Art. 1 - 3

This Convention shall apply:

(a)

to inheritances where the deceased was domiciled, at the time of his death, in one or both of the Contracting States, and

(b)

to gifts where the donor was domiciled, at the time of the gift, in one or both of the Contracting States.

1.

This Convention shall apply to taxes on inheritances and on gifts imposed on behalf of a Contracting State or of its political subdivisions or local authorities, irrespective of the manner in which they are levied.

2.

There shall be regarded as taxes on inheritances taxes imposed by reason of death in the form of taxes on inheritances, of transfer duties, or of taxes on donationes mortis causa. There shall be regarded as taxes on gifts taxes imposed on transfers inter vivos only because such transfers are made for no, or less than full, consideration.

3.

The existing taxes to which the Convention shall apply are:

(a)

in Austria: the inheritance and gift tax;

(b)

in the Czech Republic: the inheritance and gift tax.

4.

The Convention shall apply also to any identical or substantially similar taxes which are imposed after the date of signature of the Convention in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify each other of significant changes which have been made in their respective taxation laws.

1.

For the purposes of this Convention, unless the context otherwise requires:

(a)

the term ``property which forms part of the estate of, or of a gift made by, a person domiciled in a Contracting State includes any property the devolution or transfer of which, under the law of a Contracting State, is liable to a tax covered by the Convention;

(b)

the term ``competent authority means:

(i)

in Austria: the Federal Minister of Finance or his authorized representative;

(ii)

in the Czech Republic: the Minister of Finance or his authorized representative.

2.

As regards the application of the Convention by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning which it has under the law of that State concerning the taxes to which the Convention applies.

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