Communication from the Ministry of Foreign Affairs No. 483 / 2024 Coll.
Communication from the Ministry of Foreign Affairs on the Treaty between the Government of the Czech Republic and the Government of the Democratic Socialist Republic of Sri Lanka on the avoidance of double taxation in the field of income taxes and on the prevention of tax evasion and avoidance
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31.12.2024
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483
COMMUNICATION
Ministry of Foreign Affairs
on the Treaty between the Government of the Czech Republic and the Government of the Democratic Socialist Republic of Sri Lanka on the avoidance of double taxation in the field of income taxes and on the prevention of tax evasion and avoidance
The Ministry of Foreign Affairs announces that on 3 February 2023 a Treaty was signed in Kolomb between the Government of the Czech Republic and the Government of the Democratic Socialist Republic of Sri Lanka to prevent double taxation in the field of income taxes and to prevent tax evasion and avoidance.
The Parliament of the Czech Republic agreed to the Treaty and the President of the Republic ratified the Treaty.
The Treaty entered into force on 27 August 2024 pursuant to Article 28 (1) thereof and its provisions shall be implemented in accordance with the provisions of paragraph 1 (a) and (b) of that Article.
The date of implementation of this Treaty will expire and will cease to be implemented, in relations between the Czech Republic and Sri Lanka, the Treaty between the Government of the Czechoslovak Socialist Republic and the Government of the Republic of Sri Lanka on the avoidance of double taxation and the prevention of tax evasion in the field of income taxes and property (1), which was signed in Kolombo on 26 July 1978.
The Czech version of the Treaty and the English text which is relevant for its interpretation are hereby published simultaneously.
Minister:
z. JUDr. Smolek, Ph.D., LL.M., v. r.
Head of Legal and Consular Section
Příloha č. 1
Annex No 1
Text of the international treaty in the Czech language / Translation of international contract into Czech language
S M L O U V A
INTERI
THE GOVERNMENT OF THE CZECH REPUBLIC
A
THE GOVERNMENT OF THE SRILAN DEMOCRATIC SOCIALISTIC REPUBLIC
ON THE TERMINATION OF DOUGH REVENUE
_
AND THE IMPLEMENTATION OF THE TAX EFFORT AND EXTENSION OF TAXATION OBLIGATIONS
GOVERNMENT OF THE CZECH REPUBLIC
A
THE GOVERNMENT OF THE REPUBLIC OF SERIANIA,
Desiring to conclude a double taxation contract in the field of income tax; and
intending to avoid double taxation in the field of income taxes, without creating opportunities for non-taxation or reduced taxation through tax evasion or avoidance (including through arrangements called "treaty-shopping 'aimed at obtaining the benefits provided for in this Treaty, in the indirect benefit of residents of third jurisdictions); and
Desiring to further develop economic relations between the two States and to strengthen cooperation in tax matters,
agree as follows:
Article 1
PERSONS CONCERNING THE TREATY
This Agreement shall apply to persons resident in one or both Contracting States.
Article 2
TAXES TO WHICH THE TREATY IS RELATING
1. This Agreement shall apply to income taxes levied 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 or on parts of income, including taxes on profits from the disposal of movable or immovable property and taxes on total wages or salaries paid by undertakings, shall be regarded as income taxes.
3. The current taxes to which the Treaty applies are in particular:
(a) for the Czech Republic:
(i) income tax on natural persons;
(ii) corporation tax;
(b) in the case of Sri Lanka:
income tax, including income tax, based on the turnover of the undertakings that have agreed with the Investment Office.
4. The Treaty will also apply to any tax of the same or essentially similar kind which will be imposed after the date of signature of the Treaty in addition to or instead of the current taxes. The competent authorities of the Contracting States shall communicate to each other any substantial changes to be made to their tax laws.
5. The taxes to which the Treaty applies shall not include any amount which constitutes periodic penalty payments, fines or interest imposed under the laws of the Contracting States.
Article 3
GENERAL DEFINITIONS
1. For the purposes of this Treaty, unless the link requires a different interpretation:
(a) the term "Czech Republic" refers to the territory of the Czech Republic in which, under Czech law and in accordance with international law, the sovereign rights of the Czech Republic are exercised;
(b) the term "Sri Lanka" shall refer to the territory of the Democratic Socialist Republic of Sri Lanka, as defined in the Constitution, including its mainland, internal waters and territorial waters, the airspace above it, as well as the exclusive economic zone and the continental shelf where the Democratic Socialist Republic of Sri Lanka, in accordance with international law and its national law, exercises or may in the future exercise sovereign rights and jurisdiction;
(c) the terms "one Contracting State" and "the other Contracting State" indicate, as appropriate, the Czech Republic or Sri Lanka;
(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 any rightholder regarded as a legal person for taxation purposes;
(f) the terms "undertaking of one Contracting State" and "undertaking of the other Contracting State" indicate, according to the context, an undertaking operated by a resident of one Contracting State and an undertaking operated by a resident of the other Contracting State;
(g) 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 or established under the legislation in force in a Contracting State;
(h) the term "international transport" shall mean any transport by ship or aircraft operated by an undertaking of one Contracting State, except where the ship is operated or the aircraft is operated only between points in the other Contracting State;
(i) the term "competent authority" shall mean:
(i) in the Czech Republic, the Minister of Finance or his authorised representative;
(ii) in Sri Lanka, the Commissioner-General of the Tax Administration or his authorised representative.
2. With regard to the implementation of the Treaty at any time by any of the Contracting States, any expression which is not defined therein, unless the link requires a different interpretation, shall have the meaning which it has at that time under the legislation of that State for the purposes of the taxes to which the Treaty applies, and any meaning under the tax laws of that State shall prevail over the meaning of that State's other legislation.
Article 4
RESIDENT
1. For the purposes of this Treaty, the term "resident of a 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 establishment or registration, place of administration or any other similar criterion, and shall also include that State and any lower administrative department or local authority of that State. However, this term does not include any person subject to taxation in that State solely because of income from resources in that State.
2. Where, pursuant to paragraph 1, a natural person is resident in both Contracting States, his status shall be determined as follows:
(a) that person shall be deemed to be resident only in the State in which he has a permanent flat; if it has a permanent apartment in both States, it shall be considered as resident only to the State for which it 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 or she shall be considered as resident only in the State in which he or she normally resides;
(c) where that person normally resides in both States or in none of them, he shall be considered as resident only to 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 pursuant to paragraph 1, the competent authorities of the Contracting States shall endeavour, by common accord, to designate a Contracting State which, for the purposes of the Treaty, is deemed to be resident, taking into account the place of its principal management, the place where it was established or otherwise legally established and any other relevant factors. If such an agreement is not found, that person shall not be entitled to any tax relief or exemption provided for or provided for by the Treaty.
Article 5
STANDING OPERATIONS
(1) For the purposes of this Treaty, the term "permanent establishment" shall mean a permanent place of business through which the business of the undertaking is to be carried out 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 site of exploration, disclosure or extraction of natural resources; and
(g) place of sale.
3. the term "permanent establishment" also covers:
(a) a construction site or construction, assembly or installation project or supervision associated with it, but only if such construction site, project or supervision lasts for more than six months;
(b) the provision of services, including consultancy or management services, by an undertaking of one contracting State through staff or other personnel hired by the undertaking for that purpose, but only if the activities of that nature persist within the territory of the other contracting State for one or more periods exceeding six months in total 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 purpose of storing or issuing goods belonging to an 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) a permanent place of activity which shall be maintained only for the purpose of purchasing goods or collecting information for the undertaking;
(e) a permanent place of activity which shall be maintained only for the purpose of carrying out any other activity for the undertaking;
(f) a permanent place of activity which shall be maintained only for the pursuit of any combination of the activities referred to in (a) to (e);
where such an activity or, in the case of point (f), the overall activity of a permanent place of activity is of a preparatory or auxiliary 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, that undertaking shall be deemed to have a permanent establishment in the former Contracting State in respect of all activities carried out by that person for the undertaking if that person:
(a) it has and normally has the right in that State to conclude contracts on behalf of an undertaking where the activities of such a person are not limited to the activities referred to in paragraph 4 which, if carried out through a permanent place of business, would not constitute a permanent establishment under the provisions of this paragraph; or
(b) it does not have such authorisation but normally maintains in the former State a supply of goods from which it regularly supplies the goods on behalf of the undertaking.
6. Notwithstanding the previous provisions of this Article, the insurance undertaking of one Contracting State shall be deemed to have a permanent establishment in the other Contracting State, in so far as it collects insurance premiums in the territory of that other State or insure risks that are present 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 any other independent agent, where such persons act in the course of their proper activities. However, where the activities of such a representative are wholly or almost entirely devoted to the interests of that undertaking and where the undertaking and its representatives, in their commercial and financial relations, are bound by the terms and conditions which they have negotiated or imposed on them and which differ from those which would be agreed between independent undertakings, that representative shall not be considered independent within the meaning of this paragraph.
8. The fact that a company that is a resident of one Contracting State controls a company or is controlled by a company that is a resident of the other Contracting State or that carries on its business in that other State (whether through a permanent establishment or otherwise) does not in itself make that company a permanent establishment of the other company.
Article 6
REVENUE FROM IMMOVABLE PROPERTY
1. Revenue received by a resident of one Contracting State from immovable property (including agricultural or forestry income) located in the other Contracting State may be taxed in that other State.
2. The term "immovable property" shall have such meaning as it may have under 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 use immovable property and the right to variable or fixed payments for mining or for the admission to mining of mineral deposits, springs and other natural resources apply; ships and aircraft shall not be considered immovable property.
3. Paragraph 1 shall apply to revenue received from direct use, hire 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 to pursue an independent profession.
Article 7
PROFIT OF UNDERTAKINGS
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. If an undertaking carries out its activities in this way, the profits of the undertaking may be taxed in the other State, but only to the extent that they can be attributed to this permanent establishment.
2. Where an undertaking of a Contracting State carries on 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 permanent establishment, to profits which could have been achieved if it had been engaged in the same or similar activities as a separate undertaking under the same or similar conditions and was wholly independent in contact with the undertaking of which it is a permanent establishment.
3. In determining the profits of a permanent establishment, it shall be permitted to deduct the costs incurred for the purposes of the activity of a permanent establishment, including management expenses and general administrative expenses thus incurred, whether they arise in the State in which the permanent establishment is located or elsewhere. However, such deduction shall not be authorised for amounts, if any, paid (other than against the reimbursement of actual expenditure) by the permanent head office of the undertaking or any other office in the form of royalties, fees or other similar payments, in return for the use of patents or other rights or in the form of commission for special services provided or for management services, or, except in the case of a bank undertaking, in the form of interest on money lent to a permanent establishment. Similarly, when determining the profits of a permanent establishment, the amounts charged (other than against the reimbursement of actual expenditure) by the permanent head office of an undertaking or any other office in the form of royalties, fees or other similar payments shall not be taken into account in compensation for the use of patents or other rights or in the form of commission for specific services provided or for management services or, except in the case of a banking undertaking, in the form of interest on the money lent to the head office of the undertaking or any other office of that undertaking.
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 different parts, nothing in paragraph 2 shall preclude that Contracting State from determining the profits to be taxed by this normal division; However, the method of division 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) For the purposes of the preceding paragraphs, the profits to be added to a permanent establishment shall be determined in the same way each year, unless there are sufficient grounds for otherwise.
7. Where profits include parts of income which are dealt with separately in other Articles of this Treaty, the provisions of those Articles shall be without prejudice to the provisions of this Article.
Article 8
AQUATIC AND AVIATION TRANSPORT
1. The profits received by the undertaking of a Contracting State from the operation of ships or aircraft in international transport shall be subject to taxation only in that State.
2. The profits of an undertaking of one Contracting State from resources within the territory of the other Contracting State which receives from the operation of ships in international transport may, notwithstanding the provisions of paragraph 1, also be taxed in that other State under the legislation of that State, but the tax thus imposed shall be reduced by an amount equivalent to 50% of that tax.
3. The provisions of paragraphs 1 and 2 shall also apply to profits arising from participation in a pool, joint operation or an international operational organisation, but only to that part of the profits so received which are attributable to the participant in proportion to his share of the joint venture.
4. For the purposes of this Article, and notwithstanding the provisions of Article 12, profits from the operation of ships or aircraft in international transport shall include:
(a) profits from the hire of ships or aircraft without crew; and
(b) profits from the use, maintenance or hire of containers (including trailers and associated container transport equipment) used for the transport of goods;
where such lease or such use, maintenance or lease, whichever case is concerned, is accidental in relation to the operation of ships or aircraft in international transport.
Article 9
ASSOCIATED UNDERTAKINGS
1.
(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 participate, directly or indirectly, in the management, control or capital of an undertaking of one Contracting State and of an undertaking of the other Contracting State;
and if, in such cases, both undertakings are bound in their commercial or financial relations by the conditions which they have negotiated 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.
2. If one contracting State includes in the profits of the undertaking of that State - and subsequently of the tax - the profits which the undertaking of the other contracting State has been taxed in that other State and the profits thus included are profits which would have been realised by the undertaking of the first State if the conditions negotiated between the two undertakings were such as would have been agreed between the independent undertakings, the latter State shall adjust accordingly the amount of tax levied on those profits. The other provisions of this Treaty shall be taken into account in determining such an adjustment and, if necessary, the competent authorities of the Contracting States shall consult each other for that purpose.
3. The provisions of paragraph 2 shall not apply in the case of fraud, gross negligence or deliberate negligence.
Article 10
DIVIDENDS
1. Dividends paid by a company resident in one Contracting State, resident in the other Contracting State, may be taxed in that other State.
2. However, such dividends may also be taxed in the Contracting State of which the company which pays them is resident under the law of that State, but where the beneficial owner of dividends is resident in the second Contracting State, the tax thus imposed shall not exceed:
(a) 7,5 per cent of the gross amount of dividends where the beneficial owner is a company which directly holds at least 10 per cent of the capital of the company paying dividends;
(b) 10% of the gross amount of dividends in all other cases.
This paragraph shall not affect the taxation of the profits of the company on which dividends are paid.
3. The term "dividends" used in this Article shall refer to income from shares or other rights, with the exception of receivables, with a profit participation, as well as:
(a) income from other company rights; and
(b) other revenue;
if such revenue is subject to the same tax regime as income from shares under the legislation of the State of which the company which differentiates profits or makes payments is resident.
4. The provisions of paragraphs 1 and 2 shall not apply where the beneficial owner of dividends resident in one Contracting State carries out his activity in the other Contracting State of which the dividend company is resident through a permanent establishment which is located there or where the participation for which the dividends are paid is actually linked to that permanent establishment or permanent base in that other State. 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 relates to a permanent establishment or a permanent base located in that other State or to the company's undistributed profits subject to tax on the company's undistributed profits, even if the dividends paid or earnings distributed are wholly or partly derived from profits or income having a source in that other State.
Article 11
INTEREST
1. Interest having a source in one Contracting State and 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 a source, under the legislation of that State, but if the beneficial owner of the interest is resident in the other Contracting State, the tax thus imposed shall not exceed 5 per cent of the gross amount of interest.
3. Interest having a source in one Contracting State and actually owned by a resident of the other Contracting State shall be subject to taxation, notwithstanding the provisions of paragraph 2, only in that other State where such interest is paid:
(a) the Government of the second Contracting State, including any lower administrative department or local authority of that State;
(b) the central bank of the other Contracting State;
(c) any institution owned or controlled by the Government of the other Contracting State where the purpose of such an institution is to promote export or investment; or
(d) in respect of any loan or loan guaranteed or guaranteed:
(i) the Government of the second Contracting State, including any lower administrative department or local authority of that State; or
(ii) the central bank of the other Contracting State; or
(iii) any institution owned or controlled by the Government of the other Contracting State where the purpose of such an institution is to promote export or investment.
4. The term "interest 'used in this Article shall refer to income from claims of any kind, whether secured or not by a lien on immovable property and having or not having the right to participate in the debtor's profits, and in particular, income from government securities and income from bonds or bonds, including premiums and winnings related to such securities, bonds or bonds. Penalties imposed for late payment shall not be considered as interest for the purposes of this Article. The term" interest' shall not include any part of income which is considered a dividend under the provisions of Article 10 (3).
(5) Paragraphs 1, 2 and 3 shall not apply where the beneficial owner of interest resident in a Contracting State carries out his activity in the other Contracting State in which the source is situated through a permanent establishment situated there or carries on an independent profession in that other State from a permanent base situated there and where the claim on which the interest is paid actually relates to that permanent establishment or permanent base. In that case, the provisions of Article 7 or Article 14 shall apply depending on the case.
6. Interest shall have a source in a Contracting State if the payer is a resident of that State. However, if the interest payer, whether or not he is resident in a Contracting State, has a permanent establishment or a permanent base in the Contracting State in conjunction with which the debt on which the interest is paid has been incurred and such interest is borne by such a permanent establishment or permanent base, such interest shall have a source in the State in which the permanent establishment or permanent base is situated.
7. If the amount of interest relating to the claim on which it is paid exceeds, due to the special relationship between the payer and the beneficial owner or between both of them and any other person, the amount which the payer would have agreed with the beneficial owner if it had not been for such a relationship, the provisions of this Article shall apply only to that latter amount. In this case, the amount of payments exceeding it shall be taxed in accordance with the laws of each Contracting State, taking into account the other provisions of this Treaty.
Article 12
LICENCES AND TECHNICAL SERVICES CHARGES
1. Licensing fees and fees for technical services having a source in one Contracting State and paid to the resident of the other Contracting State may be taxed in that other State.
2. However, such royalties and fees for technical services may also be taxed in the Contracting State in which they have a source under the legislation of that State, but where the beneficial owner of royalties or fees for technical services is resident in the other Contracting State, the tax thus imposed shall not exceed 10 per cent of the gross amount of royalties or fees for technical services.
3.
(a) The term "licence fees" used in this Article refers to payments of any kind received as compensation for use or as a right to use any copyright for the work of literary, artistic or scientific, including cinematographic films, and films, tapes or other means of image or sound reproduction, any patent, trade mark, design or model, plan, secret formula or procedure, or use or use of any industrial, commercial or scientific equipment, or to information that relates to experience acquired in the field of industrial, commercial or scientific.
(b) The term "fees for technical services" used in this Article shall refer to any payment for any service of a technical, advisory or managerial nature, but shall not include payments for services referred to in Article 5 (3) (a) and Articles 8, 15, 16, 17 and 19. The term also does not include payments made by a natural person for services rendered for the purposes of the personal needs of a natural person and payments for teaching by educational institutions or educational institutions.
4. The provisions of paragraphs 1 and 2 shall not apply where the beneficial owner of a licence fee or technical service fee resident in a Contracting State in the other Contracting State in which licence fees or technical service charges are held by a source, carries out his activity through a permanent establishment which is located there, or carries out an independent profession in that other State from a permanent base situated there, and where the law, property or service giving rise to royalties or technical service charges are actually linked to that permanent establishment or permanent base. In that case, the provisions of Article 7 or Article 14 shall apply depending on the case.
5. Licensing and technical service charges shall have a source in the Contracting State if the payer is a resident of that State. However, where a licence fee or technical service 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 or technical service fee has been required, and such licence or technical service fees are charged to such a permanent establishment or permanent base, such licence or technical service charges shall have a source in the State in which the permanent establishment or permanent base is located.
6. Where the amount of royalties or fees for technical services relating to the use, right, information or service for which they are paid exceeds, as a result of special relations between the payer and the beneficial owner, or between both of them and any other person, the amount which the payer would have agreed with the beneficial owner if it had not been for such relations, the provisions of this Article shall apply only to that latter amount. In this case, the amount of payments exceeding it shall be taxed in accordance with the laws of each Contracting State, taking into account the other provisions of this Treaty.
Article 13
OWN FUNDS PROFIT
(1) Profit received by a resident of one Contracting State from the disposal of immovable property referred to in Article 6 and located in the other Contracting State may be taxed in that other State.
2. Proceeds from the disposal of 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 of movable property belonging to a permanent base held by a resident of one Contracting State in the other Contracting State for the purpose of carrying out an independent occupation, including profits from the disposal of such permanent establishment (on its own or together with the whole undertaking) or such permanent base, may be taxed in that other State.
3. Profit from the disposal of assets which are part of the operating assets of an undertaking of a Contracting State and which remains from ships or aircraft operated by that undertaking in international transport or from movable assets used to operate such ships or aircraft shall be subject to taxation only in that State.
(4) The profits received by a resident of one Contracting State from the disposal of shares or other shares in a company resident in the other Contracting State may be taxed in that other State.
5. Profit from the disposal of any assets other than those referred to in the preceding paragraphs shall be subject to taxation only in the Contracting State of residence of which the aliases are resident.
Article 14
_
1. Revenue received by a natural person resident in one Contracting State, from the pursuit of a liberal profession or other activities of an independent nature shall be subject to taxation only in that State, except where such income may also be taxed in the other Contracting State:
(a) where the resident is regularly available in the second Contracting State to carry out his 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 for one or more periods in aggregate is, or exceeds 183 days in any 12-month period beginning or ending in the relevant tax year; in that case, only that part of the income received from his activities in that other State may be taxed in that other State.
2. The term "free profession" shall include the particularly independent activities of scientific, literary, artistic, educational or teaching, as well as the independent activities of doctors, lawyers, engineers, architects, dentists and accountants.
3. The following days shall be included in the calculation of the period referred to in paragraph 1 (b):
(a) all days of physical presence, including days of arrival and departure; and
(b) days spent outside the State of activities such as Saturdays and Sundays, public holidays, holidays and business trips directly linked to the performance of the beneficiary's activities in that State, after which the activity in that State was continued.
Article 15
OBLIGATIONS
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 may be taxed in that other State.
2. The remuneration received by a resident of a Contracting State on the grounds of employment in the other Contracting State shall, notwithstanding the provisions of paragraph 1, be subject to taxation only in the former State if all the following conditions are met:
(a) the beneficiary shall be employed in the other State for one or more periods not exceeding 183 days in total in any 12-month period beginning or ending in the relevant tax year;
(b) remuneration is paid by an employer or an employer who is not a resident of the other State; and
(c) remuneration shall not be borne by a permanent establishment or permanent base held by an employer in the other State.
3. The following days shall be included in the calculation of the period referred to in paragraph 2 (a):
(a) all days of physical presence, including days of arrival and departure; and
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Regulation Information
| Citation | Communication from the Ministry of Foreign Affairs No. 483 / 2024 Coll., on the Agreement between the Government of the Czech Republic and the Government of the Democratic Socialist Republic of Sri Lanka on the avoidance of double taxation in the field of income taxes and on the prevention of tax evasion and avoidance |
|---|---|
| Regulation Type | International Treaty |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 31.12.2024 |
|---|---|
| Effective from | 27.08.2024 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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