Decree No 49 / 1979 Coll.
Decree of the Minister for Foreign Affairs on the Treaty on the Prevention of Double Taxation of Income and Property of Legal Persons between the Czechoslovak Socialist Republic, the People's Republic of Bulgaria, the People's Republic of Hungary, the People's Republic of Mongolia, the Democratic Republic of Germany, the People's Republic of Poland, the Socialist Republic of Romania and the Union of Soviet Socialist Republics
Valid
Effective from 01.01.1979
49
DECLARATION
Minister for Foreign Affairs
of 21 February 1979
on the Treaty to prevent double taxation of income and assets of legal persons between the Czechoslovak Socialist Republic, the People's Republic of Bulgaria, the People's Republic of Hungary, the People's Republic of Mongolia, the Democratic Republic of Germany, the People's Republic of Poland, the Socialist Republic of Romania and the Union of Soviet Socialist Republics
On 19 May 1978, the Treaty on the avoidance of double taxation of corporate income and assets between the Czechoslovak Socialist Republic, the People's Republic of Bulgaria, the People's Republic of Hungary, the People's Republic of Mongolia, the Democratic Republic of Germany, the People's Republic of Poland, the Socialist Republic of Romania and the Union of Soviet Socialist Republics was signed in Ulanbatar.
The Treaty was approved by the Federal Assembly of the Czechoslovak Socialist Republic and ratified by the President of the Republic. The instrument of ratification was deposited on 30 November 1978 in the Secretariat of the Council of Mutual Economic Assistance, the depositary of the Treaty.
The Treaty entered into force on 1 January 1979 on the basis of its Article XI and entered into force on 1 January 1979 for the Czechoslovak Socialist Republic.
The Czech translation of the text of the Treaty is announced simultaneously.
First Deputy:
Ing. Book v. r.
TREATY
on the avoidance of double taxation of corporate income and assets
Contracting Parties,
in order to facilitate the further expansion and consolidation of economic, scientific, technological and cultural cooperation between their States and to improve the mechanism of their foreign exchange financial relations,
having regard to the creation of more favourable conditions in the process of economic and scientific and technological cooperation and cultural exchange,
On the basis of the principle that legal persons are not to be subject to taxation at the same time on the same income and property within the territory of two or more Contracting Parties,
agree as follows:
1. This Treaty shall apply to legal persons established in the territory of the Contracting Parties.
2. Where it is not possible to determine the registered office of a legal person referred to in paragraph 1 of this Article, that legal person shall be deemed to have its registered office within the meaning of this Treaty, the Contracting State under whose law that legal person has been established.
3. Where it is not possible to determine the registered office of a legal person and its tax status pursuant to paragraphs 1 and 2 of this Article, this issue shall be dealt with by mutual agreement of the competent authorities of the relevant Contracting Parties. The competent authorities within the meaning of this Treaty shall be the Treasury of the Contracting Parties.
This Agreement shall apply to taxes, fees and other compulsory payments having a tax character (hereinafter referred to as "taxes') levied on the income and property of legal persons in the territory of the Contracting Parties in accordance with their legislation.
The income of legal persons of each Contracting Party, obtained in the territory of other Contracting Parties both directly and through branches, departments, agencies, offices and similar departments, shall be exempt from taxes in the territory of those other Contracting Parties, subject to the provisions of Articles IV and V of this Treaty.
1. The collection of taxes on the immovable property of legal persons, as well as on income from the exploitation, sale and other disposal of such property, shall be carried out in accordance with the law of the Contracting State in which the property is situated.
2. The collection of taxes on the movable property of legal persons, as well as on income from the exploitation, sale and other disposal of such property, shall be carried out in accordance with the law of the Contracting State in which the income of legal persons is subject to taxation within the meaning of Article III of this Treaty.
In so doing, the right of the Contracting Parties to levy taxes on their territory associated with the use of means of transport and the use of infrastructure shall not be excluded.
3. Within the meaning of this Treaty:
(a) immovable property is property which is recognised as such in accordance with the law of the Contracting State in whose territory the property is situated;
(b) the movable property shall be such as to be recognised as such in accordance with the law of the State of the registered office of the legal person using that property.
1. The principles and arrangements for collecting taxes on the income and property of international organisations (including their branches and departments) established by the Contracting States or organisations of those States and having their registered office in their territories shall be governed by the instruments of incorporation of those international organisations, agreed in the form of international agreements, or by specific agreements on this matter, to be attended by the relevant Contracting Parties.
2. The profits of international organisations belonging to their members shall be exempt from taxes in the Contracting States in which they have their registered office. This provision shall also apply in the case of the transfer of that profit to other Contracting States in which the members of the relevant international organisation have their registered office.
The provisions of this paragraph shall not apply in respect of the profits of members of international organisations from the States in which they have their registered office.
The provisions of this Treaty shall not preclude the possibility for interested parties, by mutual agreement or unilaterally, to grant further concessions to legal persons in respect of the collection of taxes on their income and property.
This Treaty does not restrict the right of the Contracting Parties to levy taxes on the income and property of legal persons, unless this is contrary to the provisions of this Treaty.
The provisions of this Treaty shall be without prejudice to the tax privileges laid down in the general provisions of international law, specific international agreements and the corresponding laws of the Contracting States for diplomatic and consular representation, and to their assimilated organisations and offices.
If the provisions in force in the field of corporate taxation previously concluded between the Contracting Parties are to be contrary to the provisions of this Treaty, the provisions of this Treaty shall apply.
Questions that may arise in connection with the application of this Treaty shall be addressed by negotiations and consultations between the Finance Ministers of the Parties involved.
This Treaty shall be subject to ratification or approval under the laws of each Contracting Party and shall enter into force on 1 January of the year following that in which the depository of the instrument of ratification or approval of the Treaty is to be handed over to the depositary by at least five Contracting Parties. For each of the other Contracting Parties, this Treaty shall enter into force on 1 January of the year following that in which it shall transmit to the depositary the instrument of ratification or approval of the Treaty for safekeeping.
1. This contract shall be concluded for an unlimited period.
2. Each Contracting Party may terminate the Treaty at any time after a period of five years from the date of its entry into force by denunciation by the depositary no later than 6 months before the end of the calendar year. In that case, the Treaty shall cease to apply in respect of this Contracting Party as from 1 January of the year following the year in which it was given notice.
This Treaty may be acceded to by other States, with the agreement of all the Contracting Parties, by transmission to the depositary of the instrument of access. Access shall take effect on 1 January of the year following the year in which the depositary receives from all parties to the Treaty a communication on their consent to access.
This Agreement may be amended or supplemented with the consent of all Contracting Parties.
This Treaty shall be open for signature by 30 June 1978 in Moscow.
This Treaty shall be transmitted to the Secretariat of the Council for Mutual Economic Assistance, which shall act as depositary of this Treaty.
Dane in Ulanbátar 19 May 1978 in one copy in Russian.
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Regulation Information
| Citation | Decree No 49 / 1979 Coll., on the Treaty on the avoidance of double taxation of income and assets of legal persons between the Czechoslovak Socialist Republic, the People's Republic of Bulgaria, the People's Republic of Hungary, the People's Republic of Mongolia, the Democratic Republic of Germany, the People's Republic of Poland, the Socialist Republic of Romania and the Union of Soviet Socialist Republics |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 05.05.1979 |
|---|---|
| Effective from | 01.01.1979 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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