background image
Note: This Treaty may be impacted by the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI). MLI impact on Tax Treaties is available with the Orbitax International Tax Research & Compliance Expert.

ARTICLE 22

Elimination of Double Taxation

(1) Subject to the provisions of the law of Nigeria regarding the allowance as a credit against Nigerian tax of tax payable in a territory outside Nigeria (which shall not affect the general principle hereof):

  • (a) Czechoslovak tax payable under the laws of Czechoslovakia and in accordance with this Agreement, whether directly or by deduction, on profits, income or chargeable gains from sources within Czechoslovakia (excluding in the case of a dividend, tax payable in respect of the profits out of which the dividend is paid) shall be allowed as a credit against any Nigerian tax computed by reference to the same profits, income or chargeable gains by reference to which Czechoslovak tax is computed.
  • (b) In the case of a dividend paid by a company which is a resident of Czechoslovakia to a Company which is a resident in Nigeria, the credit shall take into account (in addition to any Czechoslovak tax for which credit may be allowed under the provisions of sub-paragraph (a) of this paragraph) Czechoslovak tax payable by the company in respect of the profits out of which such dividend is paid.

For the purpose of this paragraph, the amount of tax credit to be granted shall not exceed the proportion of the Nigerian tax which such profits, income or chargeable gains bear to the entire profits, income or chargeable gains chargeable to Nigerian tax.

(2) In Czechoslovakia, double taxation will be avoided in the following manner:

  • (a) Where a resident of Czechoslovakia derives income which, in accordance with the provisions of this Agreement, may be taxed in Nigeria, Czechoslovakia shall, subject to the provisions of sub-paragraph (b) of this paragraph, exempt such income from tax, but may, in calculating tax on the remaining income of that person, apply the rate of tax which would have been applicable if the exempted income had not been so exempted.
  • (b) Czechoslovakia when imposing taxes on its residents may include in the tax base upon which such taxes are imposed the items of income which according to the provisions of Articles 9, 10, 11, 15 and 16 of this Agreement may also be taxed in Nigeria but shall allow as a deduction from the amount of tax computed on such a base an amount equal to the tax paid or payable or relieved under any laws in Nigeria. Such deduction shall not, however, exceed that part of the Czechoslovak tax, as computed before the deduction is given, which is appropriate to the income which, in accordance with the provisions of Articles 9, 10, 11, 15 and 16 of this Agreement may be taxed in Nigeria.