ARTICLE
28 April 1998

Czech News - April 1998 - Double Tax Treaties

Czech Republic Accounting and Audit
1. Double Tax Treaty with Belarus

The Ministry of Foreign Affairs published the Czech Republic Belarus double tax treaty under No. 31/1998 Coll.

Pursuant to Article 5 of the Treaty, construction, assembly or an installation project lead to the creation of a permanent establishment if their duration exceeds 6 months.

The treaty introduces the following maximum rates of withholding taxes:
  • dividends 10%
  • interest 5%
  • licence fees 10%
2. Procedure for the application of the Czech Republic - Finland Double Tax Treaty

The Ministry of Finance confirmed the procedure for application of reduced withholding tax on Finnish dividends distributed to Czech residents. The Czech recipient of the dividend from Finland must present a certificate of tax residence, otherwise full (28%) dividend withholding tax will apply. A reimbursement of withholding would be made based on an application sent to the tax authorities in Finland.

3. Application of the Czech Republic - Sweden Double Tax Treaty

The Ministry of Finance confirmed that dividend withholding according to the Treaty applies for payments by Czech residents to the following Swedish residents:
  • joint-stock company
  • economic society (e.g. cooperatives)
  • mutual insurance society
  • savings-bank.
4. List of Double Tax Treaties

The Ministry of Finance published a full list of double taxation treaties to which the Czech Republic is a party. As of 1 January 1998, the Czech Republic had treaties with 47 countries and 2 COMECON treaties which are still in force.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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