Abstrakt
The globalization of the economic market has compelled the removal of trade barriers and clamored for the liberalization of capital transfer. In such an open market, several criteria play a key role for the decision where available capital will eventually be invested, and the mos important of them is presumably the criteria of the tax burden in a given country.
This gives rise to what is known as tax competiiton - a phenomenon which ultimately need to be beneficial, in that lowering taxes of course also curbs the flow of revenues into public coffers. In countries whose treasuries run up primarily mandatory expenses, this will lead to growing deficits that with maximum effort can at best be kept in check, but never be eradicated altogether.
Naturally, the dominant concern in the area of foreign investment is to prevent double taxation. This paper attempts a review of the issues in connection with the Czech Republic''s approach in this regard.