|
|
|
|
|
|
|
|
|
|
The Government of Canada and the Government of the
Slovak Republic, desiring to conclude an Agreement for
the avoidance of double taxation and the prevention of
fiscal evasion with respect to taxes on income and on
capital, have agreed as follows:
|
|
|
|
|
|
|
|
|
|
|
|
This Agreement shall apply to persons who are residents of
one or both of the Contracting States.
|
|
|
|
|
|
|
|
|
|
|
|
1. This Agreement shall apply to taxes on income and on
capital imposed on behalf of a Contracting State, irrespective of
the manner in which they are levied.
|
|
|
|
2. There shall be regarded as taxes on income and on capital
all taxes imposed on total income, on total capital, or on elements
of income or of capital, including taxes on gains from the
alienation of movable or immovable property, as well as taxes on
capital appreciation.
|
|
|
|
3. The existing taxes to which the Agreement shall apply are,
in particular,
|
|
|
|
a) in the case of Canada, the taxes imposed by the Government
of Canada under the Income Tax Act (hereinafter referred to as
``Canadian tax''); and
|
|
|
|
b) in the case of Slovakia:
|
|
|
|
(i) the tax on income of individuals;
|
|
|
|
(ii) the tax on income of legal persons;
|
|
|
|
(iii) the tax on immovable property;
|
|
|
|
(hereinafter referred to as ``Slovak tax'').
|
|
|
|
4. The Agreement shall apply also to any identical or
substantially similar taxes which are imposed after the date of
signature of the Agreement in addition to, or in place of, the
existing taxes. The competent authorities of the Contracting
States shall notify each other of any significant changes which
have been made in their respective taxation laws.
|
|
|
|
|
|
|
|
|
|
|
|
1. For the purposes of this Agreement, unless the context
otherwise requires,
|
|
|
|
a) the term ``Canada'', used in a geographical sense, means the
territory of Canada, including
|
|
|
|
(i) any area beyond the territorial sea of Canada that, in
accordance with international law and the laws of Canada,
is an area in respect of which Canada may exercise rights
with respect to the seabed and subsoil and their natural
resources, and
|
|
|
|
(ii) the sea and airspace above every area referred to in
clause (i);
|
|
|
|
b) the term ``Slovakia'' means the Slovak Republic and, used
in a geographical sense, means the territory within which the
Slovak Republic exercises its sovereign rights and
jurisdiction, in accordance with the rules of international law;
|
|
|
|
c) the terms ``a Contracting State'' and ``the other Contracting
State'' mean Canada or Slovakia as the context requires;
|
|
|
|
d) the term ``person'' includes an individual, a trust, a
company and any other body of persons;
|
|
|
|
e) the term ``company'' means any body corporate or any
entity which is treated as a body corporate for tax purposes;
|
|
|
|
f) the terms ``enterprise of a Contracting State'' and
``enterprise of the other Contracting State'' mean respectively
an enterprise carried on by a resident of a Contracting State
and an enterprise carried on by a resident of the other
Contracting State;
|
|
|
|
g) the term ``competent authority'' means:
|
|
|
|
(i) in the case of Canada, the Minister of National Revenue
or the Minister's authorized representative;
|
|
|
|
(ii) in the case of Slovakia, the Minister of Finance or the
Minister's authorized representative;
|
|
|
|
h) the term ``national'' means:
|
|
|
|
(i) any individual possessing the nationality of a
Contracting State;
|
|
|
|
(ii) any legal person, partnership or association deriving its
status as such from the laws in force in a Contracting State;
|
|
|
|
i) the term ``international traffic'' means any voyage of a ship
or aircraft operated by an enterprise of a Contracting State to
transport passengers or property except where the principal
purpose of the voyage is to transport passengers or property
between places within the other Contracting State.
|
|
|
|
2. As regards the application of the Agreement at any time by
a Contracting State, any term not defined therein shall, unless the
context otherwise requires, have the meaning which it has at that
time under the law of that State for the purposes of the taxes to
which the Agreement applies, any meaning under the applicable
tax laws of that State prevailing over a meaning given to the term
under other laws of that State.
|
|
|
|
|
|
|
|
|
|
|
|
1. For the purposes of this Agreement, the term ``resident of
a Contracting State'' means:
|
|
|
|
a) any person who, under the laws of that State, is liable to tax
therein by reason of the person's domicile, residence, place of
management or any other criterion of a similar nature but does
not include any person who is liable to tax in that State in
respect only of income from sources in that State;
|
|
|
|
b) that State or a political subdivi-sion or local authority
thereof or any agency or instrumentality of any such State,
subdivision or authority.
|
|
|
|
2. Where by reason of the provisions of paragraph 1 an
individual is a resident of both Contracting States, then the
individual's status shall be determined as follows:
|
|
|
|
a) the individual shall be deemed to be a resident only of the
State in which the individual has a permanent home available;
if the individual has a permanent home available in both
States, the individual shall be deemed to be a resident only of
the State with which the individual's personal and economic
relations are closer (centre of vital interests);
|
|
|
|
b) if the State in which the individual's centre of vital interests
is situated cannot be determined, or if there is not a permanent
home available to the individual in either State, the individual
shall be deemed to be a resident only of the State in which the
individual has an habitual abode;
|
|
|
|
c) if the individual has an habitual abode in both States or in
neither of them, the individual shall be deemed to be a resident
only of the State of which the individual is a national;
|
|
|
|
d) if the individual is a national of both States or of neither of
them, the competent authorities of the Contracting States shall
settle the question by mutual agreement.
|
|
|
|
3. Where by reason of the provisions of paragraph 1 a
company is a resident of both Contracting States, then its status
shall be determined as follows:
|
|
|
|
a) it shall be deemed to be a resident only of the State of which
it is a national; or
|
|
|
|
b) if it is a national of neither of the States, it shall be deemed
to be a resident only of the State in which its place of effective
management is situated.
|
|
|
|
4. Where by reason of the provisions of paragraph 1 a person
other than an individual or a company is a resident of both
Contracting States, the competent authorities of the Contracting
States shall by mutual agreement endeavour to settle the question
and to determine the mode of application of the Agreement to
such person. In the absence of such agreement, such person shall
not be entitled to claim any relief or exemption from tax provided
by the Agreement.
|
|
|
|
|
|
|
|
|
|
|
|
1. For the purposes of this Agreement, the term ``permanent
establishment'' means a fixed place of business through which
the business of an enterprise is wholly or partly carried on.
|
|
|
|
2. The term ``permanent establishment'' includes especially:
|
|
|
|
a) a place of management;
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
f) a mine, an oil or gas well, a quarry or any other place relating
to the exploration for or the exploitation of natural resources.
|
|
|
|
3. The term ``permanent establishment'' likewise
encompasses:
|
|
|
|
a) a building site or construction or assembly or installation
project only if it lasts for more than twelve months;
|
|
|
|
b) the furnishing of services, including consultancy and
managerial services, by an enterprise of a Contracting State
through employees or other personnel engaged by the
enterprise for such purposes, but only where activities of that
nature continue (for the same or a connected project) within
the territory of the other Contracting State for a period or
periods aggregating more than nine months within any
twelve-month period.
|
|
|
|
4. Notwithstanding the preceding provisions of this Article,
the term ``permanent establishment'' shall be deemed not to
include:
|
|
|
|
a) the use of facilities solely for the purpose of storage, display
or delivery of goods or merchandise belonging to the
enterprise;
|
|
|
|
b) the maintenance of a stock of goods or merchandise
belonging to the enterprise solely for the purpose of storage,
display or delivery;
|
|
|
|
c) the maintenance of a stock of goods or merchandise
belonging to the enterprise solely for the purpose of
processing by another enterprise;
|
|
|
|
d) the maintenance of a fixed place of business solely for the
purpose of purchasing goods or merchandise or of collecting
information, for the enterprise;
|
|
|
|
e) the maintenance of a fixed place of business solely for the
purpose of carrying on, for the enterprise, any other activity of
a preparatory or auxiliary character;
|
|
|
|
f) the maintenance of a fixed place of business solely for any
combination of activities mentioned in subparagraphs a) to e)
provided that the overall activity of the fixed place of business
resulting from this combination is of a preparatory or auxiliary
character.
|
|
|
|
5. Notwithstanding the provisions of paragraphs 1 and 2,
where a person - other than an agent of an independent status
to whom paragraph 6 applies - is acting on behalf of an
enterprise and has, and habitually exercises, in a Contracting
State an authority to conclude contracts on behalf of the
enterprise, that enterprise shall be deemed to have a permanent
establishment in that State in respect of any activities which that
person undertakes for the enterprise unless the activities of such
person are limited to those mentioned in paragraph 4 which, if
exercised through a fixed place of business, would not make this
fixed place of business a permanent establishment under the
provisions of that paragraph.
|
|
|
|
6. An enterprise shall not be deemed to have a permanent
establishment in a Contracting State merely because it carries on
business in that State through a broker, general commission
agent or any other agent of an independent status, provided that
such persons are acting in the ordinary course of their business.
|
|
|
|
7. The fact that a company which is a resident of a Contracting
State controls or is controlled by a company which is a resident
of the other Contracting State, or which carries on business in that
other State (whether through a permanent establishment or
otherwise), shall not of itself constitute either company a
permanent establishment of the other.
|
|
|
|
|
|
|
|
|
|
|
|
1. Income derived by a resident of a Contracting State from
immovable property (including income from agriculture or
forestry) situated in the other Contracting State may be taxed in
that other State.
|
|
|
|
2. For the purposes of this Agreement, the term ``immovable
property'' shall have the meaning which it has for the purposes
of the relevant tax law of the Contracting State in which the
property in question is situated. The term shall in any case include
property accessory to immovable property, livestock and
equipment used in agriculture and forestry, rights to which the
provisions of general law respecting landed property apply,
usufruct of immovable property and rights to variable or fixed
payments as consideration for the working of, or the right to
work, mineral deposits, sources and other natural resources.
Ships and aircraft shall not be regarded as immovable property.
|
|
|
|
3. The provisions of paragraph 1 shall apply to income derived
from the direct use, letting, or use in any other form of immovable
property and to income from the alienation of such property.
|
|
|
|
4. The provisions of paragraphs 1 and 3 shall also apply to the
income from immovable property of an enterprise and to income
from immovable property used for the performance of
independent personal services.
|
|
|
|
|
|
|
|
|
|
|
|
1. The profits of an enterprise of a Contracting State shall be
taxable only in that State unless the enterprise carries on business
in the other Contracting State through a permanent establishment
situated therein. If the enterprise carries on or has carried on
business as aforesaid, the profits of the enterprise may be taxed
in the other State but only so much of them as is attributable to
that permanent establishment.
|
|
|
|
2. Subject to the provisions of paragraph 3, where an
enterprise of a Contracting State carries on business in the other
Contracting State through a permanent establishment situated
therein, there shall in each Contracting State be attributed to that
permanent establishment the profits which it might be expected
to make if it were a distinct and separate enterprise engaged in the
same or similar activities under the same or similar conditions
and dealing wholly independently with the enterprise of which
it is a permanent establishment and with all other persons.
|
|
|
|
3. In determining the profits of a permanent establishment,
there shall be allowed those deductible expenses which are
incurred for the purposes of the permanent establishment
including executive and general administrative expenses so
incurred, whether in the State in which the permanent
establishment is situated or elsewhere.
|
|
|
|
4. Insofar as it has been customary in a Contracting State to
determine the profits to be attributed to a permanent
establishment on the basis of an apportionment of the total profits
of the enterprise to its various parts, nothing in paragraph 2 shall
preclude that Contracting State from determining the profits to be
taxed by such an apportionment as may be customary. The
method of apportionment adopted shall, however, be such that
the result shall be in accordance with the principles contained in
this Article.
|
|
|
|
5. No profits shall be attributed to a permanent establishment
by reason of the mere purchase by that permanent establishment
of goods or merchandise for the enterprise.
|
|
|
|
6. For the purposes of the preceding paragraphs, the profits to
be attributed to the permanent establishment shall be determined
by the same method year by year unless there is good and
sufficient reason to the contrary.
|
|
|
|
7. Where profits include items of income which are dealt with
separately in other Articles of this Agreement, then the
provisions of those Articles shall not be affected by the
provisions of this Article.
|
|
|
|
|
|
|
|
|
|
|
|
1. Profits derived by an enterprise of a Contracting State from
the operation of ships or aircraft in international traffic shall be
taxable only in that State.
|
|
|
|
2. Notwithstanding the provisions of Article 7, profits derived
by an enterprise of a Contracting State from a voyage of a ship
or aircraft where the principal purpose of the voyage is to
transport passengers or property between places in the other
Contracting State may be taxed in that other State.
|
|
|
|
3. The provisions of paragraphs 1 and 2 shall also apply to
profits from the participation in a pool, a joint business or an
international operating agency.
|
|
|
|
4. For the purposes of this Article, the term ``operation of ships
or aircraft in international traffic'' by an enterprise, includes:
|
|
|
|
a) the rental of ships or aircraft;
|
|
|
|
b) the rental of containers and related equipment,
|
|
|
|
by that enterprise if that rental is incidental to the operation by
that enterprise of ships or aircraft in international traffic.
|
|
|
|
|
|
|
|
|
|
|
|
1. Where
|
|
|
|
a) an enterprise of a Contracting State participates directly or
indirectly in the management, control or capital of an
enterprise of the other Contracting State, or
|
|
|
|
b) the same persons participate directly or indirectly in the
management, control or capital of an enterprise of a
Contracting State and an enterprise of the other Contracting
State,
|
|
|
|
and in either case conditions are made or imposed between the
two enterprises in their commercial or financial relations which
differ from those which would be made between independent
enterprises, then any profits which would, but for those
conditions, have accrued to one of the enterprises, but, by reason
of those conditions, have not so accrued, may be included in the
profits of that enterprise and taxed accordingly.
|
|
|
|
2. Where a Contracting State includes in the profits of an
enterprise of that State - and taxes accordingly - profits on
which an enterprise of the other Contracting State has been
charged to tax in that other State and the profits so included are
profits which would have accrued to the enterprise of the
first-mentioned State if the conditions made between the two
enterprises had been those that would have been made between
independent enterprises, then that other State shall make an
appropriate adjustment to the amount of the tax charged therein
on those profits. In determining such adjustment, due regard
shall be had to the other provisions of this Agreement and the
competent authorities of the Contracting States shall if necessary
consult each other.
|
|
|
|
3. A Contracting State shall not change the profits of an
enterprise in the circumstances referred to in paragraph 1 after the
expiry of the time limits provided in its domestic laws and, in any
case, after six years from the end of the year in which the profits
which would be subject to such change would, but for the
conditions referred to in paragraph 1, have been attributed to that
enterprise.
|
|
|
|
4. The provisions of paragraphs 2 and 3 shall not apply in the
case of fraud, wilful default or neglect.
|
|
|
|
|
|
|
|
|
|
|
|
1. Dividends paid by a company which is a resident of a
Contracting State to a resident of the other Contracting State may
be taxed in that other State.
|
|
|
|
2. However, such dividends may also be taxed in the
Contracting State of which the company paying the dividends is
a resident and according to the laws of that State, but if the
beneficial owner of the dividends is a resident of the other
Contracting State, the tax so charged shall not exceed:
|
|
|
|
a) except in the case of dividends paid by a
non-resident-owned investment corporation, 5 per cent of the
gross amount of the dividends if the beneficial owner is a
company which controls directly or indirectly at least 10 per
cent of the voting power in the company paying the dividends;
|
|
|
|
b) 15 per cent of the gross amount of the dividends, in all other
cases.
|
|
|
|
The provisions of this paragraph shall not affect the taxation of
the company in respect of the profits out of which the dividends
are paid.
|
|
|
|
3. The term ``dividends'' as used in this Article means income
from shares, ``jouissance'' shares or ``jouissance'' rights, mining
shares, founders' shares or other rights, not being debt-claims,
participating in profits, as well as income which is subjected to
the same taxation treatment as income from shares by the laws of
the State of which the company making the distribution is a
resident.
|
|
|
|
4. The provisions of paragraphs 1 and 2 shall not apply if the
beneficial owner of the dividends, being a resident of a
Contracting State, carries on business in the other Contracting
State of which the company paying the dividends is a resident,
through a permanent establishment situated therein, or performs
in that other State independent personal services from a fixed
base situated therein, and the holding in respect of which the
dividends are paid is effectively connected with such permanent
establishment or fixed base. In such case the provisions of Article
7 or Article 14, as the case may be, shall apply.
|
|
|
|
5. Where a company which is a resident of a Contracting State
derives profits or income from the other Contracting State, that
other State may not impose any tax on the dividends paid by the
company, except insofar as such dividends are paid to a resident
of that other State or insofar as the holding in respect of which the
dividends are paid is effectively connected with a permanent
establishment or a fixed base situated in that other State, nor
subject the company's undistributed profits to a tax on
undistributed profits, even if the dividends paid or the
undistributed profits consist wholly or partly of profits or income
arising in such other State.
|
|
|
|
6. Nothing in this Agreement shall be construed as preventing
a Contracting State from imposing on the earnings of a company
attributable to a permanent establishment in that State, or the
earnings attributable to the alienation of immovable property
situated in that State by a company carrying on a trade in
immovable property, a tax in addition to the tax that would be
chargeable on the earnings of a company that is a national of that
State, except that any additional tax so imposed shall not exceed
5 per cent of the amount of such earnings that have not been
subjected to such additional tax in previous taxation years. For
the purpose of this provision, the term ``earnings'' means the
earnings attributable to the alienation of such immovable
property situated in a Contracting State as may be taxed by that
State under the provisions of Article 6 or of paragraph 1 of Article
13, and the profits, including any gains, attributable to a
permanent establishment in a Contracting State in a year and
previous years, after deducting therefrom all taxes, other than the
additional tax referred to herein, imposed on such profits in that
State.
|
|
|
|
|
|
|
|
|
|
|
|
1. Interest arising in a Contracting State and paid to a resident
of the other Contracting State may be taxed in that other State.
|
|
|
|
2. However, such interest may also be taxed in the Contracting
State in which it arises and according to the laws of that State, but
if the beneficial owner of the interest is a resident of the other
Contracting State, the tax so charged shall not exceed 10 per cent
of the gross amount of the interest.
|
|
|
|
3. Notwithstanding the provisions of paragraph 2:
|
|
|
|
a) interest arising in a Contracting State and paid in respect of
indebtedness of the government of that State or of a political
subdivision or local authority thereof shall, if the interest is
beneficially owned by a resident of the other Contracting
State, be taxable only in that other State;
|
|
|
|
b) interest arising in a Contracting State and paid to a resident
of the other Contracting State shall be taxable only in that
other State if it is paid in respect of a loan made, guaranteed or
insured, or a credit extended, guaranteed or insured by any
entity wholly-owned and controlled by the government of
that other State, provided this loan or credit is in respect of
imports or exports.
|
|
|
|
4. The term ``interest'' as used in this Article means income
from debt-claims of every kind, whether or not secured by
mortgage, and in particular, income from government securities
and income from bonds or debentures, including premiums and
prizes attaching to such securities, bonds or debentures, as well
as income which is subjected to the same taxation treatment as
income from money lent by the laws of the State in which the
income arises. However, the term ``interest'' does not include
income dealt with in Article 10. Penalty charges for late payment
shall not be regarded as interest for the purpose of this Article.
|
|
|
|
5. The provisions of paragraphs 1 and 2 shall not apply if the
beneficial owner of the interest, being a resident of a Contracting
State, carries on business in the other Contracting State in which
the interest arises through a permanent establishment situated
therein, or performs in that other State independent personal
services from a fixed base situated therein, and the debt-claim in
respect of which the interest is paid is effectively connected with
such permanent establishment or fixed base. In such case the
provisions of Article 7 or Article 14, as the case may be, shall
apply.
|
|
|
|
6. Interest shall be deemed to arise in a Contracting State when
the payer is a resident of that State. Where, however, the person
paying the interest, whether that person is a resident of a
Contracting State or not, has in a Contracting State a permanent
establishment or a fixed base in connection with which the
indebtedness on which the interest is paid was incurred, and such
interest is borne by such permanent establishment or fixed base,
then such interest shall be deemed to arise in the State in which
the permanent establishment or fixed base is situated.
|
|
|
|
7. Where, by reason of a special relationship between the
payer and the beneficial owner or between both of them and some
other person, the amount of the interest, having regard to the
debt-claim for which it is paid, exceeds the amount which would
have been agreed upon by the payer and the beneficial owner in
the absence of such relationship, the provisions of this Article
shall apply only to the last-mentioned amount. In such case, the
excess part of the payments shall remain taxable according to the
laws of each Contracting State, due regard being had to the other
provisions of this Agreement.
|
|
|
|
|
|
|
|
|
|
|
|
1. Royalties arising in a Contracting State and paid to a
resident of the other Contracting State may be taxed in that other
State.
|
|
|
|
2. However, such royalties may also be taxed in the
Contracting State in which they arise and according to the laws
of that State, but if the beneficial owner of the royalties is a
resident of the other Contracting State, the tax so charged shall
not exceed 10 per cent of the gross amount of the royalties.
|
|
|
|
3. Notwithstanding the provisions of paragraph 2, copyright
royalties and other like payments in respect of the production or
reproduction of any literary, dramatic, musical or other artistic
work (but not including royalties in respect of motion picture
films nor royalties in respect of works on film or videotape or
other means of reproduction for use in connection with television
broadcasting) arising in a Contracting State and paid to a resident
of the other Contracting State who is the beneficial owner of the
royalties shall be taxable only in that other State.
|
|
|
|
4. The term ``royalties'' as used in this Article means payments
of any kind received as a consideration for the use of, or the right
to use, any copyright, patent, trade mark, design or model, plan,
secret formula or process or other intangible property, or for the
use of, or the right to use, industrial, commercial or scientific
equipment, or for information concerning industrial, commercial
or scientific experience, and includes payments of any kind in
respect of motion picture films and works on film, videotape or
other means of reproduction for use in connection with
television.
|
|
|
|
5. The provisions of paragraphs 1, 2 and 3 shall not apply if
the beneficial owner of the royalties, being a resident of a
Contracting State, carries on business in the other Contracting
State in which the royalties arise, through a permanent
establishment situated therein, or performs in that other State
independent personal services from a fixed base situated therein,
and the right or property in respect of which the royalties are paid
is effectively connected with such permanent establishment or
fixed base. In such case the provisions of Article 7 or Article 14,
as the case may be, shall apply.
|
|
|
|
6. Royalties shall be deemed to arise in a Contracting State
when the payer is a resident of that State. Where, however, the
person paying the royalties, whether that person is a resident of
a Contracting State or not, has in a Contracting State a permanent
establishment or a fixed base in connection with which the
obligation to pay the royalties was incurred, and such royalties
are borne by such permanent establishment or fixed base, then
such royalties shall be deemed to arise in the State in which the
permanent establishment or fixed base is situated.
|
|
|
|
7. Where, by reason of a special relationship between the
payer and the beneficial owner or between both of them and some
other person, the amount of the royalties, having regard to the
use, right or information for which they are paid, exceeds the
amount which would have been agreed upon by the payer and the
beneficial owner in the absence of such relationship, the
provisions of this Article shall apply only to the last-mentioned
amount. In such case, the excess part of the payments shall
remain taxable according to the laws of each Contracting State,
due regard being had to the other provisions of this Agreement.
|
|
|
|
|
|
|
|
|
|
|
|
1. Gains derived by a resident of a Contracting State from the
alienation of immovable property situated in the other
Contracting State may be taxed in that other State.
|
|
|
|
2. Gains from the alienation of movable property forming part
of the business property of a permanent establishment which an
enterprise of a Contracting State has or had in the other
Contracting State or of movable property pertaining to a fixed
base that is or was available to a resident of a Contracting State
in the other Contracting State for the purpose of performing
independent personal services, including such gains from the
alienation of such a permanent establishment (alone or with the
whole enterprise) or of such a fixed base, may be taxed in that
other State.
|
|
|
|
3. Gains derived by an enterprise of a Contracting State from
the alienation of ships or aircraft operated in international traffic
or from containers used in, or other movable property pertaining
to, the operation of such ships or aircraft shall be taxable only in
that State.
|
|
|
|
4. Gains derived by a resident of a Contracting State from the
alienation of
|
|
|
|
a) shares, the value of which is derived principally from
immovable property situated in the other State, or
|
|
|
|
b) an interest in a partnership or trust, the value of which is
derived principally from immovable property situated in that
other State,
|
|
|
|
may be taxed in that other State. For the purposes of this
paragraph, the term ``immovable property'' does not include any
property in which the business of the company, partnership or
trust is carried on, but does include rental property.
|
|
|
|
5. Gains from the alienation of any property, other than that
referred to in paragraphs 1, 2, 3 and 4, shall be taxable only in the
Contracting State of which the alienator is a resident.
|
|
|
|
6. The provisions of paragraph 5 shall not affect the right of a
Contracting State to levy, according to its law, a tax on gains from
the alienation of any property derived by an individual who is a
resident of the other Contracting State and has been a resident of
the first-mentioned State at any time during the six years
immediately preceding the alienation of the property.
|
|
|
|
7. Where an individual who ceases to be a resident of a
Contracting State, and immediately thereafter becomes a resident
of the other Contracting State, is treated for the purposes of
taxation in the first-mentioned State as having alienated a
property and is taxed in that State by reason thereof, the
individual may elect to be treated for purposes of taxation in the
other State as if the individual had, immediately before becoming
a resident of that State, sold and repurchased the property for an
amount equal to its fair market value at that time. However, this
provision shall not apply to property any gain from which,
arising immediately before the individual became a resident of
that other State, may be taxed in that other State nor to immovable
property situated in a third State.
|
|
|
|
|
|
|
|
|
|
|
|
1. Income derived by an individual who is a resident of a
Contracting State in respect of professional or similar services of
an independent character shall be taxable only in that State unless
the individual has a fixed base regularly available in the other
Contracting State for the purpose of performing the services. If
the individual has or had such a fixed base, the income may be
taxed in the other State but only so much of it as is attributable to
that fixed base.
|
|
|
|
2. The term ``professional services'' includes especially
independent scientific, literary, artistic, educational or teaching
activities as well as the independent activities of physicians,
lawyers, engineers, architects, dentists and accountants.
|
|
|
|
|
|
|
|
|
|
|
|
1. Subject to the provisions of Articles 16, 18 and 19, salaries,
wages and other remuneration derived by a resident of a
Contracting State in respect of an employment shall be taxable
only in that State unless the employment is exercised in the other
Contracting State. If the employment is so exercised, such
remuneration as is derived therefrom may be taxed in that other
State.
|
|
|
|
2. Notwithstanding the provisions of paragraph 1,
remuneration derived by a resident of a Contracting State in
respect of an employment exercised in the other Contracting
State shall be taxable only in the first-mentioned State if:
|
|
|
|
a) the recipient is present in the other State for a period or
periods not exceeding in the aggregate 183 days in any twelve
month period commencing or ending in the calendar year
concerned, and
|
|
|
|
b) the remuneration is paid by, or on behalf of, an employer
who is not a resident of the other State, and
|
|
|
|
c) the remuneration is not borne by a permanent establishment
or a fixed base which the employer has in the other State.
|
|
|
|
3. Notwithstanding the preceding provisions of this Article,
remuneration derived in respect of an employment exercised
aboard a ship or aircraft operated in international traffic by an
enterprise of a Contracting State may be taxed in that State.
|
|
|
|
|
|
|
|
|
|
|
|
Directors' fees and other similar payments derived by a
resident of a Contracting State in the capacity as a member of the
board of directors or a similar organ of a company which is a
resident of the other Contracting State may be taxed in that other
State.
|
|
|
|
|
|
|
|
|
|
|
|
1. Notwithstanding the provisions of Articles 14 and 15,
income derived by a resident of a Contracting State as an
entertainer, such as a theatre, motion picture, radio or television
artiste, or a musician, or as a sportsperson, from that resident's
personal activities as such exercised in the other Contracting
State, may be taxed in that other State.
|
|
|
|
2. Where income in respect of personal activities exercised by
an entertainer or a sportsperson in that individual's capacity as
such accrues not to the entertainer or sportsperson personally but
to another person, that income may, notwithstanding the
provisions of Articles 7, 14 and 15, be taxed in the Contracting
State in which the activities of the entertainer or sportsperson are
exercised.
|
|
|
|
3. The provisions of paragraphs 1 and 2 shall not apply to
income derived from activities exercised in a Contracting State
by an entertainer or a sportsperson insofar as the activities are
performed in the context of a visit to that State wholly or mainly
supported by public funds of the other Contracting State, or a
political subdivision or local authority thereof, or a statutory
body of such State, subdivision or authority.
|
|
|
|
|
|
|
|
|
|
|
|
1. Pensions and annuities arising in a Contracting State and
paid to a resident of the other Contracting State may be taxed in
that other State.
|
|
|
|
2. Pensions arising in a Contracting State and paid to a resident
of the other Contracting State may also be taxed in the State in
which they arise and according to the laws of that State. However,
in the case of periodic pension payments, other than payments
under the social security legislation in a Contracting State, the tax
so charged shall not exceed the lesser of
|
|
|
|
a) 15 per cent of the gross amount of the payment; and
|
|
|
|
b) the rate determined by reference to the amount of tax that
the recipient of the payment would otherwise be required to
pay for the year on the total amount of the periodic pension
payments received by the individual in the year, if the
individual were resident in the Contracting State in which the
payment arises.
|
|
|
|
3. Annuities arising in a Contracting State and paid to a
resident of the other Contracting State may also be taxed in the
State in which they arise and according to the law of that State,
but the tax so charged shall not exceed 15 per cent of the portion
thereof that is subject to tax in that State. However, this limitation
does not apply to lump-sum payments arising on the surrender,
cancellation, redemption, sale or other disposition of an annuity,
or to payments of any kind under an annuity contract the cost of
which was deductible, in whole or in part, in computing the
income of any person who acquired the contract.
|
|
|
|
4. The term ``annuity'' as used in this Article means a stated
sum payable periodically at stated times during life or during a
specified or ascertainable period of time under an obligation to
make the payments in return for adequate and full consideration
in money or money's worth.
|
|
|
|
5. Notwithstanding anything in this Agreement
|
|
|
|
a) war pensions and allowances (including pensions and
allowances paid to war veterans or paid as a consequence of
damages or injuries suffered as a consequence of a war) arising
in a Contracting State and paid to a resident of the other
Contracting State shall be exempt from tax in that other State
to the extent that they would be exempt from tax if received
by a resident of the first-mentioned State;
|
|
|
|
b) social security benefits paid by a Contracting State or a
political subdivision thereof to a resident of the other
Contracting State shall be taxable only in the first-mentioned
State.
|
|
|
|
|
|
|
|
|
|
|
|
1. a) Salaries, wages and other similar remuneration, other
than a pension, paid by a Contracting State or a political
subdivision or a local authority thereof to an individual in
respect of services rendered to that State or subdivision or
authority shall be taxable only in that State.
|
|
|
|
b) However, such salaries, wages and other similar
remuneration shall be taxable only in the other Contracting
State if the services are rendered in that State and the
individual is a resident of that State who
|
|
|
|
(i) is a national of that State; or
|
|
|
|
(ii) did not become a resident of that State solely for the
purpose of rendering the services.
|
|
|
|
2. The provisions of Articles 15, 16 and 17 shall apply to
salaries, wages and other similar remuneration in respect of
services rendered in connection with a business carried on by a
Contracting State or a political subdivision or a local authority
thereof.
|
|
|
|
|
|
|
|
|
|
|
|
Payments which a student or an apprentice who is, or was
immediately before visiting a Contracting State, a resident of the
other Contracting State and who is present in the first-mentioned
State solely for the purpose of that individual's education or
training receives for the purpose of that individual's
maintenance, education or training shall not be taxed in that
State, if such payments arise from sources outside that State.
|
|
|
|
|
|
|
|
|
|
|
|
1. Items of income of a resident of a Contracting State,
wherever arising, not dealt with in the foregoing Articles of this
Agreement shall be taxable only in that State.
|
|
|
|
2. Notwithstanding paragraph 1, if such income is derived by
a resident of a Contracting State from sources in the other
Contracting State, such income may also be taxed in the State in
which it arises and according to the law of that State. Where such
income is income from a trust, other than a trust to which
contributions were deductible, the tax so charged shall, if the
income is taxable in the Contracting State in which the beneficial
owner is a resident, not exceed 15 per cent of the gross amount
of the income.
|
|
|
|
|
|
|
|
|
|
|
|
1. Capital represented by immovable property owned by a
resident of a Contracting State and situated in the other
Contracting State may be taxed in that other State.
|
|
|
|
2. Capital represented by movable property forming part of
the business property of a permanent establishment which an
enterprise of a Contracting State has in the other Contracting
State, or by movable property pertaining to a fixed base available
to a resident of a Contracting State in the other Contracting State
for the purpose of performing independent personal services,
may be taxed in that other State.
|
|
|
|
3. Capital represented by ships and aircraft operated by an
enterprise of a Contracting State in international traffic and by
movable property pertaining to the operation of such ships and
aircraft shall be taxable only in that State.
|
|
|
|
4. All other elements of capital of a resident of a Contracting
State shall be taxable only in that State.
|
|
|
|
|
|
|
|
|
|
|
|
1. In the case of Canada, double taxation shall be avoided as
follows:
|
|
|
|
a) subject to the existing provisions of the law of Canada
regarding the deduction from tax payable in Canada of tax
paid in a territory outside Canada and to any subsequent
modification of those provisions - which shall not affect the
general principle hereof - and unless a greater deduction or
relief is provided under the laws of Canada, tax payable in
Slovakia on profits, income or gains arising in Slovakia shall
be deducted from any Canadian tax payable in respect of such
profits, income or gains;
|
|
|
|
b) subject to the provisions of the law of Canada regarding the
allowance as a credit against Canadian tax of tax payable in a
territory outside Canada and to any subsequent modification
of those provisions - which shall not affect the general
principle hereof - where a company which is a resident of
Slovakia pays a dividend to a company which is a resident of
Canada and which controls directly or indirectly at least 10 per
cent of the voting power in the first-mentioned company, the
credit shall take into account the tax payable in Slovakia by
that first-mentioned company in respect of the profits out of
which such dividend is paid;
|
|
|
|
c) where in accordance with any provision of the Agreement
income derived or capital owned by a resident of Canada is
exempt from tax in Canada, Canada may nevertheless, in
calculating the amount of tax on other income or capital, take
into account the exempted income or capital.
|
|
|
|
2. In the case of Slovakia, double taxation shall be avoided as
follows:
|
|
|
|
a) Slovakia, when imposing taxes on its residents, may
include in the tax base upon which taxes are imposed the items
of income or capital which according to the provisions of this
Agreement may also be taxed in Canada, but shall allow as a
deduction from the amount of tax computed on such a base an
amount equal to the tax paid in Canada. Such deduction shall
not, however, exceed that part of the Slovak tax, as computed
before the deduction is given, which is appropriate to the
income or capital which, in accordance with the provisions of
this Agreement, may be taxed in Canada;
|
|
|
|
b) subject to the provisions of the law of Slovakia regarding
the allowance as a credit against Slovak tax of tax payable in
a territory outside Slovakia and to any subsequent
modification of those provisions - which shall not affect the
general principle hereof - where a company which is a
resident of Canada pays a dividend to a company which is a
resident of Slovakia and which controls directly or indirectly
at least 10 per cent of the voting power in the first-mentioned
company, the credit shall take into account the tax payable in
Canada by that first-mentioned company in respect of the
profits out of which such dividend is paid;
|
|
|
|
c) where in accordance with any provision of the Agreement
income derived or capital owned by a resident of Slovakia is
exempt from tax in Slovakia, Slovakia may nevertheless, in
calculating the amount of tax on the remaining income or
capital, take into account the exempted income or capital.
|
|
|
|
3. For the purposes of this Article, profits, income or gains of
a resident of a Contracting State that may be taxed in the other
Contracting State in accordance with this Agreement shall be
deemed to arise from sources in that other State.
|
|
|
|
|
|
|
|
|
|
|
|
1. Nationals of a Contracting State shall not be subjected in the
other Contracting State to any taxation or any requirement
connected therewith which is more burdensome than the taxation
and connected requirements to which nationals of that other State
in the same circumstances, in particular with respect to residence,
are or may be subjected. This provision shall, notwithstanding
the provisions of Article 1, also apply to individuals who are not
residents of one or both of the Contracting States.
|
|
|
|
2. The taxation on a permanent establishment which an
enterprise of a Contracting State has in the other Contracting
State shall not be less favourably levied in that other State than
the taxation levied on enterprises of that other State carrying on
the same activities.
|
|
|
|
3. The provisions of this Article shall not be construed as
obliging a Contracting State to grant to residents of the other
Contracting State any personal allowances, reliefs and
reductions for taxation purposes on account of civil status or
family responsibilities which it grants to its own residents.
|
|
|
|
4. Except where the provisions of paragraph 1 of Article 9,
paragraph 6 of Article 11, or paragraph 5 of Article 12 apply,
interest, royalties and other disbursements paid by an enterprise
of a Contracting State to a resident of the other Contracting State
shall, for the purposes of determining the taxable profits of such
enterprise, be deductible under the same conditions as if they had
been paid to a resident of the first-mentioned State. Similarly, any
debts of an enterprise of a Contracting State to a resident of the
other Contracting State shall, for the purpose of determining the
taxable capital of such enterprise, be deducted under the same
conditions as if they had been contracted to a resident of the
first-mentioned State.
|
|
|
|
5. The provisions of paragraph 4 shall not affect the operation
of any provision of the taxation laws of a Contracting State:
|
|
|
|
a) relating to the deductibility of interest and which is in force
on the date of signature of this Agreement (including any
subsequent modification of such provisions that does not
change the general nature thereof); or
|
|
|
|
b) adopted after such date by a Contracting State and which is
designed to ensure that a person who is not a resident of that
State does not enjoy, under the laws of that State, a tax
treatment that is more favourable than that enjoyed by
residents of that State.
|
|
|
|
6. Enterprises of a Contracting State, the capital of which is
wholly or partly owned or controlled, directly or indirectly, by
one or more residents of the other Contracting State, shall not be
subjected in the first-mentioned State to any taxation or any
requirement connected therewith which is more burdensome
than the taxation and connected requirements to which other
similar enterprises that are residents of the first-mentioned State,
the capital of which is wholly or partly owned or controlled,
directly or indirectly, by one or more residents of a third State, are
or may be subjected.
|
|
|
|
7. In this Article, the term ``taxation'' means taxes that are the
subject of this Agreement.
|
|
|
|
|
|
|
|
|
|
|
|
1. Where a person considers that the actions of one or both of
the Contracting States result or will result for that person in
taxation not in accordance with the provisions of this Agreement,
that person may, irrespective of the remedies provided by the
domestic law of those States, address to the competent authority
of the Contracting State of which that person is a resident or, if
the case comes under paragraph 1 of Article 24, to that of the
Contracting State of which that person is a national, an
application in writing stating the grounds for claiming the
revision of such taxation. To be admissible, the said application
must be submitted within two years from the first notification of
the action resulting in taxation not in accordance with the
provisions of the Agreement.
|
|
|
|
2. The competent authority shall endeavour, if the objection
appears to it to be justified and if it is not itself able to arrive at a
satisfactory solution, to resolve the case by mutual agreement
with the competent authority of the other Contracting State, with
a view to the avoidance of taxation not in accordance with the
Agreement.
|
|
|
|
3. A Contracting State shall not, after the expiry of the time
limits provided in its domestic laws and, in any case, after six
years from the end of the taxable period to which the income
concerned was attributed, increase the tax base of a resident of
either of the Contracting States by including therein items of
income that have also been charged to tax in the other
Contracting State. This paragraph shall not apply in the case of
fraud, wilful default or neglect.
|
|
|
|
4. The competent authorities of the Contracting States shall
endeavour to resolve by mutual agreement any difficulties or
doubts arising as to the interpretation or application of the
Agreement.
|
|
|
|
5. The competent authorities of the Contracting States may
consult together for the elimination of double taxation in cases
not provided for in the Agreement and may communicate with
each other directly for the purpose of applying the Agreement.
|
|
|
|
|
|
|
|
|
|
|
|
1. The competent authorities of the Contracting States shall
exchange such information as is relevant for carrying out the
provisions of this Agreement or of the domestic laws in the
Contracting States concerning taxes covered by the Agreement
insofar as the taxation thereunder is not contrary to the
Agreement. The exchange of information is not restricted by
Article 1. Any information received by a Contracting State shall
be treated as secret in the same manner as information obtained
under the domestic laws of that State and shall be disclosed only
to persons or authorities (including courts and administrative
bodies) concerned with the assessment or collection of, the
enforcement or prosecution in respect of, or the determination of
appeals in relation to taxes imposed by that State. Such persons
or authorities shall use the information only for such purposes.
They may disclose the information in public court proceedings
or in judicial decisions.
|
|
|
|
2. In no case shall the provisions of paragraph 1 be construed
so as to impose on a Contracting State the obligation:
|
|
|
|
a) to carry out administrative measures at variance with the
laws and administrative practice of that or of the other
Contracting State;
|
|
|
|
b) to supply information which is not obtainable under the
laws or in the normal course of the administration of that or of
the other Contracting State;
|
|
|
|
c) to supply information which would disclose any trade,
business, industrial, commercial or professional secret or trade
process, or information, the disclosure of which would be
contrary to public policy (ordre public).
|
|
|
|
3. If information is requested by a Contracting State in
accordance with this Article, the other Contracting State shall
endeavour to obtain the information to which the request relates
in the same way as if its own taxation were involved, even though
the other State does not, at that time, need such information. If
specifically requested by the competent authority of a
Contracting State, the competent authority of the other
Contracting State shall endeavour to provide information under
this Article in the form requested to the same extent information
in that form can be obtained under the laws and administrative
practices of that other State with respect to its own taxes.
|
|
|
|
|
|
|
|
|
|
|
|
1. Nothing in this Agreement shall affect the fiscal privileges
of members of diplomatic missions or consular posts under the
general rules of international law or under the provisions of
special agreements.
|
|
|
|
2. Notwithstanding the provisions of Article 4, an individual
who is a member of a diplomatic mission, consular post or
permanent mission of a Contracting State that is situated in the
other Contracting State or in a third State shall be deemed for the
purposes of the Agreement to be a resident of the sending State
if that individual is liable in the sending State to the same
obligations in relation to tax on total income or on total capital as
are residents of that sending State.
|
|
|
|
|
|
|
|
|
|
|
|
1. The provisions of this Agreement shall not be construed to
restrict in any manner any exemption, allowance, credit or other
deduction accorded by the laws of a Contracting State in the
determination of the tax imposed by that State.
|
|
|
|
2. Nothing in the Agreement shall be construed as preventing
a Contracting State from imposing a tax on amounts included in
the income of a resident of that State with respect to a partnership,
trust, or controlled foreign affiliate, in which that resident has an
interest.
|
|
|
|
3. The Agreement shall not apply to any company, trust or
other entity that is a resident of a Contracting State and is
beneficially owned or controlled, directly or indirectly, by one or
more persons who are not residents of that State, if the amount of
the tax imposed on the income or capital of the company, trust or
other entity by that State is substantially lower than the amount
that would be imposed by that State if all of the shares of the
capital stock of the company or all of the interests in the trust or
other entity, as the case may be, were beneficially owned by one
or more individuals who were residents of that State.
|
|
|
|
4. For the purposes of paragraph 3 of Article XXII
(Consultation) of the General Agreement on Trade in Services,
the Contracting States agree that, notwithstanding that
paragraph, any dispute between them as to whether a measure
falls within the scope of this Agreement may be brought before
the Council for Trade in Services, as provided by that paragraph,
only with the consent of both Contracting States. Any doubt as
to the interpretation of this paragraph shall be resolved under
paragraph 4 of Article 25 or, failing agreement under that
procedure, pursuant to any other procedure agreed to by both
Contracting States.
|
|
|
|
|
|
|
|
|
|
|
|
1. This Agreement shall be approved by each Contracting
State in compliance with its internal legal procedure and shall
enter into force on the date of the later diplomatic note
confirming such approval. Its provisions shall thereupon have
effect:
|
|
|
|
|
|
|
|
(i) in respect of tax withheld at source, on amounts paid or
credited on or after the first day of January in the calendar
year next following that in which the Agreement enters into
force, and
|
|
|
|
(ii) in respect of other Canadian tax, for taxation years
beginning on or after the first day of January in the calendar
year next following that in which the Agreement enters into
force;
|
|
|
|
|
|
|
|
(i) in respect of taxes withheld at source, on amounts paid
or credited on or after the first day of January in the calendar
year next following that in which the Agreement enters into
force, and
|
|
|
|
(ii) in respect of other taxes on income and on capital for
any tax year beginning on or after the first day of January
in the calendar year next following that in which the
Agreement enters into force.
|
|
|
|
2. From the date of entry into force of this Agreement the
Convention between the Government of Canada and the
Government of the Czech and Slovak Federal Republic for the
Avoidance of Double Taxation and the Prevention of Fiscal
Evasion with respect to Taxes on Income and on Capital signed
at Prague on the 30th day of August, 1990, shall, as between
Canada and the Slovak Republic, terminate. However, the
provisions of the 1990 Convention corresponding to those of this
Agreement shall continue to have effect until the provisions of
this Agreement take effect in accordance with the provisions of
paragraph 1.
|
|
|
|
|
|
|
|
|
|
|
|
This Agreement shall remain in force until terminated by one
of the Contracting States. Either Contracting State may terminate
the Agreement, through diplomatic channels, by giving written
notice of termination at least six months before the end of any
calendar year following after the period of five years from the
date on which the Agreement enters into force. In such event, the
Agreement shall cease to have effect:
|
|
|
|
|
|
|
|
(i) in respect of tax withheld at source, on amounts paid or
credited after the end of that calendar year, and
|
|
|
|
(ii) in respect of other Canadian tax, for taxation years
beginning after the end of that calendar year;
|
|
|
|
|
|
|
|
(i) in respect of taxes withheld at source, on amounts paid or
credited on or after the first day of January in the calendar year
next following that in which the notice of termination is given,
and
|
|
|
|
(ii) in respect of other taxes on income and on capital for any
tax year beginning on or after the first day of January in the
calendar year next following that in which the notice of
termination is given.
|
|
|
|
IN WITNESS WHEREOF the undersigned, duly authorized
thereto, have signed this Agreement.
|
|
|
|
DONE in duplicate at Bratislava, this 22nd day of May, 2001,
each in the English, French and Slovak languages, each version
being equally authentic.
|
|
|
|
FOR THE GOVERNMENT FOR THE GOVERNMENT OF CANADA OF THE SLOVAK REPUBLIC
|
|
|
|
Jane Stewart Brigita Schmögnerova
|
|