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Double Tax Treaty Czech Republic – Australia

Double Tax Treaty Czech Republic – Australia

The Czech Republic and Australia signed a treaty for the avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income. This double tax treaty entered into force in November 1995 and applies to persons who are residents of one or both of the contracting states. According to the provisions of this treaty, all companies registered in the Czech Republic are subject to taxation. Our attorneys in the Czech Republic can give you detailed information about the financial aspects stipulated in this treaty.

Taxes to which the double tax treaty applies

Several taxes are addressed by the provisions of this agreement on the avoidance of double taxation and prevention of fiscal evasion:

•    In Australia – the income tax on the rental of natural resources in relation to projects in coastal waters, the tax on the exploration and exploitation of petroleum resources, imposed by the federal laws of Australia;
•    In the Czech Republic – the income tax.

This agreement also applies to similar or identical taxes imposed by the relevant authorities in the Czech Republic and Australia 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 double tax treaty.

The aim of the treaty

All companies doing business or registered in the Czech Republic are subject to this treaty on the avoidance of double taxation. The term  ”income tax” mentioned in this agreement addresses several types of corporation gains:

– income from immovable property (it is taxed in the country where the property is located),

– all business profits and gains derived from the operations of ships or aircraft,

– any income generated by an associated enterprise,

– interests,

– dividends and royalties,

– income derived from a transfer of assets and employment.

If you want a professional opinion on the avoidance of double taxation, please contact our lawyers in the Czech Republic.