Decree of the Minister for Foreign Affairs No. 98 / 1989 Coll.
Decree of the Minister for Foreign Affairs on the Treaty between the Government of the Czechoslovak Socialist Republic and the Government of the Hellenic Republic on the prevention of double taxation and the prevention of tax evasion in the field of income taxes
Valid
Effective from 23.05.1989
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98
DECLARATION
Minister for Foreign Affairs
of 19 July 1989
on the Treaty between the Government of the Czechoslovak Socialist Republic and the Government of the Hellenic Republic on the avoidance of double taxation and the prevention of tax evasion in the field of income taxes
On 23 October 1986, the Treaty was signed in Athens between the Government of the Czechoslovak Socialist Republic and the Government of the Hellenic Republic to prevent double taxation and prevent tax evasion in the field of income taxes.
The Treaty was approved by the Federal Assembly of the Czechoslovak Socialist Republic and ratified by the President of the Czechoslovak Socialist Republic.
The Treaty entered into force on 23 May 1989 pursuant to Article 27 (2) thereof.
The Czech translation of the Treaty is announced simultaneously.
Minister:
JUDr. Johanes v. r.
TREATY
between the Government of the Czechoslovak Socialist Republic and the Government of the Hellenic Republic on the avoidance of double taxation and the prevention of tax evasion in the field of income taxes
Government of the Czechoslovak Socialist Republic and Government of the Hellenic Republic
Desiring to conclude a double taxation contract and prevent tax evasion in the field of income tax,
agree as follows:
Persons covered by the contract
This contract shall apply to persons resident in one or both Contracting States (residents).
Taxes covered by the contract
1. This Treaty shall apply to income taxes levied on each of the Contracting States, its administrative departments or local authorities, whatever the method of collection.
2. Income taxes shall be deemed to be taxes levied on total income or on parts of income, including taxes on profits arising from the disposal of movable or immovable property and taxes on gains in value.
3. The current taxes covered by the contract are:
(a) in the Czechoslovak Socialist Republic:
(1) income tax;
2) payroll tax;
(3) income tax on literary and artistic activities;
(4) agricultural tax;
(5) population income tax;
6) home tax
(hereinafter referred to as "Czechoslovak Tax ');
(b) in the Hellenic Republic:
(1) income tax on natural persons;
(2) corporate tax;
(3) contribution to water management organisations established on the basis of gross income from buildings
(hereinafter referred to as the "Greek tax ').
4. This Treaty shall also apply to taxes of the same or similar kind to be collected after signature of this Treaty, in addition to or in their place. The competent authorities of the Contracting States shall communicate to each other at the end of each year significant changes to be made to their respective tax laws.
General definitions
1. Within the meaning of this Treaty, where the link does not require a different interpretation:
(a) the term "Greece" refers to the Hellenic Republic and, in the geographical sense, includes the territory of the Hellenic Republic and part of the seabed and its subsoil under the Mediterranean Sea over which the Hellenic Republic exercises its sovereign rights in accordance with international law;
(b) the term "Czechoslovakia" refers to the Czechoslovak Socialist Republic;
(c) the terms "one Contracting State" and "the other Contracting State" refer to the Czechoslovak Socialist Republic or the Hellenic Republic as the case may be;
(d) the term "person" includes natural persons, companies and any other association of persons;
(e) the term "company" refers to the organisational services, persons or rightholders, considered to be organisational services 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 person residing or having his registered office in one Contracting State or an undertaking operated by a person residing or having his registered office in the other Contracting State;
(g) the term "nationals" means:
1. all natural persons who are nationals of a Contracting State;
2. all legal persons, personal companies and associations of persons established under the law in force in a Contracting State;
(h) the term "international transport" shall mean any transport carried out by an aircraft operated by an undertaking whose place of effective management is situated in one Contracting State, or by a ship registered or equipped with documents in one Contracting State, unless the ship or aircraft is operated only between points in the other Contracting State;
(i) the term "competent authority" shall mean:
1. in the case of the Hellenic Republic, the Minister of Finance or his authorised representative;
2. in the case of the Czechoslovak Socialist Republic, the Minister of Finance of the Czechoslovak Socialist Republic or his authorised representative.
2. Any term which is not otherwise defined shall have the meaning, under the law of that State, of the Contracting State which governs the taxes to which this Treaty applies, unless the link requires a different interpretation.
Tax domicile
1. The term "resident of one Contracting State" shall mean, within the meaning of this Treaty, any person who, under the law of that State, is subject to taxation in that State because of his residence, permanent residence, place of administration or any other similar criterion. However, this term does not include persons who are subject to taxation in that State solely because of income from resources in that State located.
2. Where, pursuant to paragraph 1, a natural person is resident in both Contracting States, its status shall be determined as follows:
(a) It is assumed that this person is resident in the Contracting State in which he has a permanent residence. If it has a permanent residence in both Contracting States, it is assumed to be resident in the Contracting State to which it has closer personal and economic relations (centre of life interests).
(b) If it cannot be determined in which Contracting State the person has a centre of his life interests or if he does not have a permanent residence in any Contracting State, he shall be presumed to be resident in the Contracting State in which he normally resides.
(c) Where that person normally resides in both Contracting States or in none of them, he shall be presumed to be resident in the Contracting State of which he is a national.
(d) Where that person is a national of both Contracting States or 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 is resident in both Contracting States in accordance with the provisions of paragraph 1, he shall be presumed to be resident in the State in which his place of effective management is situated.
Permanent establishment
1. The term "permanent establishment" means, within the meaning of this Treaty, a permanent establishment for a business through which an 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) a mine, a site of oil or gas, a quarry or any other place where natural resources are extracted.
3. Construction site or installation, or installation of equipment if it lasts more than 9 months.
4. Notwithstanding the previous provisions of this Article, the term "permanent establishment 'shall not include:
(a) an establishment used only for the storage, display or supply of goods belonging to the undertaking;
(b) the supply of goods belonging to an undertaking which is maintained only for storage, display or delivery;
(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 used only for the purpose of purchasing goods or collecting information for the undertaking;
(e) permanent business equipment used for an undertaking only for the purpose of carrying out other activities having a preparatory or ancillary character;
(f) permanent business equipment used exclusively for a combination of activities referred to in paragraphs (a) to (e), provided that the resulting activity of a permanent establishment resulting from that combination is of a preparatory or ancillary nature.
5. A person acting in one Contracting State on the behalf of an undertaking of the other Contracting State - other than an independent representative to whom paragraph 6 applies - shall be considered to be a "permanent establishment 'in the former State, provided that he is equipped in that State with the full power normally exercised there and which allows him to conclude contracts on behalf of an undertaking, provided that the activity of that person is not limited to buying goods for an undertaking.
6. An undertaking shall not be presumed to have a permanent establishment in a Contracting State only because it carries on its business there through a broker, a general agent or any other independent agent, in so far as such persons act in the course of their proper activities.
7. The fact that a company that is resident in one Contracting State controls the company or is controlled by a company that is resident in the other Contracting State or that carries out its business there (whether through a permanent establishment or not) does not in itself make it a permanent establishment of any other company.
Revenue from immovable property
1. Revenue received by a resident of a Contracting State from immovable property (including income from agricultural and forestry undertakings) located in the other Contracting State may be taxed in that other State.
2. the term "immovable property" shall be defined in accordance with the law of the Contracting State in which the property lies. This term includes, in any case, the accessories of immovable property, the dead and the living inventory of agricultural and forestry undertakings and the rights for which the provisions of civil law applicable to land, the right to consume immovable property and the right to variable or fixed salaries for mining or for the admission to mining mineral deposits, springs and other natural resources; ships, boats and aircraft shall not be considered property.
3. Paragraph 1 shall apply to income from direct use, rental or any other use of immovable property.
(4) Paragraphs 1 and 3 shall apply in the same way 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 taxed only in that State if the undertaking does not carry out its business in the other Contracting State through a permanent establishment located 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 for the objectives pursued by that permanent establishment, including management costs and general administrative expenses, whether incurred in the State in which the 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 different parts, the provisions of paragraph 2 shall not preclude that State from determining the profits to be taxed by this normal division; 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) 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.
Transport by ship and air
1. The profits from the operation of aircraft in international transport shall be taxed only in the Contracting State in which the head office of the undertaking is situated.
2. Proceeds from the operation of ships in international transport shall be taxed only in the Contracting State in which the ships are registered or in which their documents have been issued.
3. Paragraph 1 shall also apply to profits arising from participation in a pool, joint operation or other 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 where, 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, profits of that undertaking may be included and, as a result, taxed profits which would have been achieved without such conditions by one of the undertakings which, however, could not have been achieved under those conditions.
Dividends
1. Dividends paid by a company resident in one Contracting State to a person resident in the other Contracting State shall be subject to taxation in both Contracting States.
2. The term "dividends" used in this Article shall refer to income from shares, profit participation shares or profit participation certificates, coupons, founding shares or other rights - with the exception of claims - with a share in profits and income from other shares in companies in which, under the legislation of the State in which the company which pays dividends to the resident is treated as income from shares.
3. The provisions of paragraph 1 shall not apply where the beneficial beneficiary of dividends resident in one Contracting State is engaged in an industrial or commercial activity in the other Contracting State in which the dividend company is resident through a permanent establishment located there or through an independent profession through a permanent base situated there, and where the participation for which dividends are paid is actually linked to that permanent establishment or to that permanent base. In that case, the provisions of Article 7 or Article 14 shall apply.
4. 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 a resident in 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 to subject the company's undistributed profits to a tax on undistributed profits, even if the dividends paid or earnings retained in whole or 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 resident in 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 the source is located under the legislation of that State, but where the beneficiary is the beneficial owner of the interest, the tax thus imposed shall not exceed 10% of the gross amount of interest.
The competent authorities of the Contracting States shall, by mutual agreement, determine the manner in which this restriction is applied.
3. Notwithstanding the provisions of paragraph 2, interest on a loan granted by a government of a Contracting State or by a bank or by any other institution in the name or on behalf of that Government shall be subject to taxation only in the Contracting State in which the beneficiary is resident.
4. The term "interest 'used in this Article refers to income on claims of any kind, secured or not secured by a mortgage on immovable property or a clause relating to the participation in the debtor's profits and, in particular, income from government bonds and bonds, including premiums and winnings related to such securities, bonds or bonds.
Penalties for late payment shall not be considered interest for the purposes of this Article.
5. The provisions of paragraphs 1 and 2 shall not apply where the recipient 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 through a permanent base situated 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.
6. Interest shall be assumed to have a source in one of the Contracting States if the latter is the payer himself, his administrative department, local authority or person resident in that State. However, where a payer, whether or not resident in a Contracting State, has a permanent establishment or a permanent base in a Contracting State in respect of which the interest is payable on the basis of which such interest is payable and which bears its own weight, such interest shall be assumed to have a source in the Contracting State in which the permanent establishment or permanent base is situated.
7. Where the amount of interest, in view of the claim on which it is paid, exceeds, by reason of the special relations existing between the payer and the beneficial recipient of interest, or which are maintained by one or the other with third parties, the amount which the payer would have agreed with the actual recipient if it had not been for such relations, the provisions of this Article shall apply only to that last amount. In this case, the amount of the salary exceeding it may be taxed under the legislation of each Contracting State and taking into account the other provisions of this Treaty.
Licence fees
1. Licensing fees having a source in one Contracting State and paid to a person resident in the other Contracting State may be taxed in that other State.
2. However, the licence fees referred to in paragraph 3a may also be taxed in the Contracting State in which their source is located, under the legislation of that State. However, the tax thus established may not exceed 10% of the gross licence fee.
The competent authorities of the Contracting States shall, by mutual agreement, determine the manner in which this restriction is applied.
3. the term "licence fees" used in this Article shall refer to refunds of any kind paid for use or authorised to use:
(a) a patent, trade mark, model or model, plan, secret formula or production process or industrial, commercial or scientific establishment, or for information relating to experience acquired in the field of industrial, commercial or scientific;
(b) copyright rights for the work of literary, artistic or scientific, including cinematographic and television films.
4. The provisions of paragraphs 1 and 2 shall not apply where the licensee who is resident in a Contracting State is engaged in an industrial or commercial activity in the other Contracting State in which the royalties are produced either through a permanent establishment situated there or through an independent profession located there, and where the right or property giving rise to royalties is actually linked to them. In this case, the provisions of Article 7 or Article 14 may apply.
5. Licensing fees are presumed to have a source in one Contracting State if the payer is the State itself, its administrative department, local authority or person resident in 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 the obligation under which the licence fee is paid has been established and which bears such royalties at its expense, those royalties shall be presumed to have a source in the Contracting State in which the permanent establishment is situated.
6. Where the amount of royalties, assessed in the light of the transactions for which they are paid, exceeds the amount which the debtor would have agreed with the actual beneficiary, due to the special relations existing between the payer and the beneficial beneficiary, or which one or the other maintain with third parties, in the absence of such relations, the provisions of this Article shall apply only to that amount. In this case, the amount of the salaries exceeding it shall be taxed under the legislation of each Contracting State and taking into account the other provisions of this Treaty.
Profit from disposal
(1) Profit received by a resident of one Contracting State from the disposal of immovable property as defined in Article 6 and located in the other Contracting State may be taxed in that other Contracting State.
2. Proceeds from the disposal of movable property which is part of the assets of a permanent establishment which is held by an undertaking of one Contracting State in the other Contracting State, or of movable property which belongs to a permanent base which a resident of one Contracting State has in the other Contracting State to pursue an independent occupation, including such profits resulting 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. Proceeds from the disposal of ships or aircraft used in international transport and of movable property which serves the operation of such ships or aircraft shall be taxed only in the Contracting State in which the revenue from such ships or aircraft is taxed in accordance with the provisions of Article 8 of this Treaty.
(4) Profit from the disposal of assets other than those referred to in paragraphs 1, 2 and 3 may be taxed only in the Contracting State in which the forger is resident.
Independent professions
1. Revenue received by a resident of a Contracting State from a professional or other independent activity shall be taxed only in that State, unless the person normally has a permanent basis in the other Contracting State to carry out his activities. If such a permanent base is available, income may be taxed in the other State, but only to the extent that it can be attributed to that permanent base.
2. The term "free profession" shall include, in particular, the activities of scientific, literary, artistic, educational or educational persons, as well as the independent activities of doctors, legal representatives, engineers, architects, dentists and accountants.
Employment
1. The salaries, wages and other similar remuneration which a resident of a Contracting State receives on account of paid employment may, subject to the provisions of Articles 16, 18 and 19, be taxed only in that State 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 paid employment in the other Contracting State may, notwithstanding the provisions of paragraph 1, be taxed only in the former State if:
(a) the beneficiary shall stay in the other State for one or more periods not exceeding 183 days in total in the tax year; 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 paid employment carried on board a ship or an aircraft in international transport may be taxed only in the Contracting State in which the income from such ships or aircraft is taxed in accordance with the provisions of Article 8 of this Treaty.
Tantiems
Tantiémes and other similar remuneration received by a resident of one Contracting State as a member of the Board of Directors of a company resident in the other Contracting State may be taxed in that other State.
Artists and athletes
1. Revenue received by residents of one Contracting State, as public performers, such as theatre, film, radio and television artists and musicians or as athletes, from their activities carried out personally in the other Contracting State, may be taxed, notwithstanding the provisions of Articles 14 and 15.
2. Where the income from an activity carried out personally by an athlete or artist does not result from that artist or athlete alone, but from another person, that income may be taxed, regardless of the provisions of Articles 7, 14 and 15, in the Contracting State in which the artist or athlete carries out his activity.
3. The revenue from the activities defined in paragraph 1 shall be exempt from taxation, irrespective of the provisions of the preceding paragraphs, in the State in which those activities are carried out where those activities are carried out under a cultural agreement negotiated between the Contracting States.
Pension
Pensions and other similar salaries paid on account of former employment of a resident of a Contracting State may be taxed only in that State, subject to the provisions of Article 19 (2).
Public functions
1. (a) Rewards, other than pensions, paid by a Contracting State, an administrative department or a local authority of that State to a natural person for services rendered to that State, its administrative department or local authority may be taxed only in that State.
(b) However, such remuneration shall be taxed only in the second Contracting State where the services are performed in that State and the recipient resident in that State.
(i) is a State citizen of that State; or
(ii) has not obtained residence in that State solely for the purpose of such services.
2. (a) Penalties paid by a Contracting State, an administrative department or a local authority of that State, either directly or from the funds which they have set up, to a natural person for services demonstrated to that State, to an administrative department or to a local authority, may be taxed only in that State.
(b) However, such pensions shall be taxed only in the second Contracting State if the beneficiary is resident and a State citizen of that State.
3. The provisions of Articles 15, 16 and 18 shall apply to the remuneration and pensions of services shown in the course of an industrial or commercial activity carried out by a Contracting State, an administrative department or a local authority of that State.
Professors and students
1. Rewards received by a resident of a Contracting State for a university or research activity or for teaching at a university, research institute or equivalent higher education establishment for a temporary stay not exceeding two years in the other Contracting State shall not be taxed in that other State.
(2) Salaries received by a student or trainee who is, or was, resident in the other Contracting State immediately prior to his arrival in one Contracting State and who resides in the former State only for the purpose of study or training, shall not be taxed in that State for the cost of nutrition, study or training, provided that he comes from sources outside that State.
Other revenue
1. The income of a person resident in a Contracting State not specifically referred to in the previous Articles of this Treaty may be taxed only in that State.
2. The provisions of paragraph 1 shall not apply to income other than income from immovable property within the meaning of Article 6 (2), where the recipient of such income resident 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 base situated there, and the right or property for which the income is paid actually belongs to that permanent establishment or to that permanent establishment. In that case, the provisions of Article 7 or Article 14 shall apply.
Provisions on the exclusion of double taxation
1. In Greece, double taxation will be avoided as follows:
If a resident in Greece receives income which may be taxed in accordance with the provisions of this Treaty in Czechoslovakia, Greece shall allow that resident to deduct the amount corresponding to the tax paid in Czechoslovakia from his tax liability.
However, the amount to be deducted cannot exceed the tax rate calculated before the deduction is made, which is attributable to income that can be taxed in Czechoslovakia.
2. In Czechoslovakia, double taxation will be avoided as follows:
(a) Where a person resident in Czechoslovakia receives income which may be taxed under the provisions of this Treaty in Greece, Czechoslovakia shall, subject to the provisions referred to in point (b) of this paragraph, exempt that income from taxation, but may, when calculating the amount of tax on other income of that person, apply the rate of tax which would have been applied if the income thus excluded had not been exempt from taxation.
(b) Czechoslovakia may include in the tax base the income which may also be taxed in Greece under the provisions of Articles 10, 11, 12, 16 and 17 of this Treaty but may allow the amount of tax calculated on that basis to be reduced by an amount equal to that paid in Greece. However, the amount by which the tax is to be reduced shall not exceed that part of the Czechoslovak tax calculated before its reduction, which is proportional to the revenue which may be taxed in Greece in accordance with the provisions of Articles 10, 11, 12, 16 and 17 of this Treaty.
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Regulation Information
| Citation | Decree of the Minister for Foreign Affairs No. 98 / 1989 Coll., on the Treaty between the Government of the Czechoslovak Socialist Republic and the Government of the Hellenic Republic on the avoidance of double taxation and the prevention of tax evasion in the field of income taxes |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 25.09.1989 |
|---|---|
| Effective from | 23.05.1989 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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