The Czech Republic and Kosovo has signed a double tax agreement (DTA) on November 26, 2013 and it tends to follow the ideas of the OECD Model. The definition of a permanent establishment contains the provision of services in the other contracting state where the services continue for more than 6 months within a 12 months period. A permanent establishment is also created where a building site or construction project continues for at least 12 months.
Tax withheld on dividends is restricted to 5% where the recipient has a 25% shareholding in the company paying the dividend, and is restricted to 15% in other cases. There is no withholding tax on interest payments and the withholding tax on royalties is restricted to 10%.
