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Law On The Conclusion Of The Protocol Amending The Agreement Between Denmark And Switzerland For The Avoidance Of Double Taxation On Income And Property Taxes

Original Language Title: Lov om indgåelse af protokol om ændring af overenskomst mellem Danmark og Schweiz til undgåelse af dobbeltbeskatning vedrørende skatter af indkomst og formue

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Table of Contents

Appendix 1

Promise of the conclusion of the Protocol to amend the Agreement between Denmark and Switzerland to avoid double taxation on taxes on income and wealth

We, by God's grace, the Queen of the Danes, do our thing.

The parliament has adopted the following law, and we know that the following law has been approved by Parliament's consent :

§ 1. Protocol of 21. In August 2009, between the Kingdom of Denmark and the Swiss Confederation on the amendment of the Agreement to exempt double taxation on taxes on income and fortune signed in Bern on 23. November 1973, as amended by the Protocol, signed in Copenhagen on 11. March 1997 may be drawn on behalf of Denmark. The Minutes are listed as Annex 1 to this Act.

Paragraph 2. The Protocol shall enter into force and apply in Denmark under the provisions of Article XI of the Protocol.

§ 2. The law shall enter into force on 1. January, 2010.

§ 3. The law does not apply to the Faroe Islands and Greenland.

Givet on Amalienborg, on 4. In December 2009th Under Our Royal Hand and SeglI Queen's name :
FREDERIK
Crown Prince / Kristian Jensen

Appendix 1

PROTOCOL

BETWEEN THE KINGDOM OF DENMARK AND THE SWISS CONFEDERATION TO THE AMENDMENT OF THE AGREEMENT TO THE AVOIDANCE OF DOUBLE TAXATION ON TAXES ON INCOME AND FORTUNE, SIGNED IN THE 23RD OF THE 23RD. NOVEMBER 1973, AS AMENDED BY THE PROTOCOL, SIGNED IN THE PORT OF PURCHASE OF 11. MARCH 1997

Kingdom of Denmark

and

The Swiss Confederation,

which wish to conclude a protocol to amend the Agreement between the Kingdom of Denmark and the Swiss Confederation to the avoidance of double taxation on taxes on income and fortune, signed in Bern on 23. November 1973, as amended by the Protocol, signed in Copenhagen on 11. March 1997 (hereinafter referred to as the 'Agreement'),

has agreed to :

ARTICLE I

The Agreement ' s Article 10 (Exchange) shall be repealed and replaced by the following Article :

' Article 10

Exbooty

1. Exboots paid by a party belonging to a Contracting Government to a person belonging to the other Contracting Government may be subject to tax in this other state.

However, such dividended may also be taxed in the Contracting Government where the company that pays the proceeds is based, and in accordance with the law of this State, but if the rightful owner of the proceeds is the home of the other Contracting Government, the tax which is to be imposed shall not exceed 15%. the gross amount of the yield.

Notwithstanding the provisions of paragraph 1, 2 may benefit from a company belonging to a Contracting Government to a person resident in the other Contracting Government, only subject to taxation in this other State only if the rightful owner is ;

a) a company (not, however, a stakeholder) that directly owns 10% of the case. the capital of the undertaking which pays the proceeds ; or

b) a pension fund or other similar institution which provides for pension schemes in which natural persons can participate in the purpose of ensuring the alders, invalids or survivors ' pensions services provided that this pension fund or other similar rate is equivalent ; institution has been established, tax-recognised and controlled in accordance with the law of this other State.

The competent authorities of the Contracting Parties shall determine the manner in which these restrictions should be applied.

This paragraph shall not affect access to taxing the company of profits from which the yields are paid.

4. The expression "yield" means in this Article income of shares, "jouissance"-shares or "jouissance"-rights, shares or other rights that do not amount to debt, and which give the right to share in profit, as well as the income of any other company rights subject to the same tax treatment as the income of shares in accordance with the law of the State in which the undertaking carrying out the encoding is based.

The provisions of paragraph 5 of paragraph 5. 1, 2 and 3 shall not apply where the rightful owner of the yield established in a Contracting Government operates in the other Contracting Government where the profit-paying company is indigenous, through a fixed-up point ; where an operating facility or operator is practised in this other state from one place situated, and the holding which is based on the payment of the proceeds, shall have a direct connection with such a fixed operating location or location. In such cases, Articles 7 or 14 shall apply respectively.

6. Oppebearer a party belonging to a Contracting Government, profit or income from the other Contracting Government may not impose any tax on the benefits provided by the company unless the yields are paid to one. the person who is the resident of this other State, or unless the shareholding which is based on the payment of the proceeds, has a direct connection to a fixed farm or place situated in this other state, or submit to the company's non-unloaded profits tax on the company's non-deflect profits, in the case of the unpaid benefit or the non-derive profit or partly of profit or income derived from that other state. ` ;

ARTICLE II

Paragraph 1 of the Agreement on Article 11 (1). 1, (Renter) is hereby repealed and replaced by the following paragraph :

' Interesters falling from one of the Contracting Governments and whose legal owner is established in the other Contracting Government may only be taxed in this other state. ` ;

Paragraph 2 of the Agreement on Article 11 (2). 3, (Renter) is hereby repealed and replaced by the following paragraph :

" THREE. The provisions of paragraph 1. Paragraph 1 shall not apply where the rightful owner of the interest owner of a Contracting Government operates in the other Contracting Government from which interest is derived from the farm or engaged in free trade in the other Contracting Government ; this other state from one place situated, and the debt which is due to the paid interest, has a direct connection with such a fixed operating location or location. In such cases, the provisions of Article 7 or Article 14 shall apply respectively. ` ;

ARTICLE III

Paragraph 1 of the Agreement on Article 12 (1). 1, (Royalties) are hereby repealed and replaced by the following paragraph :

' Royalties arising from one of the Contracting Governments and whose legal owner is established in the other Contracting Government may only be taxed in this other state. ` ;

Paragraph 2 of the Agreement on Article 12 (2). 3, (Royalties) are hereby repealed and replaced by the following paragraph :

" THREE. The provisions of paragraph 1. Paragraph 1 shall not apply where the legal owner of the royalty amount belongs to a Contracting Government, operates in the other Contracting Government from which the royalty amount originates, through a place of permanent farm operating or exercising ; free trade in this other state from one place where there is a permanent location, and the right or property of the property of the royalties is directly related to such a fixed operating location or location. In such cases, the provisions of Article 7 or Article 14 shall apply respectively. ` ;

ARTICLE IV

The provisions of Article 18 of the Agreement (Pensions) are hereby repealed and replaced by the following Article :

' Article 18

Pensions

1. Pensions and other similar charges, as well as those related to the independent of previous employment, which are derived from a Contracting Government and paid to a person resident in the other Contracting Government, may be taxed in the former ; state if the contributions paid by

a) Whereas the person entitled to the pension scheme has been deducted from the taxable income of the person concerned in the first Contracting Government under the law of this State ; or

b) an employer was not taxable income for the person entitled in the first Contracting Government under the legislation of this State.

For the purposes of this Article, the term ' pensions and other equivalent remuneration ' shall not cover payments under the social security law of a Contracting Government. `

ARTICLE V

Paragraph 1. The current wording of Article 21 of the Agreement (Income, which is not expressly referred to in the case), shall be paragraph 1. 1.

2. The following paragraph shall be inserted in this Article :

" TWO. The provisions of paragraph 1. Paragraph 1 shall not apply to income, with the exception of the income of real estate as defined in Article 6 (1) ; 2, where the recipient of such income, belonging to a Contracting Government, operates in the other Contracting Government from which the income is derived, through a place of permanent farm operating or practica-free in this other, the state of a permanent location, and the right or property of the asset on account of the paid income, have a direct connection with such a fixed operating location or location. In such cases, the provisions of Article 7 or Article 14 shall apply respectively. ` ;

ARTICLE VI

Article 23 (1) of the Agreement. 2. (The method for lifting the double taxation) is repealed and replaced by the following paragraph :

" TWO. In Switzerland, double taxation shall be avoided as follows :

a)
In cases where a person resident in Switzerland is bearing an income or an owner of the wealth which, in accordance with the provisions of this Agreement, may be subject to taxation in Denmark, unless the provisions of point (b) of paragraph (b) are to be subject to such tax ; income or income from taxation, but may, in the case of tax calculation of the other income or wealth of the person concerned, use the rate of taxation which should have been used if the income or fortune of non-exempt income had not been exempted from ; taxation.
b)
In cases where a person resident in Switzerland shall bear the yield which, in accordance with Article 10, may be taxed in Denmark, shall, at the request of the person, permit the person concerned to facilitate a relaxation of the person concerned. The emption can consist of :
(i)
a deduction in the Swiss income tax of the person concerned of an amount equal to the tax imposed in Denmark in accordance with Article 10 ; however, such deduction may not exceed that part of the Swiss tax, calculated before the end of the day ; the deducted is given, which may be attributed to the income which may be taxed in Denmark ;
(ii)
a total reduction in the Swiss tax ; or
(iii)
a partial remission of such yield from Swiss tax, in all cases at least comprising a deduction of the tax imposed in Denmark on the gross amount of the yield.
Switzerland determines the management of the facilitation and shall fix the procedure in accordance with the Swiss provisions relating to the implementation of the Swiss Confederation of International Agreements for the avoidance of double taxation.
c)
A party which is indigenous to Switzerland and which has been peppled from a company belonging to Denmark has the right to the Swiss tax on such a return on the same relaxation, which would have been attributed to the company, as is the case in the case of Swiss tax, the paying company had been indigenous to Switzerland. `

ARTICLE VII

The following paragraph shall be added to Article 25 (The procedure for the conclusion of mutual agreements) as new paragraph 5 :

" FIVE. Where?

a) a person in accordance with paragraph 1. 1 has submitted a case to the competent authority of a Contracting Government on the grounds that the measures taken by one or both of the Contracting Governments of that person have resulted in a tax which is not in conformity with the provisions of this Agreement, and

b) the competent authorities shall not be able to agree to resolve the matter in accordance with paragraph 1. 2 within three years of the application of the matter to the competent authority of the other Contracting Government,

Do not question any questions that may arise from the case shall be subject to arbitration if the person requests it. However, these shall not be allowed to be subject to arbitration if a decision on these matters has already been taken by a court or an administrative appeal body of one of the Member States. Unless a person directly affected by the case does not accept the reciprocal agreement that carries out the arbitration decision, or the competent authorities and persons immediately affected by the case, agree to another solution in the case of six months after they have been informed of the decision, the arbitration decision shall be binding on both States and shall be implemented without regard to the time limits laid down by the internal legislation of these States. The competent authorities of the Contracting Parties shall decide by mutual agreement of the manner in which this paragraph shall apply.

The Contracting Governments may, in the case of the arbitrator, set up in accordance with this paragraph, release such information necessary for the implementation of the arbitration process. The members of the Danish Arbitration Body shall be subject to the limitations on disclosure, as referred to in Article 27 (1). 2, in the case of information, which is thus released. "

ARTICLE VIII

Article 27 (Exchange of information) is repealed and replaced by the following Article :

' Article 27

Exchange of information

1. The competent authorities of the Contracting Parties shall exchange such information which is likely to be relevant to the implementation of the provisions of this Agreement or to the administration or enforcement of the Contracting Governments ; internal legislation relating to taxes covered by the Agreement as far as this tax is not contrary to the agreement. The exchange of information shall not be restricted by Article 1.

2. Any information received in accordance with paragraph 1. 1 of a Contracting Government shall be treated as secret in the same manner as the information provided under this State ' s internal legislation and may be granted only to persons or authorities (including courts and administrative authorities), the equation, collection, enforcement, enforcement or prosecution of the taxes referred to in paragraph 1 shall be subject to the equation, collection, enforcement, enforcement or prosecution of the taxes referred to in paragraph 1. 1. Such persons or authorities may use this information only for the purposes mentioned. They must communicate information to the public or to court rulings. Regardless of the preceding information, the information received by a Contracting Government may be used for other purposes when the information may be used for such other purposes in accordance with the law of both States and the competent authority of the State which has given it ; the information shall be authorised for such use.

The provisions of paragraph 3. In no case may a Contracting Government be subject to a duty bound to :

1) to carry out administrative areas which are contrary to the legislation and the management practices of this or other Contracting Government ;

2) to provide information which cannot be obtained under the legislation or general management practices of this or the other Contracting Government ;

3) to communicate information which would reveal any business, business, industrial, commercial or professional secret or method of manufacture, or information which would be contrary to general interest (order public).

4. If a Contracting Government requests information pursuant to this Article, the other Contracting Government shall implement its measures in order to obtain the information requested, even though this other State may not have need for them ; information for its own tax purposes. The obligation laid down in the preceding sentence shall be subject to the restrictions referred to in paragraph 1. Three, but in no case makes it possible for a Contracting Government not to provide information solely on the grounds that it does not have any tax interest in such information.

In no case may the provisions of paragraph 1 of this Directive be laid down 3 is interpreted in such a way that they allow a Contracting Government to refuse information solely because the information is possessed by a bank, another financial institution, representative or person acting as authorised or as a guardian, or because the information relates to the ownership of a person. In order to obtain such information, the tax authorities of the Contracting Government requested by the Contracting Government may be able to force the provision of information covered by this paragraph, notwithstanding paragraph 1. 3 or any contradictory provisions in its internal legislation. ` ;

ARTICLE IX

Article 28 (3) of the Agreement. The following paragraph shall be deleted and replaced by 3 and 4 (different provisions) :

" THREE. Contributions to a pension fund or another similar institution which provides for pension schemes established and tax-recognised in a Contracting Government which is paid by or on behalf of a person who is personally working in the other ; Contracting Governments, in order to determine the payment of the person ' s taxes and profits for an undertaking which may be taxed in this other state, shall be treated in this different state in the same way and subject to the same conditions and restrictions ; as a contribution to a pension scheme which is tax-recognised in this state, provided that : of that

a) the person was not indigenous to this State and was a participant in the pension scheme immediately before he started to provide personal work in this state, and

b) the pension scheme shall be recognised by the competent authority of this State as a parent corresponding to pension schemes which are tax-recognised in that State. ` ;

ARTICLE X

The Agreement shall be added to a protocol containing the following :

" PROTOCOL

Kingdom of Denmark

and

The Swiss Confederation

is under the signing of the protocol between the Kingdom of Denmark and the Swiss Confederation on the amendment of the Agreement to avoid double taxation on taxes on income and fortune, signed in Bern on 23. November 1973, as amended by the Protocol, signed in Copenhagen on 11. In March 1997, the following provisions shall be taken into account as an integral part of the Agreement.

With regard to Article 10 (1), Paragraph 3 (b) and Article 28 (3). 3,

it is agreed that the term ' a pension fund or another similar institution which provides for pension schemes covers the following schemes and schemes of the same or substantially the same species created in accordance with legislation which has been entered ; by virtue of the signature of this Protocol :

In Denmark, pension schemes covered by Title I of the Pension Taxation Act.

In Switzerland, all systems covered by

(i)
Federal law on the alders and survivors ' insurance of 20. December 1946 ;
(ii)
Federal legislation on invalidity insurance of 19. June 1959 ;
(iii)
Federal law on supplementary pensions relating to alders, lax and invalidity insurance of 6. October 2006 ;
(ICV)
Federal law on employment-related alders, post-and invalidity insurance of 25. June 1982, including unregistered pension schemes, which provide employment-related pension schemes ; and
(v)
the types of individual approved pension schemes pursuant to Article 82 of the Federal Act on the Alders, survivors and invalidity insurance of 25. June 1982, which is comparable to employment-related pension schemes.

There is also agreement that the term 'pension fund or pension scheme' includes investment funds and trusts where all interests in the funds or the threat are held by pension funds or pension schemes.

2. In respect of Articles 18 and 19

If there is a consensus that the term 'pensions' used in Articles 18 and 19 respectively, not only includes periodic payments, but also sum payments.

3. In relation to Article 27

a)
If there is a consensus that information is requested only when the requesting Contracting Government has exhausted all the normal information available under the internal tax process.
b)
Is there agreement that the administrative assistance provided for in Article 27 does not include measures aimed solely at the mere collection of evidence ("fishing expeditions").
c)
If there is a consensus that the tax authorities of the requesting State shall provide the following information to the tax authorities of the requested State when they request information pursuant to Article 27 of the Agreement :
(i)
the name and address of the person or persons subject to investigation or investigation and, to the extent that they are available, other information which is conducible to identification of the person, such as date of birth, civil status ; or the tax identification number ;
(ii)
the period for which information is requested ;
(iii)
a statement of the information requested, including of their nature and the form in which the requesting State wishes to receive the information from the requested state ;
(ICV)
the tax purposes for which the information is sought ;
(v)
name and address of any person who is assumed to be of the information requested.
d)
Furthermore, is there any agreement that Article 27 of the Convention does not oblige the Contracting Governments to exchange information on an automatic or spontaneous basis.
(e)
If there is a consensus that in the case of exchanges of information, the administrative procedure for the taxpayer's rights, which is available in the requested Contracting Government, shall be applicable before the information is passed on to it ; requesting Contracting Government. There is also agreement that this provision is intended to guarantee the security of the taxpayer a legal certainty, and not to prevent or unreasonably delay the process of exchanging information. '

ARTICLE XI

This Protocol shall enter into force on the exchange of notes confirming that the constitutional procedures to be followed in each of the Contracting Governments before the Protocol may enter into force have been implemented. The Protocol shall apply :

a) in the case of Articles 10 and 23 of the Agreement, on the yield of the goods falling on or after the 1. of January of the year after the year in which this Protocol comes into force ;

b) in respect of the provisions of Article 18 of the Agreement on Pensions, which are due to fall on or after 1. of January of the year after the year of entry into force of the Protocol, except for pensions from which the payments have been started before the date of signing of the Protocol, and where payment is made to justified, moved from one Contracting Party to the right of payment ; State to the other Contracting Government prior to this date ;

c) in the case of the Convention, Article 25 (1) of the Agreement. 5, at the earliest of the following two times : notification from Denmark that it has provided its internal preconditions and procedures in order to carry out the said paragraph, or from the date on which a contract for avoidance of : Whereas double taxation between Denmark and a third country, which includes a corresponding provision (on arbitration), has effect ;

d) in the case of the Convention ' s Article 27 for the tax year commentent, or after 1. of January of the year after the year in which this Protocol comes into force ;

(e) in the case of the Convention, Article 28 (1) of the Agreement. 3, on contributions paid in respect of tax years starting on or after 1. January of the year after the year in which this Protocol comes into force.

To confirm this, signed, duly authorised by their respective governments, have signed this Protocol.

Done at Copenhagen on 21. In two copies in Danish, German and English, all texts being equally authentic. In the case of misinterpretation in the interpretation between the Danish and German texts, the English text must be used.

For the Kingdom of Denmark
For the Swiss Confederation