The Czech Ministry of Finance announced that the Treaty on the Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to Taxes on Income, including the Protocol, between the Czech Republic and the Government of the Islamic Republic of Iran, which was signed 30 April 2015 in Prague, entered into force on 4 August 2016.
The Treaty provisions will be applied as follows:
- in respect of taxes withheld at source, on amounts paid or credited on the first day of 2017 or later
- in respect of other taxes on income, to income in any taxable year beginning on the first day of 2017 or later
Following the standard practice, the texts of the two documents will be published in the domestic official Collection of International Treaties.
So far there have been no arrangements in the area of tax matters between the two countries. The new Treaty is expected to provide enhanced legal certainty for potential investors in both countries.
Impact on investors: Eligible investors from Czech Republic and Iran will now be able to avail of the provisions of the new DTT between the two countries.