Comecon (CMEA) multilateral convention with respect to the avoidance of double taxation on income and net wealth of individuals (Miskolc, 27th day of May 1977)

COMECON (CMEA) MULTILATERAL CONVENTION WITH RESPECT TO THE AVOIDANCE
OF DOUBLE TAXATION ON INCOME AND NET WEALTH OF INDIVIDUALS
(Miskolc, 27th day of May 1977)

PUBLICATION-DATE: May 27, 1977

EFFECTIVE-DATE: EFFECTIVE FROM 1 JANUARY 1979

REFERENCE: (INDIVIDUALS ONLY)

TEXT:

Date of Conclusion: 27 May 1977.

Entry into Force: 1 January 1979.

LIST-OF-ARTICLES:

NOTE

STATUS OF CMEA (COMECON) TAX TREATIES

NON-APPLICATION

Article I

Article II

Article III

Article IV

Article V

Article VI

Article VII

Article VIII

Article IX

Article X

Article XI

Article XII

Article XIII

Article XIV

ARTICLES:

NOTE: Original parties to the treaty: Bulgaria, Czechoslovakia, Hungary, German Democratic Republic, Mongolia, Poland, Romania and the USSR.

STATUS OF CMEA (COMECON) TAX TREATIES

The Council for Mutual Economic Assistance (CMEA) was dissolved in 1990. The tax authorities of the signatories to the multilateral CMEA treaties have agreed to observe the provisions of the treaties amongst themselves until new bilateral treaties are in place. However, this agreement took place before the dissolution of the USSR.

Following the dissolution of the USSR, the Members of the Commonwealth of Independent States (CIS) have, in principle, agreed to honour the international treaties, including income tax treaties, concluded by the USSR until new treaties have been negotiated in their own name. For exceptions, see below.

It should be noted that the CMEA treaties cannot become applicable between different CIS Members (e.g. between Armenia and Belarus) on the basis of succession.

BULGARIA and the CZECH REPUBLIC have announced that they are willing to honour the provisions towards any new state which is willing to assume reciprocity. The same seems to be the position of POLAND. Regarding MONGOLIA, ROMANIA and the SLOVAK REPUBLIC, the application remains unresolved.

As far as GEORGIA is concerned, the position remains unclear.

NON-APPLICATION

Following the political union of the Federal Republic of Germany and the German Democratic Republic, the treaties concluded by the GERMAN DEMOCRATIC REPUBLIC, including the CMEA treaties, are not applicable after 31 December 1990, but the treaties concluded by the Federal Republic apply to the whole of unified Germany until these treaties have been extended bilaterally.

HUNGARY has terminated the CMEA treaties with effect from 1 January 1994.

ESTONIA, LATVIA and LITHUANIA have announced their general disapproval of USSR treaties.

ARMENIA, AZERBAIJAN and KAZAKHSTAN have announced that they will not recognize treaties, including income tax treaties, which have been signed by the former USSR. A number of other CIS Members are unwilling to apply those treaties in practice, and readers are advised to verify their current status with the relevant tax authorities.

New bilateral treaties have replaced the CMEA treaties in the following relations:

Belarus--Bulgaria

Belarus--Czech Republic

Belarus--Poland

Belarus--Romania

Bulgaria--Czech Republic

Bulgaria--Georgia