Tax Information Exchange Agreements

TIEAs allow tax information to be exchanged for duly determining or collecting taxes for taxpayers of both contracting parties or, where applicable, for tax penalty procedures.

TIEAs help contracting countries obtain information regardless of whether such information is in the possession of banks or other financial institutions.

TIEAs between the Czech Republic and Jersey, Bermuda, the Isle of Man, Guernsey, San Marino, and the British Virgin Islands all took effect at the beginning of 2013. In addition, the texts of the TIEAs with the Cayman Islands, Andorra, the Bahamas, Saint Maarten, Aruba, Belize and the Cook Islands were submitted for ratification. Moreover, agreement on the text of the TIEA between the Czech Republic and Monaco was reached at the end of last year.

Of the taxes to which the TIEAs apply, the Czech Republic is primarily concerned with corporate and personal income tax, real estate tax, and value added tax.

Nevertheless, the exchange of information under the TIEAs with San Marino and Jersey applies to all types of taxes applicable in the Czech Republic, such as concise duty.

Information is provided following a request filed by the requesting party. The requested party is required to adopt measures to collect the requested information, i.e. laws and administrative or judicial procedures that enable a contracting party to obtain and provide the requested information.

The requesting party’s relevant authority is required to prove that the requested information is significant for the requesting party and to disclose the relevant information to the requested party to that effect.

The type of information to be provided is specified in greater detail in each TIEA and applies to, without limitation, information possessed by banks and other financial institutions, information regarding ownership of companies, partnerships, trusts, and other entities.

TIEAs include a clause whereunder the relevant authority of the requested party may refuse to disclose information, especially due to the existence of other remedies still available to the requested party, etc.

KŠB clients who are considering including, or who already include, the jurisdictions referred to above in their tax planning may consult the tax implications with our specialists.