The aim will be to strengthen cooperation and investment between the two countries
In the past few days, Industry and Trade Minister Jozef Síkela (STAN), together with Transport Minister Martin Kupka (ODS) and Finance Minister Zbyněk Stanjura (ODS), travelled to the Qatari capital Doha, with the aim of entering into mutual cooperation with the State of Qatar. During the meeting, bilateral relations were examined and various aspects of cooperation were discussed, including a number of issues of common interest, important economic and investment developments were analysed and ways to strengthen them, and long-term cooperation agreements were discussed, which will aim to reduce energy dependency on Russia.
As far as cooperation agreements for economic developments are concerned, Finance Minister Zbyněk Stanjura met with his ministerial counterpart Ali bin Ahmed Al Kuwari on 21 June 2022 and signed the double taxation treaty at the Ministry of Finance headquarters.
The negotiation of double taxation treaties is an important activity of the tax section of the Ministry of Finance; such a treaty will on the one hand clearly define which income is subject to taxation and in which country, and on the other hand will also strengthen the legal position of Czech business entities doing business in Qatar and vice versa. As a rule, double taxation treaties provide that the income of individuals and companies is basically taxed in the country in which the person is tax resident. They can only be taxed in the other state under the terms of the treaty. The conclusion of the treaty will increase legal certainty for investors and other taxpayers in both countries and support the development of economic relations with Qatar.
Another objective will be to prevent tax evasion and tax fraud. In general, the treaties provide for the exchange of information between the competent authorities of the contracting states; the exchange of information counteracts tax evasion more effectively and also helps to solve problems of a different nature that may arise in tax matters between the two countries.
Currently, the Czech Republic has double taxation agreements with 93 countries around the world, and more are in the pipeline.
With regard to cooperation on gas supplies, the Minister of Industry and Trade, Jozef Síkela, informed of the intention to cooperate with the government of Qatar on longer-term projects that would help free the country from dependence on raw materials from Russia in the future.
Sources: https://www.mfcr.cz/; https://www.barrandov.tv/; https://ct24.ceskatelevize.cz/; https://www.parlamentnilisty.cz/
Sources of images: https://qbusinessgate.qa/; https://storyset.com/
