Law (2009:1288) If Agreement Between Sweden And The Netherlands With Regard To Aruba To Promote Economic Relations

Original Language Title: Lag (2009:1288) om avtal mellan Sverige och Nederländerna såvitt avser Aruba för att främja ekonomiska förbindelser

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Read the untranslated law here: http://rkrattsbaser.gov.se/sfst?bet=2009:1288

Article 1 the agreement between the Kingdom of Sweden and the Kingdom of

Netherlands with respect to Aruba to promote economic

relations that was signed on september 10, 2009

apply that law in this country. The agreement is drawn up in English

and set out in annex to this law.



section 2 of the tax rules of the agreement shall apply only to the

some of these causes restriction of the tax liability in

Sweden that would otherwise exist.



Transitional provisions



2009:1288



1. this law shall enter into force on the day the Government determines.



2. this law shall apply to the taxes levied for

tax year that begins on 1 January of the year following

immediately following the year in which the law comes into force or later.



Annex



AGREEMENT BETWEEN THE KINGDOM OF SWEDEN AND THE KINGDOM OF

THE NETHERLANDS IN RESPECT OF ARUBA TO PROMOTE ECONOMIC

RELATIONAL



Whereas the Kingdom of Sweden and the Kingdom of the

Netherlands in respect of Aruba ("the Contracting Parties")

have signed an Agreement for the Exchange of Information with

respect to Taxes;



- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -



Now, therefore, the Contracting Parties have agreed as

follows:



Article 1



Taxes covered



1. The taxes to which this Agreement shall apply are:



(a) in Aruba: the profit tax (the winstbelasting) (hereinafter

referred to as "Aruban tax");



(b) in Singapore: the national income tax (State

income tax) (hereinafter referred to as "Swedish tax").



2. The Agreement shall apply also to any identical or

substantially similar taxes that are imposed after the date

of signature of the Agreement in addition to, or in place of,

the taxes referred to in paragraph 1. The competent

authorities of the Contracting Parties shall notify each

other of any significant changes which have been made in

their respective taxation laws.



Article 2



Definition



1. For the purposes of this Agreement, unless the context

otherwise requires:



(a) the term "Contracting Party" means the Kingdom of the

Netherlands in respect of Aruba or the Kingdom of Sweden as

the context requires;



(b) the term "Sweden" means the Kingdom of Sweden and, when

used in a geographical sense, includes the national

territory, the territorial sea of Canada as well as other

the maritime areas over which Sweden in accordance with

international law exercises sovereign rights or jurisdiction;



(c) the term "Aruba" means that part of the Kingdom of the

Netherlands that is situated in the Caribbean area and

consisting of the Iceland of Aruba;



(d) the term "company" means any body corporate or any entity

that is treated as a body corporate for tax purposes;



(e) the term "competent authority" means:



(i) in the case of Canada, the Minister of Finance, his

authorised representative or the authority which is

designated as a competent authority for the purposes of this

Agreement;



(ii) in the case of Aruba, the Minister of Finance and

Economic Affairs or his authorised representative.



2. As regards the application of this Agreement at any time

by a Contracting Party, 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 Party for the

purposes of the taxes to which this Agreement applies, any

meaning under the applicable tax laws of that Party

prevailing over a meaning given to the term under other laws

of that Party.



Article 3



Resident



1. For the purposes of this Agreement, the terms "company

resident in Sweden "and" company resident in Aruba "mean any

company, which under the laws of that Party, is liable to tax

therein by reason of its domicile, residence, place of

management or any other criterion of a similar nature. The

the terms "company resident in Sweden" and "company resident in

Aruba "do not include any company which is liable to tax in

that Party in respect only of income from sources in that

Party.



2. Where by reason of the provisions of paragraph 1 a company

is a resident of both Contracting Parties, the competent

authorities of the Contracting Parties shall endeavour to

settle the question by mutual agreement.



Article 4



Elimination of double taxation



1. Where a company resident in Sweden derives income

attributable to a permanent establishment in Aruba which

under the laws of Aruba may be taxed in Aruba, Canada 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 Aruban tax paid in respect of such income. The term

"Aruban tax paid" shall be deemed to include Aruban tax which

would have been paid, but for any time-limited reduction or

exemption of tax granted under incentive provisions contained

in Aruban laws designed to promote economic development to

the extent that such reduction or exemption is granted for

income derived from the activities mentioned in Article 5 and

provided that the activities have been carried out in Aruba.



2. When a company resident in Sweden directly holds shares

representing 100 per cent of the voting power in a company

resident in Aruba, Thailand shall exempt from tax dividends

distributed by the last-mentioned company to the extent that

the dividends would have been exempt under Swedish law if

both companies had been Swedish companies, and provided that

the profits of the last mentioned company are derived from

the activities listed in Article 5 and provided that the

activities have been carried out in Aruba.



3. The provisions of the second sentence of paragraph 1 and

of paragraph 2 shall only apply for the first ten years

during which this Agreement is effective. This period may be

extended by mutual agreement between the competent

authorities.



Article 5



Activities covered



1. Article 4 applies to the following activities (excluding

financial activities other than financial activities directly

incidental and ancillary to the listed activities):



(a) industrial and manufacturing activities, including

Assembly activities;



(b) tourism (including hotels);



(c) a building site or a construction, assembly or

installation project;



(d) aquaculture and agriculture;



(e) medical services;



(f) repair, maintenance or certification of ship and

aircraft; and



(g) oil and gas activities and energy production.



2. The right of any Swedish company to engage in Aruba in the

activities listed in the preceding paragraph remains subject

to the domestic legislation in force in Aruba.



Article 6



Mutual agreement procedure



1. Where a company considers that the actions of one or both

of the Contracting Parties result or will result for it in

taxation not in accordance with the provisions of this

Agreement, it may, irrespective of the remedies provided by

the domestic law of those Contracting Parties, present its

case to the competent authority of the Contracting Party of

which it is a resident. 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 this Agreement.



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 Party, with a view to the avoidance of taxation

which is not in accordance with this Agreement. Any agreement

reached shall be implemented notwithstanding any time limits

in the domestic law of the Contracting Parties.



3. The competent authorities of the Contracting Parties shall

endeavour to resolve by mutual agreement any difficulties or

doubts arising as to the interpretation or application of

This Agreement.



4. The competent authorities of the Contracting Parties may

communicate with each other directly for the purpose of

reaching an agreement in the sense of the preceding

paragraphs.



Article 7



Entry into force



1. This Agreement shall enter into force on the thirtieth day

After the later of the dates on which each of the Contracting

Parties has notified the other in writing, through the diplomatic

channels, that the internal procedures required by its law

have been complied with. This Agreement shall have effect on

taxes chargeable for any tax year beginning on or after the

first day of January of the year next following that in which

This Agreement enters into force.



2. This Agreement is supplementary to the Agreement between

the Kingdom of Sweden and the Kingdom of the Netherlands in

respect of Aruba for the Exchange of Information with respect

to Taxes. Notwithstanding paragraph 1, this Agreement shall

only have effect when the Agreement signed on 10 September

2009 for the Exchange of Information with respect to Taxes

between the Contracting Parties shall have effect.



Article 8



Termination



1. This Agreement shall remain in force until terminated by a

Contracting Party. Either Contracting Party may terminate

This Agreement, through diplomatic channels, by giving

written notice of termination at least six months before the

the end of any calendar year. In such event, this Agreement shall

cease to have effect 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.



2. Notwithstanding paragraph 1, this Agreement shall, on

receipt through diplomatic channels of written notice of

termination of the Agreement between the Kingdom of Sweden

and the Kingdom of the Netherlands in respect of Aruba for

the Exchange of Information with respect to Taxes, terminate


and cease to be effective on the day the Agreement for the

Exchange of Information with respect to Taxes between the

Contracting Parties terminates.



In witness whereof the undersigned, being duly authorised

thereto, have signed this Agreement.



Done at Paris, this 10th day of September 2009, in duplicate

in the English language.



For the Kingdom of Sweden



Per Holmström



For the Kingdom of the Netherlands in respect of Aruba



Nilo Swaen J.J.



(Translation)



AGREEMENT BETWEEN THE KINGDOM OF SWEDEN AND THE KINGDOM OF

NETHERLANDS WITH RESPECT TO ARUBA TO PROMOTE ECONOMIC

RELATIONS



Then the Kingdom of Sweden and the Kingdom of the Netherlands as far as

relates to Aruba ("the Contracting Parties") signed an

agreements for the exchange of information relating to taxes;



- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -



the Contracting Parties have agreed as follows:



Article 1



Taxes covered by the agreement



1. The taxes covered by the agreement are:



a) in Aruba: gains tax (referred to below as the "tax in

Aruba "),



b) in Sweden: the State income tax (in the following

known as "Swedish tax").



2. the agreement also applies to the taxes of the same or

mainly similar kind, as after the signing of the agreement

charged alongside or in place of, those referred to in paragraph 1

the taxes. The competent authorities of the Contracting Parties

shall notify each other of substantial changes that have been made in

their respective tax laws.



Article 2



Definitions



1. Unless the context gives rise to different, have at

the application of this agreement the following expressions below specified

importance:



a) "Contracting Party" means the Kingdom of the Netherlands

as regards Aruba or the Kingdom of Sweden, depending on

context,



b) "Sweden" means the Kingdom of Sweden and the includes, when

It is used in the geographical sense, the territory of Sweden,

Sweden's territorial sea and other maritime areas over which the

Sweden, in conformity with international law, exercises

sovereign rights or jurisdiction;



c) "Aruba" refers to the part of the Kingdom of the Netherlands that is

located in the Caribbean and consists of the island Aruba,



d) "company" means any legal person or any other that at

taxation is treated as a legal person,



e) "competent authority" means:



1) in the case of Sweden, the Minister of finance, his

authorised representative or the authority which contracted

to be a competent authority for the purposes of this agreement,



2) in the case of Aruba, the finance and economy Minister or

his authorised representative.



2. Where a Contracting Party applies the contract at any

time is deemed, except where the context is not causing the other,

any expression that is not defined in this agreement have the meanings

that statement has at this time according to the party's

legislation in respect of such taxes to which the agreement

applied and the importance of the phrase under the

the applicable tax laws of that party owns preference

in front of the meaning as the expression has, in other

legislation of that party.



Article 3



Resident



1. for the purposes of this agreement, the expressions "company

resident in Sweden "and" company resident in Aruba "

companies under the law of that Contracting Party

is the tributary there because of domicil, domicile, place of

management or other similar circumstances. The expressions

"company resident in Sweden" and "company resident in Aruba"

does not include companies that are subject to tax in this

Contracting Party only on income from sources in this

party.



(2) where a corporation as a result of the provisions of paragraph 1,

a resident of both Contracting Parties, the Contracting

the competent authorities of the parties resolve the issue by

mutual agreement.



Article 4



Elimination of dubbelbeskatning



1. where a company established in Sweden receives income

attributable to the permanent establishment in Aruba that according to

legislation in Aruba may be taxed in Aruba, Sweden –

having regard to the provisions of Swedish legislation

as regards the deduction of foreign taxes (even in the version

they now can get through to change without public

the policy listed here change) – from the Swedish tax on

earnings set off an amount equal to the tax on

income paid in Aruba. The expression "the tax

paid in Aruba "includes taxes in Aruba that would have

paid if not time-limited reduction of or exemption

from tax granted under provisions for tax breaks in

legislation in Aruba intended to promote economic development in

the extent that the reduction or exemption granted



2. If a resident company holding shares directly in Sweden

which corresponds to 100 per cent of the total number of votes in a

companies resident in Aruba, the dividend from the latter

the company is exempted from taxation in Sweden in the

extent that the dividends would have been exempt from

taxation under Swedish law if both companies had been

Swedish, and provided that the profits in the latter

companies originating from any of those specified in article 5

operations and that the operations have been conducted in Aruba.



3. the provisions of paragraph 1, second sentence, and paragraph 2

apply only during the first ten years during which this

Agreement shall apply. This period may be extended by mutual

agreement of the competent authorities.



Article 5



Activities covered by the agreement



1. Article 4 shall apply to the following activities (with the exception

for other financial activities other than those that are directly

subordinate and forms an integral part of the specified

activities):



a) industrial and manufacturing, including

Assembly operations,



b) tourism (including hotels),



c) place for building, construction, Assembly or

installation activities,



d) water and agriculture,



e) healthcare,



f) repair, maintenance, certification of ship and

aircraft, and



g) oil and gas operations, as well as energy production.



2. the right of Swedish companies that carry out activities in Aruba

as mentioned in the previous paragraph is determined to continue

According to the internal law in force in Aruba.



Article 6



Mutual agreement



1. If a company believes that a party or both Contracting

the Parties adopted measures which the company incurs or

will lead to taxation contrary to the provisions

in this agreement, it may, without prejudice to its right

to make use of the remedies contained in these

Contracting Party internal legal systems, present

matter to the competent authority of the Contracting Party

where the company is domiciled. The matter shall be submitted within three years

from the time the company learned about the measure that

given rise to taxation contrary to the provisions

in this agreement.



2. If the competent authority finds the complaint justified,

but cannot achieve a satisfactory

solution, the authority shall seek to resolve the matter by mutual

agreement with the competent authority of the other

Contracting Party for the purpose of avoiding taxation

contrary to the agreement. Agreement is implemented

Notwithstanding the time limits in the territories of the Contracting Parties

internal legislation.



3. The competent authorities of the Contracting Parties shall, by means of

mutual agreement, seek to determine or

doubts arising concerning the interpretation or

the application of this agreement.



4. The competent authorities of the Contracting Parties may take

in direct connection with each other in order to meet

agreement in the sense of the preceding paragraphs.



Article 7



Date of entry into force



1. This agreement shall enter into force on the thirtieth day following the

date of the last written notification – both of which

Contracting Parties by diplomatic means will leave when they

national measures required under each

party law – has been provided. The agreement shall apply to the

taxes levied for fiscal years beginning on

1 January of the year immediately following the year in which the agreement

enters into force, or later.



2. this agreement is complementary to the agreement between the

The Kingdom of Sweden and the Kingdom of the Netherlands as far as

concerning Aruba on the exchange of information relating to taxes. Without

by way of derogation from paragraph 1, the agreement apply only during the time when

contract signed on september 10, 2009 on the exchange of

information concerning the taxes between the Contracting

the parties are applicable.



Article 8



Termination



1. This agreement shall remain in force until terminated

of a Contracting Party. Each Contracting Party may

diplomatically terminate this agreement by

notice at least six months before the expiry of any

calendar year. In such event, this Agreement shall cease to have effect in

question about tax levied for fiscal years beginning on

1 January of the year immediately following the end of

the six-month period or later.



2. Notwithstanding paragraph 1, this Agreement shall cease to have effect

the date on which the agreement between the Kingdom of Sweden and

The Kingdom of the Netherlands in respect of Aruba on the exchange of

information regarding taxes, by written notice,

If cancellation by diplomatic means.



In witness whereof the undersigned, being

duly authorized, have signed this agreement.



Done at Paris on 10 september 2009 in duplicate in

English language.



For The Kingdom Of Sweden



Per Holmström




For the Kingdom of the Netherlands in respect of Aruba



Nilo Swaen J.J.