section 1 of the agreement for the avoidance of double taxation and
Prevention of tax evasion with respect to taxes on income
and fortune as Sweden and Georgia signed the
6 november 2013, together with the Protocol
annexed to the agreement and which are part of this, as
law in this country. Agreement and Protocol is drawn up in
Swedish, Georgian and English. The Swedish and English
the text set out in 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
2014:340
1. this law shall enter into force on the day 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, and
(b)) other taxes on income and on capital, to taxes
for tax years beginning on 1 January of the year
immediately after the day on which the Act comes into force, or
later.
Annex
Agreement between the Swedish Government and the Government of Georgia for
avoidance of double taxation and the prevention of
tax evasion with respect to taxes on income and on
Fortune
The Swedish Government and the Government of Georgia, desiring to conclude an
Agreement for the avoidance of double taxation and the prevention of
tax evasion with respect to taxes on income and on
Fortune, 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. income which are acquired by, or by a person whose
income according to the legislation of either Contracting State
are subject to shareholder taxation, shall be considered acquired by a
person resident in one of the States to the extent that
income, according to the tax laws of that State,
are treated as the income of a resident of the State in
issue.
Article 2
Taxes covered by the agreement
1. this Agreement shall apply to taxes on income and on
wealth that accrues to 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, of course, all
taxes levied on income or on capital in its
entirety or on elements of income or wealth, in that
including taxes on gains from the alienation of movable
or immovable property, as well as taxes on capital appreciation.
3. The taxes to which this Agreement shall apply are:
a) in Georgia:
1) gains tax,
2) income tax, and
3) property tax,
(referred to below as the "Georgian tax");
b) 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,
5) the municipal income tax, and
6) State property tax,
(referred to below as "Swedish 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) "Georgia" means the territory as defined in the
Georgian legislation, including the land, its
bases and airspace above this area, as well as internal waters
and the territorial sea, the seabed, its subsoil and airspace
of these areas, in which Georgia exercises sovereignty,
and the contiguous zone, the exclusive economic zone and
the continental shelf adjacent to the territorial sea, within
the Georgia exercises sovereign rights or jurisdiction
in accordance with the rules of international law,
b) "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,
(c)) "a Contracting State" and "the other Contracting
the State "refers to Georgia or Sweden, depending on
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 used by an enterprise of a Contracting
State, except when the ship or aircraft is used exclusively
between places in the other Contracting State,
in) "national", in relation to a Contracting State,
relating to:
1) natural person which has the nationality of a Contracting
State,
2) any legal person, partnership or other association
incorporated under the legislation of a
Contracting State,
j) "competent authority" means:
1) in Georgia: Ministry of finance or its
authorised representative,
2) 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,
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 or any other
similar circumstances and also includes that State, its
public-sector bodies or institutions, political
subdivisions or local authorities. This expression
However, it does not include a person who is liable to tax in this
State only on income from sources in that State or of
wealth located there.
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 seek rule by mutual
agreement.
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, if the project is carried out in conjunction with the company's
delivery of machines or equipment,
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, may the company's income
be taxed in the other State but only so much thereof
as is attributable to that permanent establishment.
2. enterprises of a Contracting State carries on business in the
other Contracting State from where the permanent establishment situated
are entered, unless the provisions of paragraph 3 shall give rise to another, in
Each Contracting State to the permanent establishment the
income as it can be assumed that the establishment would have
acquired, it was an independent company that conducted
activities of the same or a similar nature in the same or
similar conditions and independently completed the business with it
undertaking to which the establishment belongs.
3. In determining permanent establishment income deduction is allowed
for expenses incurred for the permanent establishment
activities, including included expenses for the company's
management and General Administration, whether the expenditure
raised in the State in which the permanent establishment is situated
or elsewhere.
4. income not attributable to a permanent establishment by reason only of the
the reason to purchase goods through the permanent establishment
merchandise for the enterprise.
5. for the purposes of the preceding paragraphs, income is determined
as is attributable to that permanent establishment by the same
procedure from year to year, unless good and sufficient reason
causing the other.
6. Included in income by operating income being treated especially
in other articles of this agreement, the provisions of
These articles are not of 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. 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 the
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 may be taxed in the
Contracting State of which the company paying the dividends has
the resident, in accordance with the laws of that State, but if the
entitled to dividends is a resident of the other
a Contracting State may not exceed:
a) 0% of the gross amount of the dividends if the beneficial
to dividends is a company (other than a partnership)
holding at least 10% of the company
capital or votes,
b) 10 per cent of the gross amount of the dividends in all other cases.
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.
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.
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.
Article 12
Royalty
1. Royalty, as derived 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 "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 concerning findings of
industrial, commercial or scientific experience.
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.
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. 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).
3. Profit, as a person resident in one 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;
shall be taxable only in that 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.
4. Profit, as a person resident in one Contracting State
acquires from the alienation of shares whose value to the
more than 50 percent, directly or indirectly, can be attributed to
immovable property situated in the other Contracting
the State, may be taxed in that other State.
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. Profit, due to the disposal of assets, which are acquired by
a natural person who is resident in a Contracting
State and a resident of the other Contracting State shall —
Notwithstanding the provisions of paragraph 5 to be taxed in the
first State if the transfer of the asset occurs
at any time during the ten years immediately after
the date on which the person ceased to be resident in the
first 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,
remuneration for work performed on board the ship or
aircraft used in international traffic by an enterprise
in one Contracting State, be taxed in that State, If a
resident in Sweden receives remuneration for work
performed on board the aircraft used in international
traffic by the air transport Consortium Scandinavian Airlines System
(SAS) such remuneration shall be taxable only in Sweden.
Article 15
Directors ' fees
Directors ' fees and other similar remuneration, as a person with
resident in one Contracting State receives as a Member
in a Board or other similar bodies in companies established in
the other Contracting State, may be taxed in that other
State.
Article 16
Artists and athletes
1. Notwithstanding the provisions of articles 7 and 14,
income, as a resident of a Contracting State
acquire through their personal activities in the other
Contracting State in his capacity as a performer, 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 articles 7
and 14, be taxed in the Contracting State in which the artist
or sportutövaren conducts business.
3. the provisions of paragraphs 1 and 2 do not apply to
income as an artist or athletes acquires through its
personal business in a Contracting State, if the artist's
or sportutövarens visit to this State as a whole
financed by the public funds of the other Contracting
State. In such a case the income shall be taxable only in the
Contracting State in which the artist or sportutövaren have
resident.
Article 17
Pensions, annuities and similar payments
1. Pensions and other similar remuneration, payment under
social security legislation and annuities arising from
a Contracting State and paid to a resident
in the other Contracting State, may be taxed in the
first-mentioned Contracting 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.
2. the provisions of articles 14, 15 and 16 shall apply to
compensation paid on the basis of the work carried out in
connection with business carried on by a Contracting State, a
of its political subdivisions or local
authorities.
Article 19
Students
1. 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.
2. In respect of grants, scholarships and remuneration from
employment not covered by paragraph 1,
should a student or business trainee referred to in that
paragraph, during the period of such teaching or training, be
entitled to the same exemptions, reliefs and benefits in
taxation applicable to a resident of the State
where he resides, provided that the student or
trainees spend time in this State during a period
exceeding six months.
Article 20
Other income
1. income as a resident of a Contracting State
acquires 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. the provisions of paragraph 1 shall not apply to income, with
excluding income from immovable property referred to in article 6
paragraph 2, if the recipient of the income is resident in a
Contracting State, carries on business in the other
Contracting State through permanent establishment situated there, and
the right or property in respect of which the income
paid owns truly connected with the permanent establishment. In
in such cases the provisions of article 7.
Article 21
Fortune
1. Fortune consisting of such immovable property referred to in
Article 6, as a resident of a Contracting State
holds and situated in the other Contracting State,
may be taxed in that other State.
2. Assets consisting of movable property forming part of the
the operating assets of a permanent establishment which an enterprise of the
a Contracting State has in the other Contracting State,
may be taxed in that other State.
3. wealth consisting of ships and aircraft
in international traffic by an enterprise of a Contracting
State, and by movable property which are attributable to the use of
such ships and aircraft, shall be taxable only in that State.
The provisions of this paragraph shall apply in the case of Fortune
owned by the air transport Consortium Scandinavian Airlines System
(SAS), but only in respect of the portion of assets that
corresponds to the percentage of the Consortium held by SAS Sweden
AB, the Swedish partner of SAS.
4. All other types of fortune as a person resident in a
Contracting State, be taxable only in that State.
5. If, in accordance with paragraph 4 of this article, the right to
taxing wealth held by a resident of a
Contracting State, belongs to this State, this
wealth is taxed in the other Contracting State, if
wealth is not the subject of a general property tax
According to the legislation of the first State.
Article 22
The Elimination of double taxation
1. a) where a resident of Georgia receives income
or holding assets in accordance with the provisions of
This agreement may be taxed in Sweden, Georgia:
1) from that person's income tax set off an amount
equivalent to the income tax paid in Sweden,
2) from the person's property tax set off an amount
equal to the capital tax paid in
Sweden.
Such deduction shall not, however, in no case
exceed the tax that would have been charged on income and
assets in accordance with the applicable rules and
tax rates in Georgia.
b) where in accordance with any of the provisions of this agreement, a
resident of Georgia receives income or holds
Fortune which is exempt from taxation in Georgia may
Georgia, however, in the calculation of the tax on that person's
other income or capital, take into account the exempted
income or wealth.
2. 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 Georgian legislation and in accordance with
the provisions of this agreement, may be taxed in Georgia,
Sweden – having regard to the provisions in Swedish
legislation relating to the deduction of foreign taxes (even in
the version in the future can get through to change without the
general principle referred to this change) – from the Swedish
tax on income set off an amount equal to the
Georgian tax paid on income.
b) where a resident of Sweden receives income in
accordance with this Agreement shall be taxable only in Georgia, may
Sweden, in determining the tax rate for the Swedish
progressive tax, take into account the income which shall be taxable only
in Georgia.
c) Notwithstanding the provisions of subparagraph (a)) in this paragraph is
dividends from companies established in Georgia to companies with
resident in Sweden exempt from Swedish tax according to the
the provisions of Swedish law on tax exemption for dividends
paid to Swedish companies by companies abroad.
(d)) where a resident of Sweden owns capital;
that under the provisions of this agreement may be taxed in the
Georgia, Sweden from tax on that person's
Fortune set off an amount equal to the
property tax paid in Georgia. Settlement amount
should not, however, exceed that part of the Swedish
the wealth tax, calculated without such a settlement, which
charged on the fortune that may be taxed in Georgia.
Article 23
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
which nationals of that other State under the same conditions is
or may be subject to. Notwithstanding the provisions of
Article 1 shall apply this provision also on the person who does not
domiciled in a Contracting State, or in both
Contracting States.
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 the company in the other State, that carries
activities of the same kind. This provision is not considered
entail the obligation of a Contracting State to grant to
residents of the other Contracting State such
personal deduction for tax purposes, such a tax exemption
or reductions because of marital status or
dependants permitted residents in their own
State.
3. Except where the provisions of article 9, paragraph 1,
Article 11 paragraph 4 or article 12 paragraph 4 applies, the
interest, royalties and other payments from the company in a
Contracting State to a resident of the other
Contracting State tax deductible in determining the
taxable income of such company on the same
conditions as payment to a resident of the
first State. Similarly, the debt that companies in a
Contracting State to a resident of the other
Contracting State tax deductible in determining such
corporate taxable fortune on the same terms and conditions as the
debt 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. Notwithstanding the provisions of article 2 shall be applied
the provisions of this article on the taxes of every kind and
nature.
Article 24
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 23 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.
Article 25
Exchange of information
1. the competent authorities of the Contracting States shall
Exchange such information likely to be relevant to the
application of the provisions 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.
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 26
Limitation of benefits
Notwithstanding other provisions of this agreement, if
a) company resident in one Contracting State is mainly
acquires its income from other States
1) from activities such as banking, maritime, financial
or insurance activities, or
2) by head office, the coordination centre or
similar entity providing administrative or other
services to a group of companies engaged in operating
mainly in other States, and
b) such income is taxed at a significantly lower under
law of this State other than revenue from similar
activities carried out within this State or by being
Head Office, the coordination centre or similar device
provides administrative or other services to a
Group of companies, which carries on business in that State,
to the provisions of this agreement which allow for derogation from the
or reduction of tax is not applied to income
such a company acquires nor on dividend
paid by such a company.
Article 27
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 28
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 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,
(b)) in respect of other taxes on income, and taxes on
Fortune, on the tax imposed for fiscal years
beginning on January 1 of the year immediately following the date on
This agreement enters into force or later.
Article 29
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 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,
(b)) in respect of other taxes on income, and taxes on
Fortune, on the tax imposed for fiscal years
beginning January 1 of the year immediately following the end of
the six-month period or later.
In witness whereof the undersigned, being
duly authorized, have signed this agreement.
Done at Tbilisi on 6 november 2013, in duplicate in the
Swedish, Georgian and English languages, are equally
an official record. In the event of discrepancies, the English
the text shall prevail.
For the Swedish Government
Diana J
For the Government of Georgia
Nodar Khaduri
Protocol
At the time of signature of the agreement between the Swedish
Government and the Government of Georgia for the avoidance of
double taxation and the prevention of fiscal evasion with respect to
taxes on income and on capital, the Contracting
States have agreed that the following provision should
be an integral part of the agreement:
With reference to the agreement:
With regard to Georgia, with the expression "political
subdivisions and local authorities "are understood
"administrative-territorial units" and "local self governing
authorities ".
In witness whereof the undersigned, being
duly authorized, have signed this Protocol.
Done at Tbilisi on 6 november 2013, in duplicate in the
Swedish, Georgian and English languages, are equally
an official record. In the event of discrepancies, the English
the text shall prevail.
For the Swedish Government
Diana J
For the Government of Georgia
Nodar Khaduri
Convention between the Government of Canada and the
The Government of Georgia for the avoidance of double taxation
and the prevention of fiscal evasion with respect to taxes on
income and on capital
The Government of Canada and the Government of Georgia,
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, 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. In the case of an item of income derived by or through a
person that is fiscally transparent under the laws of either
Contracting State, such item shall be considered to be
derived by a resident of a State to the extent that the item
is treated for the purposes of the taxation law of such State
as the income of a resident.
Article 2
Taxes covered
1. This Convention shall apply to taxes on income and on
capital 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
all taxes imposed on total income, on total capital, or on
elements of income or of capital, 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 Georgia:
(i) the profit tax;
(ii) the income tax, and
(iii) the property tax
(hereinafter referred to as "Georgian tax");
(b) 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.);
(v) the municipal income tax (municipal tax),
and
(vi) the net wealth tax (the State property tax)
(hereinafter referred to as "Swedish 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 "Georgia" means the territory defined by the Georgian
legislation, including the land territory, its subsoil and the
the air space above it, internal waters and territorial sea, the
sea bed, its sub soil and the air space above them, in
respect of which Georgia exercises sovereignty, as well as
the contiguous zone, the exclusive economic zone and
the continental shelf adjacent to its territorial sea, in respect
of which Georgia may exercise its sovereign rights and/or
jurisdiction in accordance with the international law;
(b)) 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;
(c)) the terms "a Contracting State" and "the other Contracting
State "mean Georgia or Sweden, 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 operated by an enterprise of a Contracting
State, except when the ship or aircraft is operated solely
between places in the other Contracting State;
in) the term "national", in relation to a Contracting State,
means:
(i) any individual possessing the nationality or citizenship
of that Contracting State; and
(ii) any legal person, partnership or association deriving
its status as such from the laws in force in that Contracting
State;
j) the term "competent authority" means:
(i) in Georgia: the Ministry of Finance or its authorised
representative;
(ii) in Sweden: the Minister of Finance, his authorized
representative or the authority which is designated as a
competent authority for the purposes of this Convention;
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 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 from sources in that State or capital situated
therein.
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 has not 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, the competent authorities of the Contracting States
shall endeavour to settle the question by mutual agreement.
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 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 in the
name 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. The 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 of the
the enterprise may be taxed in the other State but only so much
of them as is attributable to that permanent establishment.
2. Subject to the provisions of paragraph 3, where an
Enterprise of a Contracting State carries on business in the
other Contracting State through a permanent establishment
situated therein, there shall in each Contracting State be
attributed to that permanent establishment the profits which
It might be expected to make if it were a distinct and
separate enterprise engaged in the same or similar activities
under the same or similar conditions and dealing wholly
independently with the enterprise of which it is a permanent
Re-establishment.
3. In determining the profits of a permanent establishment,
There shall be allowed as deductions expenses which are
incurred for the purposes of the business of the permanent
establishment, including executive and general administrative
expenses so incurred, whether in the State in which the
permanent establishment is situated or elsewhere.
4. No profits shall be attributed to a permanent
establishment by reason of the mere purchase by that
permanent establishment of goods or merchandise for the
Enterprise.
5. For the purposes of the preceding paragraphs, the profits
to be attributed to the permanent establishment shall be
determined by the same method year by year unless there is
good and sufficient reason to the contrary.
6. Where profits include items of income which are dealt with
separately in other Articles of this Convention, then the
the provisions of those Articles shall not be affected by the
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. 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, such dividends may also be taxed in the
Contracting State of which the company paying the dividends
is a resident and according to the laws of that State, but if
the beneficial owner of the dividends is a resident of the
other Contracting State, the tax so charged shall not
exceed:
a) 0 per cent of the gross amount of the dividends if the
beneficial owner is a company (other than a partnership)
which holds at least 10 per cent of the capital or the voting
power of the company paying the dividends;
b) 10 per cent of the gross amount of the dividends in all
other cases.
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 income from other
corporate rights which is subjected to the same taxation
treatment as income from shares by the 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 such other State.
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.
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, having regard
to the debt-claim for which it is paid, exceeds the amount
which would have been agreed upon by the payer and the
beneficial owner in the absence of such relationship, the
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 laws of each
Contracting State, due regard being had to the other
the provisions of this Convention.
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 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, having regard
to the use, right or information for which they are paid,
exceeds 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 laws of
Each Contracting State, due regard being had to the other
the provisions of this Convention.
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 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.
3. Gains derived by a resident of a Contracting State from
the alienation of ships or aircraft operated in international
traffic or movable property pertaining to the operation of
such ships or aircraft, shall be taxable only in that
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.
4. Gains derived by a resident of a Contracting State from
the alienation of shares 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.
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 any property derived by an individual 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 ten years next following the
date on which the individual has ceased to be a resident of
the first-mentioned 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 in respect of an employment exercised
aboard a ship or aircraft operated in international traffic
by an enterprise of a Contracting State may be taxed in that
State. Where a resident of Sweden derives remuneration in
respect of an employment exercised aboard an aircraft
operated in international traffic by the air transport
Consortium Scandinavian Airlines System (SAS), such
remuneration shall be taxable only in Malaysia.
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 Articles 7 and 14,
income derived by a resident of a Contracting State as an
artiste, 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 artiste or a sportsman in his capacity as such accrues
not to the artiste or sportsman himself but to another
person, that income may, notwithstanding the provisions of
Articles 7 and 14, be taxed in the Contracting State in which
the activities of the artiste or sportsman are exercised.
3. The provisions of paragraphs 1 and 2 shall not apply to
income derived from activities exercised in a Contracting
State by an artiste or a sportsman if the visit to that State
is wholly supported by public funds of the other Contracting
State. In such case, the income shall be taxable only in the
Contracting State in which the artiste or sportsman is a
resident.
Article 17
Pensions, annuities and similar payments
1. Pensions and other similar remuneration, disbursements
under the Social Security legislation and annuities arising
in a Contracting State and paid to a resident of the other
Contracting State may be taxed in the first-mentioned
Contracting 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.
2. The provisions of Articles 14, 15 and 16 shall apply to
remuneration in respect of services rendered in connection
with a business carried on by a Contracting State or a
political subdivision or a local authority thereof.
Article 19
The student's
1. 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.
2. In respect of grants, scholarships and remuneration from
employment not covered by paragraph 1, a student or business
Apprentice described in paragraph 1 shall, in addition, be
entitled during such education or training to the same
exemptions, reliefs or reductions in respect of taxes
available to residents of the State which he is visiting
provided that the student or business apprentice remains in
that State for a period of more than six months.
Article 20
Other income
1. Items of income of 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. 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 recipient 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.
Article 21
Capital
1. Capital represented by immovable property referred to in
Article 6, owned by a resident of a Contracting State and
situated in the other Contracting State, may be taxed in that
other State.
2. Capital represented by 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 may be taxed in that other State.
3. Capital represented by ships and aircraft operated in
international traffic by an enterprise of a Contracting State
and by movable property pertaining to the operation of such
ships and aircraft, shall be taxable only in that State.
With respect to capital owned by the air transport consortium
Scandinavian Airlines System (SAS), the provisions of this
paragraph shall apply only to such part of the capital as
corresponds to the participation held in that consortium by
SAS Sweden AB, the Swedish partner of SAS.
4. All other elements of capital of a resident of a
Contracting State shall be taxable only in that State.
5. If, pursuant to paragraph 4 of this Article, the right to
tax-free capital held by an individual who is resident of a
Contracting State, is vested only in that State, such capital
may be taxed in the other Contracting State, where the net
capital is not subject to a general tax on net capital
According to the laws of the first-mentioned State.
Article 22
Elimination of double taxation
1. a) Where a resident of Georgia derives income or owns
capital which, in accordance with the provisions of this
Convention, may be taxed in Sweden, Georgia shall allow:
(i) as a deduction from the tax on the income of that
resident, an amount equal to the income tax paid in Canada;
(ii) as a deduction from the tax on the capital of that
resident, an amount equal to the capital tax paid in
Sweden.
Such deduction in either case shall not, however,
exceed the sum of the tax which would have been accrued
According to the rules and rates on this income and capital
effective in Georgia.
b) Where in accordance with any provision of the Convention
income derived or capital owned by a resident of a Georgia ice
exempt from tax in Georgia, Georgia may nevertheless, in
calculating the amount of tax on the remaining income or
capital of such resident, take into account the exempted
income or capital.
2. 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 Georgia and in accordance with the provisions of this
Convention may be taxed in Georgia, Sweden shall allow-
subject to the provisions of the laws of Sweden concerning
credit for foreign tax (as it 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
The Georgian 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 Georgia, Sweden may, when determining the
graduated rate of Swedish tax, take into account the income
which shall be taxable only in Georgia.
(c) Notwithstanding the provisions of subparagraph) (a)) of this
paragraph, dividends paid by a company which is a resident of
Georgia 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.
(d)) Where a resident of Sweden owns capital which, in
accordance with the provisions of this Convention, may be
taxed in Georgia, Sweden shall allow as a deduction from the
tax on the capital of that resident an amount equal to the
capital tax paid in Georgia. Such deduction shall not,
However, exceed that part of the Swedish capital tax, as
computed before the deduction is given, which is attributable
to the capital which may be taxed in Georgia.
Article 23
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
are or may be subjected. This Commission shall,
Notwithstanding the provisions of Article 1, also apply to
persons who are not residents of one or both of the
Contracting States.
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. This Commission
shall not be construed as obliging a Contracting State to
grant to residents of the other Contracting State any
personal allowances, reliefs and reductions for taxation
purposes on account of civil status or family
responsibilities which it grants to its own residents.
3. Except where the provisions of paragraph 1 of Article 9,
paragraph 4 of Article 11, or paragraph 4 of Article 12,
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
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. Similarly, any debts of an enterprise
of a Contracting State to a resident of the other Contracting
State shall, for the purpose of determining the taxable
capital of such enterprise, be deductible under the same
conditions as if they had been contracted to a resident of
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. The provisions of this Article shall, notwithstanding the
the provisions of Article 2, apply to taxes of every kind and
Description.
Article 24
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
23, 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.
Article 25
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.
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 26
Limitations of benefits
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 activities such as banking, shipping, financing or
insurance or
(ii) 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
primarily in other States; and
b) such income would bear a significantly lower tax for the
the laws of that State than income from similar activities
carried out within that State or 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 to the dividends paid by such company.
Article 27
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 provisions of
Special agreements.
Article 28
Entry into force
1. Each of the Contracting States shall notify in written
form the other 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 respect of taxes withheld at source, for amounts paid
or credited on or after the first day of January of the year
next following the date on which the Convention enters into
force;
(b)) in respect of other taxes on income, and taxes on capital,
on taxes chargeable for any tax year beginning on or after
the first day of January of the year next following the date
on which the Convention enters into force.
Article 29
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 respect of taxes withheld at source, for amounts paid
or credited on or after the first day of January of the year
next following the end of the six month period;
(b)) in respect of other taxes on income, and taxes on capital,
on 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.
In witness whereof the undersigned being duly authorised
thereto have signed this Convention.
Done at Tbilisi this 6th day of November 2013, in two copies,
in the Swedish, Georgian and English languages, each text
being equally authentic. In case of any divergence, the
The English text shall prevail.
For the Government of Canada
Diana J
For the Government of Georgia
Nodar Khaduri
Protocol
At the moment of signing the Convention between the
The Government of Canada and the Government of Georgia for the
avoidance of double taxation and the prevention of fiscal
evasion with respect to taxes on income and on capital, the
Contracting States have agreed that the following provisions
shall form an integral part of the Convention:
With reference to the Convention:
In the case of Georgia, the term "political subdivisions or
local authorities "means" administrative-territorial units '
or "local self governing authorities".
In witness whereof the undersigned being duly authorised
thereto have signed this Protocol.
Done at Tbilisi this 6th day of November 2013, in two copies,
in the Swedish, Georgian and English languages, each text
being equally authentic. In case of any divergence, the
The English text shall prevail.
For the Government of Canada
Diana J
For the Government of Georgia
Nodar Khaduri