The Czech Republic and the Kingdom of Belgium have agreed on a convention for the avoidance of double taxation and the prevention of fiscal evasion. Resident individuals and corporations in the Czech Republic and Belgium are subject to the provisions of this treaty. Taxes on income and on capital imposed on behalf of a signing state are addressed by this double tax treaty. Our team of Czech lawyers can provide you with details about the policy of avoiding double taxation.
Taxes covered by the treaty
There are several existing taxes to which the double tax treaty applies. In regard to the Czech Republic, the taxes are on:
• the income of individuals;
• the income of Czech corporations;
• immovable property.
The taxes addressed by the convention in regard to Belgium are the following:
• the individual income tax;
• the corporate income tax;
• the income tax on legal entities;
• the income tax levied for non-residents;
• the special levy on movable property income and the supplementary crisis contribution.
Any other similar or identical taxes imposed by the two countries authorities are also subject to the provisions of this double tax treaty. If you want to avoid double taxation, our team of Czech attorneys can offer you personalized financial solutions.
The taxation of business profits
According to the stipulations of this treaty, the profits gained by a Czech enterprise can be taxed only in this state. The exception is represented by the situation when a corporation carries on business in Belgium too, through a permanent establishment situated therein. When determining the business profits of a permanent establishment, certain expenses are deducted – expenditures incurred for the purpose of the permanent establishment and executive and general administrative expenses.
The deduction of these expenses is done only in the state where the permanent establishment is situated. The method of apportionment is customary for the taxation of business profits of a permanent establishment.
Don`t hesitate to contact our Czech law firm for more details on double taxation treaties signed by this country.