2. Table (Heffermann)

DTT Austria/Slovak Republic

DTT Austria/Slovak Republic (former DTT Austria/Czechoslovakia still applicable) vs OECD-MC
Income and Capital Tax Treaty (2008)

Entry into force

7 March 1978

Effective Date

12 February 1979

Art 4 Fiscal domicile

Art 4 of this Convention does not contain any special provisions in contrast to the OECD-MC.

Art 5 Permanent establishment

Art 5 of this Convention does not contain any special provisions in contrast to the OECD-MC.

Art 6 Income from immovable property

Art 6 para 4 of this Convention states that the provisions of para 1 and para 3 of this Article, in contrast to the OECD-MC, shall also apply to income from immovable property used for the performance of independent personal services.

Art 7 Business profits

Art 7 of this Convention corresponds to Art 7 of the OECD-MC.
In addition, Art 7 para 8 of this Convention includes profits derived by a silent partner from his participation in a „silent partnership“ (Stille Gesellschaft) created under Austrian law.

Art 8 Shipping and air transport

Art 8 para 1 of this Convention – compared to Art 8 para 1 of the OECD-MC – additionally includes profits derived from the operation of boats engaged in inland waterways transport, but does not include a provision concerning the place of effective management aboard a ship or boat.

Art 9 Associated enterprises

Art 9 of the Convention does not contain – compared to the OECD-MC – a special provision stipulating that an appropriate adjustment of the taxes charged in both States shall be made.

Art 10 Dividends

In contrast to the OECD-MC, Art 10 para 2 of this Convention provides that dividends may be taxed in the Contracting State of which the legal entity paying the dividends is a resident and according to the laws of that State, but the withholding tax shall not exceed 10 per cent of the gross amount of the dividends. In contrast to the OECD-MC, this Convention does not foresee that dividends shall be taxed with different tax

rates depending on the amount of shares in the capital of the company.

Art 11 Interest

Art 11 of this Convention, in contrast to the OECD-MC, does not foresee that interest may also be taxed in the Contracting State in which it arises.

Art 12 Royalties

Art 12 para 2 of this Convention states that royalties, in contrast to the OECD-MC, may also be taxed in the Contracting State in which they arise and according to the laws of that State, but concerning payments of any kind received as a consideration for the use of or the right to use any patent, trademark, design or model, plan, secret formula or process, or for the use of, or the right to use, industrial, commercial, or scientific equipment or for information concerning industrial, commercial or scientific experience, the withholding tax shall not exceed 5 per cent of the gross amount of the royalties.
According to Art 12 para 4, royalties shall be deemed to arise in a Contracting State when the payer is that State itself, a local authority thereof or a resident of that Contracting State.

Art 13 Capital gains

Art 13 para 4 of this Convention does not contain a provision that gains from the alienation of shares of a company, the property of which consists directly or indirectly principally of immovable property situated in a Contracting State, may be taxed in that State.

Art 14 Independent personal services

Art 14 of this Convention still includes a special provision which corresponds to the deleted Art 14 of the OECD-MC stipulating that income derived from professional services or other independent activities of a similar character shall be taxable only in the State of residence, except if he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities (and this only applies to the income that is attributable to the fixed base).

Art 15 Dependent personal services

Art 15 of this Convention does not contain any special provisions in contrast to the OECD-MC.

Art 16 Directors' fees

Art 16 of this Convention corresponds to Art 16 of the OECD-MC, including special provisions concerning directors' fees.

Art 17 Artistes and athletes

Art 17 of this Convention does not contain any special provisions in contrast to the OECD-MC.

Art 20 Students

Art 20 of this Convention contains special provisions concerning students, but the Convention does not contain special provisions concerning professors and researchers.

Art 21 Other income

Art 21 of this Convention – corresponding to Art 21 of the OECD-MC – states that income not dealt with in the other articles of the Convention shall be taxable only in the state of residence.

Art 23 Elimination of double taxation

According to Art 23 of this Convention, double taxation shall be avoided by the exemption method with progression.

Art 26 Exchange of information

Art 26 para 1 of this Convention stipulates that the competent authorities of the Contracting States shall exchange information as is necessary for carrying out the provisions of the Convention.