In a recently published decision, dated 29 May 2012 (No. 2 Afs 29/2012-18), the Supreme Administrative Court dealt with the interpretation of article 5 (Permanent establishment) of Czech Republic - Slovak Republic Income and Capital Tax Treaty (2002) (the Treaty).

(a) Background. In 2002, the taxpayer, J.K., an individual resident in Slovakia, provided in the Czech Republic serv…