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Double Tax Treaty Czech Republic – Austria

Double Tax Treaty Czech Republic – Austria

The Czech Republic signed treaties on the avoidance of double taxation with 80 countries worldwide. Double taxation is eliminated through exemption of progressive income and ordinary tax credit. The Czech Republic and Austria sealed a convention for the avoidance of double taxation and the prevention of fiscal evasion in 2007. This convention applies to individual persons and legal entities who are residents of one or both of the signing states. Our attorneys in the Czech Republic can give you detailed information on this matter.

Taxes covered by the treaty

The provisions of this treaty on the avoidance of double taxation address taxes on income and on capital levied on behalf of a contracting state or of its political subdivisions and authorities, irrespective of the way that they are imposed. The specific taxes to which the convention applies are the following:

•    In Austria – the income tax, the corporate tax, the tax on the value of vacant plots, the tax on agricultural and forestry enterprises and the land tax;
•    In the Czech Republic – the individual tax income, the corporate tax and the tax on the immovable property.

This convention also applies to similar or identical taxes imposed by the relevant authorities in the Czech Republic and Austria after signing this treaty. The two countries have agreed to exchange relevant information about modifications brought to the laws regarding taxation. Our law firm in the Czech Republic can assist investors with more information regarding the financial aspects of this convention for avoiding double taxation.

The scope of the treaty

As stipulated in this convention between the Czech Republic and Austria, all taxes on income and on capital shall be regarded. These include taxes imposed on:

– total income,

– total capital,

– gains from the alienation of immovable or movable property,

– salaries or the wages paid by corporations,

– capital appreciation.

If you want precise information about the financial provisions of this agreement, feel free to contact our lawyers in the Czech Republic.