Czech Republic Ratifies New Tax Treaty With Luxembourg

On 5 June 2014, the Czech Republic ratified the new tax treaty with Luxembourg. The treaty was signed 5 March 2013, and will replace the 1991 treaty between Czechoslovakia and Luxembourg, which currently applies.

Taxes Covered

The treaty cover Czech income tax on individuals and legal persons, and tax on Immovable property. It covers Luxembourg income, corporation, capital and communal trade taxes.

Service PE

The treaty includes provisions that a service permanent establishment will b…