Law (2009:1285) If Agreement Between Sweden And The Netherlands In Respect Of The Netherlands Antilles To Promote Economic Relations

Original Language Title: Lag (2009:1285) om avtal mellan Sverige och Nederländerna såvitt avser Nederländska Antillerna för att främja ekonomiska förbindelser

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Read the untranslated law here: http://rkrattsbaser.gov.se/sfst?bet=2009:1285

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

Netherlands in respect of the Netherlands Antilles to

promote economic relations signed on 10

September 2009 to apply that law in this country. The agreement is

drafted in English and appears 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



2009:1285



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 THE NETHERLANDS ANTILLES, TO

PROMOTE ECONOMIC RELATIONS



Whereas the Kingdom of Sweden and the Kingdom of the

Netherlands, in respect of the Netherlands Antilles, ("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 the Netherlands Antilles:



(i) the income tax (inkomstenbelasting);



(ii) the profit tax (winstbelasting); and



(iii) the surtaxes on the income and profit tax (opcenten op

the income – a winstbelasting);



(hereinafter referred to as "Netherlands Antilles 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 the Netherlands Antilles, 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 "the Netherlands Antilles" means that part of

the Kingdom of the Netherlands that is situated in the

Caribbean Sea and consisting of the Territories of Iceland

Bonaire, Curaçao, Saba, St Eustatius and St Maarten (Dutch

party) including the territorial waters thereof and the parties

of the seabed homepage and its subsoil under the Caribbean Sea over

which the Kingdom of the Netherlands has sovereign rights in

accordance with international law but excluding the party

thereof relating to 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

authorized representative or the authority which is

designated as a competent authority for the purposes of this

Agreement;



(ii) in the case of the Netherlands Antilles, the Minister of

Finance or his authorized representative.



2. As regards the application of the 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 the 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 the Netherlands

Antilles ' 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 terms "company resident in Sweden" and

"company resident in the Netherlands Antilles" 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 the Netherlands

Antilles which under



the laws of the Netherlands Antilles may be taxed in the

Netherlands Antilles, Sweden shall allow-subject to the

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 Netherlands

Antilles tax paid in respect of such income. The term ' the

Netherlands Antilles tax paid "shall be deemed to include the

Netherlands Antilles tax which would have been paid, but for

any time-limited reduction or exemption of tax granted under

incentive provisions contained in the Netherlands Antilles

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 the Netherlands

Antilles.



2. Where a company resident in Sweden directly holds shares

representing 100 per cent of the voting power in a company

resident in the Netherlands Antilles, Canada 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 the Netherlands

Antilles.



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;



(b) tourism (including restaurants and hotels);



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

installation project;



(d) oil and gas activities and energy production;



(e) mining;



(f) agriculture; and



(g) the installation, operation or maintenance of fixed or

mobile telecommunication systems.



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

Netherlands Antilles in the activities listed in the

preceding paragraph remains subject to the domestic

legislation in force in the Netherlands Antilles.



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 the 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 the 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 the

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. The 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 the Netherlands Antilles for the Exchange of

Information with respect to Taxes. Notwithstanding para-graph

1, this Agreement shall only have effect when the Agreement

signed on September 10, 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 the

The agreement, through diplomatic channels, by giving written

notice of termination at least six months before the end of

any calendar year. In such event, the 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 the

Netherlands Antilles, 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 the

Netherlands Antilles



Ersilia de Lannooy



(Translation)



AGREEMENT BETWEEN THE KINGDOM OF SWEDEN AND THE KINGDOM OF

THE NETHERLANDS IN RESPECT OF THE NETHERLANDS ANTILLES TO

PROMOTE ECONOMIC RELATIONS



Then the Kingdom of Sweden and the Kingdom of the Netherlands

in respect of the Netherlands Antilles ("the Contracting

the parties ") signed an agreement for the exchange of information

tax liens,



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



the Contracting Parties have agreed as follows:



Article 1



Taxes covered by the agreement



1. The taxes covered by the agreement are:



(a)) of the Netherlands Antilles:



1) income tax



2) gains tax, and



3) additional tax on income and profit,



(in the following referred to as "tax in the Netherlands Antilles"),



b) in Sweden: the State income tax (referred to below as the "Swedish

tax ").



2. the agreement also apply to taxes for the same or essentially similar kind,

that after the signing of the agreement will be charged in addition to or in place of the

the taxes referred to in paragraph 1. The competent authorities of the Contracting Parties shall

notify each other of substantial changes that have been made in their respective

tax legislation.



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 the Netherlands Antilles or the Kingdom of

Sweden, depending on the 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) "Netherlands Antilles" refers to the part of the Kingdom of

Netherlands located in the Caribbean Sea and consists of

territories of Bonaire, Curaçao, Saba, St. Eustatius, and St.

Maarten (the part that belongs to the Netherlands) including

the accompanying waters and the part of the Caribbean

the seabed and its subsoil, over which the Kingdom of

Netherlands exercises sovereign rights, in compliance

with international law, with the exception of the part belonging to the

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 the Netherlands Antilles, the Minister of finance 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 Dutch

Antilles "each company according to the laws of that

party is liable to tax there because of domicil, domicile, place

for management or other similar circumstances.

The expressions "company resident in Sweden" and "companies with

established in the Netherlands Antilles "does not include companies that

is subject to tax in that 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



The Elimination of double taxation



1. where a company established in Sweden receives income

attributable to the permanent establishment in the Netherlands Antilles

who, under the law of

The Netherlands Antilles are taxable in Dutch

Antilles, Sweden – with regard to the provisions of

Swedish legislation relating to the deduction of foreign taxes

(also in the version they now can get through to change without

that the general principle as stated this change) – from the

Swedish tax on income offset an amount equivalent

the income tax paid in the Netherlands Antilles.

The expression "the tax paid in the Netherlands Antilles"

include tax in the Netherlands Antilles which would have

paid if not time-limited reduction of or exemption

from tax granted under provisions for tax breaks in

legislation in the Netherlands Antilles is intended to promote

economic development to the extent that the reduction

or exemption granted in respect of income from any of the

in article 5 the specified activities and provided

the activities have been conducted in the Netherlands Antilles.



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 established in the Netherlands Antilles, the dividend

from the latter is exempted from taxation in the

Sweden to 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

This latter company is derived from any of the article 5

specified activities and that these activities have been conducted in

Netherlands Antilles.



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,



b) tourism (including restaurant and hotel business),



c) place for building, construction, Assembly or

installation activities,



d) oil and gas operations, as well as energy production,



e) mining,



f) farming, and



g) installation, operation or maintenance of stationary or

mobile telecommunications system.



2. the right of Swedish companies in Netherlands Antilles

conduct activities listed in the preceding paragraph is also determined

continue according to the internal law in force in

Netherlands Antilles.



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 the agreement.



2. If the competent authority finds the complaint justified,

but cannot achieve a satisfactory

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

agreement with the competent authority of the other

Contracting 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 the 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

refers to the Netherlands Antilles on the exchange of information

tax liens. Notwithstanding paragraph 1, the contract only

apply during the time when the agreement signed on 10 september

2009 on the exchange of information relating to taxes between the

Contracting Parties shall apply.



Article 8



Termination



1. This agreement shall remain in force until terminated

of a Contracting Party. Each Contracting Party may

to terminate the agreement through diplomatic channels 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 the Netherlands

Antilles, concerning the exchange of information relating to taxes by

written notification of cancellation by diplomatic means

ceases to be valid.



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 the Netherlands

Antilles



Ersilia de Lannooy