Communication from the Ministry of Foreign Affairs No. 283 / 1995 Coll.

Q: Is Communication from the Ministry of Foreign Affairs No. 283 / 1995 Coll. still valid?

Yes, Communication from the Ministry of Foreign Affairs No. 283 / 1995 Coll. is still valid and effective.

283

COMMUNICATION

Ministry of Foreign Affairs

The Ministry of Foreign Affairs announces that on 19 January 1995 a treaty was signed in Cairo between the Czech Republic and the Arab Republic of Egypt to avoid double taxation and prevent tax evasion in the field of income and property taxes.

The Parliament of the Czech Republic gave its assent to the Treaty and the President of the Republic ratified it. The instruments of ratification were exchanged in Prague on 4 October 1995.

The Treaty entered into force on 4 October 1995 pursuant to Article 28 (2) thereof.

The Czech translation of the Treaty is announced simultaneously.

TREATY

between the Czech Republic and the Arab Republic of Egypt on the avoidance of double taxation and the prevention of tax evasion in the field of income and property taxes

the Czech Republic and the Arab Republic of Egypt,

Desiring to conclude a Double Taxation Treaty and prevent tax evasion in the field of income and property taxes,

agree as follows:

Persons to whom the Treaty applies

This contract shall apply to persons resident in one or both Contracting States (residents).

Taxes to which the Treaty applies

1. This Agreement shall apply to income and property taxes imposed on behalf of each of the Contracting States or its lower administrative departments or local authorities, whatever the method of collection.

2. All taxes levied on total income, on total assets or on some or all of the income or assets, including taxes on the proceeds from the disposal of movable or immovable property, taxes on the amount of wages or salaries paid by undertakings, as well as taxes on the increase of assets, shall be regarded as income and property taxes.

3. The current taxes to which the Treaty applies are in particular:

(a) in the Czech Republic:

(i) income tax on natural persons;

(ii) corporation tax;

(iii) real estate tax;

(hereinafter referred to as the "Czech tax ');

(b) in Egypt:

(i) income tax on immovable property (including agricultural land tax and building tax);

(ii) the associated personal income tax, assessed under Law No 157 of 1981, as amended by Law No 187 of 1993;

(iii) tax on company profits;

(iv) the development tax assessed under Law No 147 of 1984, as amended by the applicable rules;

(v) additional taxes calculated as a total percentage of the above taxes or otherwise;

(hereinafter referred to as the Egyptian tax).

4. This Treaty shall also apply to any tax of the same or, in principle, similar kind which will be imposed after the signature of this Treaty, in addition to or instead of the current taxes. The competent authorities of the Contracting States shall communicate to each other significant changes to be made to their respective tax laws.

General definitions

1. For the purposes of this Treaty, unless the link requires a different interpretation:

(a) the term "Czech Republic", when used in the geographical sense, means the territory in which the Czech Republic may exercise its sovereign rights under Czech law and in accordance with international law;

(b) the term "Egypt" shall mean the Arab Republic of Egypt and, when used in the geographical sense, the term "Egypt" shall include:

(i) high waters, and

(ii) the seabed and subsoil of marine zones adjacent to the coast, but beyond the sovereign waters over which Egypt exercises its sovereign rights in accordance with international law for the purpose of exploring and extracting the natural resources of those zones, but only if such a person, property or activity to which this Treaty applies is linked to such exploration or extraction;

(c) the terms "one Contracting State" and "the other Contracting State" refer to the Czech Republic or Egypt, depending on the case;

(d) the term "person" includes a natural person, a company and any other association of persons;

(e) the term "company" refers to any legal person or rightholder treated as a legal person for taxation purposes;

(f) the terms "undertaking of one Contracting State" and "undertaking of the other Contracting State" refer to an undertaking operated by a resident of one Contracting State or an undertaking operated by a resident of the other Contracting State;

(g) the term "tax" refers to Czech or Egyptian tax as appropriate;

(h) the term "international transport" shall mean any transport by ship or aircraft operated by an undertaking whose place of effective management is situated in one Contracting State, except where the ship or aircraft is operated only between points in the other Contracting State;

(i) the term "competent authority" shall mean:

(i) in the case of the Czech Republic, the Minister of Finance of the Czech Republic or his authorised representative;

(ii) in the case of Egypt, the Minister of Finance or his authorised representative;

(j) the term "national" means:

(i) any natural person who is a national citizen of a Contracting State;

(ii) any legal person, personal company or association established under the law in force in a Contracting State.

2. Any term which is not otherwise defined shall have a Contracting State's meaning for the application of this Treaty under the law of that State which regulates the taxes covered by this Treaty, unless the link requires a different interpretation.

Resident

1. For the purposes of this Treaty, the term "resident of one Contracting State 'shall mean any person who, under the law of that State, is subject to taxation in that State on account of his residence, permanent residence, place of administration or any other criterion of a similar kind. However, this term does not include a person subject to taxation in that State solely for reasons of income from resources in that State.

2. Where, pursuant to paragraph 1, a natural person is resident in both Contracting States, its status shall be determined as follows:

(a) that person is presumed to be resident in the State in which he has a permanent residence. If he has a permanent residence in both States, he is presumed to be resident in the State to which he has closer personal and economic relations (centre of life interests);

(b) if it cannot be determined in which State the person has a centre of his or her life interests, or if he or she does not have a permanent residence in any State, he / she shall be presumed to be resident in the State in which he / she normally resides;

(c) where that person normally resides in both States or in none of them, he shall be presumed to be resident in the State of which he is a national;

(d) where that person is a national of both States or none of them, the competent authorities of the Contracting States shall amend the matter by mutual agreement.

3. Where a person other than a natural person is resident in both Contracting States in accordance with paragraph 1, he shall be presumed to be resident in the State in which the place of his actual management is situated.

Permanent establishment

1. For the purposes of this Treaty, the term "permanent establishment 'shall refer to a permanent establishment for the business through which the undertaking carries out its activities in whole or in part.

2. the term "permanent establishment" includes in particular:

(a) the place of management;

(b) the plant;

(c) an office;

(d) the factory;

(e) workshop;

(f) mine, oil or gas site, quarry or any other place where natural resources are extracted;

(g) a farm or plantation; and

(h) facilities and warehouses used as a point of sale.

3. the term "permanent establishment" also covers:

(a) construction site or construction, assembly or installation project, or supervision thereof, but only if such construction, project or surveillance lasts for more than six months in the 12-month period;

(b) the provision of services, including advisory services, by an undertaking through employees or other workers, but only where activities of such a nature persist (for the same or linked project) within the territory of the State for one or more periods exceeding a total of more than six months in any 12-month period.

4. Notwithstanding the previous provisions of this Article, the term "permanent establishment 'shall not include:

(a) an establishment which is used only for the storage or display of goods belonging to the undertaking;

(b) the supply of goods belonging to an undertaking which is maintained only for the purpose of storage or display;

(c) a stock of goods belonging to an undertaking which is maintained only for the purpose of processing by another undertaking;

(d) permanent business equipment which is maintained only for the purpose of purchasing goods or collecting information for the undertaking;

(e) permanent business facilities which are maintained for an undertaking only for the purpose of providing information, scientific research or similar activities which are of a preparatory or ancillary nature to the undertaking;

(f) a permanent establishment for business which is maintained only for the exercise of any combination of the activities referred to in points (a) to (e) where the total activity of the permanent establishment for the business resulting from that link is of a preparatory or ancillary nature.

5. Where, notwithstanding the provisions of paragraphs 1 and 2, a person - other than an independent representative to whom paragraph 7 applies - acts in one Contracting State on the behalf of an undertaking of the other Contracting State and has at its disposal and normally has the power of attorney enabling it to conclude contracts on behalf of an undertaking, that undertaking shall be deemed to have a permanent establishment in that State in respect of all activities carried out by that person for the undertaking, provided that the activities of that person are not limited to the activities referred to in paragraph 4 which, if carried out through a permanent establishment for business, would not constitute the existence of a permanent establishment in accordance with the provisions of this paragraph.

6. Notwithstanding the previous provisions of this Article, an insurance undertaking of one Contracting State shall be presumed to have, with the exception of reinsurance premiums, a permanent establishment in the other Contracting State where it collects insurance premiums in the territory of that other State or insure risks placed there through a person other than an independent representative to whom paragraph 7 applies.

7. An undertaking of one Contracting State shall not be considered to have a permanent establishment in the other Contracting State only because it carries out its activities in that other State through a broker, a general agent or another independent representative, where such persons act in the course of their proper activities. However, where the activities of such a representative are exclusively or almost exclusively carried out on behalf of that undertaking, that representative shall not be considered as independent within the meaning of this paragraph.

8. The fact that a company that is resident in one Contracting State controls a company or is controlled by a company that is resident in the other Contracting State or that carries out its activities there (whether through a permanent establishment or otherwise) does not in itself make it a permanent establishment of any other company.

Revenue from immovable property

1. Revenue received by a resident of one Contracting State from immovable property (including agricultural and forestry income) located in the other Contracting State may be taxed in that other State.

2. The term "immovable property" shall have the meaning of the law of the Contracting State in which the property is located. The term covers, in any case, the accessories of immovable property, the live and dead inventory used in agriculture and forestry, the rights to which the provisions of civil law applicable to land, the right to ingest immovable property and the right to variable or fixed salaries for mining or to be authorised to mine mineral deposits, springs and other natural resources; ships and aircraft shall not be considered immovable property.

3. Paragraph 1 shall also apply to income from direct use, rental or any other use of immovable property.

(4) Paragraphs 1 and 3 shall also apply to income from the company's immovable property and to income from immovable property used for the pursuit of an independent profession.

Profits of enterprises

1. The profits of an undertaking of one Contracting State shall be subject to taxation only in that State if the undertaking does not carry out its activities in the other Contracting State through a permanent establishment situated there. Where an undertaking carries out its activities in this way, the profits of the undertaking may be taxed in that other State, but only to the extent that they can be attributed to that permanent establishment.

2. Where an undertaking of a Contracting State carries out its activities in the other Contracting State through a permanent establishment situated there, it shall be attributed, subject to the provisions of paragraph 3 in each Contracting State of that State, to profits which could have been achieved if, as a separate undertaking, it had been engaged in the same or similar activities under the same or similar conditions and was wholly independent in contact with the undertaking of which it is a permanent establishment.

3. In calculating the profits of a permanent establishment, it is permitted to deduct the costs incurred by an undertaking for the objectives pursued by that permanent establishment, including management expenses and general administrative expenses thus incurred, whether they arise in the State in which that permanent establishment is located or elsewhere.

4. A permanent establishment shall not make any profits on the basis that it only purchased goods for the undertaking.

5. Where, in a Contracting State, it is customary to determine the profits to be added to a permanent establishment on the basis of the distribution of the company's total profits by its different parts, the provisions of paragraph 2 shall not preclude that Contracting State from determining the profits to be taxed by this normal distribution; However, the method of distribution of profits used shall be such that the result complies with the principles set out in this Article.

(6) For the purposes of the preceding paragraphs, the profits to be attributed to a permanent establishment shall be determined in the same way each year, unless there are sufficient grounds for otherwise.

7. Where profits include revenue which is dealt with separately in other Articles of this Treaty, the provisions of those Articles shall not be affected by the provisions of this Article.

International transport

1. Profit from the operation of ships or aircraft in international transport shall be subject to taxation only in the Contracting State in which the head office of the undertaking's actual management is located.

2. Where the head office of a shipping undertaking is on board a ship, it shall be deemed to be located in the Contracting State in which the home port of that ship is situated or, in the absence of such a home port, in the Contracting State in which the operator of the ship is resident.

3. Paragraph 1 shall also apply to profits arising from participation in a pool, joint operation or an international operational organisation.

Associate undertakings

If

(a) the undertaking of one Contracting State participates, directly or indirectly, in the management, control or capital of the undertaking of the other Contracting State; or

(b) the same persons are directly or indirectly involved in the management, control or capital of the undertaking of one Contracting State and of the undertaking of the other Contracting State;

and if, in such cases, both undertakings are bound in their commercial or financial relations by conditions which have been agreed or imposed on them and which differ from those which would have been negotiated between independent undertakings, any profits which, if not for those conditions, would have been achieved by one of the undertakings but have not been achieved, may be included in the profits of that undertaking and subsequently taxed.

Dividends

1. Dividends paid by a company which is resident in one 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 which pays them is resident under the legislation of that State, but where the beneficiary is the beneficial owner of dividends, the tax shall not exceed:

(a) 5% of the gross amount of dividends where the beneficial owner is a company (other than a personal company) which directly owns at least 25% of the assets of the company paying dividends;

(b) 15% of the gross amount of dividends in all other cases.

3. The term "dividends," used in this Article, refers to income from shares, profit or loss shares, coupons, founding shares or other rights with a profit participation, with the exception of receivables, as well as income from rights to companies which, under the tax rules of the State in which the company which divides profits is resident, are equal to income from shares.

4. The provisions of paragraphs 1 and 2 shall not apply where the beneficial owner of dividends resident in one Contracting State is engaged in an industrial or commercial activity in the second Contracting State in which the dividend company is resident through a permanent establishment situated there or is engaged in an independent occupation in that other State through a permanent base situated there, and where the participation for which dividends are paid actually relates to that permanent establishment or to that permanent establishment. In that case, the provisions of Article 7 or Article 14 shall apply depending on the case.

5. Where a company which is resident in one Contracting State achieves profits or income from the other Contracting State, that other State may not tax dividends paid by the company, unless such dividends are paid to the resident of that other State, or that the participation for which dividends are paid actually belongs to a permanent establishment or a permanent base located in that other State, or subject the company's undistributed profits to the tax on undistributed profits, even if the dividends paid or retained earnings are wholly or partly derived from profits or income obtained in that other State.

Interest

1. Interest having a source in one Contracting State paid to the resident 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 they have the source and under the legislation of that State, but where the beneficiary is the beneficial owner of the interest, the tax thus imposed shall not exceed 15% of the gross amount of interest.

3. Interest having a source in one Contracting State shall be exempt from taxation in that State where interest is paid:

(i) the second contracting State, including its lower administrative departments and local authorities;

(ii) the central bank of the second contracting State;

(iii) any other financial institution or public company where the government of the other Contracting State owns more than 50% of the assets of that institution or company.

4. The term "interest" used in this Article shall refer to income from claims of any kind secured or not secured by a lien on immovable property or having or not having the right to participate in the profits of the debtor and, in particular, income from government securities and income from bonds or bonds, including premiums and remuneration associated with such securities, bonds or bonds, as well as income assimilated to income from borrowed money, in accordance with the law of the State in which they have a source. Penalties for late payments shall not be considered interest for the purposes of this Article.

The term "interest 'does not include any item which is considered to be a distribution of profits under the provisions of Article 10 of this Treaty.

5. The provisions of paragraphs 1 and 2 shall not apply where the beneficial owner of interest resident in a Contracting State is engaged in an industrial or commercial activity in the second Contracting State in which the interest is received through a permanent establishment situated there or through an independent profession located there, and where the claim on which the interest is paid actually relates to that permanent establishment or to that permanent establishment. In that case, the provisions of Article 7 or Article 14 shall apply depending on the case.

6. Interest is assumed to have a source in one Contracting State, if the payer is the latter himself, its lower administrative department, the local office or resident of that State. However, where a person paying interest, whether or not resident in a Contracting State, has a permanent establishment or a permanent base in the Contracting State in respect of which the interest is paid has been incurred and such interest is borne by such a permanent establishment or permanent base, the State in which the permanent establishment or permanent base is located shall be deemed to be the source of such interest.

7. Where the amount of interest relating to the claim on which it is paid exceeds the amount which the payer would have agreed with the beneficial owner if it were not for such a relationship, the provisions of this Article shall apply only to that latter amount. In this case, the amount of the salary exceeding it shall be taxed under the legislation of each Contracting State, taking into account the other provisions of this Treaty.

Licence fees

1. Licensing fees, having a source in one Contracting State, paid by a resident of the other Contracting State, may be taxed in that other State.

2. However, such royalties may also be taxed in the Contracting State in which their source is, under the legislation of that State, but if the beneficiary is the beneficial owner of the royalties, the amount of the tax thus determined shall not exceed 15% of the gross amount of the royalties.

3. The term "licence fees" used in this Article shall refer to payments of any kind received as compensation for use or as a right to use copyright for the work of literary, artistic or scientific, including cinematographic films and films or recordings for television or radio broadcasting, patent, trade mark, design or model, plan, secret formula or production process, or for use or for the use of industrial, commercial or scientific equipment, or for information which relates to experience acquired in the field of industrial, commercial or scientific.

4. The provisions of paragraphs 1 and 2 shall not apply where the beneficial owner of royalties resident in one Contracting State is engaged in a source, industrial or commercial activity through a permanent establishment situated there, or an independent profession through a permanent base situated there, and where the right or property giving rise to royalties is actually linked to that permanent establishment or permanent base. In this case, the provisions of Article 7 or Article 14 shall apply depending on the case.

5. Licensing fees are assumed to have a source in the Contracting State if the payer is the State itself, its administrative department, local authority or resident of that State. However, where a licence fee payer, whether or not resident in a Contracting State, has a permanent establishment or permanent base in a Contracting State, in conjunction with which a licence fee has been charged to a permanent establishment or a permanent base, it is assumed that such licence fees have a source in the State in which the permanent establishment or permanent base is located.

6. Where the amount of the licence fees relating to the use, right or information for which they are paid exceeds, as a result of the special relations existing between the payer and the beneficial owner, or which one or the other maintains with the third party, the amount which the payer would have agreed with the beneficial owner if it had not been for such relationships, the provisions of this Article shall apply only to that latter amount. In this case, the amount of the salary exceeding it shall be taxed under the legislation of each Contracting State, taking into account the other provisions of this Treaty.

Profit from disposal

(1) Profit accruing to a resident of a Contracting State from the disposal of immovable property referred to in Article 6, located in the other Contracting State, may be taxed in that other State.

(2) Profit from the disposal of movable property which is part of the operating property of a permanent establishment held by an undertaking of a Contracting State in the other Contracting State or of movable property belonging to a permanent base which a resident of one Contracting State has in the other Contracting State for the pursuit of an independent occupation, including such profits obtained from the disposal of such permanent establishment (alone or together with the whole undertaking) or such permanent base, may be taxed in that other State.

3. Profit from the disposal of ships or aircraft operating in international transport or movable property serving the operation of such ships or aircraft shall be subject to taxation only in the Contracting State in which the head office of the undertaking's actual management is located.

4. Profit from the disposal of shares in a trading company whose assets consist, directly or indirectly, in particular, of immovable property situated in a Contracting State may be taxed in that State.

5. Profit from the disposal of shares other than those referred to in paragraph 4, which represent a 15% stake in a company resident in the contract State, may be taxed in that State.

(6) Profit from the disposal of assets other than those referred to in the preceding paragraphs may be taxed in both Contracting States under their national law.

Independent professions

1. Revenue which a resident of a Contracting State receives from a professional or other activity of an independent nature shall be subject to taxation only in that State, except in the following cases where income may also be taxed in the other Contracting State:

(a) if it has a permanent base at its regular disposal in the other Contracting State for the purpose of carrying out its activities; in that case only that part of the income attributable to this permanent base may be taxed in that other State; or

(b) if his stay in the other Contracting State lasts or exceeds 183 days in any 12-month period for one or more periods; in such a case, only part of the income arising from its activities in that other State may be taxed in that other State.

2. The term "free profession" includes the particularly independent activities of scientific, literary, artistic, educational or teaching and the separate activities of doctors, lawyers, engineers, architects, dentists and accountants.

Employment

1. Salaries, wages and other similar remuneration received by a resident of a Contracting State on account of employment shall be subject, subject to the provisions of Articles 16, 18 and 19, to taxation in that State only if the employment is not carried out in the other Contracting State. If there is employment there, the remuneration received for them may be taxed in that other State.

(2) Rewards received by a resident of a Contracting State on account of employment in the other Contracting State shall be subject, notwithstanding the provisions of paragraph 1, to taxation only in the former State:

(a) the beneficiary shall stay in the other State for one or more periods not exceeding 183 days in total in any 12-month period; and

(b) remuneration is paid by an employer or an employer who is not resident in the other State; and

(c) the remuneration shall not be borne by a permanent establishment or permanent base held by an employer in the other State.

3. Notwithstanding the previous provisions of this Article, remuneration received on account of employment carried out on board a ship or an aircraft in international transport may be taxed in the Contracting State in which the head office of the undertaking is situated.

Tantiems

Tantiéms and similar salaries received by a resident of one Contracting State as a member of the Management Board or another similar body or as an official in a high management capacity of a company resident in the other Contracting State may be taxed in that other State.

Artists and athletes

1. Revenue received by a resident of a Contracting State as a public performer, such as a theatre, film, radio or television artist or musician or as an athlete from such personally performed activities in the other Contracting State may be taxed in that other State, irrespective of the provisions of Articles 14 and 15.

2. Where the income from activities personally carried out by an artist or an athlete does not result from such an artist or athlete alone but from another person, that income may be taxed, irrespective of the provisions of Articles 7, 14 and 15, in the Contracting State in which the artist or athlete carries out his activity.

Pensions and annuities

1. Pensions and annuities having a source in one Contracting State paid by a resident of the other Contracting State may be taxed in both Contracting States.

2. The term "annuity" shall mean a fixed amount paid repeatedly within specified periods of life or within a certain or identifiable period of time on the basis of an obligation to pay compensation for the corresponding and full remuneration in cash or money, expressed.

Public functions

1. (a) Rewards, other than pensions, paid by one Contracting State or by a lower administrative department or local authority of that State to a natural person for services rendered to that State or administrative department or local authority shall be subject to taxation only in that State.

(b) However, such remuneration shall be subject to taxation only in the second Contracting State where the services are demonstrated in that State and the natural person resident in that State; or

(i) is a national of that State; or

(ii) has not become resident in that State solely because of the provision of such services.

2. The provisions of Articles 15, 16 and 18 shall apply to the remuneration and pensions of services demonstrated in connection with an industrial or commercial activity carried out by a Contracting State, an administrative department or a local authority of that State.

Students, professors and researchers

1. A person who is, or was, resident in the other Contracting State immediately prior to his arrival in one Contracting State and who is temporarily present in the former State only:

(a) as a student at a university or school;

(b) as a trade practitioner or apprentice; or

(c) as recipient of a gift, promotion or scholarship for the purposes of study or research provided by a religious, charitable, scientific or educational organisation

will not be subject to taxation in that State from such scholarships and aid.

(2) The remuneration received by a resident of a Contracting State for carrying out research or teaching during a period of temporary residence not exceeding two years at a university, research institute or other similar higher education institution recognised by the Government of that Contracting State shall not be subject to taxation in that Contracting State.

Other revenue

1. The income of a resident of a Contracting State, wherever a source is not covered by the preceding Articles of this Treaty, shall be subject to taxation only in that State.

2. The provisions of paragraph 1 shall not apply to revenue, other than income from immovable property as defined in Article 6 (2), where the recipient of such revenue resident in a Contracting State carries out industrial or commercial activity in the other Contracting State through a permanent establishment situated there or carries out an independent occupation in that other State from a permanent base situated there, and where the right or property for which income is paid is actually linked to such permanent establishment or permanent base. In that case, the provisions of Article 7 or Article 14 shall apply depending on the case.

Property

1. Property represented by the immovable property referred to in Article 6 which is owned by a resident of one Contracting State and which is located in the other Contracting State may be taxed in that other State.

2. Property represented by movable property which is part of the operating property of a permanent establishment held by an undertaking of one Contracting State in the other Contracting State, or movable property belonging to a permanent base held by a resident of one Contracting State in the other Contracting State for the pursuit of an independent occupation, may be taxed in that other State.

3. Property represented by ships, boats or aircraft used for international transport and movable property used to operate such ships, boats or aircraft shall be subject to taxation only in the Contracting State in which the actual management of the undertaking is located.

4. All other assets of a resident of a Contracting State shall be subject to taxation only in that State.

Exclusion of double taxation

1. Where a resident of a Contracting State receives income or own property which may be taxed in accordance with the provisions of this Treaty in the other Contracting State, the former State shall allow the income or property tax of that resident to be reduced by an amount equal to the income or property tax paid in that other State. However, the amount by which taxes are to be reduced shall not exceed that part of the income tax or of the property calculated before its reduction, which is relatively attributable to the income or property which may be taxed in that other State, whichever case it is.

2. If, in accordance with any provision of this Treaty, income generated by a resident of a Contracting State or property owned by it is exempt from taxation in that State, that State may, when calculating the amount of tax on the other income or property of that resident, take into account the income or property exempt from taxation.

3. For the purposes of reducing the income or property tax in a Contracting State, the tax paid in the other Contracting State shall be deemed to include a tax which would be payable in that other Contracting State but which has been reduced or surrendered to it in accordance with its statutory provisions for granting tax relief.

Prohibition of discrimination

1. Nationals of one Contracting State shall not be subject in the other Contracting State to any taxation or obligations associated with it which are other than or more burdensome than taxation and to which nationals of that other State are or may be subject in the same situation, in particular as regards residence. This provision shall also apply to persons not resident in one or both Contracting States, irrespective of the provisions of Article 1.

2. The taxation of a permanent establishment held by an undertaking of one Contracting State in the other Contracting State will not be more adverse in that other State than the taxation of undertakings of that other State which carry out the same activities. This provision shall not be interpreted as an obligation of one Contracting State to admit to the residents of the other Contracting State personal concessions, discounts and reductions due to the personal condition or obligations of the family which it grants to its own residents.

3. If the provisions of Article 9, Article 11 (6) or Article 12 (6) are not applied, interest, royalties and other expenses paid by an undertaking of one Contracting State resident in the other Contracting State shall be deductible for the purposes of determining the taxable profits of that undertaking on the same terms as if they had been paid by the resident of the former State. Similarly, any debts owed by an undertaking of one Contracting State to a resident of the other Contracting State shall be deductible for the purposes of determining the taxable assets of such an undertaking under the same conditions as if they had been contracted against a resident of the former State.

4. Undertakings of one Contracting State whose assets are wholly or partly owned, directly or indirectly controlled by one or more residents of the other Contracting State, shall not be subject in the former Contracting State to any taxation or obligations associated with them which are, or are, more burdensome than taxation and to which other similar undertakings of that State are or may be subject.

5. The provisions of this Article, notwithstanding the provisions of Article 2, shall apply to taxes of any kind and names.

Settlement of cases by agreement

1. Where a person considers that a measure of one or both Contracting States leads or leads to taxation which does not comply with the provisions of this Treaty, he may, independently of the remedies provided by the national law of those States, refer his case to the competent authority of the Contracting State of residence or, where the case falls within the scope of Article 24 (1), to the office of the Contracting State of which he is a national. 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 not able to find a satisfactory solution, it shall endeavour to resolve the case by mutual agreement with the competent authority of the other Contracting State in such a way as to avoid taxation which is not in conformity with this Treaty.

3. The competent authorities of the Contracting States shall endeavour to resolve problems or doubts which may arise in the interpretation or application of this Treaty by mutual agreement. They may also consult each other to avoid double taxation in cases not covered by the Treaty.

4. One Contracting State shall not increase the tax base of a resident of any Contracting State after the expiry of the time limit laid down in its national rules and in any case five years after the end of the tax period in which the income in question was obtained, by including income already taxed in the other Contracting State. This paragraph shall not apply in the case of fraud, conscious negligence or negligence.

5. The competent authorities of the Contracting States may enter into direct contact in order to reach agreement within the meaning of the preceding paragraphs. Where an oral exchange of views appears appropriate in order to reach an agreement, such exchange of views may take place through a commission composed of representatives of the competent authorities of the Contracting States.

Exchange of information

1. The competent authorities of the Contracting States shall exchange the information necessary for the implementation of the provisions of this Treaty or of the national laws of the Contracting States which apply to the taxes which are the subject of this Treaty, provided that the taxation which they apply is not contrary to this Treaty. The exchange of information shall not be restricted by Article 1. Any information received by a Contracting State shall be kept confidential in the same way as that obtained under the national laws of that State and shall be disclosed only to persons or authorities (including courts and administrative offices) involved in the assessment or collection of taxes covered by this Treaty, in the enforcement or prosecution of such taxes or in decisions on appeals. Such persons or authorities shall use such information only for such purposes. They may use this information in public court proceedings or in legal 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 this or of the other Contracting State;

(b) communicate information which could not be obtained under the law or in the ordinary administrative procedure of this or of the other Contracting State;

(c) communicate information which would reveal commercial, corporate, industrial, commercial or professional secrecy or business practices, or information whose disclosure would be contrary to public policy.

Diplomats and consular officers

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.

Entry into force

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:

(a) in the case of taxes levied by withholding at source, to revenue paid or credited on or after 1 January or later in the calendar year following the year in which the Treaty enters into force;

(b) as regards other income and property taxes, taxes levied on each tax year starting on or after 1 January of the calendar year following the year in which the Treaty enters into force.

Termination

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 following the expiry of five years from the date of entry into force of this Treaty. In this case, the Treaty shall cease to apply:

(a) in respect of taxes levied by withholding at source, on income paid or credited on or after 1 January or later in the calendar year following the year in which the statement was given;

(b) as regards other taxes on income and property, taxes levied on each tax year starting on or after 1 January of the calendar year following the year in which the resignation was given.

To prove the signature, duly empowered to do so, they signed this contract.

Done in duplicate in Cairo on 19 January 1995 in English.

For the Czech Republic:

Václav Klaus v. r.

Prime Minister

For the Republic of Egypt:

Átef Sedki v. r.

Prime Minister

Citation	Communication from the Ministry of Foreign Affairs No. 283 / 1995 Coll., on the Agreement between the Czech Republic and the Arab Republic of Egypt on the avoidance of double taxation and the prevention of tax evasion in the field of income and property taxes
Regulation Type	International Treaty
Author	-
Collection	Code of Laws

Date of Promulgation	01.12.1995
Effective from	04.10.1995
Effective until	-
Status	Valid

Communication from the Ministry of Foreign Affairs on the Agreement between the Czech Republic and the Arab Republic of Egypt on the avoidance of double taxation and the prevention of tax evasion in the field of income and property taxes

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