Table of Contents

Preface

V

Authors

VII

Introduction(Elinore Richardson)

1

Commentaries to Austria's Double Taxation Treaties with CEE and SEE Countries

Chapter I: Double Taxation Treaty Austria/Albania(Sokol Nako/Denis Selimi/Clemens Philipp Schindler)

11

1.

Commentary

11

1.1

General Remarks and Definitions

11

1.2

Taxation of Income

12

1.2.1

Immovable Property

12

1.2.2

Business Profits

12

1.2.3

Dividends

12

1.2.4

Interest

13

1.2.5

Royalties

14

1.2.6

Capital Gains

14

1.2.7

Independent Personal Services (Professionals)

15

1.2.8

Income from Employment

16

1.2.9

Directors' Fees

16

1.2.10

Artistes and Sportsmen

16

1.2.11

Pensions

17

1.2.12

Government Service

17

1.2.13

Students

17

1.2.14

Other Income

18

1.3

Taxation of Capital

18

1.4

Methods for Eliminating Double Taxation

18

1.5

Non-Discrimination

18

1.6

Mutual Agreement Procedure

19

1.7

Exchange of Information

19

2.

Table

20

3.

Selected EAS regarding the current or former DTTs

23

Chapter II: Double Taxation Treaty Austria/Bosnia & Herzegovina(Aleksandra Raach)

25

1.

Commentary

25

1.1

General Remarks and Definitions

25

1.2

Taxation of Income

25

1.2.1

Immovable Property

25

1.2.2

Business Profits

26

1.2.3

Dividends

26

1.2.4

Interest

27

1.2.5

Royalties

27

1.2.6

Capital Gains

27

1.2.7

Independent Personal Services (Professionals)

28

1.2.8

Income from Employment

28

1.2.9

Directors' Fees

28

1.2.10

Artistes and Sportsmen

28

1.2.11

Pensions

28

1.2.12

Government Service

28

1.2.13

Students

28

1.2.14

Professors and Teachers

29

1.2.15

Other Income

29

1.3

Property (Taxation of Capital)

29

1.4

Methods for Eliminating Double Taxation

29

1.5

Non-Discrimination

30

1.6

Mutual Agreement Procedure

30

1.7

Exchange of Information

30

2.

Table

31

3.

Selected EAS regarding the current or former DTTs

33

Chapter III: Double Taxation Treaty Austria/Bulgaria(Balázs Békés/Mihály Harcos/Erzsébet Varga)

35

1.

Commentary

35

1.1

General Remarks and Definitions

35

1.2

Taxation of Income

37

1.2.1

Immovable Property

37

1.2.2

Business Profits

37

1.2.3

Dividends

38

1.2.4

Interest

38

1.2.5

Royalties

39

1.2.6

Capital Gains

39

1.2.7

Independent Personal Services

40

1.2.8

Income from Employment

40

1.2.9

Directors' Fees

40

1.2.10

Artistes and Sportsmen

41

1.2.11

Pensions

41

1.2.12

Government Service

41

1.2.13

Students and trainees

41

1.2.14

Teachers and researchers

42

1.2.15

Other Income

42

1.3

Taxation of Capital

42

1.4

Methods for Eliminating Double Taxation

42

1.5

Non-Discrimination

43

1.6

Mutual Agreement Procedure

43

1.7

Exchange of Information

43

2.

Table

45

3.

Selected EAS regarding the current or former DTTs

47

Chapter IV: Double Taxation Treaty Austria/Croatia(Aleksandra Raach)

51

1.

Commentary

51

1.1

General Remarks and Definitions

51

1.2

Taxation of Income

51

1.2.1

Immovable Property

51

1.2.2

Business Profits

51

1.2.3

Dividends

53

1.2.4

Interest

54

1.2.5

Royalties

54

1.2.6

Capital Gains

54

1.2.7

Independent Personal Services (Professionals)

54

1.2.8

Income from Employment

55

1.2.9

Directors' Fees

55

1.2.10

Artistes and Sportsmen

55

1.2.11

Pensions

55

1.2.12

Government Service

55

1.2.13

Students

55

1.2.14

Other Income

56

1.3

Taxation of Capital

56

1.4

Methods for Eliminating Double Taxation

56

1.5

Non-Discrimination

57

1.6

Mutual Agreement Procedure

57

1.7

Exchange of Information

57

2.

Table

59

3.

Selected EAS regarding the current or former DTTs

61

Chapter V: Double Taxation Treaty Austria/Czech Republic(Andreas Baumann/Martina Gatterer/Niklas Schmidt)

63

1.

Commentary

63

1.1

General Remarks and Definitions

63

1.2

Taxation of Income

64

1.2.1

Immovable Property

64

1.2.2

Business Profits

64

1.2.3

Dividends

65

1.2.4

Interest

66

1.2.5

Royalties

66

1.2.6

Capital Gains

67

1.2.7

Independent Personal Services (Professionals)

67

1.2.8

Income from Employment

67

1.2.9

Directors' Fees

68

1.2.10

Artistes and Sportsmen

68

1.2.11

Pensions

69

1.2.12

Government Service

69

1.2.13

Students

69

1.2.14

Other Income

69

1.3

Taxation of Capital

70

1.4

Methods for Eliminating Double Taxation

70

1.5

Non-Discrimination

70

1.6

Mutual Agreement Procedure

71

1.7

Exchange of Information

71

2.

Table

72

3.

Selected EAS regarding the current or former DTTs

74

Chapter VI: Double Taxation Treaty Austria/Hungary(Clemens Philipp Schindler/Benjamin Twardosz/Eva Strunz/Balázs Békés)

83

1.

Commentary

83

1.1

General Remarks and Definitions

83

1.2

Taxation of Income

83

1.2.1

Immovable Property

83

1.2.2

Business Profits

84

1.2.3

Dividends

84

1.2.4

Interest

85

1.2.5

Royalties

85

1.2.6

Capital Gains

86

1.2.7

Independent Personal Services (Professionals)

87

1.2.8

Income from Employment

87

1.2.9

Directors' Fees and Supervisory Board Members

88

1.2.10

Pensions

89

1.2.11

Government Service

89

1.2.12

Students

89

1.2.13

Other Income

90

1.3

Taxation of Capital

90

1.4

Methods for Eliminating Double Taxation

91

1.5

Non-Discrimination

91

1.6

Mutual Agreement Procedure

91

1.7

Exchange of Information

92

2.

Table

93

3.

Selected EAS regarding the current or former DTTs

95

Chapter VII: Double Taxation Treaty Austria/Romania(Iulia Radocea/Benjamin Twardosz)

101

1.

Commentary

101

1.1

General Remarks and Definitions

101

1.2

Taxation of Income

101

1.2.1

Immovable Property

101

1.2.2

Business Profits

102

1.2.3

Dividends

102

1.2.4

Interest

103

1.2.5

Royalties

103

1.2.6

Capital Gains

104

1.2.7

Independent Personal Services (Professionals)

104

1.2.8

Dependent Personal Services (Income from Employment)

105

1.2.9

Directors' Fees

105

1.2.10

Artistes and Sportsmen

105

1.2.11

Pensions and Annuities

106

1.2.12

Government Service

106

1.2.13

Students and Business Apprentices

106

1.2.14

Professors and Researchers

106

1.2.15

Other Income

107

1.3

Taxation of Capital

107

1.4

Methods for Eliminating Double Taxation

107

1.5

Non-Discrimination

108

1.6

Mutual Agreement Procedure

108

1.7

Exchange of Information

108

2.

Table

109

3.

Selected EAS regarding the current or former DTTs

112

Chapter VIII: Double Taxation Treaty Austria/Serbia(Tomislav Popović)

115

1.

Commentary

115

1.1

General Remarks and Definitions

115

1.2

Taxation of Income

115

1.2.1

Immovable Property

115

1.2.2

Business Profits

115

1.2.3

Dividends

116

1.2.4

Interest

117

1.2.5

Royalties

118

1.2.6

Capital Gains

119

1.2.7

Independent Personal Services (Professionals)

119

1.2.8

Income from Employment

120

1.2.9

Board of Directors Members' and Directors' Fees

120

1.2.10

Artistes and Athletes

120

1.2.11

Pensions

121

1.2.12

Government Service

121

1.2.13

Students

121

1.2.14

Professors and Researchers

122

1.2.15

Other Income

122

1.3

Taxation of Capital

122

1.4

Methods for Eliminating Double Taxation

123

1.5

Non-Discrimination

123

1.6

Mutual Agreement Procedure

123

1.7

Exchange of Information

123

2.

Table

125

3.

Selected EAS regarding the current or former DTTs

128

Chapter IX: Double Taxation Treaty Austria/Slovak Republic(Verena Heffermann)

129

1.

Commentary

129

1.1

General Remarks and Definitions

129

1.2

Taxation of Income

130

1.2.1

Immovable Property

130

1.2.2

Business Profits

130

1.2.3

Dividends

131

1.2.4

Interest

132

1.2.5

Royalties

133

1.2.6

Capital Gains

133

1.2.7

Independent Personal Services (Professionals)

134

1.2.8

Income from Employment

134

1.2.9

Directors' Fees

135

1.2.10

Artistes and Athletes

135

1.2.11

Pensions

135

1.2.12

Exercise of Public Functions

136

1.2.13

Students

136

1.2.14

Other Income

136

1.3

Taxation of Capital

137

1.4

Methods for Eliminating Double Taxation

137

1.5

Non-Discrimination

137

1.6

Mutual Agreement Procedure

137

1.7

Exchange of Information

138

2.

Table

139

3.

Selected EAS regarding the current or former DTTs

141

Chapter X: Double Taxation Treaty Austria/Slovenia(Michaela Klar/Niklas Schmidt/Gregor Zorman)

145

1.

Commentary

145

1.1

General Remarks and Definitions

145

1.2

Taxation of Income

145

1.2.1

Immovable Property

145

1.2.2

Business Profits

146

1.2.3

Dividends

146

1.2.4

Interest

147

1.2.5

Royalties

147

1.2.6

Capital Gains

148

1.2.7

Independent Personal Services

148

1.2.8

Dependent Personal Services

149

1.2.9

Directors' Fees

149

1.2.10

Artistes and Sportsmen

149

1.2.11

Pensions

150

1.2.12

Government Service

150

1.2.13

Professors and Researchers

150

1.2.14

Students

151

1.2.15

Other Income

151

1.3

Taxation of Capital

151

1.4

Methods for Eliminating Double Taxation

152

1.5

Non-Discrimination

152

1.6

Mutual Agreement Procedure

152

1.7

Exchange of Information

152

2.

Table

154

3.

Selected EAS regarding the current or former DTTs

156

Chapter XI: Double Taxation Treaty Austria/Ukraine(Valeriya Tarasenko/Clemens Philipp Schindler)

159

1.

Commentary

159

1.1

General Remarks and Definitions

159

1.2

Taxation of Income

160

1.2.1

Immovable Property

160

1.2.2

Business Profits

160

1.2.3

Dividends

160

1.2.4

Interest

161

1.2.5

Royalties

162

1.2.6

Capital Gains

163

1.2.7

Independent Personal Services

163

1.2.8

Income from Employment

164

1.2.9

Directors' Fees

164

1.2.10

Artistes and Sportsmen

164

1.2.11

Pensions

165

1.2.12

Government Service

165

1.2.13

Students

165

1.2.14

Other Income

165

1.2.15

Taxation of Capital

166

1.3

Methods for Eliminating Double Taxation

166

1.4

Non-Discrimination

167

1.5

Mutual Agreement Procedure

167

1.6

Exchange of Information

167

2.

Table

168

3.

Selected EAS regarding the current or former DTTs

171

Unilateral Rules on Double Taxation Relief and Application of Double Taxation Treaties

I.

Austrian Domestic Rules on Double Taxation Relief and Application of Double Taxation Treaties(Benjamin Twardosz/Eva Strunz)

175

1.

Unilateral Double Taxation Relief in Austria

175

1.1

Legal Framework

175

1.2

The Decree

175

2.

Tax Treaty Based Withholding Taxation Relief in Austria

178

2.1

Tax Return

178

2.2

Application for Refund

178

2.3

Decree on Source Relief

178

II.

Domestic Rules on Double Taxation Relief and Application of Double Taxation Treaties in CEE(Wolf Theiss CEE tax practice)

183

1.

Albania

183

1.1

Unilateral Double Taxation Relief

183

1.2

Double Taxation Relief based on Double Taxation Treaties

184

2.

Bosnia and Herzegovina

184

2.1

Unilateral Double Taxation Relief

184

2.2

Double Taxation Relief based on Double Taxation Treaties

185

3.

Croatia

186

3.1

Unilateral Double Taxation Relief

186

3.2

Double Taxation Relief based on Double Taxation Treaties

187

4.

Czech Republic

188

4.1

Unilateral Double Taxation Relief

188

4.2

Double Taxation Relief based on Double Taxation Treaties

188

5.

Hungary

189

5.1

Unilateral Double Taxation Relief

189

5.2

Double Taxation Relief based on Double Taxation Treaties

192

6.

Romania

194

6.1

Unilateral Double Taxation Relief

194

6.2

Double Taxation Relief based on Double Taxation Treaties

195

7.

Serbia

196

7.1

Unilateral Double Taxation Relief

196

7.2

Double Taxation Relief based on Double Taxation Treaties

198

8.

Slovak Republic

200

8.1

Unilateral Double Taxation Relief

200

8.2

Application of Double Taxation Treaties

201

9.

Slovenia

201

9.1

Unilateral Double Taxation Relief

201

9.2

Double Taxation Relief based on Double Taxation Treaties

203

10.

Ukraine

204

10.1

Unilateral Double Taxation Relief

204

10.2

Double Taxation Relief based on Double Taxation Treaties

205

Tables

Chapter I: Austria

209

Chapter II: Albania

211

Chapter III: Bosnia & Herzegovina

239

Chapter IV: Bulgaria

261

Chapter V: Croatia

287

Chapter VI: Czech Republic

307

Chapter VII: Hungary

325

Chapter VIII: Romania

343

Chapter IX: Serbia

359

Chapter X: Slovak Republic

371

Chapter XI: Slovenia

379

Chapter XII: Ukraine

383

Annex

Annex 1: OECD Income and Capital Model Convention 2008

387

Annex 2: OECD Income and Capital Model Convention 2010

407

Annex 3

427