Treaty between Czech Republic and Slovak Republic – Czech Supreme Administrative Court: No time requirement for creation of fixed place PE

In a recently published decision, dated 29 May 2012 (No. 2 Afs 29/2012-18), the Supreme Administrative Court dealt with the interpretation of article 5 (Permanent establishment) of Czech Republic - Slovak Republic Income and Capital Tax Treaty (2002) (the Treaty).

(a) Background. In 2002, the taxpayer, J.K., an individual resident in Slovakia, provided in the Czech Republic services consisting of welding parts of shipping containers. These services were rendered for a period …