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Double Tax Treaty Czech Republic – Canada

Double Tax Treaty Czech Republic – Canada

A convention for the avoidance of double taxation and the prevention of fiscal evasion has been signed between the Czech Republic and Canada. This treaty entered into force in May 2002 and addresses all taxes on incomeCzech corporations registered and doing business in the Czech Republic are subject to the provisions of this double tax treatyOur team of Czech lawyers can offer assistance on the financial procedures required by this convention.   

Persons and taxes covered by the convention

All individual persons and legal entities resident in the Czech Republic or Canada are subject to this treaty for the avoidance of double taxation. Several taxes on income are covered by this convention. In the case of Canada, the income tax imposed by the Government of Canada, under The Income Tax Act, is covered by this treaty.

In the case of the Czech Republic, this treaty addresses the following taxes:

•    income tax for individuals and legal persons;
•    on profits;
•    on income from literary and artistic activities;
•    the agricultural tax;
•    the house tax.

This convention also applies to similar or identical taxes imposed by the relevant authorities in the Czech Republic and Canada after this treaty had entered into force. 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 provide you with in-depth presentations of the financial advantages of this treaty.

The scope of the double tax treaty

As mentioned in this convention between the Czech Republic and Canada, all taxes on income are addressed. There shall be regarded as taxes on income and on capital all taxes on total income or on elements of income or of capital, including taxes from the alienation of immovable property, taxes on the total amount of wages or salaries paid by companies to their employees as well as taxes on capital appreciation. These provisions of the treaty are aimed at the financial benefit of Czech companies.

If you want your business to profit from the provisions of this convention and need professional guidance, don`t hesitate to contact our lawyers in the Czech Republic.