Decree of the Minister for Foreign Affairs No. 99 / 1983 Coll.
Decree of the Minister for Foreign Affairs on the Treaty between the Czechoslovak Socialist Republic and the Socialist Federal Republic of Yugoslavia on the avoidance of double taxation in the field of income and property taxes
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Effective from 17.04.1983
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99
DECLARATION
Minister for Foreign Affairs
of 1 June 1983
on the Treaty between the Czechoslovak Socialist Republic and the Socialist Federal Republic of Yugoslavia on the avoidance of double taxation in the field of income and property taxes
On 2 November 1981, the Treaty between the Czechoslovak Socialist Republic and the Socialist Federal Republic of Yugoslavia on the avoidance of double taxation in the field of income and property taxes was signed in Prague.
The Treaty was approved by the Federal Assembly of the Czechoslovak Socialist Republic and ratified by the President of the Czechoslovak Socialist Republic. The instruments of ratification were exchanged in Belgrade on 18 March 1983.
The Treaty entered into force on 17 April 1983 pursuant to Article 28 (2) thereof.
The Czech translation of the Treaty is announced simultaneously.
First Deputy:
Greece
TREATY
between the Czechoslovak Socialist Republic and the Socialist Federal Republic of Yugoslavia on the avoidance of double taxation in the field of income and property taxes
the Czechoslovak Socialist Republic and the Socialist Federal Republic of Yugoslavia,
Desiring to conclude a double taxation contract in the field of income and property taxes,
they have agreed as follows:
Persons covered by the contract
This Treaty shall apply to persons residing or having their registered office in one or both Contracting States.
Taxes covered by the contract
1. This Agreement shall apply to income and property taxes levied by the Contracting State, its lower administrative department or local authority, whatever the method of collection. The Treaty also applies to contributions collected in Yugoslavia, with the exception of social security contributions.
2. All taxes levied on the total income, on all or parts of the income or assets, including taxes on the proceeds from the disposal of movable or immovable property, taxes on the total amount of wages paid by undertakings and taxes on the increase in value, shall be regarded as income and property taxes. The contributions referred to in paragraph 1 of this Article shall also be regarded as taxes within the meaning of this Treaty.
3. the taxes covered by the contract are:
(a) in Yugoslavia:
(1) the tax and income contributions of organised labour organisations (porez i doprinosi iz dohotka organizacija udruženog rada);
(2) tax and contributions from personal income from non-independent personal services (porez i doprinosi iz ličnog dohotka iz radnog odnosa);
(3) tax and personal income from agricultural activities (porez i doprinosi iz ličnog dohotka od poljoprivredne delativity);
(4) tax and personal income contributions from independent economic and non-economic activities (porez i doprinosi iz ličnog dohotka od samostalnog obavljanja privrednih i neprivrednih delativa);
(5) VAT on personal income from copyright, patents and technical improvements (porez iz ličnog dohotka od autorskih pravu, patentata i tehničkih unapredjenja);
(6) income tax on property and property rights (porez on the occasion from imovine i imovinskih pravu);
(7) property tax (porez na imovina);
(8) tax on the total income of citizens (porez iz ukupnog prihoda gradjana);
(9) tax on the profits of foreign persons on investments from domestic associations of joint ventures (porez na doby stranih lica ostvarenu ulaganjem u domaću organizaciju udruženog rada za vrhe zajedničkog poslovanja);
(10) tax on the profits of foreign persons from investment works (porez na doby stranih lica ostvarenu izvodjenjem investimationih radova);
(11) Foreign income tax on passenger and freight transport (Porez na prihoda stranih lica ostvaren od prevoza putnika i robe)
(hereinafter referred to as the "Yugoslav tax ');
(b) in Czechoslovakia:
(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 ').
4. The contract will also apply to all identical or substantially similar taxes which will be imposed upon signature of the contract in addition to or in place of current taxes. The competent authorities of the Contracting States shall notify each other of any significant changes to be made to their respective tax laws.
General definitions
1. For the purposes of this Treaty:
(a) the terms "one Contracting State" and "the other Contracting State" refer to Yugoslavia or Czechoslovakia as appropriate;
(b) the term "Yugoslavia" refers to the Socialist Federal Republic of Yugoslavia and the term "Czechoslovakia" refers to the Czechoslovak Socialist Republic;
(c) the term "members" refers to all natural persons who are nationals of a Contracting State;
(d) the term "person" means:
(i) in the case of Yugoslavia, the natural person and each legal person;
(ii) in the case of Czechoslovakia, a natural person, a company and any other association of persons;
(e) the term "company" refers to:
(i) in the case of Yugoslavia, the organisation of the work involved and any other legal person subject to taxation;
(ii) in the case of Czechoslovakia, any legal person or substance considered to be a legal person for tax purposes;
(f) the terms "undertaking of one Contracting State" and "undertaking of the other Contracting State" refer, in the case of Yugoslavia, to the organisation of the joint work and other self-governing organisation and community, working citizens engaged in individually independent activities, and to an undertaking established outside Yugoslavia and operated by a person residing or having his seat in Yugoslavia and, in the case of Czechoslovakia, an undertaking operated by a person residing or having its registered office in Czechoslovakia;
(g) the term "permanent base" shall refer to the permanent place of pursuit of separate professions;
(h) the term "international transport" shall mean any transport carried out by a ship or aircraft operated by an undertaking the actual management of which is situated in a Contracting State, unless the transport by ship or aircraft is carried out only between places situated in the other Contracting State;
(i) the term "competent authority" shall mean:
(i) in the case of Yugoslavia, the Federal Secretariat of Finance or its authorised representative;
(ii) in the case of Czechoslovakia, the Minister of Finance of the Czechoslovak Socialist Republic or his authorised representative.
2. Any term which is not defined in the contract shall have the meaning, under the law of that State governing the tax to which the contract applies, for its application by the contracting State.
Tax domicile
1. For the purposes of this Treaty, the term "resident or registered in a Contracting State 'shall mean any person who, under the law of that State, is subject to taxation in that State by reason of his residence, residence, place of administration or any other similar criterion.
2. Where, pursuant to paragraph 1 of this Article, a natural person resides in both Contracting States, his status shall be determined as follows:
(a) It is assumed that this person is resident in the State in which he is resident. If she has a permanent apartment in both countries, she is expected to reside in the State with which her personal and economic relations are closest (centre of life interests).
(b) If the State in which the person has a centre of his / her life interests cannot be designated or if he / she does not have a permanent residence in either of the two States, he / she shall be presumed to reside in the State in which he / she usually resides.
(c) If that person is usually staying in both States or if he is not usually staying in any of them, he shall be presumed to reside in the State of which he is a national.
(d) Where that person is a national of both States or is not a national of any of them, the competent authorities of the Contracting States shall determine 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 of this Article, it shall be presumed to have its registered office in the State in which the place of its effective management is situated.
Permanent establishment
1. For the purposes of this Treaty, the term "permanent establishment" shall mean a permanent establishment for the business in 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) the race;
(c) an office;
(d) the factory,
(e) workshop,
(f) mine, oil or gas, quarry or other place where natural resources are extracted.
3. The construction site or installation shall be a permanent establishment only if it lasts more than 12 months.
4. Notwithstanding the provisions of paragraphs 1, 2 and 3 of this Article, the term "permanent establishment" shall not include:
(a) equipment used only for the storage, display or supply of goods to the undertaking;
(b) the supply of goods to an undertaking which is maintained only for storage, display or delivery;
(c) the supply of goods to an undertaking which is maintained only for the purpose of processing by another undertaking;
(d) permanent business equipment which is maintained only for the purpose of purchasing goods or collecting information for the undertaking;
(e) permanent business equipment which is maintained solely for the purpose of advertising, information, scientific research or similar activities for an undertaking having a preparatory or auxiliary character;
(f) a permanent establishment for a business which shall be maintained only for the purpose of carrying out more than one of the activities referred to in paragraphs (a) to (e) where the total activity carried out in a permanent establishment for a business resulting from the concentration of several activities is of a preparatory or ancillary nature.
5. A person other than an independent representative referred to in paragraph 6, who acts as an undertaking and normally concludes contracts on behalf of an undertaking on the basis of the power of attorney which it is equipped with, shall be regarded as a permanent establishment of an undertaking in that State, taking into account the activities that that person carries on for the undertaking, provided that the activities of that person are not limited to the activities referred to in paragraph 4 which, had they been carried on in a permanent establishment for business, would not have made that establishment a permanent establishment in accordance with the provisions of that paragraph.
6. In the other Contracting State, the mere fact that an undertaking in that other State carries out its business through a broker, a general agent or any other representative having an independent position shall not be regarded as a permanent establishment of an undertaking of one Contracting State where such persons act in the proper framework of their 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 business in that other State (whether through a permanent establishment or otherwise) does not in itself make it a permanent establishment of any other company.
Revenue from immovable property
1. Revenue received by a person resident or domiciled in one Contracting State from immovable property (including income from agricultural or forestry holdings) located in the other Contracting State may be taxed in that other State.
2. The term "immovable property" shall, for the purposes of this Treaty, have the meaning which it has under the law of the Contracting State in which such property is situated. Ships, boats and aircraft shall not be considered property.
3. The provisions of paragraph 1 of this Article shall apply to income from direct use, rental or any other use of immovable property.
4. The provisions of paragraphs 1 and 3 of this Article shall also apply to income from the immovable property of an undertaking and to income from immovable property used for the provision of personal services under an independent profession.
Profits of enterprises
1. The profits of an undertaking of one Contracting State shall be subject to taxation only in that State if the undertaking does not carry out its 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 it is expected to achieve if, as a separate undertaking, it carries out the same or similar activities under the same or similar conditions and trade completely independently 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 objectives pursued by that permanent establishment, including management costs and general administrative expenses so incurred either in the State in which the permanent establishment is located or elsewhere.
(4) The profits attributable to the permanent establishment shall be determined on the basis of separate accounts held by the permanent establishment. Where such accounts do not constitute a sound basis for determining the profits of a permanent establishment, such profits may be determined on the basis of the distribution of the company's total profits by different amounts. However, the method of distribution of profits adopted must be such that the result is consistent with the principles set out in this Article. If necessary, the competent authorities of the Contracting States shall endeavour to agree on a method for allocating the profits of the company.
5. A permanent establishment shall not make any profits on the basis that it only purchased goods for the undertaking.
6. The provisions of this Article shall apply to profits earned in Yugoslavia by a resident or registered office in Czechoslovakia from his participation in a joint venture with a Yugoslav enterprise.
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.
Maritime, inland waterway and air transport
1. Profit from the operation of ships or aircraft in international transport shall be subject to taxation only in the Contracting State in which the actual management of the undertaking is located.
2. Profit from the operation of inland waterway vessels shall be subject to taxation only in the Contracting State in which the actual management of the undertaking is located.
3. Where the actual management of a maritime or inland waterway undertaking is carried on board a ship or a boat, it shall be deemed to be located in the Contracting State in which the ship or boat has its home port, or if the ship or boat does not have its home port, it shall be deemed to be located in the Contracting State in which the operator of the ship or boat is domiciled.
4. The provisions of paragraph 1 of this Article shall also apply to profits arising from participation in a pool, joint operation or an international operational organisation.
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 one or the other cases, conditions have been negotiated or imposed between both undertakings in their commercial or financial relations, which differ from those which would have been negotiated between independent undertakings, profits which would have been achieved without such conditions may have been made by one of the undertakings, but which, in view of those conditions, have not been achieved, be incorporated into the profits of that undertaking and consequently taxed.
Dividends
1. Dividends paid by a company which has its registered office in one Contracting State may be taxed in that other State.
2. However, these dividends may also 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 thus imposed shall not exceed:
(a) 5% of the gross amount of dividends where the beneficiary is a company (other than a personal company) which directly owns at least 25% of the capital of the company paying dividends;
(b) 15% of the gross amount of dividends in all other cases.
The provisions of 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 income from other social rights which are subject to the same taxation as income from shares under the tax law of the State in which the company paying dividends is situated.
4. The provisions of paragraphs 1 and 2 of this Article 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 a dividend company has its registered office, industrial or commercial activity through a permanent establishment which is located there, or provides personal services in that other State as an independent profession by means of a permanent base situated there, and where the participation on the basis of which dividends are paid is actually linked to such permanent establishment or permanent base. In such a case, the provisions of Article 7 or Article 14 of this Treaty shall apply depending on the case.
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 that company, except in cases where such dividends are paid to a person resident in that other State or where the participation on the basis of which dividends are paid is actually linked to a permanent establishment or a permanent base situated in that other State, or subject the company's undistributed profits to the tax on undistributed profits, even if the dividends paid or retained earnings are wholly or partly of the profits or income generated 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 revenue from public bonds and bonds secured and not secured by a lien on immovable property, which provides neither the right to participate in profit, claims of any kind, nor any other income assimilated to income from loans under the tax law of the State in which the income is source.
3. The provisions of paragraph 1 of this Article shall not apply where the recipient of interest residing or having his registered office in one Contracting State carries out, in the other Contracting State in which the interest is paid, a source, an industrial or commercial activity through a permanent establishment situated there or provides, in that other State, personal services as an independent profession by means of a permanent base situated there, and where the claim on which interest is paid is actually linked to such a permanent establishment or permanent base. In that case, the provisions of Article 7 or Article 14 shall apply depending on the case.
4. Interest shall be assumed to have a source in one Contracting State where the payer is the latter himself, the lower administrative department or local office of that State or the person residing or having his registered office in that State.
5. Notwithstanding the provisions of paragraph 3 of this Article, interest shall be assumed to have a source in the Contracting State in which the interest payer has a permanent establishment or a permanent base with which a loan is actually linked, from which interest is paid and which bears interest at its expense, whether the interest payer is resident or not in that Contracting State.
6. Where the amount of interest paid, in view of the claim on which it is paid, exceeds, by reason of the special relations existing between the payer and the payee or between the two and the third parties, the amount that the payer would have agreed with the payee if it had not been for such relations, the provisions of this Article shall apply only to that last amount. In this case, the part of the salary exceeding it shall remain subject to taxation 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 paid to a person residing or having his registered office in the other Contracting State may be taxed in that other State.
2. The licence fees referred to in paragraph 1 of this Article may also be taxed in the Contracting State in which their source is located, under the law of that State. However, the tax thus imposed shall not exceed 10% of the gross amount of royalties.
3. The term "licence fees' used in this Article refers to salaries of any kind paid for use or for the right to use copyright for the work of literary, artistic or scientific including cinematographic films, films and tapes for television or radio broadcasting, patent, trade mark, model or model, plan, secret formula or procedure, or for use or for the use of industrial, commercial or scientific equipment or for information relating to industrial, commercial or scientific experience.
4. The provisions of paragraphs 1 and 2 of this Article 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 situated there or provides in that other State personal services as an independent profession by means of a permanent base situated there, and where the right or property for which the licence fee is paid is actually linked to such permanent establishment or permanent base. In such a case, the provisions of Article 7 or Article 14 of this Treaty shall apply depending on the case.
5. Licensing fees shall be presumed to have a source in one Contracting State where the payer is the latter himself, the lower administrative department or local office of that Contracting State or the person residing or having his registered office in that Contracting State.
6. Notwithstanding the provisions of paragraph 5 of this Article, licence fees shall be presumed to have a source in the Contracting State in which the licence fee payer has a permanent establishment or a permanent base, in conjunction with which an obligation to pay royalties has arisen and which, at its expense, bears such royalties, whether the licence fee payer has or is not domiciled in that Contracting State.
7. Where the amount of royalties paid, assessed in the light of the use, right or information for which they are paid, exceeds, as a result of the special relations existing between the payer and the payee or between the two and a third party, the amount which the payer would have agreed with the payee if it had not been for such relations, the provisions of this Article shall apply only to that last amount. In this case, part of the salaries exceeding that shall remain subject to taxation under the law of each Contracting State and taking into account other provisions of this Treaty.
Capital gains
1. Profit realised by a person resident or domiciled in one Contracting State from the disposal of immovable property located in the other Contracting State may be taxed in that other State.
2. Proceeds from the disposal of movable property forming part of the operating property of a permanent establishment held by an undertaking of a Contracting State in the other Contracting State or of movable property belonging to a permanent base which a person resident in one Contracting State has in the other Contracting State for the provision of personal services in the context of an independent profession, including profits arising from the disposal of such permanent establishment (alone or together with the whole undertaking) or such permanent base, may be taxed in that other State.
3. Profit from the disposal of ships or aircraft used in international transport, inland waterway boats and movable property belonging to the operation of such ships, aircraft or boats shall be subject to taxation, notwithstanding the provisions of paragraph 2 of this Article, only in the Contracting State in which the actual management of the undertaking is located.
4. Proceeds from the disposal of assets other than those referred to in paragraphs 1, 2 and 3 of this Article shall be subject to taxation only in the Contracting State in which the transferee is domiciled.
Independent professions
1. Revenue received by a person residing in a Contracting State for services rendered in the course of a professional activity or other independent activities of a similar nature may be taxed in that State. Subject to paragraph 2 of this Article, such revenue shall be exempt in the second Contracting State.
2. Revenue received by a person residing in one Contracting State for services rendered in the course of a professional activity or other independent activities of a similar nature in the other Contracting State may be taxed in that other Contracting State if that person is present in that other Contracting State for one or more periods which exceed 183 days in a calendar year, whether or not such person has a permanent base in that other Contracting State.
3. The term "free profession" includes 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.
Dependent employment
1. Wages, salaries and other similar remuneration which a person residing in one Contracting State receives from employment shall be subject to taxation in that State only, subject to the provisions of Articles 16, 17, 18, 19 and 20 of this Treaty, if the employment is not carried out in the other Contracting State. If there is employment there, the remuneration received from that employment may be taxed in that other State.
2. The remuneration which a person residing in a Contracting State receives from employment in the other Contracting State shall, notwithstanding the provisions of paragraph 1 of this Article, be subject to taxation only in the first State if:
(a) the consignee shall stay in the other State for one or more periods not exceeding 183 days in total in the calendar year concerned; and
(b) the remuneration is paid by a person or on behalf of a person who is not domiciled in that other State; and
(c) the remuneration shall not be borne by a permanent establishment or permanent base held by that person in that other State.
3. (a) Salaries and wages paid by a contracting State, a lower administrative department or a local authority of that State shall be subject to taxation only in that State.
(b) Salaries and wages paid by a contracting State, a lower administrative department or a local authority of that State shall be subject to taxation by a natural person only in the other Contracting State where the recipient who worked in that other State is resident in that State and:
(i) is a national of that State; or
(ii) has not obtained residence in that State solely because of work.
4. The salaries and wages which a natural person receives for work carried out in conjunction with an industrial or commercial activity carried out by a Contracting State, a lower administrative department or a local office of that State shall be subject to taxation in accordance with paragraphs 1 and 2 of this Article.
5. Salaries and wages which are received by natural persons for their work in the United Economic Representative of Yugoslavia and in the Yugoslavia Tourist Federation shall be subject to taxation only in Yugoslavia provided that those persons:
(i) are national citizens of Yugoslavia and
(ii) are resident in Czechoslovakia only for the purpose of the said work.
6. Remuneration from the employment carried out on board a ship or aircraft operating in international transport may be taxed in the Contracting State in which the actual management of the undertaking is located, notwithstanding the previous provisions of this Article.
Tantiems
1. Tantiems and other similar salaries received by a resident in Yugoslavia as a member of the administrative or supervisory board of a company which has its registered office in Czechoslovakia may be taxed in Czechoslovakia.
2. Rewards and similar salaries which a person residing in Czechoslovakia receives as a member of the administrative body of a company having its registered office in Yugoslavia may be taxed in Yugoslavia.
Artists and athletes
1. Revenue received by theatrical, film, radio or television artists, musicians, sportsmen and other artists from their personal activities as such may be taxed, irrespective of the provisions of Articles 14 and 15 of this Treaty, in the Contracting State in which those activities are carried out.
2. Where the income from activities carried out by an artist or an athlete referred to in paragraph 1 of this Article is not attributable to artists or athletes themselves but to another person, such income may be taxed, irrespective of the provisions of Articles 7, 14 and 15 of this Treaty, in the Contracting State in which the activities of an artist or athlete are carried out.
3. Revenue from activities referred to in paragraph 1 of this Article which are carried out under a cultural or sporting exchange programme agreed by both Contracting States shall be exempt from taxation in the Contracting State in which those activities are carried out, irrespective of the provisions of paragraphs 1 and 2 of this Article.
Pension
1. Pensions and other similar salaries paid on account of former employment to a person residing in a Contracting State shall be subject to taxation only in the Contracting State in which the recipient resides.
2. (a) Pensions paid by a Contracting State, a lower administrative department or a local authority of that State from a State budget or from a special fund shall be subject to taxation only in that State.
(b) Such pensions shall, however, be subject to taxation only in the second Contracting State where the beneficiary is a national of that State and is resident in that State.
3. Pension received by a natural person who has worked in conjunction with an industrial or commercial activity of a Contracting State, a lower administrative department or a local office of that State shall be subject to taxation only in the Contracting State in which that person resides.
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Regulation Information
| Citation | Decree of the Minister of Foreign Affairs No. 99 / 1983 Coll., on the Treaty between the Czechoslovak Socialist Republic and the Socialist Federal Republic of Yugoslavia on the avoidance of double taxation in the field of income and property taxes |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 24.09.1983 |
|---|---|
| Effective from | 17.04.1983 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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