of the Czech Republic, of the
Republic of Estonia, of the Republic of Cyprus, of the Republic of Latvia of the Republic of
Lithuania, of the Republic of Hungary, of the Republic of Malta, of the Republic of Poland, of the
Republic of Slovenia and the Slovak Republic to the Convention on the elimination of the
double taxation in the event of a profit correction between associated companies, including the
Minutes of Signature with the Declarations, signed in Brussels, on December 8-
2004, the text of which, in the authenticated version in the Portuguese language, publishes in attachment.
Seen and approved in Council of Ministers of April 27, 2006
The Prime Minister
The Minister of the Presidency
The Minister of Parliamentary Affairs
CONVENTION
ON THE ACCESSION OF THE CZECH REPUBLIC,
OF THE REPUBLIC OF ESTONIA OF THE REPUBLIC OF CYPRUS,
OF THE REPUBLIC OF LATVIA OF THE REPUBLIC OF LITHUANIA,
OF THE REPUBLIC OF HUNGARY, OF THE REPUBLIC OF MALTA,
OF THE REPUBLIC OF POLAND, OF THE REPUBLIC OF SLOVENIA
AND FROM THE SLOVAK REPUBLIC TO THE CONVENTION
ON THE ELIMINATION OF DOUBLE TAXATION
IN CASE OF CORRECTION OF PROFITS BETWEEN
ASSOCIATED COMPANIES
THE HIGH CONTRACTING PARTIES TO THE TREATY ESTABLISHING A
EUROPEAN COMMUNITY,
CONSIDERING that, by becoming members of the Union, the Czech Republic, the
Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of
Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the
Republic of Slovenia and the Slovak Republic have committed to join the
Convention on the elimination of double taxation in the event of a correction of profits
between associated companies (Convention of Arbitration), signed in Brussels, in
July 23, 1990, and to the respective Protocol, signed in Brussels, on May 25
of 1999,
DECIDED celebrate the present Convention, having for the purpose designated as
plenipotentiaries:
HIS MAJESTY THE KING OF THE BELGIANS,
THE PRESIDENT OF THE CZECH REPUBLIC,
HER MAJESTY THE QUEEN OF DENMARK,
THE PRESIDENT OF THE FEDERAL REPUBLIC OF GERMANY,
THE PRESIDENT OF THE REPUBLIC OF ESTONIA
THE PRESIDENT OF THE HELLENIC REPUBLIC,
HIS MAJESTY THE KING OF SPAIN,
THE PRESIDENT OF THE FRENCH REPUBLIC,
THE PRESIDENT OF IRELAND
THE PRESIDENT OF THE ITALIAN REPUBLIC,
THE PRESIDENT OF THE REPUBLIC OF CYPRUS
THE COUNCIL OF MINISTERS OF THE REPUBLIC OF LATVIA,
THE PRESIDENT OF THE REPUBLIC OF LITHUANIA,
HIS ROYAL HIGHNESS THE GRAND DUKE OF LUXEMBOURG,
THE PRESIDENT OF THE REPUBLIC OF HUNGARY,
THE PRESIDENT OF MALTA,
HER MAJESTY THE QUEEN OF THE NETHERLANDS,
THE FEDERAL PRESIDENT OF THE REPUBLIC OF AUSTRIA,
THE PRESIDENT OF THE REPUBLIC OF POLAND,
THE PRESIDENT OF THE PORTUGUESE REPUBLIC,
THE PRESIDENT OF THE REPUBLIC OF SLOVENIA,
THE PRESIDENT OF THE REPUBLIC OF SLOVAKIA,
THE PRESIDENT OF THE REPUBLIC OF FINLAND,
THE GOVERNMENT OF THE KINGDOM OF SWEDEN,
HER MAJESTY THE QUEEN OF THE UNITED KINGDOM OF GREAT BRITAIN AND
NORTHERN IRELAND
WHO, assembled in the Committee of Permanent Representatives of the Member States
of the European Union, after having exchanged their full powers recognized in good and
due shape,
THEY AGREED IN THE FOLLOWING:
ARTICLE 1.
The Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of
Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the
Republic of Poland, the Republic of Slovenia and the Slovak Republic adheres to the
Convention on the elimination of double taxation in the event of a correction of profits
between associated companies, signed in Brussels, on July 23, 1990, with the
adaptations and changes to it introduced by the Convention on the accession of the Republic
of Austria, the Republic of Finland and the Kingdom of Sweden to the Convention on the
elimination of double taxation in the event of a correction of profits between companies
associated, signed in Brussels, on December 21, 1995, and by the Protocol of
amendment of the Convention on the elimination of double taxation in the event of a correction
of profits between associated companies, signed in Brussels on May 25, 1999.
ARTICLE 2.
The Convention on the elimination of double taxation in the event of a correction of profits
between associated companies is changed as follows:
1. In Article 2 (2):
(a) following point (a) is added to below:
" (b) In the Czech Republic:
-daň z příjmą fyzických osob
-daň z příjmą pravnických osob ";
b) (b) passes point (c) and shall be replaced by the following:
" c) In Denmark:
-indkomstskat til staten,
-den kommunale indkomstskat,
-den amtskommunale indkomstskat ";
c) point (c) passes point (d);
d) following point (d) is added as follows:
" e) In the Republic of Estonia:
-tulumaks ";
e) (d) passes point (f);
f) (e) passes point (g) and shall be replaced by the following:
" g) In Spain:
-Impuesto over la Renta de las Personas Physics;
-Impugent on Societies;
-Impuesto about la Renta de no Residents ";
g) point (f) passes point (h);
h) (g) passes point (i);
(i) (h) passes point (j) and shall be replaced by the following:
" j) In Italy:
-imposed sul reddito delle persone fisiche,
-imposed sul reddito delle società,
-imposed regionale sulle attività produttive. "
j) following point (j) the following points are added:
" k) In the Republic of Cyprus:
-Φόρος Εισοδήματος
-κττακτη Εισφορτγια την μυνα της Δημοκρατίας;
l) In the Republic of Latvia:
-uzł ēmumu ienākuma nodoklis
-iedzīvotāju ienākuma nodoklis;
m) In the Republic of Lithuania:
-Gyventojų pajamrim mokestis;
-Pelno mokestis ";
(k) (i) passes point (n);
(l) below (n) the following points are added:
" o) In the Republic of Hungary:
-személyi jövedelemadó
-tarsasági adó
-osztalékadó;
p) In the Republic of Malta:
-taxxa fuq l-income " ;
m) point (j) passes point (q);
n) (k) passes point (r);
(a) following point (r) is added to the following point:
" s) In the Republic of Poland:
-podatek dochodowy od osób fizycznych
-podatek dochodowy od osób prawnych ";
p) (l) passes point (t);
q) Following point (t) the following points are added:
" u) In the Republic of Slovenia:
-dohodnina
-davek od dobička pravnih oseb;
v) In the Slovak Republic:
-daň z príjmov pravnických osôb
-daň z príjmov fyzických osôb ";
r) (m) passes point (w);
(s) (n) shall pass point (x) and shall be replaced by the following:
" x) In Sweden:
-statlig inkomstskatt
-kupongskatt
-kommunal inkomstskatt ";
t) subparagraph (o) passes point (y);
2. In Article 3, the following indents to paragraph 1 are adjourned:
"-In the Czech Republic:
-terminated financí or an authorized representative
-In the Republic of Estonia:
-Rahandusminister or an authorized representative
-In the Republic of Cyprus:
-The Υπουργός Οικονομικών or an authorized representative
-In the Republic of Latvia:
-Valsts ieux ēmumu dienests
-In the Republic of Lithuania:
-Finansu ministrys or an authorized representative
-In the Republic of Hungary:
-the pénzügyminiszter or an authorized representative
-In the Republic of Malta:
-il-Ministru responsabbli ghall-finanzi or an authorized representative
-In the Republic of Poland:
-Minister Finansów or an authorized representative
-In the Republic of Slovenia
-Ministrstvo za finance or an authorized representative
-In the Slovak Republic:
-Minister financed or an authorized representative ".
3. In Article 3, the indent:
"-In Italy:
-Il Minister delle Finanze or an authorized representative "
is replaced by the following:
"-In Italy:
-Il Capo del Dipartimento per le Politiche Fiscali or a representative
authorized ".
ARTICLE 3.
The Secretary General of the Council of the European Union shall refer to the Governments of the
Czech Republic, of the Republic of Estonia, of the Republic of Cyprus, of the Republic of
Latvia, of the Republic of Lithuania, of the Republic of Hungary, of the Republic of Malta, of the
Republic of Poland, of the Republic of Slovenia and of the Slovak Republic a copy
authenticated:
Concluding of the Convention on the elimination of double taxation in the event of a correction of
profits between associated companies;
Accession of the Convention on the Accession of the Republic of Austria, the Republic of Finland
and from the Kingdom of Sweden to the Convention on the elimination of double taxation in
case of correction of profits between associated companies; and
Amendment of the Protocol to amend the Convention on the elimination of double taxation
in the event of a correction of profits between associated companies,
in the German, Danish, Spanish, Finnish, French, Greek, English, languages,
Irish, Italian, Dutch, Portuguese and Swedish.
The Czech, Slovak, Slovenian, Estonian, Latvian, Lithuanian, Hungarian, Maltese and Polish texts of the
Convention on the elimination of double taxation in the event of a correction of profits
between associated companies, of the Convention on the accession of the Republic of Austria, of the
Republic of Finland and the Kingdom of Sweden to the Convention on the elimination of the
double taxation in case of correction of profits between associated companies and the
Protocol to Amend the Convention on the elimination of double taxation in case
of correction of profits between associated companies are listed in Annexes I to IX of the
this Convention. The Czech, Slovakian, Slovenian, Estonian, Latvian, Lithuanian texts,
Hungarian, Maltese and Polish make faith in the same conditions as the other texts of the
Convention on the elimination of double taxation in the event of a correction of profits
between associated companies.
ARTICLE 4.
This Convention shall be subject to ratification, acceptance or approval by the States
Signatories. Instruments of ratification, acceptance or approval are deposited
together with the Secretary General of the Council of the European Union.
ARTICLE 5.
This Convention shall enter into force, in the relations between the Contracting States that the
have ratified, accepted or approved, on the first day of the third month following the
deposit of the last instrument of ratification, acceptance or approval, by those
States.
ARTICLE 6.
The Secretary-General of the Council of the European Union notifies all States
Signatories:
a) From the deposit of each instrument of ratification, acceptance or approval;
b) of the dates of entry into force of this Convention among the States that
have ratified, accepted or approved.
ARTICLE 7.
This Convention, drawn up in a single copy in the German languages, Czech,
Danish, Slovak, Slovenian, Spanish, Estonian, Finnish, French, Greek,
Hungarian, English, Irish, Italian, Latvian, Lithuanian, Dutch, Maltesa, Polish,
Portuguese and Swedish, any of the twenty one texts doing equally faith, will
deposited in the archives of the General Secretariat of the Council of the European Union. The
Secretary-General shall refer a certified copy of this Convention to each of the
Governments of the Signatory States.
Hecho en Bruselas, el ocho de diciembre del dos thousand cuatro.
V Bruselu dne osmého prosince dva tisíce čtyři.
Udfærdiget i Bruxelles den ottends december to tusind og fire.
Geschehen zu Brüssel am achten Dezember zweitausendundvier.
Kahe tuhande neljanda aasta detsembrykuu kaheksandal päeval Brüsselis.
Entitled Εγινε στις Βρυλλλες, στις οκτοκτοκτεκεμβρίου αιο χιλιάδες τέσσερα.
Done at Brussels on the eighth day of December in the year two thousand and four.
Fait à Bruxelles, le huit décembre deux mille quatre.
Fatto a Bruxelles, addi ' otto dicembre duemilaquattro.
Briselier, divi tūkstoši ceturtā gada astotajā decembrī.
Priimta du tūkstančiai ketvirtą mettle gruodžio aštuntż dienż Briuselyje.
Kelt Brüsszelben, a kettőezer negyedik év december nyolcadik napján.
Magacite mul fi Brussel fit-tmien jum ta ' Diensembru tas-sena elfejn u erbgped a.
Gedaan te Brussel, from achtste december tweeduizendvier.
Sporządzono w Brukseli dnia osmego grudnia roku dwutysięcznego czwartego.
Done in Brussels, in eight December two thousand and four.
V Bruseli ôsmeho decembrates dvetisícštyri.
V Bruslju, dne osmega decembra leta dva tisoč štiri.
Tehty Brysselississä kahdeksantena päivänä joulukuuta vuonna kaksituhattaneljä.
Som skedde i Bryssel den åttonde december tjugohundrafyra.
ACTA OF SIGNATURE
OF THE CONVENTION
ON THE ACCESSION OF THE CZECH REPUBLIC,
OF THE REPUBLIC OF ESTONIA OF THE REPUBLIC OF CYPRUS,
OF THE REPUBLIC OF LATVIA OF THE REPUBLIC OF LITHUANIA,
OF THE REPUBLIC OF HUNGARY, OF THE REPUBLIC OF MALTA,
OF THE REPUBLIC OF POLAND, OF THE REPUBLIC OF SLOVENIA
AND OF THE SLOVAK REPUBLIC
TO THE CONVENTION
ON THE ELIMINATION OF DOUBLE TAXATION
IN CASE OF CORRECTION OF PROFITS BETWEEN ASSOCIATED COMPANIES
The Plenipotentiaries of the Kingdom of Belgium, the Czech Republic, the Kingdom of Denmark,
of the Federal Republic of Germany, of the Republic of Estonia, of the Hellenic Republic, of the
Kingdom of Spain, of the French Republic, of Ireland, of the Italian Republic, of the
Republic of Cyprus, of the Republic of Latvia, of the Republic of Lithuania, of the Grão-
Duchy of Luxembourg, of the Republic of Hungary, of the Republic of Malta, of the Kingdom
of the Netherlands, of the Republic of Austria, of the Republic of Poland, of the Republic
Portuguese, of the Republic of Slovenia, of the Slovak Republic, of the Republic of
Finland, the Kingdom of Sweden and the United Kingdom of Great Britain and Northern Ireland,
proceeded in Brussels on 12/08/2004 to the signing of the Convention on the accession of the
Czech Republic, of the Republic of Estonia, of the Republic of Cyprus, of the Republic of
Latvia, of the Republic of Lithuania, of the Republic of Hungary, of the Republic of Malta, of the
Republic of Poland, the Republic of Slovenia and the Slovak Republic to the Convention
on the elimination of double taxation in the event of a correction of profits between companies
associated.
On that occasion, they noted the following unilateral declarations:
I. Declaration on Article 7 of the Convention on the elimination of the duo
taxation in case of correction of profits between associated companies:
Statement by Belgium, the Czech Republic, Latvia, Hungary, Poland,
of Portugal, Slovakia and Slovenia on Article 7 of the Relative Convention
to the elimination of double taxation in the event of a correction of profits between companies
associated.
Belgium, the Czech Republic, Latvia, Hungary, Poland, Portugal, the
Slovakia and Slovenia declares that they will apply Article 7 (3)
II. Statements on Article 8 of the Convention on the elimination of the duo
taxation in case of correction of profits between associated companies:
1. Declaration of the Republic of Cyprus:
The expression "serious penalty" covers sanctions by:
a) Prestation or presentation, fraudulent or intentional, of statements,
tax returns, documents or statements of income, or
requests for abatement or false deduction;
b) Submission, fraudulent or intentional, of false accounts;
c) Refusal, not presentation or negligence in submitting the statement
tax;
d) Refusal, not presentation or negligence in keeping the records
appropriate or in making available to the inspection the documents and the
records;
e) Help, assistance, advice, incitement or instigation of
third parties to make, deliver or submit tax returns,
statements, requests, accounts or documents, or to maintain or elaborate
accounts or materially false documents.
The legislative provisions that regulate the above-mentioned sanctions
are listed in the legislation on the determination of the taxable amount and
collection of taxes.
2. Declaration of the Czech Republic:
Constitutes an infringement of the tax provisions punishable with a " penalty
serious ", any act contrary to the tax laws, sanctioned with a penalty
deprivative liberty, with a pecuniary criminal sanction or with a fine
of administrative character.
For these purposes, it is understood to be infringement of the tax provisions:
a) The non-payment of taxes, contributions to social security,
contributions to health insurance and fees for state policy of
employment that are charged;
b) tax evasion or similar payments;
c) Failure to comply with the duty of notification.
3. Declaration of the Republic of Estonia:
Estonia interprets the expression 'serious penalty' as signifying the
criminal penalties for tax fraud pursuant to their domestic law (Code
Penal).
4. Declaration of the Hellenic Republic:
The definition of serious penalty given by the Hellenic Republic in 1999 is
replaced by the following:
"The expression" serious penalty " includes administrative sanctions by
serious tax offences, as well as criminal penalties for offences
committed in matters of tax law, in accordance with the provisions
relevant of the Code of Books and Records, of the Code of Taxes on
the Throughput, as well as of all the specific provisions that define
the administrative and criminal sanctions on tax law. "
5. Declaration of the Republic of Hungary:
It is understood by 'serious penalty', criminal sanctions imposed on offences
criminal tax or tax offences exceeding the 50 million forints
Hungarians.
6. Declaration of the Republic of Latvia:
It is understood by "serious penalty", the administrative penalties for
serious tax offences, as well as criminal penalties.
7. Declaration of the Republic of Lithuania:
The expression "serious penalty" includes criminal and administrative penalties, such
as sanctions for bad faith and as opposed to the tax inspection.
8. Declaration of the Republic of Malta:
It is understood by "serious penalty", a sanction, administrative or criminal,
imposed on a person who, deliberately, with the aim of tax evasion
or to help third parties to do so:
a) Omita, in a tax statement or in any other document or
statement made, drawn up or presented for the purposes of the law
on tax on income, or its shelter,
income that they should appear in; or
b) Make statements or false entries in tax statements or in others
documents or statements drawn up or presented for the purposes of the
law relating to income tax, or to its shelter; or
c) Give a false answer, either verbally or in writing, to a question or
request for information that has been directed to you in accordance with the
provisions of the law on income tax; or
d) Prepare, maintain or authorize the preparation or maintenance of books
of accounts or other false records, or falsifies them or authorizes
your forgery; or
e) Use or consent to the use of any type of fraud, skill or
artifice.
9. Declaration of the Kingdom of the Netherlands:
The definition of serious penalty presented by the Kingdom of the Netherlands
in 1990 is replaced by the following:
"Understands by" serious penalty ", a sanction imposed by a court
by the intentional practice of an offence listed in Article 68 (2),
or in Article 69 (1) or 2 of the General Law on Taxes ".
10. Declaration of the Portuguese Republic:
The definition of serious penalty presented by the Portuguese Republic in
1990 is replaced by the following:
"The expression" serious penalty " covers criminal and administrative penalties
applicable to tax offences defined in law as serious or doleful. "
11. Declaration of the Republic of Poland:
By "serious penalty" means a penalty of pecuniary punishment, a penalty of
imprisonment, or both, imposed in conjunction, or a custodising sentence of liberty
for infringement of a taxpayer's culpable offence to the provisions of tax law.
12. Declaration of the Republic of Slovenia:
By "serious penalty" means a penalty for any infringement of the
tax law.
13. Declaration of the Slovak Republic:
By "serious penalty" means a "fine" for violation of the obligations
tax understood as a rate imposed according to the amended version
of the Tax Administration Act No. 511/1992 of the Collective of laws, with laws
relevant tax or with the Accounting Act, by understanding themselves by
"penalty" a sanction imposed under the Criminal Code by the practice
of criminal offences to the above-mentioned laws.
Hecho en Bruselas, el ocho de diciembre del dos thousand cuatro.
V Bruselu dne osmého prosince dva tisíce čtyři.
Udfærdiget i Bruxelles den ottends december to tusind og fire.
Geschehen zu Brüssel am achten Dezember zweitausendundvier.
Kahe tuhande neljanda aasta detsembrykuu kaheksandal päeval Brüsselis.
Entitled Εγινε στις Βρυλλλες, στις οκτοκτοκτεκεμβρίου αιο χιλιάδες τέσσερα.
Done at Brussels on the eighth day of December in the year two thousand and four.
Fait à Bruxelles, le huit décembre deux mille quatre.
Fatto a Bruxelles, addi ' otto dicembre duemilaquattro.
Briselier, divi tūkstoši ceturtā gada astotajā decembrī.
Priimta du tūkstančiai ketvirtą mettle gruodžio aštuntż dienż Briuselyje.
Kelt Brüsszelben, a kettőezer negyedik év december nyolcadik napján.
Magacite mul fi Brussel fit-tmien jum ta ' Diensembru tas-sena elfejn u erbgped a.
Gedaan te Brussel, from achtste december tweeduizendvier.
Sporządzono w Brukseli dnia osmego grudnia roku dwutysięcznego czwartego.
Done in Brussels, in eight December two thousand and four.
V Bruseli ôsmeho decembrates dvetisícštyri.
V Bruslju, dne osmega decembra leta dva tisoč štiri.
Tehty Brysselississä kahdeksantena päivänä joulukuuta vuonna kaksituhattaneljä.
Som skedde i Bryssel den åttonde december tjugohundrafyra.