Communication from the Ministry of Foreign Affairs No. 253 / 1993 Coll.
Communication from the Ministry of Foreign Affairs on the Treaty between the Czech Republic and the Slovak Republic on the avoidance of double taxation in the field of inheritance and donation
Valid
Effective from 01.07.1993
253
COMMUNICATION
Ministry of Foreign Affairs
The Ministry of Foreign Affairs states that on 23 November 1992 the Treaty between the Czech Republic and the Slovak Republic on the avoidance of double taxation in the field of inheritance and donation was signed in Bratislava.
The Czech National Council gave its consent to the Treaty and the President of the Czech Republic ratified it. The instruments of ratification were exchanged in Prague on 1 July 1993.
The Treaty on the basis of its Article XII (2) has been applied provisionally since 1 January 1993 and entered into force on 1 July 1993.
The Czech version of the Treaty is hereby published at the same time.
TREATY
between the Czech Republic and the Slovak Republic on the avoidance of double taxation in the field of inheritance and donation
Czech Republic and Slovak Republic
Desiring to remove obstacles and avoid double taxation in the field of inheritance and donation
agree as follows:
The purpose of this Treaty is to prevent double taxation of inheritance and donation in relation to persons who have, or have, their domicile or registered office in the territory of one or both Contracting States.
1. the taxes to which the Treaty applies are:
(a) in the Czech Republic:
- inheritance tax,
- donation tax;
(b) in the Slovak Republic:
- inheritance tax,
- donation tax.
2. This Treaty shall also apply to taxes of the same or similar kind to be introduced in a Contracting State after signature of this Treaty. The competent authorities of the Contracting States shall inform each other of the introduction of new taxes or substantial changes to existing taxes covered by this Treaty.
3. the term "competent authority" shall mean:
(a) in the case of the Czech Republic, the Minister of Finance of the Czech Republic or his authorised representative,
(b) in the case of the Slovak Republic, the Minister of Finance of the Slovak Republic or his authorised representative.
1. Real estate shall be taxed in the Contracting State in whose territory it is situated.
2. Rights arising from the use of immovable property situated in one of the Contracting States, as well as rights secured by a lien on or burdensome of such property, shall be taxed only in the State in whose territory the immovable property is situated.
3. The term "immovable property" shall be defined in accordance with the law of the Contracting State in whose territory the property lies.
1. The inheritance property which served in the Contracting State for the pursuit of a gainful activity shall be taxed as follows:
(a) If the undertaking has a permanent establishment in one of the Contracting States, the property shall be taxed only in that State.
(b) If the undertaking has a permanent establishment in both Contracting States, the property in each Contracting State shall be taxed if it is a property which serves a permanent establishment in the State concerned.
2. According to these principles, assets consisting of deposits, shares and interests of shareholders in companies and cooperatives are taxed.
1. Other assets not referred to in Articles III and IV of this Treaty shall be taxed according to the following principles:
(a) If the deceased was resident in one of the Contracting States at the time of his death, the property shall be subject to taxation in that Contracting State.
(b) If the deceased was resident in the two Contracting States at the time of his death, the property shall be subject to taxation in the State to which the deceased had close personal and economic relations (hereinafter referred to as the "Centre of Life Interests").
(c) If the State in which the deceased was resident or a centre of living interests cannot be designated, the property shall be subject to taxation in the Contracting State of which he is a national citizen.
(d) If the deceased was a national of both Contracting States or if the place of taxation cannot be determined according to the previous principles, such cases shall be dealt with by common accord of the competent authorities.
2. According to these principles, the inheritance property referred to in Article IV of this Treaty shall also be taxed if the establishment which it serves is not in either of the two Contracting States.
1. Debt which is or is secured by the assets referred to in Article III and IV of this Treaty in the economic context (pledge) shall be counted against those assets. Other debts shall be counted against the assets referred to in Article 1 of this Treaty.
2. If assets are oversold in one of the Contracting States, the remaining debts in the other Contracting State shall be accounted for.
A donation tax paid by a donor resident or domiciled in one Contracting State shall be included in the tax liability of the transferee in the other Contracting State.
1. Where a person residing or having his registered office in a Contracting State considers that measures taken by one or both Contracting States have or will have the effect of giving him taxation which does not comply with this Treaty, it may, irrespective of the legal remedies provided by those Contracting States, refer its case to the competent authority of the Contracting State in which he is domiciled or registered. The case must be submitted within three years of the first notification of the measure leading to taxation which does not comply with the provisions of this Treaty.
2. If the competent authority considers the objection to be justified and is unable to find a satisfactory solution on its own, the case shall be dealt with by mutual agreement with the competent authority of the other Contracting State in such a way as to avoid taxation which does not comply with this Treaty.
3. By mutual agreement of the competent authorities of the Contracting States, cases which are not covered by this Treaty, as well as any problems and doubts that may arise in the interpretation and application of this Treaty, shall also be dealt with.
4. The competent authorities of the Contracting States may enter into direct contact in order to reach agreements within the meaning of the preceding paragraphs.
1. The competent authorities of the Contracting States shall exchange the information necessary for the implementation of this Treaty or of the national laws of the Contracting States which apply to the taxes covered by this Treaty, provided that the taxation which they apply is not contrary to this Treaty. All information exchanged in this way shall be treated as classified information as received under the national laws of the Contracting States and may be disclosed only to persons or authorities entrusted with the assessment or collection of taxes covered by this Treaty by criminal prosecution in respect of such taxes or by appeal decisions.
2. The provisions of paragraph 1 shall in no way be interpreted as imposing an obligation on a Contracting State:
(a) to implement administrative measures which would infringe the laws, regulations or administrative practices of a Contracting State;
(b) communicate information which could not be obtained under the legislation in force or in the normal tax procedure of the Contracting State.
In order to implement this Treaty, the competent authorities of the Contracting Parties may accept appropriate arrangements.
None of the provisions of this Treaty shall affect the tax privileges of diplomats or consular officers under the general rules of international law or under the provisions of specific agreements.
1. This Treaty is subject to ratification and the instruments of ratification will be exchanged in Prague as soon as possible.
2. The Treaty shall enter into force in exchange for instruments of ratification and its provisions shall apply from 1 January 1993.
This Treaty shall remain in force until it has been terminated by a Contracting State. Each Contracting State may terminate the Treaty in writing by diplomatic channels at least six months before the end of each calendar year starting five years after the date of entry into force of this Treaty. In this case, the Treaty shall cease to apply on 1 January of the year following the year in which the resignation was given.
To prove the signature, duly empowered to do so, they signed this contract.
Dane in duplicate in Bratislava on 23.11.1992 in the Czech and Slovak languages, both texts being equally authentic.
For the Czech Republic:
Ivan Kočárník v. r.
For the Slovak Republic:
Vladimir Meciar v. r.
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Regulation Information
| Citation | Communication from the Ministry of Foreign Affairs No. 253 / 1993 Coll., on the Agreement between the Czech Republic and the Slovak Republic on the avoidance of double taxation in the field of inheritance and donation tax |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 08.10.1993 |
|---|---|
| Effective from | 01.07.1993 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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