section 1 of the agreement for the avoidance of double taxation and
Prevention of tax evasion with respect to taxes on income and
on the fortune that Sweden and Mauritius signed the 1
December 2011, together with the protocol attached
to the agreement and which are part of this, apply that law here in
the country.
The content of the agreement and the Protocol annexed to the agreement
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
2012:638
1. this law shall enter into force on the day the Government determines.
2. This Act shall apply in respect of
a) withholding taxes, on amounts paid or tillgodoförs 1
January of the year immediately following the date the law takes effect
in effect, or later, and
(b)) other taxes on income, and taxes on capital, on
tax levied for the fiscal year that begins on 1 January
the years immediately after the date on which the Act comes into force
or later.
3. Through law repeals Act (1992:1195) if
double taxation treaties between Sweden and Mauritius.
The repealed Constitution shall, however, continue to apply in
question about
a) withholding taxes, on amounts paid or tillgodoförs before
on 1 January of the year immediately following the date on which the Act
enters into force, and
(b)) other taxes on income, the tax levied on
tax years beginning before 1 January of the year following
immediately following the day on which the Act comes into force.
Annex
Convention between the Kingdom of Sweden and the Republic of
Mauritius for the avoidance of double taxation and the
Prevention of fiscal evasion with respect to taxes on income
and on capital
The Government of the Kingdom of Sweden and the Government of
the Republic of Mauritius, 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
the 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 this Convention shall apply are:
(a) In Mauritius: the income tax
(hereinafter referred to as "Mauritius 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 income 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 which have been made in their respective
taxation laws.
Article 3
General definition
1. For the purposes of this Convention, unless the context
otherwise requires:
(a) the term "Mauritius" means all the territories, including
all the islands, which, in accordance with the laws of
Mauritius, constitute the State of Mauritius and includes:
(i) the territorial sea of Mauritius; and (ii) any area outside
the territorial sea of Mauritius which in accordance with
international law has been or may hereafter be designated,
under the laws of Mauritius relating to the Continental Shelf
as an area within which the rights of Mauritius with respect to
the sea, the sea bed and sub-soil and their natural resources
may be exercised;
(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 maritime areas
over which Sweden in accordance with international law
exercises sovereign rights or jurisdiction;
(c) the term "person" includes an individual, a company and any
other body of persons;
(d) the term "company" means any body corporate or any entity
that is treated as a body corporate for tax purposes;
(e) the term "enterprise" applies to the carrying on of any
business;
(f) 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;
(g) 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;
(h) the term "national" means:
(i) any individual possessing the nationality or citizenship of
(a) the Contracting State;
(ii) any legal person, partnership or association deriving its
status as such from the laws in force in a Contracting State;
(i) the term "competent authority" means: (i) in Mauritius, the
Minister to whom the responsibility for the subject of finance
is assigned, his authorized representative or the authority
which is designated as a competent authority for the purposes
of this Convention;
(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;
(j) 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, any governmental
body or agency, political subdivision or local authority
thereof. The term "resident of a Contracting State" 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 a construction, assembly or installation
project or supervisory activities in connection therewith
constitutes a permanent establishment only if it load for 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 sub paragraphs (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
Re-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 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
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
the 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 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 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
the same or similar conditions and dealing wholly independently
with the enterprise of which it is a permanent 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. For the purposes of this Article the expression "operation
of ships or aircraft "by an enterprise, also includes:
(i) the charter or rental on a bare boat basis of ships and
aircraft, and
(ii) the rental of containers and related equipment;
If that charter or rental is incidental to the operation by the
Enterprise of ships or aircraft in international traffic.
3. 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.
4. The provisions of paragraph 1 shall also apply to profits
from the participation in a pool, a joint business or an
international operating agency.
Article 9
Associated enterprises
1. Where:
(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 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 enterprise of the
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 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 15 per cent of the
the gross amount of the dividends. However, if the beneficial owner
is a company (other than a partnership) which holds at least 10
per cent of the voting power of the company paying the
dividends, the dividends shall be exempt from tax in the
Contracting State of which the company paying the dividends is
(a) resident.
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 debtclaims,
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 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
the 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 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 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 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
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
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 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, or from the alienation
of shares in a company the assets of which consist principally
of such property, 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 from the alienation of any property other than that
referred to in paragraphs 1, 2 and 3, shall be taxable only in
the Contracting State of which the alienator is a resident.
5. Notwithstanding the provisions of paragraph 4, 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
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
the 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
period not exceeding in the aggregate183 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 Sweden.
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
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
Payments which a student or business apprentice who is or was
immediately before visiting a Contracting State a resident of
the other Contracting State and who is present in the first-
mentioned State solely for the purpose of his education or
training receives for the purpose of his maintenance, education
or training shall not be taxed in that State, provided that
such payments arise from sources outside that State.
Article 20
Other income
1. Items of income 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
Re-establishment. In such case 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. In the case of Mauritius, double taxation shall be
eliminated as follows:
(a) Where a resident of Mauritius derives income from Sweden
the amount of tax on that income payable in Sweden in
accordance with the provisions of this Agreement may be
credited against the Mauritius tax imposed on that resident.
(b) Where a company which is a resident of Canada pays a
dividend to a resident of Mauritius who controls, directly or
indirectly, at least
5 per cent of the capital of the company paying the dividend,
the credit shall take into account (in addition to any Swedish
tax for which credit may be allowed under the provisions of
subparagraph (a) of this paragraph) the Swedish tax payable by
the first-mentioned company in respect of the profits out of
which such dividend is paid.
Provided that any credit allowed under subparagraphs (a) and
(b) shall not exceed the Mauritius tax (as computed before
allowing any such credit), which is appropriate to the profits
or income derived from sources within Canada.
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 Mauritius and in accordance with the provisions of this
Convention may be taxed in Mauritius, 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 Mauritius
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 Mauritius, Sweden may, when determining the
graduated rate of Swedish tax, take into account the income
which shall be taxable only in Mauritius. (c) Notwithstanding
the provisions of sub-paragraph (a) of this paragraph,
dividends paid by a company which is a resident of Mauritius 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 Mauritius, Sweden shall allow as a
deduction from the tax on the capital of that resident an
amount equal to the capital tax paid in Mauritius. 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 Mauritius.
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 provision 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 provision shall not be
construed as obliging a Contracting State to grant to residents
of the other Contracting State any personal allowances, reliefs
or 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 firstmentioned
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 subject in the firstmentioned 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 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
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,
or 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 bond 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, where
(a) a company that is a resident of a Contracting State derives
its income primarily from other States
(i) from activities such as financial services or shipping; 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 under 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
the 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 duty shall not apply to the
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 the other in
writing 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
(i) 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;
(ii) 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.
3. The Convention between the Government of Canada and the
The Government of Mauritius for the avoidance of double taxation
and the prevention of fiscal evasion with respect to taxes on
income and on capital gains signed on 23 April 1992 (the 1992
Convention) shall terminate upon the entry into force of this
Convention. However, the provisions of the 1992 Convention
shall remain effective until the provisions of this Convention,
in accordance with the provisions of paragraph 2 of this
Article, shall have effect.
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
(i) 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;
(ii) 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 authorized
thereto, have signed this Convention.
Done at Paris, this 1st day of December 2011, in duplicate in
the English language.
For the Government of the Kingdom of Sweden
Gunnar Lund
For the Government of the Republic of Mauritius
Jacques Chasteau de Balyon
Protocol
At the signing of the Convention between the Kingdom of Sweden
and the Republic of Mauritius 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 upon the following provisions, which shall form an
integral part of the Convention:
With respect to Article 26, it is understood that
(a) the provisions of that Article shall apply to the income
of, and to the dividends paid by a company
(i) entitled to the preferential treatment as regards credit
for foreign tax under regulation 8 (3) of the Mauritius Income
Tax (Foreign Tax Credit) Regulations 1996, or (ii) referred to
in section 73A of the Mauritius Income Tax Act 1995, or (iii)
covered by any law substantially similar to the laws mentioned
in (i) or (ii), enacted after the date of signature of this
Convention; and
(b) the term "financial services" shall include banking,
financing, insurance, assets management, custodian services,
distribution of financial products, brokerage, pension scheme
management, retirement benefits scheme management and treasury
management.
In witness whereof the undersigned, being duly authorized
thereto, have signed this Protocol.
Done at Paris, this 1st day of December 2011, in duplicate in
the English language.
For the Government of the Kingdom of Sweden
Gunnar Lund
For the Government of the Republic of Mauritius
Jacques Chasteau de Balyon
(Translation)
Agreement between the Kingdom of Sweden and the Republic of Mauritius for
avoidance of double taxation and the prevention of fiscal evasion
with respect to taxes on income and on capital
The Government of the Kingdom of Sweden and the Republic of Mauritius
Government, desiring to conclude an agreement for the avoidance of
double taxation and the prevention of fiscal evasion with respect to
taxes on income and on capital, have agreed
the following:
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
the State is the subject of shareholder taxation, shall be considered as acquired
by a resident of one of the States to the extent that
income, according to the tax laws of this State, shall be treated
as the income of a resident of the State in question.
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,
regardless 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 Mauritius: income tax,
(hereinafter called "Mauritian 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-resident artists
et al.,
5) the municipal income tax, and
6) State property tax,
(referred to below as "Swedish tax").
4. the agreement also apply to taxes for the same or essentially
Similarly, after the signing of the agreement accrue at
addition to or in place of the taxes listed in paragraph 3. The
competent authorities of the Contracting States shall communicate to the
each other the essential changes to the respective
tax legislation.
Article 3
General definitions
1. Unless the context gives rise to different, have in the application
by this agreement the following expressions the following meaning:
a) "Mauritius" refers to all territory, infattande all of the Islands, as
in accordance with the legislation of Mauritius constitute State
Mauritius and includes:
1) Mauritius territorial waters, and
2) any area outside the territorial waters of Mauritius in
accordance with the rules of international law are designated or later
will be designated, in accordance with the Mauritius legislation on
the continental shelf, as an area within which Mauritius owns
exercise rights with respect to the sea, the seabed and its
surfaces and its natural resources,
b) "Sweden" means the Kingdom of Sweden and the includes, when
the expression is used in the geographical sense, the territory of Sweden,
Sweden's territorial sea and other maritime areas over which the
Sweden – in accordance with the rules of international law-exercise
sovereign rights or jurisdiction;
c) "person" includes natural persons, companies and other
Association,
d) "company" means any legal person or any other that at
taxation is treated as a legal person,
e) "company" means the exercise of any form of movement,
f) "enterprise of a Contracting State" and "enterprise of the other
Contracting State "refers to the business carried on by a person
resident in one Contracting State, the respective companies
conducted by the resident of the other Contracting
the State,
g) "international transport" means transport by ship or
aircraft used by an enterprise of a Contracting State
except when the ship or aircraft are used exclusively between
places in the other Contracting State,
h) "national" means:
1) natural person which has the nationality of a Contracting State
2) any legal person, partnership or other association
incorporated under the law of a Contracting
State,
in) "competent authority" means:
1) in Mauritius, the Mauritius Finance Minister responsible,
his authorised representative or the authority which
be required to be a competent authority for the purposes of this
agreements,
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,
j) "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 term "person with
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. The expression "person
resident in one Contracting State "includes, however,
not the person who is liable to tax in that State only for 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, is determined his residence on
the following ways:
(a)) he is considered to be resident only of the State in which he has a dwelling
permanently available to him. If he has a
such property in both States, he shall be deemed to be a resident only in the
State with which his personal and economic relations are
the strongest (Centre of life interests),
(b)) if it cannot be settled in the State he has Center for
their living interests or if he's not in either State have
a dwelling that is permanently available to him, shall be deemed to
he be a resident only of the State where he usually resides,
(c)) if he usually resides in both States, or if he
not reside permanently in any of them, he shall be deemed to be a resident
only in the State of 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
What a business is wholly or partly carried on.
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 of
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 shall be deemed to
the term "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 to) stock in trade solely
for working or processing by another company
merchandise,
d) holding of fixed place of business
exclusively for the purchase of goods or obtaining information
for 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 that an enterprise of a Contracting
State carries on in the other Contracting State, if the project
conducted in conjunction with the company's delivery of machines or
equipment,
g) holding of fixed place of business
exclusively for combining activities listed in (a)) to
f) above, provided that all the activities
conducted from the permanent place of business in
because of this combination is of a preparatory or auxiliary
art.
5. If a person who is not an independent representative
at which point 6 applies – and works for a company, as well as in
a Contracting State and which are regularly using
authority to conclude contracts in the name of company, company is considered –
Notwithstanding the provisions of paragraphs 1 and 2 to have fixed
place of business in that State in respect of any activities which
the person is driving for the company. However, this does not apply, if the
the activities of such person are limited to that
set out in paragraph 4 and which, if it was done from a permanent
place of business, would not make this
fixed place of business to the permanent 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
others.
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 State, may
be taxed in that other State.
2. The term "immovable property" has the meaning the term has
According to the legislation of the Contracting State in which the property
is located. However, the term always includes accessories
immovable property, the living and the dead furniture in agriculture and
forestry, rights to which the provisions of private law
If immovable property apply, buildings, tenancies of immovable
property, and the right of 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 apply on income acquired
through immediate use, through rental or other
use of immovable property.
4. the provisions of paragraphs 1 and 3 shall also apply to income
of 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 enterprise
carries on business in the other Contracting State from where
permanent establishment situated. If the enterprise carries on business just now
specified manner, the company's income is taxed in the other
the 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,
If it was a standalone company, which is operated by
the same or similar nature under the same or similar conditions
and independently completed the business with the undertaking to which the
establishment belongs.
3. In determining permanent establishment income deduction is allowed
for expenses incurred for the permanent establishment, including
included expenses for management and General
management, whether the expenditure incurred 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 the permanent establishment by the same procedure
from year to year, unless good and sufficient reasons causing the
other things.
6. Included in income by operating income which are dealt with in particular in
other articles of this agreement, the provisions of these
articles of the rules contained in 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. For the purposes of this article includes the phrase
"the use by ships or aircraft of a company:
1) charter or rental of ships or aircraft on so-called
bare boat basis, and
2) the rental of containers and related equipment,
provided that such charter or rental is of
secondary importance, in relation to the company's use
of ships or aircraft in international traffic.
3. the provisions of paragraph 1 shall apply to income acquired
of the air transport Consortium Scandinavian Airlines System (SAS) but
only in the case of that part of the income corresponding to the proportion
of the Consortium held by SAS Sweden AB, the Swedish
shareholder in SAS.
4. the provisions of paragraph 1 shall also apply to income
acquired through participation in a pool, a joint business
or an international operating agency.
Article 9
Companies with associated enterprises
1. In cases where the
a) an enterprise of a Contracting State, either directly or indirectly
participate in the management or control of a company in the other
Contracting State or owns part of the company capital,
or
(b)) the same person participates directly or indirectly in the management,
or control of an enterprise of a Contracting State
as an enterprise of the other Contracting State or own
part in 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 independent
companies, receives all the income, that without such conditions would have
added one company but because of the conditions in
ask not this company, is included in this business
income and taxed accordingly.
2. In cases where one Contracting State in the income of a corporation in this
State include – and taxes accordingly –
income, for which an enterprise of the other Contracting
State is taxed in the other State, and it thus
ancillary income is that which would have been companies in
the first State on the terms agreed between
the enterprises had been those which would have been agreed between the
independent enterprises, then that other State conduct
proper adjustment of the amount of tax imposed on the income
there. When such adjustments are complied with the other 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 in which the company
paying the dividends is a resident, according to the law of that
State, but if the beneficial owner of the dividends is a resident of
the other Contracting State, the tax shall not exceed 15
per cent of the gross amount of the dividends. Such dividend shall
However, be exempt from taxation in the State of
the company paying the dividends is a resident, if the
entitled to dividends is a company (with the exception of
a partnership) which holds at least 10 per cent of the distributing
the company's voting power. The provisions of this paragraph shall not affect
the company's taxation of the gain of the dividend
paid.
3. The term "dividends" is understood in this article income by
shares or other rights, not being debt-claims, with
right to share in profits, as well as income from other investments in companies
who, under the law of the State in which the distributing company
is resident for tax purposes shall be treated in the same way as
income from shares.
4. The provisions of paragraphs 1 and 2 shall not apply if the
entitled to the dividends is a resident of a Contracting State
and carries on business in the other Contracting State, where the
the company paying the dividends is a resident, from where located
permanent establishment, and the proportion due to the dividend payment
paid owns truly connected with the permanent establishment. In
such cases shall apply 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 not distributed profits take off
a tax that is paid on the company's undistributed profits, even if
the dividend or the undistributed profits wholly or partly
consists of income arising in that other State.
Article 11
Interest rate
1. interest, stemming from a Contracting State and which
paid to a resident of the other Contracting
State, shall be taxable only in that other State if the person concerned
is entitled to the interest.
2. The term "interest" for the purposes of this article the income of
each kind of claim, whether secured by mortgage
in immovable property or not, and whether it entails the right to
interest in the debtor's profits or not. The term refers to the particular
income from securities issued by State and
bonds or debentures, including premiums and
profits pertaining to such securities, bonds
or debentures. Penalty for late payment is considered
not that interest for the purposes of this article.
3. the provisions of paragraph 1 shall not apply if the beneficial
the interest rate is a resident of a Contracting State and carries on
on business in the other Contracting State from which the interest
derived from the permanent establishment situated there, and the claim for
the interest rate paid owns actual relation to the Permanent
establishment. In such cases, apply the provisions of article
7.
4. where by reason of a special relationship between the payer and the
the beneficial owner of the interest or between both of them and other
person the amount of the interest, having regard to the debt claim for which
the interest is paid, exceeds the amount which would have been agreed
between the payer and the beneficial owner of the interest on 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 of
This agreement.
Article 12
Royalty
1. Royalty, as derived from a Contracting State and which
be paid to the person who is a resident of the other Contracting
State, shall be taxable only in that other State if the person concerned
are entitled to the royalty.
2. The term "royalties" in this article, of course, every kind of
payments received as compensation for the use of, or
for the right to use copyright to literary, artistic
or scientific work, including cinematograph films and
films or tapes for radio or television broadcasting,
patent, trade mark, design or model, plan, secret
recipe or secret manufacturing process, or for information about
experience knowledge of industrial, commercial or scientific
nature. 3. the provisions of paragraph 1 shall not apply if the
are 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, as well as the
right or property in respect of which the royalties are paid is the owner
effectively connected with the permanent establishment. In such a case
apply article 7.
4. where by reason of a special relationship between the payer and the
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 royalties are payable,
exceeds the amount which would have been agreed between the payer
and the person entitled to the royalty for such relations not
exist, the provisions of this article shall apply only to
the latter amount. In such a case the taxable surplus amount
According to the law of each Contracting State with
observance of the other provisions of 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, or because of the disposal of shares in a company whose
assets consists mainly of such property, 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 the
a Contracting State has in the other Contracting State,
may be taxed in that other State. The same applies to the profit of
alienation of such a permanent establishment (alone or
together with the whole enterprise).
3. Profit as a resident of a 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
apply in respect of profits acquired by the air transport Consortium
Scandinavian Airlines System (SAS), but only in the case of the
part of the profits as corresponds to the participation in the Consortium held
SAS Sweden AB, the Swedish partner of SAS.
4. Gains from the alienation of property other than that
referred to in paragraphs 1, 2 and 3 shall be taxable only in the
Contracting State of which the alienator is a resident.
5. Profit, due to the disposal of assets, which are acquired by
a natural person who has been domiciled in a Contracting State
and a resident of the other Contracting State shall, without
by way of derogation from paragraph 4 – is taxed in the
first State if the transfer of the asset occurs at
any time during the 10 years immediately after the
date on which the person ceased to be a resident of the first-mentioned
State.
Article 14
Income from employment
1. the provisions of articles 15, 17 and 18 give rise
other, taxable wages and other similar remuneration paid by person
resident in one Contracting State receives due
employment, only in that State unless the work is carried out in
the other Contracting State. If the work is performed in this
other State, compensation received for work are 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
time periods that in total not exceeding 183 days during a
twelve-month period commencing or ending in the
the tax year in question, and
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 of
a Contracting State may be taxed in that State, if a person
resident in Sweden receives remuneration for work performed
on board the aircraft used in international transport of
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 of the
Board of the company resident 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 artiste, or a musician,
or as athletes, 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
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
Payments which a student or business apprentice who is or was
immediately before visiting a Contracting State a resident of
the other Contracting State and who is present in the first-
mentioned State solely for the purpose of his education or
training receives for the purpose of his maintenance, education
or training shall not be taxed in that State, provided that
such payments arise from sources outside that State.
Article 20
Other income
1. Items of income 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
Re-establishment. In such case 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. In the case of Mauritius, double taxation shall be
eliminated as follows:
(a) Where a resident of Mauritius derives income from Sweden
the amount of tax on that income payable in Sweden in
accordance with the provisions of this Agreement may be
credited against the Mauritius tax imposed on that resident.
(b) Where a company which is a resident of Canada pays a
dividend to a resident of Mauritius who controls, directly or
indirectly, at least
5 per cent of the capital of the company paying the dividend,
the credit shall take into account (in addition to any Swedish
tax for which credit may be allowed under the provisions of
subparagraph (a) of this paragraph) the Swedish tax payable by
the first-mentioned company in respect of the profits out of
which such dividend is paid.
Provided that any credit allowed under subparagraphs (a) and
(b) shall not exceed the Mauritius tax (as computed before
allowing any such credit), which is appropriate to the profits
or income derived from sources within Canada.
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 Mauritius and in accordance with the provisions of this
Convention may be taxed in Mauritius, 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 Mauritius
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 Mauritius, Sweden may, when determining the
graduated rate of Swedish tax, take into account the income
which shall be taxable only in Mauritius.
(c) Notwithstanding the provisions of sub-paragraph (a) of this
paragraph, dividends paid by a company which is a resident of
Mauritius 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 Mauritius, Sweden shall allow as a deduction from the tax on
the capital of that resident an amount equal to the capital tax
paid in Mauritius. 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 Mauritius.
2. In cases where the income through personal activities as an artist
or sport enthusiasts conducts as such do not accrue
artist or sportutövaren yourself without the other person, 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 shall not apply to
income, as a performer 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 of the
the other Contracting State, may be taxed in the
first-mentioned Contracting State.
2. The term "annuity" means a prescribed amount, which
be 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 give effect to these
However, payments made as remuneration for fully answering
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 physical
person because of 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 work is performed in
that other State and the person concerned is resident in that 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, one of its
political subdivisions or local authorities.
Article 19
Students
A student or trainee who is, or immediately before
stayed in a Contracting State a resident of the other
Contracting State and residing in the first State
exclusively for their education or training, is not taxed
in this State for the amount that he receives for his living,
their education or training, of the amounts derived from the source
outside this State.
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 the origin of income
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 and carries on business in the other Contracting State
from where the permanent establishment situated, as well as the right or
property in respect of which the income is paid owns real
connected with the permanent establishment. In such a case be applied
the provisions of article 7.
Article 21
Fortune
1. Fortune consisting of such immovable property referred to in
Article 6, any person resident in one Contracting State
holds and which is situated in the other Contracting State
may be taxed in that other State. 2. Fortune
consisting of movable property forming part of the business assets
in the permanent establishment which an enterprise of a Contracting State
has in the other Contracting State, may be taxed in that
other State.
3. wealth consisting of ship and aircraft used in the
international traffic by an enterprise of a Contracting State
and of movable property that is 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. regarding Mauritius double taxation shall be avoided in
the following ways:
a) where a resident of Mauritius receives income from
Sweden, the tax on income which, in accordance with this
contracts in Sweden, be offset against income tax that the person
paid in Mauritius.
b) where a company established in Sweden pays dividends to a
resident of Mauritius which controls, directly or
indirectly, at least 5% of the company capital,
should be taken into account in the settlement (except such Swedish tax for
the tax credit is to be given under paragraph (a)) above) the Swedish
tax paid on the profits out of which the dividend
paid.
Settlement amount referred to in paragraphs (a) and (b) above))
should not, however, exceed the Mauritian tax
(calculated without such deduction) charged on the income
derived from Sweden.
2. in the case of Sweden, double taxation shall be avoided in
the following ways:
a) where a resident of Sweden acquires income according to
Mauritian legislation and in accordance with the provisions of
This agreement may be taxed in Mauritius, Sweden – with
subject to the provisions of Swedish legislation concerning
deduction of foreign taxes (even in the version in the future
can get through to change without the general principle set out
This change) – from the Swedish tax on income offset a
the Mauritian tax paid on
income.
b) where a resident of Sweden receives income in
accordance with this Agreement shall be taxable only in Mauritius,
Sweden, in determining the tax rate for the Swedish
progressive tax, take into account the income which shall be taxable only in
Mauritius.
c) Notwithstanding the provisions of paragraph (a)) above is dividend
from a company resident in Mauritius to resident companies
Sweden exempt from Swedish tax according to the provisions of
the Swedish exemption for dividends paid to
Swedish companies by companies abroad.
(d)) where a resident of Sweden owns capital,
in accordance with the provisions of this agreement may be taxed in Mauritius,
to Sweden from the tax on that person's fortune set off
an amount equal to the capital tax paid in
Mauritius. Settlement amount shall not, however, exceed the
part of the Swedish wealth tax, calculated without such
settlement, charged on the fortune that may be taxed in the
Mauritius.
Article 23
Prohibition of discrimination
1. nationals of a Contracting State shall not, in the second
Contracting State be subject to taxation or
coherent demands that are of a different kind or more onerous than
the taxation and related requirements as nationals of
the other State under the same circumstances are or may be
subject to. Notwithstanding the provisions of article 1
This provision also applies to any person who is not domiciled
of 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, shall
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 to cause
the obligation of a Contracting State to grant to individuals with
resident in the other Contracting State such personal
deduction for tax purposes, such exemption or
tax reduction on the basis 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 terms and conditions
as payment to a resident of the first State.
Similarly, debt as a company of a Contracting State has
to a resident of the other Contracting State
deductible in determining such taxable
fortune on the same basis as liability to a resident
in 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
Mutual agreement procedure
1. If a person believes that a Contracting State or both
Contracting States took measures to 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
Unable to achieve a satisfactory solution,
authority to resolve the matter by mutual agreement
with the competent authority of the other Contracting State
in order to avoid taxation which is contrary to the agreement.
Agreement is carried out without prejudice
time limits in the domestic law of the Contracting States.
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 paragraphs.
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, 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. The 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 legislation of the
This State and shall be disclosed only to persons or authorities
(including courts and administrative bodies)
sets, receives or collects the taxes referred to in
paragraph 1 or dealing with prosecution or appeal in respect of
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
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 State,
c) supply information which would disclose any trade secret,
industrial, commercial or professional secret, or in
trade used the process or information,
the surrender would be contrary to ordre public considerations (
public).
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 of paragraph 3, but
This does not mean the right of a Contracting State to refuse
provide information solely because this State has not
any 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 trustee
or because the information concerning the ownership of a person.
Article 26
Limitation of benefits
Notwithstanding other provisions of this agreement, if
a) company resident in one Contracting State acquires its
income primarily from other States
1) from activities such as financial services or
shipping, 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 from 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, they shall
provisions of this agreement which allow for derogation from or
reduction of a tax does not apply to income that such a company
acquires nor on dividend paid by such
companies.
Article 27
Diplomatic representatives and consular officials
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 notify the
each other when the measures taken under the respective State
legislation is required in order for this agreement to enter into force.
2. the agreement shall enter into force on the thirtieth day following
the last of these notifications have been received and shall
then apply
1) in respect of withholding taxes, on amounts paid or
tillgodoförs on 1 January of the year immediately after the
date of entry into force of the agreement or later,
2) in respect of other taxes on income, and taxes on
Fortune, on tax for taxation years that begin
on 1 January of the year immediately following the date of
the agreement enters into force or later. 3. The agreement between the
The Swedish Government and the Government of Mauritius to avoid
of double taxation and the prevention of fiscal evasion with respect to taxes
on income and capital gains, signed on 23
April 1992 (the 1992 Agreement) shall cease with the entry into force
of this agreement. The provisions of the 1992 agreement, however,
continue to apply until the provisions of this agreement,
in accordance with the provisions of paragraph 2 of this article, start
applied.
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
1) in respect of withholding taxes, on amounts paid or
tillgodoförs the
1 January of the year immediately following the end of
the six-month period or later,
2) in respect of other taxes on income, and taxes on
Fortune, on the tax for the tax year that
beginning on January 1 of the year immediately following the end
of the six-month period or later.
In witness whereof the undersigned, being duly
authorised, have signed this agreement.
Done at Paris on 1 december 2011, in duplicate in the
English language.
For the Government of the Kingdom of Sweden
Gunnar Lund
The Government of the Republic of Mauritius
Jacques Chasteau de Balyon
Protocol
At the signing of the agreement between the Kingdom of Sweden and
The Republic of Mauritius for the avoidance of double taxation and
Prevention of tax evasion with respect to taxes on income and
at Fortune, has the Contracting States have agreed
the following provisions, which shall form an integral part of the
Agreement: in the case of article 26, it is agreed
(a)) that the provisions of the said article apply to income of,
and dividends from, a company
1) are entitled to preferential treatment with regard to settlement
of foreign tax according to the provisions of paragraph 8 (3)
Mauritius Income Tax (Foreign Tax Credit) Regulations 1996,
or
2) referred to in section 73A of the Income Tax Act 1995 in Mauritius, or
3) covered by a law that is essentially similar to the laws
as mentioned in 1) or 2) above and imposed after the date of
the signing of this agreement, and (b)) that the expression
"financial services" includes the banking, financial and
insurance, asset management,
storage services, distribution of financial products,
brokerage, management of pensions and retirement benefits as well as
liquidity management.
In witness whereof the undersigned, being duly
authorised, have signed this Protocol.
Done at Paris on 1 december 2011, in duplicate in the
English language.
For the Government of the Kingdom of Sweden
Gunnar Lund
The Government of the Republic of Mauritius
Jacques Chasteau de Balyon