Law (2014:340) On The Tax Agreement Between Sweden And Georgia

Original Language Title: Lag (2014:340) om skatteavtal mellan Sverige och Georgien

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Read the untranslated law here: http://rkrattsbaser.gov.se/sfst?bet=2014:340

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