/Entry into force: 12/31/2015
section 1 of the agreement for the avoidance of double taxation and
Prevention of tax evasion with respect to taxes on income
and on the capital gain as Sweden and the United Kingdom and
Northern Ireland signed on 26 March 2015 will apply as law
here in the country. The agreement is drawn up in English. The English
text and an English translation of the agreement evidenced by
the annex to this law.
section 2 of the tax rules of the agreement shall apply only to the
some of these causes restriction of the tax liability in
Sweden that would otherwise exist.
Transitional provisions
2015:666
1. This law shall enter into force on the day on which the Government determines.
2. The law shall apply in the case of
a) withholding taxes, on amounts paid or tillgodoförs the
1 January of the year immediately following the date on which the Act
enters into force, or later,
(b)) other taxes on income, the tax levied on
tax year that begins on 1 January of the year following
immediately following the day on which the Act comes into force or later,
c) arbitration under article 23 of the agreement, from
the date on which the Act comes into force regardless of the tax year
the case concerns, and
d) information exchange under article 24 of the agreement, at the request
produced on the day on which the Act comes into force or later,
regardless of which year the tax claim is
attribute.
3. A case may not be the subject of
arbitration under 2 c) earlier than three years after the Act's
date of entry into force.
4. by law repeals Act (1983:898) if
double taxation treaties between Sweden and the United Kingdom
and Northern Ireland.
5. The repealed Act applies, however, remains concerned about
the following:
a) withholding taxes, on amounts paid or tillgodoförs before
on 1 January of the year immediately following the day on which the Act
enters into force.
(b)) Other taxes on income, the tax levied on
tax years beginning before 1 January of the year
immediately after the day on which the Act comes into force.
(c)), article 18 and article 19 point 2 of the annex on a physical
person immediately before the entry into force of the agreement of 26
March 2015 was the recipient of the payment covered by the said
provisions and that, in accordance with article 29 of the agreement
paragraph 5, chosen to these older rules, and not
the provisions of article 17 of the agreement, shall apply to such
payout. The older provisions shall apply from
with the year in which the choice is made until the election is revoked. When a
the election is revoked, no new selections can be made.
Annex
Convention between the Kingdom of Sweden and the United
Kingdom of Great Britain and Northern Ireland for the
avoidance of double taxation and the prevention of fiscal
evasion with respect to taxes on income and on capital
gains
The Government of the Kingdom of Sweden and the
The Government of the United Kingdom of Great Britain and
Northern Ireland;
Desiring to conclude a Convention for the avoidance of double
taxation and the prevention of fiscal evasion with respect to
taxes on income and on capital gains;
Have agreed as follows:
Article 1
Persons covered
1. This Convention shall apply to persons who are residents
of one or both of the Contracting States.
2. For the purposes of this Convention, income, profit or
gain derived by or through an entity or arrangement that is
treated as wholly or partly fiscally transparent under the
tax law of either Contracting State shall be considered to be
income, profit or gain of a resident of a Contracting State
but only to the extent that the income, profit or gain is
treated, for the purposes of taxation by that State, as the
income, profit or gain of a resident of that State. In no
case shall the provisions of this paragraph be construed so
as in any way to restrict a Contracting State's right to tax
the income, profit or gain of the residents of that State.
Article 2
Taxes covered
1. This Convention shall apply to taxes on income and on
capital gains 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 income and on capital
gains all taxes imposed on total income or on elements of
income, including taxes on gains from the alienation of
movable or immovable property, as well as taxes on capital
appreciation.
3. The taxes to which the Convention shall apply are:
a) in Sweden:
(i) the national income tax (State income tax);
(ii) the withholding tax on dividends (withholding tax);
(iii) the income tax on non-residents (the Special
income tax for non-residents);
(iv) the income tax on non-resident artistes and athletes
(the Special income tax for non-resident artists
etc.); and
(v) the municipal income tax (municipal
income tax);
(hereinafter referred to as "the Swedish
tax ");
(b)) in the United Kingdom:
(i) the income tax;
(ii) the corporation tax; and
(iii) the capital gains tax;
(hereinafter referred to as "United Kingdom tax").
4. The Convention shall apply also to any identical or
substantially similar taxes that are imposed after the date
of signature of the Convention in addition to, or in place
of, the taxes referred to in paragraph 3. The competent
authorities of the Contracting States shall notify each other
of any significant changes that have been made in their
taxation laws.
Article 3
General definition
1. For the purposes of this Convention, unless the context
otherwise requires:
a) the term "Sweden" means the Kingdom of Sweden and, when
used in a geographical sense, includes the national
territory, the territorial sea of Canada as well as other
the maritime areas over which Sweden in accordance with
international law exercises sovereign rights or
jurisdiction;
(b)) the term "United Kingdom" means Great Britain and Northern
Ireland but, when used in a geographical sense, means the
territory and territorial sea of Great Britain and Northern
Ireland and the areas beyond that territorial sea over which
Great Britain and Northern Ireland exercise sovereign rights
or jurisdiction in accordance with their domestic law and
international law;
(c)) the terms "a Contracting State" and "the other Contracting
State "mean Canada or the United Kingdom, as the context
requires;
d) the term "person" includes an individual, a company and
any other body of persons;
e) the term "company" means any body corporate or any entity
that is treated as a body corporate for tax purposes;
f) the term "enterprise" applies to the carrying on of any
business;
g) the terms "enterprise of a Contracting State" and
"enterprise of the other Contracting State" mean respectively
an enterprise carried on by a resident of a Contracting State
and an enterprise carried on by a resident of the other
Contracting State;
h) the term "international traffic" means any transport by a
ship or aircraft except when the ship or aircraft is operated
solely between places in a Contracting State and the
Enterprise that operates the ship or aircraft is not an
Enterprise of that State;
in) the term "competent authority" means:
(i) in Canada, the Minister of Finance, his authorised
representative or the authority which is designated as a
competent authority for the purposes of this Convention;
(ii) in the United Kingdom, the Commissioners for Her
Majesty's Revenue and Customs or their authorised
representative;
j) the term "national" means:
(i) in relation to Canada, any individual possessing the
nationality of Canada and any legal person, partnership or
Association deriving its status as such from the laws in
force in Sweden;
(ii) in relation to the United Kingdom, any British citizen,
or any British subject not possessing the citizenship of any
other Commonwealth country or territory, provided he has the
right of abode in the United Kingdom; and any legal person,
partnership or association deriving its status as such from
the laws in force in the United Kingdom;
k) the term "business" includes the performance of
professional services and of other activities of an
independent character.
2. As regards the application of the Convention at any time
by a Contracting State, any term not defined therein shall,
unless the context otherwise requires, have the meaning that
It has at that time under the law of that State for the
purposes of the taxes to which the Convention applies, any
meaning under the applicable tax laws of that State
prevailing over a meaning given to the term under other laws
of that State.
Article 4
Resident
1. For the purposes of this Convention, the term "resident
of a Contracting State "means any person who, under the laws
of that State, is liable to tax therein by reason of his
domicile, residence, place of management, place of
incorporation or any other criterion of a similar nature, and
also includes that State and any governmental body or agency,
political subdivision or local authority thereof. This term,
However, does not include any person who is liable to tax in
that State in respect only of income or capital gains from
sources in that State.
2. Where by reason of the provisions of paragraph 1 an
individual is a resident of both Contracting States, then his
status shall be determined as follows:
a) he shall be deemed to be a resident only of the State in
which he has a permanent home available to him; If he has a
a permanent home available to him in both States, he shall be
deemed to be a resident only of the State with which his
personal and economic relations are closer (centre of vital
interests);
b) if the State in which he has his centre of vital interests
cannot be determined, or if he does not have a permanent home
available to him in either State, he shall be deemed to be a
resident only of the State in which he has an habitual
abode;
c) if he has an habitual abode in both States or in neither
of them, he shall be deemed to be a resident only of the
State of which he is a national;
d) if he is a national of both States or of neither of them,
the competent authorities of the Contracting States shall
settle the question by mutual agreement.
3. Where by reason of the provisions of paragraph 1 a person
other than an individual is a resident of both Contracting
States, then the competent authorities of the Contracting
States shall endeavour to determine by mutual agreement the
Contracting State of which that person shall be deemed to be
a resident for the purposes of this Convention. In the
absence of a mutual agreement by the competent authorities of
the Contracting States, the person shall not be considered a
resident of either Contracting State for the purposes of
claiming any benefits provided by the Convention, except
those provided by Articles 21, 22 and 23.
Article 5
Permanent establishment
1. For the purposes of this Convention, the term "permanent
establishment "means a fixed place of business through which
the business of an enterprise is wholly or partly carried
on.
2. The term "permanent establishment" includes especially:
a) a place of management;
b) a branch;
c) an office;
d) a factory;
e) a workshop; and
f) a mine, an oil or gas well, a quarry or any other place of
extraction of natural resources.
3. A building site or construction, assembly or installation
project or supervisory activities in connection therewith
constitutes a permanent establishment only if it load more
than twelve months.
4. Notwithstanding the preceding provisions of this Article,
the term "permanent establishment" shall be deemed not to
include:
(a)) the use of facilities solely for the purpose of storage,
display or delivery of goods or merchandise belonging to the
Enterprise;
b) the maintenance of a stock of goods or merchandise
belonging to the enterprise solely for the purpose of
storage, display or delivery;
c) the maintenance of a stock of goods or merchandise
belonging to the enterprise solely for the purpose of
processing by another enterprise;
d) the maintenance of a fixed place of business solely for
the purpose of purchasing goods or merchandise or of
collecting information, for the enterprise;
e) the maintenance of a fixed place of business solely for
the purpose of carrying on, for the enterprise, any other
activity of a preparatory or auxiliary character;
f) an installation project carried on by an enterprise of a
Contracting State in the other Contracting State in
connection with delivery of machinery or equipment produced
by that enterprise;
g) the maintenance of a fixed place of business solely for
any combination of activities mentioned in subparagraphs (a))
to f), provided that the overall activity of the fixed place
of business resulting from this combination is of a
preparatory or auxiliary character.
5. Notwithstanding the provisions of paragraphs 1 and 2,
where a person – other than an agent of an independent status
to whom paragraph 6 applies-is acting on behalf of an
Enterprise and has, and habitually exercises, in a
Contracting State an authority to conclude contracts on
behalf of the enterprise, that enterprise shall be deemed to
have a permanent establishment in that State in respect of
any activities which that person undertakes for the
Enterprise, unless the activities of such person are limited
to those mentioned in paragraph 4 which, if exercised through
(a) a fixed place of business, would not make this fixed place of
business a permanent establishment under the provisions of
that paragraph.
6. An enterprise shall not be deemed to have a permanent
establishment in a Contracting State merely because it
carries on business in that State through a broker, general
Commission agent or any other agent of an independent status,
provided that such persons are acting in the ordinary course
of their business.
7. The fact that a company which is a resident of a
Contracting State controls or is controlled by a company
which is a resident of the other Contracting State, or which
carries on business in that other State (whether through a
permanent establishment or otherwise), shall not of itself
constitute either company a permanent establishment of the
other.
Article 6
Income from immovable property
1. Income derived by a resident of a Contracting State from
immovable property (including income from agriculture or
forestry) situated in the other Contracting State may be
taxed in that other State.
2. The term "immovable property" shall have the meaning which
It has under the law of the Contracting State in which the
property in question is situated. The term shall in any case
the include property accessory to immovable property, livestock
and equipment used in agriculture and forestry, rights to
which the provisions of general law respecting landed
property apply, buildings, usufruct of immovable property and
rights to variable or fixed payments as consideration for the
working of, or the right to work, mineral deposits, sources
and other natural resources; ships, boats and aircraft shall
not be regarded as immovable property.
3. The provisions of paragraph 1 shall apply to income
derived from the direct use, letting, or use in any other
the form of immovable property.
4. The provisions of paragraphs 1 and 3 shall also apply to
the income from immovable property of an enterprise.
Article 7
Business profits
1. Profits of an enterprise of a Contracting State shall be
taxable only in that State unless the enterprise carries on
business in the other Contracting State through a permanent
establishment situated therein. If the enterprise carries on
business as aforesaid, the profits that are attributable to
the permanent establishment in accordance with the provisions
of paragraph 2, may be taxed in that other State.
2. For the purposes of this Article and Article 21, the
profits that are attributable in each Contracting State to
the permanent establishment referred to in paragraph 1 are
the profits it might be expected to make, in particular in
its dealings with other parts of the enterprise, if it were a
separate and independent enterprise engaged in the same or
similar activities under the same or similar conditions,
taking into account the functions performed, assets used and
risks assumed by the enterprise through the permanent
establishment and through the other parts of the
Enterprise.
3. Where, in accordance with paragraph 2, a Contracting State
Adjusts the profits that are attributable to a permanent
establishment of an enterprise of one of the Contracting
States and taxes accordingly profits of the enterprise that
have been charged to tax in the other State, that other State
shall, to the extent necessary to eliminate double taxation
on these profits, make an appropriate adjustment if it agrees
with the adjustment made by the first-mentioned State; If the
other Contracting State does not so agree, the Contracting
States shall endeavour to eliminate any double taxation
resulting therefrom by mutual agreement.
4. Where profits include items of income or capital gains
which are dealt with separately in other Articles of this
Convention, then the provisions of those Articles shall not
be affected by the provisions of this Article.
Article 8
Shipping and air transport
1. Profits of an enterprise of a Contracting State from the
operation of ships or aircraft in international traffic shall
be taxable only in that State.
2. With respect to profits derived by the air transport
Consortium Scandinavian Airlines System (SAS) the provisions
of paragraph 1 shall apply only to such part of the profits
as corresponds to the participation held in that consortium
by SAS Sweden AB, the Swedish partner of SAS.
3. For the purposes of this Article, profits of an enterprise
of a Contracting State from the operation of ships or
aircraft in international traffic include:
a) profits from the rental on a bareboat basis of ships or
aircraft; and
b) profits from the use, maintenance or rental of containers
(including trailers and related equipment for the transport
of containers) used for the transport of goods or
merchandise;
where such rental or such use, maintenance or rental, as the
case may be, is incidental to the operation of ships or
aircraft in international traffic by that enterprise.
4. The provisions of paragraph 1 shall also apply to profits
from the participation in a pool, a joint business or an
international operating agency.
Article 9
Associated enterprises
1. The Where clause
a) an enterprise of a Contracting State participates directly
or indirectly in the management, control or capital of an
Enterprise of the other Contracting State, or
b) the same persons participate directly or indirectly in the
management, control or capital of an enterprise of a
Contracting State and an enterprise of the other Contracting
State,
and in either case conditions are made or imposed between the
the two enterprises in their commercial or financial relations
which differ from those which would be made between
independent enterprises, then any profits which would, but
for those conditions, have accrued to one of the enterprises,
but, by reason of those conditions, have not so accrued, may
be included in the profits of that enterprise and taxed
accordingly.
2. Where a Contracting State includes in the profits of an
Enterprise of that State – and taxes accordingly – profits on
which an enterprise of the other Contracting State has been
charged to tax in that other State and the profits so
included are profits which would have accrued to the
the enterprise of the first-mentioned State if the conditions
made between the two enterprises had been those which would
have been made between independent enterprises, then that
other State shall make an appropriate adjustment to the
the amount of the tax charged therein on those profits. In
determining such adjustment, due regard shall be had to the
other provisions of this Convention and the competent
authorities of the Contracting States shall if necessary
consult each other.
Article 10
Dividends
1. Dividends paid by a company which is a resident of a
Contracting State to a resident of the other Contracting
State may be taxed in that other State.
2. However, dividends paid by a company which is a resident
of a Contracting State may also be taxed in that State and
According to its laws, but if the beneficial owner of the
dividends is a resident of the other Contracting State, the
the tax so charged shall not exceed 5 per cent of the gross
the amount of the dividends. However, if the beneficial owner is
a company which controls, directly or indirectly, at least 10
per cent of the voting power of the company paying the
dividends, the dividends shall be exempt from tax in the
Contracting State of which the company paying the dividends
is a resident.
Notwithstanding the previous provisions of this paragraph,
where dividends are paid out of income (including gains)
derived directly or indirectly from immovable property within
the meaning of Article 6 by an investment vehicle which
distributes most of this income annually and whose income
from such immovable property is exempted from tax, the tax so
charged shall not exceed 15 per cent of the gross amount of
the dividends.
This paragraph shall not affect the taxation of the company
in respect of the profits out of which the dividends are
paid.
3. The term "dividends" as used in this Article means income
from shares or other rights, not being debt-claims,
participating in profits, as well as any other item which is
treated as income from shares by the taxation laws of the
State of which the company making the distribution is a
resident.
4. The provisions of paragraphs 1 and 2 shall not apply if
the beneficial owner of the dividends, being a resident of a
Contracting State, carries on business in the other
Contracting State of which the company paying the dividends
is a resident through a permanent establishment situated
therein and the holding in respect of which the dividends are
paid is effectively connected with such permanent
Re-establishment. In such case the provisions of Article 7 shall
apply.
5. Where a company which is a resident of a Contracting State
derives profits or income from the other Contracting State,
that other State may not impose any tax on the dividends paid
by the company, except insofar as such dividends are paid to
a resident of that other State or insofar as the holding in
respect of which the dividends are paid is effectively
connected with a permanent establishment situated in that
other State, nor subject the company's undistributed profits
to a tax on the company's undistributed profits, even if the
dividends paid or the undistributed profits consist wholly or
partly of profits or income arising in that other State.
6. No relief shall be available under this Article if it was
the main purpose or one of the main purposes of any person
concerned with the creation or assignment of the shares or
other rights in respect of which the dividend is paid to take
advantage of this Article by means of that creation or
assignment.
Article 11
Interest
1. Interest arising in a Contracting State and beneficially
owned by a resident of the other Contracting State shall be
taxable only in that other State.
2. The term "interest" as used in this Article means income
from debt-claims of every kind, whether or not secured by
mortgage and whether or not carrying a right to participate
in the debtor's profits, and in particular, income from
Government securities and income from bonds or debentures,
including premiums and prizes attaching to such securities,
bonds or debentures. Penalty charges for late payment shall
not be regarded as interest for the purpose of this Article.
The term shall not include any item which is treated as a
a dividend under the provisions of Article 10.
3. The provisions of paragraph 1 shall not apply if the
beneficial owner of the interest, being a resident of a
Contracting State, carries on business in the other
Contracting State in which the interest arises through a
permanent establishment situated therein and the debt-claim
in respect of which the interest is paid is effectively
connected with such permanent establishment. In such case the
the provisions of Article 7 shall apply.
4. Where, by reason of a special relationship between the
payer and the beneficial owner or between both of them and
some other person, the amount of the interest paid exceeds,
for whatever reason, the amount which would have been agreed
upon by the payer and the beneficial owner in the absence of
such relationship, the provisions of this Article shall apply
only to the last-mentioned amount. In such case, the excess
part of the payments shall remain taxable according to the
the laws of each Contracting State, due regard being had to the
other provisions of this Convention.
5. No relief shall be available under this Article if it was
the main purpose or one of the main purposes of any person
concerned with the creation or assignment of the debt-claim
in respect of which the interest is paid to take advantage of
This Article by means of that creation or assignment.
Article 12
Royalties
1. Royalties arising in a Contracting State and beneficially
owned by a resident of the other Contracting State shall be
taxable only in that other State.
2. The term "royalties" as used in this Article means
payments of any kind received as a consideration for the use
of, or the right to use, any copyright of literary, artistic
or scientific work including cinematograph films and films or
tapes for radio or television broadcasting, any patent, trade
mark, design or model, plan, secret formula or process, or
for information (know-how) concerning industrial, commercial
or scientific experience.
3. The provisions of paragraph 1 shall not apply if the
beneficial owner of the royalties, being a resident of a
Contracting State, carries on business in the other
Contracting State in which the royalties arise through a
permanent establishment situated therein and the right or
property in respect of which the royalties are paid is
effectively connected with such permanent establishment. In
such case the provisions of Article 7 shall apply.
4. Where, by reason of a special relationship between the
payer and the beneficial owner or between both of them and
some other person, the amount of the royalties paid exceeds,
for whatever reason, the amount which would have been agreed
upon by the payer and the beneficial owner in the absence of
such relationship, the provisions of this Article shall apply
only to the last-mentioned amount. In such case, the excess
part of the payments shall remain taxable according to the
the laws of each Contracting State, due regard being had to the
other provisions of this Convention.
5. No relief shall be available under this Article if it was
the main purpose or one of the main purposes of any person
concerned with the creation or assignment of the rights in
respect of which the royalties are paid to take advantage of
This Article by means of that creation or assignment.
Article 13
Capital gains
1. Gains derived by a resident of a Contracting State from
the alienation of immovable property referred to in Article 6
and situated in the other Contracting State may be taxed in
that other State.
2. Gains derived by a resident of a Contracting State from
the alienation of shares, other than shares in which there is
substantial and regular trading on a Stock Exchange, or
status interests, deriving more than 50 per cent of their
value directly or indirectly from immovable property situated
in the other Contracting State may be taxed in that other
State.
3. Gains from the alienation of movable property forming part
of the business property of a permanent establishment which
an enterprise of a Contracting State has in the other
Contracting State, including such gains from the alienation
of such a permanent establishment (alone or with the whole
Enterprise), may be taxed in that other State.
4. Gains that an enterprise of a Contracting State that
operates ships or aircraft in international traffic derives
from the alienation of such ships or aircraft, or from
movable property pertaining to the operation of such ships or
aircraft, shall be taxable only in that Contracting State.
With respect to gains derived by the air transport consortium
Scandinavian Airlines System (SAS), the provisions of this
paragraph shall apply only to such part of the gains as
corresponds to the participation held in that consortium by
SAS Sweden AB, the Swedish partner of SAS.
5. Gains from the alienation of any property, other than that
referred to in paragraphs 1, 2, 3 and 4, shall be taxable
only in the Contracting State of which the alienator is a
resident.
6. Notwithstanding the provisions of paragraphs 5, gains from
the alienation of shares or other rights in a company, or of
interests in a partnership or trust derived by an individual
the who has been a resident of a Contracting State and who has
become a resident of the other Contracting State, may be
taxed in the first-mentioned State if the alienation of the
property occurs at any time during the next seven years
following the date on which the individual has ceased to be a
resident of the first-mentioned State. The gain so taxed
shall not include the gain, if any, that accrues during the
period during which the individual is or was a resident of
the other Contracting State.
Article 14
Income from employment
1. Subject to the provisions of Articles 15, 17 and 18,
salaries, wages and other similar remuneration derived by a
the resident of a Contracting State in respect of an employment
shall be taxable only in that State unless the employment is
exercised in the other Contracting State. If the employment
is so exercised, such remuneration as is derived therefrom
may be taxed in that other State.
2. Notwithstanding the provisions of paragraph 1,
remuneration derived by a resident of a Contracting State in
respect of an employment exercised in the other Contracting
State shall be taxable only in the first-mentioned State
If:
a) the recipient is present in the other State for a
period or periods not exceeding in the aggregate 183 days in
any twelve month period commencing or ending in the fiscal
year concerned; and
b) the remuneration is paid by, or on behalf of, an employer
the who is not a resident of the other State; and
c) the remuneration is not borne by a permanent establishment
which the employer has in the other State.
3. Notwithstanding the preceding provisions of this Article,
remuneration derived by a resident of a Contracting State in
respect of an employment exercised aboard a ship or aircraft
operated in international traffic (other than aboard a ship
or aircraft operated solely within the other Contracting
State) shall be taxable only in that State.
Article 15
Directors ' fees
Directors ' fees and other similar payments derived by a
the resident of a Contracting State in his capacity as a member
of the board of directors of a company which is a resident of
the other Contracting State may be taxed in that other
State.
Article 16
Artistes and sportsmen
1. Notwithstanding the provisions of Article 14, income
derived by a resident of a Contracting State as an
entertainer, such as a theatre, motion picture, radio or
television artiste, or a musician, or as a sportsman, from
his personal activities as such exercised in the other
Contracting State, may be taxed in that other State.
2. Where income in respect of personal activities exercised
by an entertainer or a sportsman in his capacity as such
accrues not to the entertainer or sportsman himself but to
another person, that income may, notwithstanding the
the provisions of Article 14, be taxed in the Contracting State
in which the activities of the entertainer or sportsman are
exercised.
Article 17
Pensions, annuities and similar payments
1. Pensions and other similar remuneration (including
annuities arising in a Contracting State), and disbursements
under the Social Security legislation of a Contracting State
may be taxed in that State.
2. The term "annuity" means a stated sum payable periodically
at stated times during life or during a specified or
ascertainable period of time under an obligation to make the
payments in return for adequate and full consideration in
money or money's worth.
Article 18
Government service
1. a Salaries, wages) and other similar remuneration, other
than a pension, paid by a Contracting State or a political
subdivision or a local authority thereof to an individual in
respect of services rendered to that State or subdivision or
authority shall be taxable only in that State.
b) However, such salaries, wages and other similar
remuneration shall be taxable only in the other Contracting
State if the services are rendered in that State and the
individual is a resident of that State who:
(i) is a national of that State; or
(ii) did not become a resident of that State solely for the
purpose of rendering the services;
and is subject to tax in that State on such salaries, wages
and other similar remuneration.
2. The provisions of Articles 14, 15 and 16 shall apply to
salaries, wages and other similar remuneration in respect of
services rendered in connection with a business carried on by
(a) the Contracting State or a political subdivision or a local
authority thereof.
Article 19
The student's
Payments which a student or business apprentice who is or
was immediately before visiting a Contracting State a
resident of the other Contracting State and who is present in
the first-mentioned State solely for the purpose of his
education or training receives for the purpose of his
maintenance, education or training shall not be taxed in that
State, provided that such payments arise from sources outside
that State.
Article 20
Other income
1. Items of income beneficially owned by a resident of a
Contracting State, wherever arising, not dealt with in the
foregoing Articles of this Convention shall be taxable only
in that State.
2. Notwithstanding the provisions of paragraph 1, where an
amount of income is paid to a resident of a Contracting State
out of income received by trustees or staff
representatives administering the estates of deceased persons
and those trustees or personal representatives are residents
of the other Contracting State, that amount shall be treated
as arising from the same sources, and in the same
proportions, as the income received by the trustees or
staff representatives out of which that amount is paid.
Any tax paid by the trustees or personal representatives in
respect of the income paid to the beneficiary shall be
treated as if it had been paid by the beneficiary.
3. The provisions of paragraph 1 shall not apply to income,
other than income from immovable property as defined in
paragraph 2 of Article 6, if the beneficial owner of such
income, being a resident of a Contracting State, carries on
business in the other Contracting State through a permanent
establishment situated therein and the right or property in
respect of which the income is paid is effectively connected
with such permanent establishment. In such case the
the provisions of Article 7 shall apply.
4. Where, by reason of a special relationship between the
resident referred to in paragraph 1 and some other person, or
between both of them and some third person, the amount of the
the income referred to in that paragraph exceeds the amount (if
any) which would have been agreed upon between them in the
absence of such a relationship, the provisions of this
Article shall apply only to the last-mentioned amount. In
such case, the excess part of the income shall remain taxable
According to the laws of each Contracting State, due regard
being had to the other applicable provisions of this
Convention.
5. No relief shall be available under this Article if it was
the main purpose or one of the main purposes of any person
concerned with the creation or assignment of the rights in
respect of which the income is paid to take advantage of this
Article by means of that creation or assignment.
Article 21
Elimination of double taxation
1. In the case of Sweden, double taxation shall be avoided
as follows:
a) Where a resident of Sweden derives income which under the
the laws of the United Kingdom and in accordance with the
the provisions of this Convention may be taxed in the United
Kingdom, Sweden shall allow, subject to the provisions of the
the laws of Sweden concerning credit for foreign tax (as they may
be amended from time to time without changing the general
principle hereof)-as a deduction from the tax on such income,
an amount equal to the United Kingdom tax paid in respect of
such income.
b) Where a resident of Sweden derives income which, in
accordance with the provisions of this Convention, shall be
taxable only in the United Kingdom, Sweden may, when
determining the graduated rate of Swedish tax, take into
account the income which shall be taxable only in the United
Kingdom.
(c) Notwithstanding the provisions of subparagraph) (a)) of this
paragraph, dividends paid by a company which is a resident of
the United Kingdom to a company which is a resident of Sweden
shall be exempt from Swedish tax according to the provisions
of Swedish law governing the exemption of tax on dividends
paid to Swedish companies by companies abroad.
2. Subject to the provisions of the law of the United Kingdom
regarding the allowance as a credit against United Kingdom
tax of tax payable in a territory outside the United Kingdom
or, as the case may be, regarding the exemption from United
Kingdom tax of a dividend arising in a territory outside the
United Kingdom or of the profits of a permanent establishment
situated in a territory outside the United Kingdom (which
shall not affect the general principle hereof):
Swedish tax payable under (a)) the laws of Sweden and in
accordance with this Convention, whether directly or by
deduction, on profits, income or chargeable gains from
sources within Canada (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
United Kingdom tax computed by reference to the same profits,
income or chargeable gains by reference to which the Swedish
tax is computed;
(b)) a dividend which is paid by a company which is a resident
of Sweden to a company which is a resident of the United
Kingdom shall be exempted from United Kingdom tax when the
exemption is applicable and the conditions for exemption
under the law of the United Kingdom are met;
(c)), the profits of a permanent establishment in Sweden of a
company which is a resident of the United Kingdom shall be
exempted from United Kingdom tax when the exemption is
applicable and the conditions for exemption under the law of
the United Kingdom are met;
d) in the case of a dividend not exempted from tax under
subparagraph (b)) above which is paid by a company which is a
resident of Sweden to a company which is a resident of the
United Kingdom and which controls directly or indirectly at
least 10 per cent of the voting power in the company paying
the dividend, the credit mentioned in subparagraph (a)) above
shall also take into account the Swedish tax payable by the
company in respect of its profits out of which such dividend
is paid.
3. For the purposes of paragraphs 1 and 2, profits, income
and gains owned by a resident of a Contracting State which
may be taxed in the other Contracting State in accordance
with this Convention shall be deemed to arise from sources in
that other State.
4. Where a resident of a Contracting State derives gains
which may be taxed in the other Contracting State under the
the provisions of paragraph 6 of Article 13, and those gains are
in respect of:
a) shares or interests status referred to in paragraph 2
of Article 13, and the immovable property in question is
situated in the first-mentioned Contracting State, or
b) shares referred to in paragraph 7 of Article 26, and the
the rights in question are to assets to be produced by the
the exploration or exploitation of the sea-bed and subsoil and
their natural resources situated in the first-mentioned
Contracting State
that other Contracting State shall allow, under the
the provisions of paragraphs 1 or 2, as the case may be, (a)
deduction of, or a credit for the tax paid on that gain in
the first-mentioned Contracting State.
Article 22
Non-discrimination
1. Nationals of a Contracting State shall not be subjected
in the other Contracting State to any taxation or any
requirement connected therewith which is other or more
burdensome than the taxation and connected requirements to
which nationals of that other State in the same
circumstances, in particular with respect to residence, are
or may be subjected.
2. The taxation on a permanent establishment which an
Enterprise of a Contracting State has in the other
Contracting State shall not be less favourably levied in that
other State than the taxation levied on enterprises of that
other State carrying on the same activities.
3. Except where the provisions of paragraph 1 of Article 9,
paragraph 4 or 5 of Article 11, paragraph 4 or 5 of Article
12, or paragraph 4 or 5 of Article 20 apply, interest,
royalties and other disbursements paid by an enterprise of a
Contracting State to a resident of the other Contracting
State shall, for the purpose of determining the taxable
profits of such enterprise, be deductible under the same
conditions as if they had been paid to a resident of the
the first-mentioned State.
4. Enterprises of a Contracting State, the capital of which
is wholly or partly owned or controlled, directly or
indirectly, by one or more residents of the other Contracting
State, shall not be subjected in the first-mentioned State to
any taxation or any requirement connected therewith which is
other or more burdensome than the taxation and connected
requirements to which other similar enterprises of the
the first-mentioned State are or may be subjected.
5. Nothing contained in this Article shall be construed as
obliging either Contracting State to grant to individuals not
resident in that State any of the personal allowances,
reliefs and reductions for tax purposes which are granted to
individuals so resident or to its nationals.
Article 23
Mutual agreement procedure
1. Where a person considers that the actions of one or both
of the Contracting States result or will result for him in
taxation not in accordance with the provisions of this
Convention, he may, irrespective of the remedies provided by
the domestic law of those States, present his case to the
competent authority of the Contracting State of which he is a
resident or, if his case comes under paragraph 1 of Article
22, to that of the Contracting State of which he is a
National. The case must be presented within three years from
the first notification of the action resulting in taxation
not in accordance with the provisions of the Convention.
2. The competent authority shall endeavour, if the objection
appears to it to be justified and if it is not itself able to
arrive at a satisfactory solution, to resolve the case by
mutual agreement with the competent authority of the other
Contracting State, with a view to the avoidance of taxation
which is not in accordance with the Convention. Any agreement
reached shall be implemented notwithstanding any time limits
in the domestic law of the Contracting States.
3. The competent authorities of the Contracting States shall
endeavour to resolve by mutual agreement any difficulties or
doubts arising as to the interpretation or application of the
Convention. They may also consult together for the
Elimination of double taxation in cases not provided for in
the Convention.
4. The competent authorities of the Contracting States may
communicate with each other directly for the purpose of
reaching an agreement in the sense of the preceding
paragraphs.
5. Where,
(a) in paragraph 1, a) person has presented a case to the
competent authority of a Contracting State on the basis that
the actions of one or both of the Contracting States have
resulted for that person in taxation not in accordance with
the provisions of this Convention, and
(b)), the competent authorities are unable to reach an agreement
to resolve that case pursuant to paragraph 2 within three
years from the presentation of the case to the competent
authority of the other Contracting State,
any unresolved issues arising from the case shall be
submitted to arbitration if the person so requests. These
unresolved issues shall not, however, be submitted to
arbitration if a decision on these issues has already been
rendered by a court or administrative tribunal of either
State. Unless a person directly affected by the case does not
accept the mutual agreement that implements the arbitration
decision, that decision shall be binding on both Contracting
States and shall be implemented notwithstanding any time
limits in the domestic laws of these States. The competent
authorities of the Contracting States may by mutual agreement
settle the mode of application of this paragraph.
6. a) The provisions of paragraph 5 shall not apply to cases
falling within paragraph 3 of Article 4 or to issues
concerning the attribution of capital to a permanent
Re-establishment under Article 7.
(b) Notwithstanding the provisions of paragraph) 5, a case
shall not be submitted to arbitration if the competent
authorities of both Contracting States have agreed that the
case is not suitable for resolution through arbitration.
Article 24
Exchange of information
1. The competent authorities of the Contracting States shall
Exchange such information as is foreseeably relevant for
carrying out the provisions of this Convention or to the
Administration or enforcement of the domestic laws concerning
taxes of every kind and description imposed on behalf of the
Contracting States, or of their political subdivisions or
local authorities, insofar as the taxation thereunder is not
contrary to the Convention. The exchange of information is
not restricted by Articles 1 and 2.
2. Any information received under paragraph 1 by a
Contracting State shall be treated as secret in the same
manner as information obtained under the domestic laws of
that State and shall be disclosed only to persons or
authorities (including courts and administrative bodies)
concerned with the assessment or collection of, the
enforcement or prosecution in respect of, the determination
of appeals in relation to the taxes referred to in paragraph
1, or the oversight of the above. Such persons or authorities
shall use the information only for such purposes. They may
disclose the information in public court proceedings or in
judicial decisions. Notwithstanding the foregoing,
information received by a Contracting State may be used for
other purposes when such information may be used for such
other purposes under the laws of both States and the
competent authority of the supplying State authorises such
use.
3. In no case shall the provisions of paragraphs 1 and 2 be
construed so as to impose on a Contracting State the
bond:
(a)) to carry out administrative measures at variance with the
laws and administrative practice of that or of the other
Contracting State;
b) to supply information which is not obtainable under the
laws or in the normal course of the administration of that or
of the other Contracting State;
c) to supply information which would disclose any trade,
business, industrial, commercial or professional secret or
trade process, or information the disclosure of which would
be contrary to public policy (ordre public).
4. If information is requested by a Contracting State in
accordance with this Article, the other Contracting State
shall use its information gathering measures to obtain the
requested information, even though that other State may not
need such information for its own tax purposes. The
obligation contained in the preceding sentence is subject to
the limitations of paragraph 3 but in no case shall such
limitations be construed to permit a Contracting State to
decline to supply information solely because it has no
domestic interest in such information.
5. In no case shall the provisions of paragraph 3 be
construed to permit a Contracting State to decline to supply
information solely because the information is held by a bank,
other financial institution, nominee or person acting in an
Agency or a fiduciary capacity or because it relates to
ownership interests in a person.
Article 25
Members of diplomatic missions and consular posts
Nothing in this Convention shall affect the fiscal
privileges of members of diplomatic missions or consular
posts under the general rules of international law or under the
the provisions of special agreements.
Article 26
Miscellaneous provisions relating to offshore activities
1. The provisions of this Article shall apply
Notwithstanding any other provision of this Convention where
the activities (in this Article "relevant activities") are
carried on offshore in connection with the exploration or
exploitation of the sea-bed and subsoil and their natural
resources situated in a Contracting State.
2. An enterprise of a Contracting State which carries on
relevant activities in the other Contracting State shall,
subject to paragraphs 3 and 4 of this Article, be deemed to
be carrying on business in that other Contracting State
through a permanent establishment situated therein.
3. Relevant activities which are carried on by an enterprise
of a Contracting State in the other Contracting State for a
period or periods not exceeding in the aggregate 30 days in
any 12-month period shall not constitute the carrying on of
business through a permanent establishment situated therein.
For the purposes of this paragraph:
(a)) where an enterprise of a Contracting State carrying on
relevant activities in the other Contracting State is
associated with another enterprise carrying on substantially
similar relevant activities there, the former enterprise
shall be deemed to be carrying on all such activities of the
latter enterprise, except to the extent that those activities
are carried on at the same time as its own activities;
b) an enterprise shall be regarded as associated with another
Enterprise if one participates directly or indirectly in the
management, control or capital of the other or if the same
persons participate directly or indirectly in the management,
control or capital of both enterprises.
4. Profits derived by an enterprise of a Contracting State
from the transportation of supplies or personnel by a ship or
aircraft to a location where the relevant activities are being
carried on, or from the operation of tugboats or anchor
action vessels in connection with such activities, shall be
taxable only in that Contracting State.
5. (a) Subject to subparagraph (b))) of this paragraph, salaries,
wages and similar remuneration derived by a resident of a
Contracting State in respect of an employment connected with
relevant activities in the other Contracting State may, to
the extent that the duties are performed offshore in that
other Contracting State, be taxed in that other Contracting
State.
(b) wages and Salaries), similar remuneration derived by a
the resident of a Contracting State in respect of an employment
exercised aboard a ship or aircraft engaged in the
the transportation of supplies or personnel to a location where
relevant activities are being carried on in a Contracting
State, or in respect of any employment exercised aboard (a)
tugboat or anchor handling vessel in connection with such
activities, shall be taxable only in the State of which the
individual is a resident.
6. Gains derived by an enterprise of a Contracting State that
operates:
a) ships or aircraft for the transportation of supplies or
personnel to a location where the relevant activities are being
carried on in a Contracting State, or
b) tugboats or anchor handling vessels operated in connection
with such activities from the alienation of such ships,
aircraft, tugboats or anchorhandling vessels shall be taxable
only in that Contracting State.
7. Gains derived by a resident of a Contracting State from
the alienation of rights to assets to be produced by the
the exploration or exploitation of the sea-bed and subsoil and
their natural resources situated in the other Contracting
State, including rights to interests in or to the benefit of
such assets, or from the alienation of shares deriving their
value or the greater part of their value directly or
indirectly from such rights, may be taxed in that other
Contracting State.
Article 27
Preferential regimes
Notwithstanding any other provisions of this Convention,
the where
(a)) a company that is a resident of a Contracting State
derives its income primarily from other States
(i) from shipping and financial activities, or
(ii) from being the headquarters or co-ordination centre for,
or from being an entity providing administrative services or
other support to, a group of companies which carry on
business primarily in other States; and
b) under a preferential regime, such income bears a
significantly lower tax than income from similar activities
carried out within that State or than income from being the
Headquarters, co-ordination centre or similar entity
providing administrative services or other support to a group
of companies which carry on business in that State, as the
case may be,
any provisions of this Convention conferring an exemption or
(a) reduction of taxes shall not apply to the income of such
company and paragraph 2 of Article 10 and Article 21 shall
Note apply to the dividends paid by such company.
Article 28
Miscellaneous
Where under any provision of this Convention, income or
capital gains are relieved from tax in a Contracting State
and, under the laws in force in the other Contracting State,
an individual, in respect of that income or that capital gain
is subject to tax by reference to the amount thereof which is
remitted to or received in that other Contracting State and
not by reference to the full amount thereof, then the relief
to be allowed under the Convention in the first-mentioned
Contracting State shall apply only to so much of the income
or capital gain as is taxed in that other Contracting
State.
Article 29
Entry into force
1. Each of the Contracting States shall notify the other in
writing, through diplomatic channels, of the completion of
the procedures required by its law for the entry into force
of this Convention.
2. The Convention shall enter into force on the thirtieth day
After the receipt of the later of these notifications and
shall thereupon have effect:
a) in Sweden:
(i) in respect of taxes withheld at source, for amounts paid
or credited on or after 1st January of the year next
following the date on which the Convention enters into
force;
(ii) in respect of other taxes on income, for taxes
chargeable for any tax year beginning on or after 1st January
of the year next following the date on which the Convention
enters into force; and
(b)) in the United Kingdom:
(i) in respect of taxes withheld at source, for amounts paid
or credited on or after 1st January of the year next
following the date on which the Convention enters into
force;
(ii) in respect of income tax and capital gains tax, for any
year of assessment beginning on or after 6th April next
following the date on which this Convention enters into
force;
(iii) in respect of corporation tax, for any financial year
beginning on or after 1st April next following the date on
which this Convention enters into force.
3. Notwithstanding the provisions of paragraph 1, the
the provisions of Article 23 (Mutual agreement procedure) and
Article 24 (Exchange of information) shall have effect from
the date of entry into force of this Convention, without
regard to the taxable period to which the matter relates.
However, in no case may be submitted for arbitration under the
the provisions of paragraph 5 of Article 23 (Mutual agreement
procedure) earlier than three years after the date on which
the Convention enters into force.
4. The Convention between the Government of the Kingdom of
Sweden and the Government of the United Kingdom of Great
Britain and Northern Ireland for the avoidance of double
taxation and the prevention of fiscal evasion with respect to
taxes on income and capital gains, signed at Stockholm on
30th August 1983 ("the prior Convention") shall cease to
have effect in respect of any tax with effect from the date
upon which this Convention has effect in respect of that tax
in accordance with the provisions of paragraph 1 of this
Article and shall terminate on the last such date.
5. Notwithstanding the provisions of paragraphs 2 and 4 and
the provisions of Article 17, where, immediately before the
entry into force of this Convention, an individual was in
receipt of payments falling within Article 18 or paragraph 2
of Article 19 of the prior Convention, that individual may
make an election that the provisions of those Articles, and
Note the provisions of Article 17 of this Convention, shall
continue to apply to those payments. That election shall have
effect for the year in which it is made and for subsequent
years unless revoked by the individual. Where an election
has been so revoked, no further election under this paragraph
may be made.
Article 30
Termination
This Convention shall remain in force until terminated by a
Contracting State. Either Contracting State may terminate the
The Convention, through diplomatic channels, by giving written
notice of termination at least six months before the end of
any calendar year. In such case, the Convention shall cease
to have effect
a) in Sweden:
(i) in respect of taxes withheld at source, for amounts paid
or credited on or after 1st January of the year next
following the end of the six month period;
(ii) in respect of other taxes on income, for taxes
chargeable for any tax year beginning on or after the first
day of January of the year next following the end of the six
month period; and
(b)) in the United Kingdom:
(i) in respect of taxes withheld at source, for amounts paid
or credited on or after 1st January of the year next
following the end of the six month period;
(ii) in respect of income tax and capital gains tax, for any
year of assessment beginning on or after 6th April next
following the date on which the notice is given;
(iii) in respect of corporation tax, for any financial year
beginning on or after 1st April next following the date on
which the notice is given.
In witness whereof the undersigned, being duly authorised
thereto, have signed this Convention.
Done in duplicate at Stockholm this 26th day of March 2015 in
the English language.
For the Government of the Kingdom of Sweden
Linda Haggren
For the Government of the United Kingdom of Great Britain and
Northern Ireland
Paul Johnston
(Translation)
Agreement between the Kingdom of Sweden and the United Kingdom of
United Kingdom and Northern Ireland for the avoidance of
double taxation and the prevention of fiscal evasion with respect to
taxes on income and on capital gains
The Government of the Kingdom of Sweden and the United Kingdom of
United Kingdom and Northern Ireland,
Desiring to conclude an agreement for the avoidance of double taxation
and the prevention of fiscal evasion with respect to taxes on
income and on capital,
have agreed as follows:
Article 1
Persons to whom the agreement applies
1. This agreement shall apply to persons who are domiciled in a
Contracting State or in both Contracting States.
2. for the purposes of this agreement, the income or profits which
is acquired by, or by a person whose income or profit
under the legislation of either Contracting State is
subject to shareholder taxation are considered acquired by a person
a resident of one of the Contracting States to the extent
as the income or profits, according to the tax laws of
This State, shall be treated as income or profits of a person
a resident of the State in question. The provisions of this paragraph
does not limit in any way a Contracting State to
taxing income or profits acquired by resident
in this State.
Article 2
Taxes covered by the agreement
1. this Agreement shall apply to taxes on income and on
the capital gain in respect of a Contracting State, its
political underavdelningars or local authorities
behalf, independent of the way in which taxes are levied.
2. taxes on income and on capital gains, of course, all
taxes levied on income in its entirety or in parts of
income, including taxes on profit due to
transfer of movable or immovable property, as well as taxes on
capital appreciation.
3. The taxes to which this Agreement shall apply are:
a) in Sweden:
1) state income tax,
2) withholding tax,
3) the Special income tax for non-residents,
4) the Special income tax for non-residents
artists and others, and
5) the municipal income tax,
(referred to below as "Swedish tax");
(b)) in the United Kingdom of United Kingdom and Northern Ireland:
1) income tax
2) corporate tax rate, and
3) capital gains tax,
(referred to below as the "British tax").
4. the agreement also applies to the taxes of the same or
mainly similar kind, as after the signing of the agreement
charged alongside or in place of the taxes referred
in paragraph 3. The competent authorities of the Contracting
States shall notify each other of the essential changes that
made in their tax legislation.
Article 3
General definitions
1. Unless the context gives rise to different, have at
the application of this agreement the following expressions below specified
importance:
a) "Sweden" means the Kingdom of Sweden and, when the expression
used in geographical sense, includes the Swedish
territory, the territorial sea of Sweden and other maritime areas
over which Sweden in accordance with the rules of international law
sovereignty or jurisdiction,
b) "United Kingdom" refers to the United Kingdom and
Northern Ireland but, when the expression is used in a geographical
importance, including United Kingdom and Northern Ireland
territory and territorial sea, and any area located
outside the territorial sea of the United Kingdom and Northern Ireland
the United Kingdom and Northern Ireland in accordance with the
its legislation and the rules of international law exercises sovereign
rights or jurisdiction;
(c)) "a Contracting State" and "the other Contracting
the State "refers to Sweden or the United Kingdom, depending
on the context,
d) "person" includes natural persons, companies and other
Association,
e) "company" means any legal person or any other that at
taxation is treated as a legal person,
f) "company" means the exercise of any form of movement,
g) "enterprise of a Contracting State" and "enterprise of the
other Contracting State "mean business conducted by a
resident of a Contracting State, and
business carried on by a resident of the other
Contracting State,
h) "international transport" means transport by ship or
aircraft, except when the ship or aircraft is used
exclusively between places in a Contracting State by an
company that is not a business in this State,
in) "competent authority" means:
1) in Sweden, the Minister of finance or his authorised representative
or authority to whom be entrusted to be competent
authority for the purposes of this agreement,
2) in the United Kingdom, "the Commissioners for Her
Majesty's Revenue and Customs "or their authorized
agents,
j) "citizen", refers to:
1) in Sweden, the natural person who is a Swedish citizen and
legal person, partnership or other association
formed under current Swedish law,
2) in the United Kingdom, British citizens or
British person who does not hold the nationality of any other
State, or other territory, in the Commonwealth, under
the condition that the person concerned has the right to reside in the
United Kingdom, as well as legal person, partnership
or other association constituted under the applicable
British law,
k) "movement" includes the exercise of a liberal profession, and other
independent operations.
2. Where a Contracting State applies the contract at any
time is deemed, unless the context shall give rise to different,
any expression that is not defined in this agreement have the meanings
that statement has at that time under the State's
legislation in respect of such taxes to which the agreement
applied, and the significance of the phrase under the
the applicable tax laws of that State primacy
in front of the importance of the expression given in other legislation in
This state.
Article 4
Resident
1. for the purposes of this agreement, the expression "person
resident in one Contracting State "person under
the laws of that State, is liable to tax there because of
domicile, residence, place of management, place of
formation, or other similar circumstances involving
also the State, its bodies governed by public law, or
institutions, political subdivisions or local
authorities. This expression, however, does not include a person
who is liable to tax in that State only for income or
capital gains from sources in that State.
2. where by reason of the provisions of paragraph 1 an individual is
a resident of both Contracting States, is determined his residence
in the following ways:
(a)) he is considered to be resident only of the State in which he has a
residence permanently at his disposal. If he
has such a property in both States, he shall be deemed to be a resident
only of the State with which his personal and economic
relations are strongest (Centre of life interests),
(b)) if it cannot be settled in the State he has Center for
their living interests or if he is not in any State
has a permanent home available to him;
He is considered to be a resident only of the State in which he habitually
vistas,
(c)) if he usually resides in both States, or if he
not reside permanently in any of them, he shall be deemed to have
resident only of the State in which he is a national,
d) if he is a national of both States or if he is not
nationals of any of them, the competent authorities of the
Contracting States may settle the question by mutual
agreement.
3. where by reason of the provisions of paragraph 1 a person other than the
an individual is a resident of both Contracting States, the
the competent authorities of the Contracting States,
mutual agreement, seek to determine the Contracting
State the person is deemed to be domiciled in the application of
This agreement. In the absence of a mutual agreement
between the competent authorities of the Contracting States
the person is not considered to be a resident of either Contracting
State in order to seek other benefits under this agreement than
those resulting from the application of articles 21, 22 and 23.
Article 5
Permanent establishment
1. for the purposes of this agreement the term "fixed
establishment means a fixed place of business,
from which a business wholly or partly
is conducted.
2. The term "permanent establishment" includes especially:
a) place of business management,
b) branch,
c) offices,
d) factory,
e) workshop, and
f) mine, an oil or gas well, a quarry or any other place
for the extraction of natural resources.
3. Place for building, construction, Assembly or
installation activities or business that consists of
monitoring in connection therewith constitutes a permanent establishment
only if the operation lasts longer than twelve months.
4. Notwithstanding the preceding provisions of this article
considered the expression "permanent establishment" shall not include:
(a)) the use of facilities solely for storage,
exhibition or disclosure of company-owned goods,
(b) holding of a company belonging) inventories
exclusively for storage, exhibition or distribution,
(c) holding of a company belonging) inventories
exclusively for working or processing by another
corporate merchandise,
d) holding of fixed place of business
exclusively for the purchase of goods or obtaining
information of the company,
e) holding of fixed place of business
exclusively for the enterprise carrying on other activities of the
preparatory or auxiliary nature,
f) an installation project as a company in a
Contracting State, carries on in the other Contracting
the State in connection with the supply of machinery or equipment
manufactured by the company,
g) holding of fixed place of business
exclusively for any combination of activities mentioned in
a) to f) above, provided that all the activities
carried out from the permanent location of the
business as a result of this combination is the
preparatory or auxiliary character.
5. If a person who is not an independent representative
at which point 6 applies – and works for a company and
in a Contracting State and which are regularly using
authority to conclude contracts in the name of the company, considered this
– Notwithstanding the provisions of paragraphs 1 and 2 to
to have a permanent establishment in that State in respect of each activity
that person is driving for the company. However, this does not apply, if
the activities of such person are limited to the
referred to in paragraph 4 and which, if it was done from a
fixed place of business, would not make
This fixed place of business to the firm
establishment, in accordance with the provisions of that paragraph.
6. the Company is not considered to have a permanent establishment in a Contracting
State only on the basis that the company conducts
business in that State through the intermediary of brokers,
Commissioner, or other independent agent, in
in doing so, provided that such person is engaged in his customary
business operations.
7. the fact that a company resident in a
Contracting State controls or is controlled by a
a company resident in the other Contracting State or in a
companies doing business in the other State
(either from a permanent establishment or otherwise),
not in itself constitute either company a permanent establishment of the
the other.
Article 6
Income from immovable property
1. income, as a person resident in one Contracting State
acquires immovable property (including income from
agriculture or forestry) situated in the other Contracting
the State, may be taxed in that other State.
2. The term "immovable property" has the same meaning as the expression
under the laws of the Contracting State in which the
the property is situated. The term includes, however, always
accessory to immovable property, the living and the dead furniture in
Agriculture and forestry, rights to which the provisions of
private law on immovable property apply, buildings,
tenancies of immovable property and rights to changing
or fixed remuneration for the use of, or the right to
use mineral occurrence, source or another natural resource.
Ships, boats and aircraft is not considered to be real property.
3. the provisions of paragraph 1 shall apply to income
acquired by immediately use, through rental or
other uses of real property.
4. the provisions of paragraphs 1 and 3 apply also to
income from immovable property belonging to the company.
Article 7
Income from operating
1. the Income of an enterprise of a Contracting State
acquire, shall be taxable only in that State unless the
the company carries on business in the other Contracting State
from permanent establishment situated there. If the company conducts
operating on just now, get income attributable
to the permanent establishment in accordance with the provisions of
paragraph 2 shall be taxed in the other State.
2. For the purposes of this article and article 21, the
income in each Contracting State is attributable to
the permanent establishment referred to in paragraph 1 shall be the income
as it can be assumed that the establishment would have acquired,
particularly with respect to the establishment, has dealings with
other parts of the company, if it had been a stand-alone
companies that operated out of the same or a similar kind
under the same or similar conditions, with regard to the
functions performed, assets used and risks
the company has taken through the permanent establishment and by
other parts of the company.
3. In cases where one Contracting State, in accordance with paragraph 2,
Adjusts the income is attributable to a fixed
establishment of a company resident in one of the
Contracting States and therefore taxes the company for
income that has been taxed in the other State, such
other State, to the extent that is necessary to
avoid double taxation of such income, implement
proper adjustment if it agrees with the adjustment
made by the former State. If the other Contracting
the State does not agree, the Contracting States shall seek
eliminate any double taxation as a result of this
by mutual agreement.
4. Included in income by operating income or capital gains which
treated specially in other articles of this agreement, concerned
the provisions of these articles, not to the provisions of
This article.
Article 8
Sea and air transport
1. income acquired by the company in a Contracting State
through the use of ships or aircraft in international
traffic shall be taxable only in that State.
2. the provisions of paragraph 1 shall apply to income
acquired by the air transport Consortium Scandinavian Airlines System
(SAS) but only in respect of that part of the income that
corresponds to the percentage of the Consortium held by SAS Sweden
AB, the Swedish partner of SAS.
3. For the purposes of this article are included in the income
acquired by the enterprises of a Contracting State through the
the use of ships or aircraft in international
traffic,
a) income acquired by lease of unmanned ship
or aircraft, and
b) income is acquired by use, maintenance or
rental of containers (including trailers and other
equipment for the transport of containers) used for the
the transport of goods or merchandise,
provided that such rental or such
the use, maintenance or rental is of secondary
significance in relation to the company's use of ship
or aircraft in international traffic.
4. the provisions of paragraph 1 shall also apply to income
acquired through participation in a pool, a joint business
or an international operating agency.
Article 9
Companies with associated enterprises
1. In cases where:
a) an enterprise of a Contracting State, either directly or indirectly
participate in the management or control of an undertaking within the
other Contracting State or own part in this business
capital, or
(b)) the same person participates directly or indirectly in the management,
or the control of a company of a Contracting
State as an enterprise of the other Contracting State, or
owns part of both of these corporate capital, observed the following.
If between businesses in terms of trade relations or
financial relations agreed upon or prescribed conditions,
which differ from those which would have been agreed between the
independent companies, receives all the income, that without such
the conditions would have been one company but on
because of the conditions in question did not come about this company,
included in this corporate income and are taxed in
accordingly.
2. In cases where one Contracting State in the income of a
companies in this State include – and accordingly
taxes – income, for which a company in the other
Contracting State subject to tax in that other State, as well as the
thus included the income is such as would have been
companies in the first State on the terms and conditions agreed
between the enterprises had been those which would have been agreed
between independent enterprises, then that other State
implement the proper adjustment of the amount of the tax
charged to income. In compliance with such other adjustment
provisions of this agreement and the competent authorities of the
Contracting States are in talks with each other when necessary.
Article 10
Dividend
1. Dividends paid by a company resident in one Contracting State
to a resident of the other Contracting State,
be taxed in that other State.
2. Dividends paid by a company resident in one Contracting State
may be taxed in that State, in accordance with
the laws of that State, but if the beneficial owner of
the dividend is a resident of the other
a Contracting State may not exceed 5% of
the gross amount of the dividends. Such dividend shall however
be exempt from taxation in the Member State in which the company
paying the dividends is a resident, if the person entitled to
the payout is a company which controls, directly or
indirectly, at least 10% of the company
number of votes.
As regards dividends paid from income (including
profit) directly or indirectly acquired from such fixed
property referred to in article 6 of a commitment to collective
investment which annually awards the majority of its
income and whose income from such immovable property is
exemptions from taxation shall – notwithstanding the preceding
provisions of this paragraph, the tax shall not exceed 15
per cent of the gross amount of the dividends.
This paragraph does not affect the company's taxation of the profits of
which the dividends are paid.
3. The term "dividends" is understood in this article income
of shares or other rights, not being debt-claims,
with the right to share in profits, as well as income from other
rights in companies under the law of the State in which
the company making the distribution is a resident for tax purposes are treated
in the same way as income from shares.
4. the provisions of paragraphs 1 and 2 do not apply, if the
who is entitled to the dividends is a resident of a Contracting
State and carries on business in the other Contracting State,
which the company paying the dividends is a resident, from where
permanent establishment situated, and the proportion due to the
dividend paid owns actual relation to the Permanent
establishment. In such cases, apply the provisions of
Article 7.
5. If the company resident in one Contracting State acquires
income from the other Contracting State, that other
State does not tax dividends paid by the company, except to the
so far as the dividend is paid to a resident of the other
State or insofar as the percentage due to the dividend payment
paid owns truly connected with a permanent establishment in this
other State, nor on the company's undistributed profits to
out a tax that is paid on the company's undistributed profits, even
If the dividend or the undistributed profits wholly or
partially consists of income arising in that other State.
6. Relief under this article shall not be obtained if the
main purpose or one of the main objectives, in
any person who has influence over the creation or
the placement of the shares or other rights, due
which the dividends are paid, is to obtain the benefit of this
Article by such a creation or placement.
Article 11
Interest rate
1. interest, stemming from a Contracting State, and as a
a resident of the other Contracting State has the right
to, shall be taxable only in that other State.
2. The term "interest" for the purposes of this article the income of
each kind of claim secured by either the
mortgage on immovable property or not, and whether it involves
right to share in the debtor's profits or not. The expression
relate in particular to income from securities issued by State
and income from bonds or debentures, including
premiums and benefits pertaining to such
securities, bonds or debentures; Penalty of
because of late payment is not considered as interest in applying
of this article. The term does not include such income
that is treated as a dividend under the provisions of article
10.
3. the provisions of paragraph 1 shall not apply if the
the right to interest is resident in a Contracting State and
carries on business in the other Contracting State, from
What interest rate are derived, from where the permanent establishment situated, as well as
the claim in respect of which the interest is paid possesses genuine link
with the permanent establishment. In such a case be applied
the provisions of article 7.
4. where by reason of a special relationship between the payer
and the beneficial owner of the interest or between both of them and
other person the amount of the interest, having regard to the claim for
the interest is paid, exceeds the amount which would be
agreed between the payer and the beneficial owner of the interest
If such links do not exist, the
the provisions of this article only on the latter amount. In
such cases are taxable surplus amount referred to in
the law of each Contracting State with
observance of the other provisions of this agreement.
5. Relief under this article shall not be obtained if the
main purpose or one of the main objectives, in
any person who has influence over the creation or
the location of the claim on the basis of which the interest is paid,
is to obtain the benefit of this article, such
creation or placement.
Article 12
Royalty
1. Royalty, as derived from a Contracting State and which
a resident of the other Contracting State has
right, shall be taxable only in that other State.
2. The term "royalties" in this article each
kind of payment that is received as compensation for the use
by or for the right to use copyright to literary,
artistic or scientific work, including
cinema films and films or tapes for radio or
television broadcasting, any patent, trade mark, design or
model, plan, secret formula or secret
manufacturing process, or for information (know-how) concerning
experience knowledge of industrial, commercial or scientific
nature.
3. the provisions of paragraph 1 shall not apply if the
entitled to the royalty is a resident of a Contracting State, and
carries on business in the other Contracting State, from
the royalties derived from the permanent establishment situated there,
and the right or property in respect of which the royalty
paid owns truly connected with the permanent establishment. In
in such cases the provisions of article 7.
4. where by reason of a special relationship between the payer
and the person entitled to the royalties or between both of them and
other person the amount of the royalties, having regard to the use,
the right or the enlightenment for which the royalty
paid, exceeds the amount which would have been agreed between
the payer and the beneficial owner of royalties if such
relations do not exist, the provisions of this
article only at the latter amount. In such a case be taxed
excess amounts in accordance with the legislation of each
Contracting State in compliance with the other provisions
in this agreement.
5. Relief under this article shall not be obtained if the
main purpose or one of the main objectives, in
any person who has influence over the creation or
location of rights on the basis of which the royalty
paid, is to obtain the benefit of this article, such
creation or placement.
Article 13
Capital gain
1. Profit, as a person resident in one Contracting State
acquires from the alienation of such immovable property
referred to in article 6 and situated in the other
Contracting State, may be taxed in that other State.
2. Profit, as a person resident in one Contracting State
acquires from the alienation of shares or similar
rights not in substantial basis and regularly
dealt in on a stock exchange, whose value to more than 50 per cent,
directly or indirectly attributable to real property which is
situated in the other Contracting State, may be taxed in the
that other State.
3. Gains from the alienation of movable property forming part
of the operating assets of a permanent establishment which an enterprise
of a Contracting State has in the other Contracting
the State, may be taxed in that other State. The same applies
gains from the alienation of such a permanent establishment (for
alone or with the whole enterprise).
4. Profit, which is being acquired by a company in Contracting State
acquires from the alienation of ships or aircraft
used in international traffic, or movable property which is
attributable to the use of such ship or aircraft;
be taxable only in that Contracting State.
The provisions of this paragraph shall apply in respect of profits
acquired by the air transport Consortium Scandinavian Airlines System
(SAS), but only in respect of the part of the profits as corresponds to the
the share in the Consortium held by SAS Sweden AB, the
Swedish partner of SAS.
5. Gains from the alienation of property other than such
referred to in paragraphs 1, 2, 3 and 4 shall be taxable only in the
Contracting State of which the alienator is a resident.
6. Gains from the alienation of shares or similar
rights of companies or interests in a partnership or
Trust ("trust") that is acquired by an individual who has
resident in a Contracting State a resident of the
the other Contracting State may, by way of
the provisions of paragraph 5 to be taxed in the first State
If the transfer occurs at any time during the seven years
immediately after the date on which the individual has
ceased to be resident in that State. Such profit
shall not, however, include any gain arising
during the time the person has been a resident of the other
Contracting State.
Article 14
Income from employment
1. the provisions of articles 15, 17 and 18
causing the other, taxable wages and other similar remuneration
as a resident of a Contracting State carries on
account of employment, only in that State unless the
the work is performed in the other Contracting State. If the work
are performed in that other State, receives compensation received for
the work taxed there.
2. Notwithstanding the provisions of paragraph 1 shall be taxable
compensation, as a person resident in one Contracting State
claiming for work in the other Contracting State, only in
the first-mentioned State, if:
a) recipient residing in the other State during the time period
or periods the total of which does not exceed 183 days
during a 12-month period commencing or ending in the
the tax year in question,
b) the remuneration is paid by the employer who is not domiciled
in the other State or on his behalf, and
c) compensation does not affect the permanent establishment
the employer has in the other State.
3. Notwithstanding the preceding provisions of this article shall
compensation paid by a resident of a Contracting State
receipt for work performed on board the ship or aircraft
used in international traffic (in cases other than onboard
on the ship or aircraft used exclusively between
places in the other Contracting State shall be taxable only in)
This state.
Article 15
Directors ' fees
Directors ' fees and other similar remuneration-person marketing
resident in one Contracting State receives as
Member of the Board or other similar bodies in companies with
resident in the other Contracting State, may be taxed in the
that other State.
Article 16
Artists and athletes
1. Notwithstanding the provisions of article 14, income,
as a resident of a Contracting State acquires
through their personal business in the other Contracting
the State acting as artist, such as theatre or
movie actor, radio or television artist, or
musicians, or athletes, be taxed in that
other State.
2. In cases where the income through personal activities as an artist
or sport enthusiasts conducts as such do not accrue
artist or sportutövaren itself without any other person, may
This income, notwithstanding the provisions of article 14,
be taxed in the Contracting State in which the artist or
sportutövaren conducts business.
Article 17
Pensions, annuities and similar payments
1. Pensions and other similar remuneration (including
life interest) derived from a Contracting State, and
payments under social-försäkringslagstiftningen in a
Contracting State may be taxed in that State.
2. The term "annuity" means a fixed amount,
paid periodically at specified times during a
person's lifetime or during a specified or ascertainable
period of time and that is because of the obligation to
the effect, however, these payments as compensation for
fully corresponding consideration in money or money value.
Article 18
Public service
1. a) salaries and other similar remuneration, other than
pension, paid by a Contracting State, one of its
political subdivisions or local authorities to
natural person on the basis of the work done in this State,
the section or Government service, shall be taxable only in
This state.
b) Such salary and other similar remuneration shall be taxable
However only in the other Contracting State if the
the work is performed in that other State and the person concerned has
a resident of this State and:
1) is a national of that State, or
2) were not allowed to live in this State solely for the purpose of performing
the work,
and is taxed in that State, for such salaries and other similar
compensation.
2. the provisions of articles 14, 15 and 16 shall apply to remuneration
and other similar remuneration paid for work
carried out in connection with business carried on by a
Contracting State, one of its political subdivisions
or local authorities.
Article 19
Students
A student or business trainee who is, or immediately
before visiting a Contracting State a resident of the
other Contracting State and who is staying in the former
State exclusively for their education or training,
not subject to tax in that State, for the amount that he receives for
his livelihood, his teaching or training, on the amounts
derived from sources outside that State.
Article 20
Other income
1. income as a resident of a Contracting State
are entitled to and which are not dealt with in the foregoing articles of
This agreement shall be taxable only in that State, regardless of where
the income is derived.
2. Notwithstanding the provisions of paragraph 1, the amount, which
paid to a resident of a Contracting State from
income received by trustees or personal
representatives and manages estates resident in the other
Contracting State, be deemed to originate from the same source and in
the same proportions as the income received by
the trustees or personal representatives and from
the payment is made.
Tax paid by trustees or personal
representatives of income payable to beneficiaries,
be deemed to be paid by the beneficiary.
3. the provisions of paragraph 1 shall not apply to other income,
than income from immovable property referred to in article 6, paragraph 2, of
the beneficial owner of the income is resident in a
Contracting State, carries on business in the other
Contracting State through permanent establishment situated there as well as
the right or property in respect of which the income
paid owns truly connected with the permanent establishment. In
such cases, the applicable provisions of article 7.
4. where, by reason of a special relationship between the person
resident referred to in paragraph 1 and any other person or
between both of them and some other person, the income referred to in
that paragraph exceeds the amount which would have been agreed
between them if such links do not exist, the
the provisions of this article only on the latter amount. In
such cases are taxable surplus amount referred to in
the law of each Contracting State with
observance of the other provisions of the agreement.
5. Relief under this article shall not be obtained if the
main purpose or one of the main objectives, in
any person who has influence over the creation or
the placement of the rights due to which revenues
paid, is to obtain the benefit of this article, such
creation or placement.
Article 21
Avoidance of double taxation
1. in the case of Sweden, double taxation shall be avoided in
the following ways:
a) where a resident of Sweden receives income that
According to the legislation in force in the United Kingdom and in accordance
with the provisions of this agreement, may be taxed in the United
Kingdom of Sweden, – having regard to the provisions of
Swedish legislation relating to the deduction of foreign taxes
(also in the version in the future can get through to change without
that the general principle as stated this change) – from the
Swedish tax on income offset an amount equivalent
the tax in the United Kingdom which paid on income.
b) where a resident of Sweden receives income that in
accordance with this Agreement shall be taxable only in the United
the Kingdom of Sweden may, when determining the tax rate
for Swedish progressive tax, take into account the income to be
shall be taxable only in the United Kingdom.
c) Notwithstanding the provisions of subparagraph (a)) in this paragraph is
dividends from companies established in the United Kingdom to
companies established in Sweden exempt from Swedish tax
According to the provisions of Swedish law on tax exemptions for
dividends paid to Swedish companies by companies in
the rest of the world.
2. In accordance with United Kingdom legislation
regarding the deduction from tax in the United Kingdom of
tax paid in the other State, or exemption
in the United Kingdom regarding dividend with a source in different
State or income from a permanent establishment situated in the other State
(the law does not affect the general principle
listed here):
a) Swedish tax according to Swedish law and in
compliance with this agreement will be paid, either directly
or by deduction, on income or taxable
the capital gain from the source in Sweden (with the exception, in case of
dividends, the tax on profits of which the dividend is paid),
deducted from any income tax in the United Kingdom, which
charged on the same income or taxable capital gain
for which the Swedish tax calculated,
b) dividends paid by a company resident in Sweden for companies with
resident in the United Kingdom shall be exempt from
tax in the United Kingdom when the exemption is
apply and the conditions for exemption under
legislation in the United Kingdom are met,
c) income is acquired by a permanent establishment in Sweden
for a company resident in the United Kingdom should be
exempt from tax in the United Kingdom when
the exemption is applicable and when the conditions of
exemption under the legislation in force in the United Kingdom is
met,
d) if the dividend is not exempt from tax under
paragraph (b)) above are paid by a company resident in Sweden to
a company resident in the United Kingdom
controls, directly or indirectly, at least 10% of the
the number of company, the Swedish tax
the company paid on the profits of which the dividends are paid shall be taken into account
at the settlement under a) of this paragraph.
3. For the purposes of paragraphs 1 and 2, income or
profits acquired by a resident of a Contracting
State and that under this agreement may be taxed in the other
Contracting State shall be deemed to originate from that other State.
4. If a resident of a Contracting State receives
profits may be taxed in the other Contracting State
in accordance with the provisions of article 13, paragraph 6, and such profit
is attributable to:
a) such shares or similar rights referred to in
Article 13 paragraph 2 and the immovable property in question is situated
in the first-mentioned Contracting State, or
b) such shares as referred to in article 26, paragraph 7, and
the rights in question is attributable to assets to be
extracted by the exploration or exploitation of the seabed
and its surface or by their natural resources, situated in
the first-mentioned Contracting State,
to the other Contracting State in accordance with the provisions of
paragraphs 1 and 2 allow a deduction or tax credit for the tax
paid on the profits of the first-mentioned Contracting
State.
Article 22
Prohibition of discrimination
1. nationals of a Contracting State shall not, in the second
Contracting State be subject to taxation or
related requirements are of a different kind or more
burdensome than the taxation and related requirements
as a national of that other Contracting State under the same
conditions are or may be subject to.
2. the taxation on a permanent establishment which businesses in a
Contracting State has in the other Contracting State,
in that other State shall not be less favourable than
taxation of a company in the other State, that carries
activities of the same kind.
3. Except where the provisions of article 9, paragraph 1,
Article 11, paragraphs 4 or 5, article 12, paragraph 4, or
5, or article 20, paragraphs 4 or 5 apply, interest rate,
royalty and other payments from the company in a Contracting
State to a resident of the other Contracting
State tax deductible in determining the taxable
the income of such company on the same terms as payment
to a resident of the first State.
4. Enterprises of a Contracting State, the capital of which is wholly or
partly owned or controlled, directly or indirectly, by a
or more persons resident in the other Contracting
State, not in the first State to be the subject of
taxation or related requirements of other
kind or more burdensome than the taxation and thus
coherent requirements as other similar companies in the
first State are or may be subjected.
5. The provisions of this article shall not be considered to confer
the obligation of a Contracting State to provide for physical
people who do not live in the State of such personal
deduction for tax purposes, such exemption or
tax reduction allowed residents in the
State or to its nationals.
Article 23
The procedure for the mutual agreement
1. If a person believes that a Contracting State or both
Contracting States adopted measures which for him
causes or will result in taxation contrary to
the provisions of this agreement, he may, without prejudice to
his right to make use of the remedies contained in these
States ' internal legal systems, present the matter for the
competent authority of the Contracting State in which he has
domicile or, in the case of application of article 22, paragraph
1, in the Contracting State of which he is a national. The matter should
be presented within three years from the time the person in question
learned about the action that gave rise to taxation
contrary to the provisions of the agreement.
2. If the competent authority finds the complaint justified
but cannot achieve a satisfactory
solution, the authority shall seek to resolve the matter by mutual
agreement with the competent authority of the other
Contracting State in order to avoid taxation which
contrary to the agreement. Agreement is implemented
Notwithstanding the time limits in the Contracting States
internal legislation.
3. the competent authorities of the Contracting States shall
by mutual agreement, seek to determine or
doubts arising concerning the interpretation or
the application of the agreement. They can also initiate consultations with a view to
eliminate double taxation in cases not covered by this
agreements.
4. the competent authorities of the Contracting States may
enter into direct relations with each other in order to meet
agreement in the cases specified in the preceding
points.
5. In cases where,
(a)) a person, in accordance with paragraph 1, has made a
request to the competent authority of a Contracting
State on the grounds that the actions of one or both
Contracting States to him has brought about taxation in
violation of the provisions of this agreement, and
(b)) the competent authorities do not, within three years from the notification
to the competent authority of the other Contracting
the State, may reach an agreement to resolve the matter according to the
paragraph 2,
shall, if the person so requests, the remaining outstanding issues in
matter shall be referred to arbitration. Such unresolved
questions should, however, not be referred to arbitration if a
Court in any of the Contracting States have notified
a decision on these issues. The award is binding for
both Contracting States and shall be carried out without barriers
by the time limits in the domestic law of those States,
unless a person directly affected by the matter not
accept the mutual agreement that implements
the award. The competent authorities of the Contracting
States may agree on way to apply
This paragraph.
6. a) the provisions of paragraph 5 shall not apply in cases
concerning article 4, paragraph 3, nor on cases involving
entry of capital into a permanent establishment within the meaning of
Article 7.
b) Notwithstanding the provisions of paragraph 5, a case
not be referred to arbitration if the competent
the authorities of the Contracting States have agreed
that the case should not be determined by
arbitration.
Article 24
Exchange of information
1. the competent authorities of the Contracting States
shall exchange any information likely to be relevant
for the purposes of this agreement, or for
Administration or enforcement of internal law in
question about taxes of every kind and nature levied
for the Contracting States, or of their political
subdivisions or local authorities, on the taxation
According to this legislation is not contrary to the agreement. Exchange
of information is not restricted by articles 1 and 2.
2. information that a Contracting State received under
paragraph 1 shall be treated as secret in the same manner as
information obtained in accordance with the internal law
in this State and shall be disclosed only to persons or
authorities (including courts and administrative bodies)
establishing, receives or collects the taxes
referred to in paragraph 1 or dealing with prosecution or appeal in
These taxes or supervising those
activities. Such persons or authorities shall use the
information only for such purposes. They may disclose
the information in public court proceedings or in
Court decisions. Notwithstanding the above,
information which a Contracting State received be used
other purposes when such information may be used for such
other purposes according to the laws of both Contracting
States and the competent authority of the Contracting
State disclosures permitted such use.
3. the provisions of paragraphs 1 and 2 shall not obligation
for a Contracting State that:
a) take administrative measures derogating from the legislation
and administrative practices in force in that Contracting State, or in the
the other Contracting State,
b) provide information that is not available under
legislation or the usual administrative practice in this
Contracting State or of the other Contracting
the State,
c) supply information which would disclose any
commercial, industrial, commercial or professional secret
or used in the course of trade practice or
information, whose surrender would be contrary to the public
considerations of public policy.
4. Where a Contracting State requests information under this
Article, the other Contracting State shall use the funds
as this State has to obtain the required
the information, even though that other State may not need
information for its own tax purposes.
The obligation in the previous sentence is limited by the provisions
in paragraph 3, but this does not confer a right to a
Contracting State to refuse to provide information exclusively
because this State has no private interest of such
information.
5. the provisions of paragraph 3 are not right for a
Contracting State to decline to supply information
solely because the information is held by a bank,
other financial institution, agent, representative or
managers or information regarding ownership
in a person.
Article 25
Members of the diplomatic mission and consular posts
The provisions of this Agreement shall not affect the privileges at the
taxation which, according to the General rules of international law or
provisions of specific agreements apply
members of the diplomatic mission and consular offices.
Article 26
Provisions that apply to certain activities outside
Coast
1. Notwithstanding the other provisions of this agreement
apply the provisions of this article when the activities (in
This article referred to as "relevant activities") carried out outside
coast in connection with the exploration or exploitation of
the seabed and its subsoil or of their
natural resources, situated in a Contracting State.
2. Enterprises of a Contracting State who carries out the relevant
activities in the other Contracting State is considered – if not
the provisions of paragraphs 3 and 4 of this article shall give rise
otherwise – carrying on business in that other Contracting State
from permanent establishment situated there.
3. Relevant activities of enterprises of a Contracting State
carries on in the other Contracting State during the period
or time periods that do not exceed a total of 30 days during
a twelve-month period does not mean that the motion is considered to be undertaken
from permanent establishment situated there. For the purposes of this
paragraph, the following applies:
a) in the case of enterprises of a Contracting State who carries on
relevant activities in the other Contracting State has
Community of interest with the company, engaging in substantially
a similar activity there, shall be deemed to the former company
engage in any such activities carried out by the latter
the company. However, this does not apply in so far as the latter
operations are conducted during the same time as the first
the company's own operations.
(b)) a company shall be deemed to have commonality with another, if
one enterprise participates directly or indirectly in the management
or control of the other company or own part i
This company's capital, or if the same persons directly or
indirectly involved in the management or control of both
enterprises or own some of both of these corporate capital.
4. income, as a company of a Contracting State acquires
through the transportation of supplies or personnel by ships or
aircraft to the place where the relevant activities are carried out or
through the use of tugs or ships
assists in anchorage in connection with such activities,
be taxable only in that Contracting State.
5. a) unless paragraph (b)) of this paragraph shall give rise to another,
wages and similar remuneration as a person resident in a
Contracting State receives on account of employment which have
connection with relevant activities in the other
Contracting State, to the extent that work is performed outside the
coast in the other Contracting State, be taxed in that
other Contracting State.
b) salaries and similar benefits, as a resident of a
Contracting State receives for work performed
on board the ship or aircraft transporting equipment
or personnel to the place where the relevant activities are carried out in
a Contracting State or because of work being carried out
on board the tug or particular ships assisting in the
anchoring in connection with such activities, shall be taxable only in
the State in which the person is domiciled.
6. Profit acquired by an enterprise of a Contracting
State using:
a) ships or aircraft for the transport of supplies or
staff to the place where the relevant activities are carried out in a
Contracting State, or
b) tugs or ships assisting in the
anchoring in connection with such activities due to
transfer of such ships, aircraft, tugs or
Special vessels that assist in anchoring, to be taxed
only in that Contracting State.
7. Profit as a resident of a Contracting State
acquires the alienation of rights to
assets that can be extracted by the exploration or
the exploitation of the seabed and its subsoil or of their
natural resources situated in the other Contracting State,
including rights in favor of such assets, or
from the transfer of shares, their value or greater
part of their value directly or indirectly from such
rights may be taxed in that other Contracting
State.
Article 27
Bargain skatteregimer
Notwithstanding other provisions of this agreement, for
the case
a) company resident in one Contracting State is mainly
acquires its income from other States
1) from maritime and financial activities, or
2) by head office, the coordination centre or a
entity providing administrative or other services
to a group of companies engaged in operating mainly in
other States, and
b) such income is taxed according to a favourable fiscal regime
significantly lower under the law of this State other than
revenue from similar activities carried out in this
State or by being the head office, the coordination centre
or similar entity providing administrative or
other services to a group of companies that conduct business in
This State,
the provisions of this agreement which allow for derogation from or
reduction of a tax does not apply to income that such
company acquires nor should article 10 paragraph 2 or
Article 21 shall apply to dividends paid by such
companies.
Article 28
Other provisions
In cases where the taxation in accordance with the provision of this agreement in a
Contracting State of income or capital gains be reduced and
a natural person according to the laws in force in the other
Contracting State is taxed on such income or
capital gains to the extent that it is transferred to, or received in
the other Contracting State and not for the whole of its
amount, the tax relief is granted under this agreement
in the first-mentioned Contracting State shall refer to only the portion
of the income or capital gain that is transferred to or
received in the other Contracting State.
Article 29
Date of entry into force
1. the Contracting States shall in writing on diplomatic
way inform each other when the measures taken pursuant to
each State is required to this Agreement shall
enter into force.
2. the agreement shall enter into force on the thirtieth day following that of
the last of these notifications have been received and shall
then apply
a) in Sweden:
1) in respect of withholding taxes, on amounts paid or
tillgodoförs on 1 January of the year immediately following
the date on which the agreement enters into force or later,
2) in respect of other taxes on income, the tax imposed
for tax years beginning on 1 January of the year following
immediately following the date on which the agreement enters into force or later,
and
(b)) in the United Kingdom:
1) in respect of withholding taxes, on amounts paid or
tillgodoförs on 1 January of the year immediately following
the date on which the agreement enters into force or later,
2) in respect of taxes on income and on capital gains, for
tax year that begins on april 6 that comes closest to the
After the date of entry into force of the agreement or later,
3) in the case of corporation tax, for financial years beginning on 1
April, immediately after the date on which the agreement enters into
force or later.
3. Notwithstanding the provisions of paragraph 1, shall
the provisions of article 23 (mutual agreement) and
Article 24 (Exchange of information) apply from
the date of entry into force of the agreement irrespective of the
tax year the case concerns. No case may, however,
shall be referred to arbitration in accordance with the provisions of
Article 23 paragraph 5 (mutual agreement) until
not earlier than three years after the date on which this agreement enters into
force.
4. the agreement between The United Kingdom of United Kingdom
and Northern Ireland and the Government of the Kingdom of Sweden
for the avoidance of double taxation and the prevention of fiscal evasion
with respect to taxes on income and capital gain,
signed in Stockholm on 30 August 1983 (' the earlier
the agreement "), shall cease to apply in respect of each
tax from the date of this agreement in accordance with paragraph 1 of
This article shall apply in respect of current tax,
and shall expire on the last of these days.
5. Notwithstanding the provisions of paragraphs 2 and 4 and
the provisions of article 17, any natural person who
immediately prior to the entry into force of the agreement was the recipient of the
such payments within the scope of article 18 or article 19
paragraph 2 of the previous agreement, choose to comply with the provisions of
the latter articles, and not the provisions of article 17 of the
This agreement still applies to such
payouts. This choice shall apply to the year in which
the choice is made and every subsequent year provided
that choice has not been revoked by the person. When a selection is
been revoked may not new elections made pursuant to this paragraph.
Article 30
Termination
This agreement will remain in force until terminated by a
Contracting State. Each Contracting State may, at the
terminate the agreement through diplomatic channels by
notice to that effect at least six months before the expiry of any
calendar year. In the event of such termination, the agreement ceases to
apply
a) in Sweden:
1) in respect of withholding taxes, on amounts paid or
tillgodoförs on 1 January of the year immediately following
the end of the six-month period or later,
2) in respect of other taxes on income, the tax imposed
for fiscal years beginning January 1 of the year following
immediately following the end of the six-month period or later,
and
(b)) in the United Kingdom:
1) in respect of withholding taxes, on amounts paid or
tillgodoförs on 1 January of the year immediately following
the end of the six-month period or later,
2) in respect of income tax and tax on capital gains, which are
During fiscal years starting on 6 april of the year closest to the
After that, if the notice is given or later,
3) in respect of corporation tax, the tax levied on
tax year that begins on april 1 of the year following
immediately following the date on which the notice is given or later.
In witness whereof the undersigned, being
duly authorized, have signed this agreement.
Done at Stockholm on 26 March 2015, in duplicate in the
English language.
For the Government of the Kingdom of Sweden
Linda Haggren
For the United Kingdom of United Kingdom and Northern Ireland
Government
Paul Johnston
