Decree of the Minister for Foreign Affairs No. 48 / 1979 Coll.
Decree of the Minister for Foreign Affairs on the Treaty between the Czechoslovak Socialist Republic and the Republic of Austria on the avoidance of double taxation in the field of income and property taxes
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Effective from 12.02.1979
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48
DECLARATION
Minister for Foreign Affairs
of 16 February 1979
on the Treaty between the Czechoslovak Socialist Republic and the Republic of Austria on the avoidance of double taxation in the field of income and property taxes
On 7 March 1978, the Treaty between the Czechoslovak Socialist Republic and the Republic of Austria on the avoidance of double taxation in the field of income and property taxes was signed in Vienna.
The Treaty was approved by the Federal Assembly of the Czechoslovak Socialist Republic and ratified by the President of the Republic. The instruments of ratification were exchanged in Prague on 14 December 1978.
Pursuant to Article 28 (2) of the Treaty, the Treaty entered into force on 12 February 1979.
The Czech version of the Treaty is hereby published at the same time.
First Deputy:
Ing. Book v. r.
TREATY
between the Czechoslovak Socialist Republic and the Republic of Austria on the avoidance of double taxation in the field of income and property taxes
President of the Czechoslovak Socialist Republic and Federal President of the Republic of Austria,
awareness of the need to facilitate trade and promote economic cooperation in accordance with the Final Act of the Conference on Security and Cooperation in Europe,
agree to conclude a double taxation agreement in the field of income and property taxes.
To that end, they appointed their agents:
President of the Czechoslovak Socialist Republic
Mr Leopold Lér,
Minister of Finance of the Czechoslovak Socialist Republic,
Federal President of the Republic of Austria
Mr. Vice-Chancellor Dkfm.
Federal Finance Minister of the Republic of Austria,
who, following the exchange of their full powers, found in good and proper form, have agreed as follows:
Persons to whom the Treaty applies
This Treaty shall apply to persons residing or having their registered office in one or both Contracting States.
Taxes to which the Treaty applies
(1) This Agreement shall apply to income and property taxes collected in one of the two Contracting States, whatever the method of collection.
(2) All taxes levied on the total income, on all or part of the income or property, including taxes on the proceeds from the disposal of movable or immovable property and taxes on the addition of value, shall be treated as income and property taxes.
(3) The current taxes to which the Treaty applies are:
(a) in the Czechoslovak Socialist Republic:
1. profit payment and profit tax,
2. payroll tax,
3. income tax on literary and artistic activities,
4. agricultural tax,
5. population income tax,
6. home tax,
7. capital contribution
(hereinafter referred to as "Czechoslovak Tax ');
(b) in the Republic of Austria:
1. income tax;
2. corporate tax,
3. Benefit from membership of the Supervisory Board,
4. property tax,
5. the property levy which is deducted from the inheritance tax,
6. trade tax, including taxes on the volume of wages,
7. land tax,
8. levy on agricultural and forestry undertakings,
9. the contribution of agricultural and forestry undertakings to the family support fund;
10. land price levy on unbuilt land
(hereinafter referred to as "Austrian tax ').
(4) This Treaty shall also apply to all taxes of the same or similar kind to be collected after signature of the Treaty, in addition to or in their place. The competent authorities of the Contracting States shall communicate to each other any changes made to their tax laws if necessary.
General definitions
(1) Within the meaning of this Treaty, where the link does not require a different interpretation,
(a) the term "person" includes natural persons, companies and any other association of persons;
(b) the term "company" refers to legal persons or rightholders treated as legal persons for taxation purposes;
(c) the terms "undertaking of one Contracting State" and "undertaking of the other Contracting State" refer to an undertaking operated by a person residing or having his registered office in one Contracting State or, where appropriate, an undertaking operated by a person residing or having his registered office in the other Contracting State;
(d) the term "nationals" means:
1. any natural person who is a citizen of a Contracting State,
2. all legal persons, personal companies and other associations of persons which have been established under the law applicable in either of the two Contracting States;
(e) in the case of the Czechoslovak Socialist Republic, the term "competent authority" refers to the Minister of Finance of the Czechoslovak Socialist Republic or its authorised representative and, in the case of the Republic of Austria, the Federal Minister of Finance of the Republic of Austria.
(2) Any term which is not otherwise defined has a meaning for the application of this Treaty by a Contracting State which falls within the law of that State which regulates the taxes which are the subject of this Treaty, unless the link requires a different interpretation.
Tax domicile
(1) The term "resident or domiciled in a Contracting State" refers, within the meaning of this Treaty, to a person who, under the law of that State, is subject to taxation in that State by reason of his residence, permanent residence, place of actual management or other similar criteria.
(2) Where, pursuant to paragraph 1, a natural person resides in both Contracting States, the following procedure shall apply:
(a) It is assumed that this person is resident in the Contracting State in which he has a permanent residence. If he has a permanent residence in both Contracting States, he is expected to reside in the Contracting State to which he has closer personal and economic relations (centre of life interests).
(b) If it cannot be determined to which Contracting State that person has closer personal and economic relations or if he does not have a permanent residence in any Contracting State, he shall be presumed to reside in the Contracting State in which he normally resides.
(c) Where the person normally resides in the two Contracting States or is not normally present in any of them, he shall be presumed to reside in the Contracting State of which he is a national citizen.
(d) If that person is a national of both Contracting States or if he is not a national of any of them, the competent authorities of the Contracting States shall endeavour to adjust the matter by mutual agreement.
(3) Where a person other than a natural person has its registered office in both Contracting States in accordance with the provisions of paragraph 1, it shall be presumed to have its registered office in the Contracting State in which the place of its effective management is situated.
Permanent establishment
(1) The term "permanent establishment" refers, within the meaning of this Treaty, to a permanent establishment for a business through which the undertaking carries out its activities in whole or in part.
(2) The term "permanent establishment" includes in particular:
(a) place of management;
(b) fission plant,
(c) an office;
(d) the factory,
(e) a workshop; and
(f) a mine, oil or gas bearing, a quarry or other place where land wealth is extracted.
(3) Construction sites or installations shall be a permanent establishment only if they last for more than 12 months.
(4) Notwithstanding the previous provisions of this Article, the following shall not be considered a permanent establishment:
(a) an establishment used only for the storage, display or supply of goods belonging to the undertaking;
(b) a supply of goods belonging to an undertaking which is maintained only for storage, display or delivery;
(c) the supply of goods belonging to an undertaking which is maintained only for the purpose of processing by another undertaking;
(d) permanent business equipment used only for the purpose of purchasing goods or collecting information for the undertaking;
(e) permanent business facilities which are used only for the purpose of carrying out other activities for an undertaking which has a preparatory character or constitutes an ancillary activity;
(f) a permanent establishment for business which shall be maintained only for the purpose of carrying out more than one of the activities listed in (a) to (e), provided that the total activity of the permanent establishment resulting therefrom is preparatory or ancillary activity.
(5) Where a person - other than an independent representative within the meaning of paragraph 6 - acts as an undertaking and has the power of attorney in a Contracting State to conclude contracts on behalf of an undertaking and where such power of attorney is normally exercised there, the undertaking shall be assessed, irrespective of the provisions of paragraphs 1 and 2, as if it had a permanent establishment in that State for all activities carried out by that person for the undertaking, unless those activities are limited to the activities listed in paragraph 4 which, had been carried out through a permanent establishment for the business, would not have made that establishment in accordance with the said paragraph a permanent establishment.
(6) It is not assumed that an undertaking has a permanent establishment in a Contracting State only because it carries out its activities there through a broker, agent or other independent agent, where such persons act in the course of their proper business.
(7) The fact that a company which has its registered office in one Contracting State controls a company or is controlled by a company which has its registered office in the other Contracting State or which 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 from immovable property (including income from agricultural and forestry undertakings) in the second Contracting State may be taxed in that other State.
(2) The term "immovable property" has the meaning which it has under the law of the Contracting State in which it lies. This term includes, in any case, accessories for immovable property, a live and dead inventory of agricultural and forestry undertakings, rights which are governed by civil law applicable to land, rights of consumption of immovable property and rights of variable or fixed compensation, paid for mining or the right to mine mineral deposits, springs and other land wealth; ships and aircraft shall not be considered immovable property.
(3) The provisions of paragraph 1 apply to income from direct use, hire or hire and any other use of immovable property.
(4) The provisions of paragraphs 1 and 3 also apply to income from the company's immovable property and to income from immovable property used to pursue an independent profession.
Profits of enterprises
(1) The profits of an undertaking of one Contracting State may be taxed 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, the costs incurred for that permanent establishment, including management costs and general administrative expenses, shall be deducted whether they are incurred in the State where that permanent establishment is located or elsewhere.
(4) 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 various 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.
(5) A permanent establishment shall not make any profits on the basis that it only purchased goods for the undertaking.
(6) Profit to be attributed to a permanent establishment shall be determined in the same manner each year for the application of the preceding paragraphs, unless there are sufficient grounds for otherwise.
(7) Where profits include revenue covered by other articles of this Treaty, the provisions of those articles shall not be affected by the provisions of this Article.
(8) The provisions of this Article shall also apply to the revenue generated by the silent partnership from its participation in "silent society 'of Austrian law.
Transport by ship and air
(1) A person residing or having his registered office in a Contracting State may be taxed in respect of profits arising from the operation of seagoing ships, inland waterway boats or aircraft in international transport only in that Contracting State.
(2) The provisions of paragraph 1 shall apply mutatis mutandis to the participation of an undertaking on sea or inland navigation or air transport in a pool, joint operation or another international operating association.
United enterprises
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 where, in such cases, conditions have been negotiated or imposed between the two undertakings in their commercial or financial relations, which differ from those which would have been negotiated between independent undertakings, profits which, without such conditions, would have been achieved by one of the undertakings which, however, were not achieved, may be included in the profits of that undertaking.
Dividends
(1) Dividends paid by a company having its registered office in one Contracting State, to a person residing or having its registered office in the other Contracting State, may be taxed in that other State.
(2) However, such dividends may be taxed in the Contracting State in which the company which pays them has its registered office, under the law of that State; However, the tax may not exceed 10% of the gross amount of dividends.
(3) The term "dividends" used in this Article refers to income from shares, profit participation shares or profit participation certificates, coupons, founding shares or other rights - with the exception of claims - with a profit participation and income from other shares in a company which, under the law of the State in which the company which distributes dividends is situated, is taxable in relation to income from shares.
(4) The provisions of paragraphs 1 and 2 shall not apply where the beneficiary of dividends residing or having his registered office in one Contracting State carries out in the second Contracting State in which the company paying dividends, industrial or commercial activities through a permanent establishment situated there, or an independent profession through a permanent establishment situated there, and where the holding for which dividends are paid actually belongs to that permanent establishment or to that permanent establishment. In that case, Article 7 shall apply, where appropriate, Article 14.
(5) Where a company having its registered office 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 those dividends are paid to a person residing or having its registered office in the other State, or that the holding for which dividends are paid actually belongs to a permanent establishment or permanent establishment located in the other State, or to subject the company's profits to tax on undistributed profits, even if the dividends paid or retained in part from profits or income obtained in that other State.
Interest
(1) Interest having a source in one Contracting State and paid to a person domiciled or domiciled in the other Contracting State may be taxed only in that other State.
(2) The term "interest" used in this Article refers to income from claims of any kind, even if the claims are secured by mortgage rights on real estate or are secured by participation in the debtor's profits and, in particular, income from public loans and bonds, including the premiums and profits from compound loans. Penalties for late payment shall not be considered interest within the meaning of this Article.
(3) The provisions of paragraph 1 shall not apply where the recipient of interest who is resident or registered in a Contracting State is engaged in an industrial or commercial activity in the other Contracting State in which the interest is received through a permanent establishment situated there or an independent profession through a permanent establishment situated there, and where the claim on which the interest is paid actually belongs to that permanent establishment or to that permanent establishment. In that case, Article 7 shall apply, where appropriate, Article 14.
(4) Where interest, in view of the claim on which it is paid, is assessed, as a result of the special relations existing between the debtor and the beneficiary of the interest or between the two and the third parties, the amount which the debtor would have agreed with the beneficiary if it had not been for such relations, the provisions of this Article shall apply only to that last amount. The amount exceeding it may in this case be taxed under the law of each Contracting State and taking into account other provisions of this Treaty.
Licence fees
(1) Licensing fees having a source in one Contracting State and received by a person resident or established in the other Contracting State may be taxed in that other State.
(2) However, the licence fees referred to in paragraph 3 (a) may be taxed in the Contracting State in which their source is located, under the law of that State; However, the tax may not exceed 5% of the gross amount of royalties.
(3) The term "licence fees" used in this Article refers to refunds of any kind, paid for use or for the right to use
(a) patents, trade marks, designs or models, plans, secret formulas or processes, or using or for the right to use industrial, commercial or scientific equipment or for the communication of industrial, commercial or scientific experience;
(b) copyright for works of literary, artistic or scientific works, including cinematographic films.
(4) Licensing fees shall be presumed to have a source in one of the Contracting States if the debtor is that State itself, one of its territorial corporations or a person resident or established in that State. However, where a licence fee debtor, irrespective of whether he is resident or not in a Contracting State, has a permanent establishment or permanent establishment in a Contracting State, and the obligation for which the licence fee is paid has been agreed for the purposes of a permanent establishment or permanent establishment, and where a permanent establishment or permanent establishment bears the licence fee, the licence fee shall be presumed to have a source in the State in which the permanent establishment or permanent establishment is located.
(5) The provisions of paragraphs 1 and 2 shall not apply where the licensee of a licence fee residing or having his registered office in one Contracting State carries out, in the other Contracting State in which the licence fee is paid, a source, an industrial or commercial activity through a permanent establishment which is located there or an independent profession through a permanent establishment situated there, and where the rights or property values for which the licence fee is paid are actually belonging to that permanent establishment or to that permanent establishment. In that case, Article 7 shall apply, where appropriate, Article 14.
(6) Where royalties are assessed in the light of the transactions for which they are paid, the provisions of this Article shall only apply to that last amount, as a result of the special relations existing between the debtor and the licensee or between the two and a third party. The amount exceeding it may in this case be taxed under the law of each Contracting State and taking into account other provisions of this Treaty.
Profit from disposal
(1) Profit from the disposal of immovable property within the meaning of Article 6 which lies in the other Contracting State may be taxed in that other State.
(2) Profit from the disposal of movable property which is the operating property of a permanent establishment held by an undertaking of one Contracting State in the other Contracting State or belonging to a permanent establishment which is available to a person residing in one Contracting State for the pursuit of an independent occupation in the other Contracting State, including such profits obtained from the disposal of such permanent establishment (on its own or together with the whole undertaking) or such permanent establishment, may be taxed in that other State.
(3) Notwithstanding the provisions of paragraph 2, profits earned by a person residing or having its registered office in a Contracting State from the disposal of seagoing ships or inland waterway boats or aircraft in international transport and movable property which serve the operation of such seagoing ships or inland waterway boats and aircraft may be taxed only in that Contracting State.
(4) Profit from the disposal of assets not referred to in paragraphs 1, 2 and 3 may be taxed only in the Contracting State in which the transferee is domiciled or established.
Separate professions
(1) Revenue received by a person residing in one Contracting State from a liberal profession or other separate activities may be taxed only in that State, provided that such person does not regularly have a permanent establishment in the other Contracting State to carry out his activity. If such a permanent establishment is available, income may be taxed in the other State, but only to the extent that it can be attributed to that permanent establishment.
(2) The term "free profession" includes, in particular, the activities of scientific, literary, artistic, educational or educational persons, as well as the separate activities of doctors, legal representatives, engineers, architects and tax advisors.
Employment
(1) The salaries, wages and similar remuneration which a person residing in one Contracting State receives from employment may be taxed only in that State, subject to the provisions of Articles 16, 18 and 19, 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) The remuneration which a person resident in one Contracting State receives from a job performed in the other Contracting State may, notwithstanding the provisions of paragraph 1, be taxed only in the former State where:
(a) the beneficiary shall not stay in the other State for more than 183 days during the relevant calendar year; and
(b) the remuneration is paid by the employer or by an employer who is not domiciled in the other State; and
(c) the remuneration shall not be borne by a permanent establishment or permanent establishment held by an employer in the other State.
(3) Notwithstanding the previous provisions of this Article, remuneration received from employment carried on board a seagoing ship or a inland waterway boat or an aircraft for international transport may be taxed only in the Contracting State in which the person who makes profits from the operation of a seagoing ship, inland waterway boat or aircraft is resident or established.
Tantiems
The remuneration of members of the Supervisory or Management Board and similar salaries received by a person residing in one Contracting State as a member of the Supervisory or Management Board of a company having its registered office in the other Contracting State may be taxed in that other State.
Artists and athletes
(1) Revenue received by a person residing in a Contracting State acting as an artist, such as a theatre, film, radio and television artist, as well as a musician or as an athlete, may be taxed in that other State, irrespective of the provisions of Articles 14 and 15.
(2) Where the income from an activity carried out personally by an artist or athlete in that characteristic is not derived from that artist or athlete himself, 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.
Pension
Pensions and similar salaries paid on account of former employment to a person residing in a Contracting State may be taxed only in that State subject to the provisions of Article 19 (1).
Public functions
(1) Salaries, including pensions, paid by a Contracting State or its Territorial Corporation directly or from a fund set up by that State or that Territorial Corporation to a natural person for services rendered to that State or to that Territorial Corporation in the performance of public functions may be taxed in that State. However, this provision shall not apply to salaries paid to persons who are nationals of another State.
(2) The provisions of Articles 15, 16 and 18 shall apply to salaries or pensions for services which have been established in connection with the commercial or industrial activity of a Contracting State or one of its Territorial Corporations.
Students
Salaries which a student, trainee or apprentice who resides in one Contracting State solely for the purposes of study or training and who is resident or resident there in the other Contracting State immediately prior to his or her arrival in the former State may not be taxed in the former State if those salaries originate from sources outside that State.
Other revenue
(1) The income of a person residing or having his registered office in a Contracting State not covered by the previous Articles may be taxed irrespective of his origin only in that State.
(2) The provisions of paragraph 1 shall not apply where a beneficiary resident or established in one Contracting State carries out industrial or commercial activities in the other Contracting State through a permanent establishment situated there or an independent profession through a permanent establishment situated there, and the rights or assets for which revenue is paid belong to that permanent establishment or to that permanent establishment. In this case, Article 7 shall apply, where appropriate, Article 14. This shall not apply to income from immovable property within the meaning of Article 6 (2).
Property
(1) Real estate within the meaning of Article 6, belonging to a person residing or having his registered office in one Contracting State and situated in the other Contracting State, may be taxed in that other State.
(2) Moved property which is the property of a permanent establishment which is owned by an undertaking of one Contracting State in the other Contracting State or which belongs to a permanent establishment which is at the disposal of a person residing in one Contracting State for the pursuit of an independent occupation in the other Contracting State may be taxed in that other State.
(3) Ships or inland waterway boats and aircraft used in international transport and movable property used for the operation of such ships, boats and aircraft may be taxed only in the Contracting State in which the person who makes profits from the operation of the seagoing ship or inland waterway boat or aircraft is resident or established.
(4) All other parts of the property of a person resident or domiciled in a Contracting State may be taxed only in that State.
Exclusion of double taxation
(1) The persons residing or having their registered office in the Czechoslovak Socialist Republic shall be taxed as follows:
(a) Revenue originating in the Republic of Austria - with the exception of revenue falling under point (b) (v) and assets situated in the Republic of Austria which may be taxed under this Treaty in the Republic of Austria, shall be exempt from taxation in the Czechoslovak Socialist Republic. However, the Czechoslovak Socialist Republic may apply the tax rates which would apply if the relevant income or assets were not exempt from taxation when determining the tax on the other income or on the other property of that person.
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Regulation Information
| Citation | Decree of the Minister for Foreign Affairs No. 48 / 1979 Coll., on the Treaty between the Czechoslovak Socialist Republic and the Republic of Austria on the avoidance of double taxation in the field of income and property taxes |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 05.05.1979 |
|---|---|
| Effective from | 12.02.1979 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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