Law (2009:1127) If Agreement Between Sweden And Guernsey For The Avoidance Of Double Taxation Of Companies Using Ships Or Aircraft In International Traffic

Original Language Title: Lag (2009:1127) om avtal mellan Sverige och Guernsey för undvikande av dubbelbeskattning av företag som använder skepp eller luftfartyg i internationell trafik

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Read the untranslated law here: http://rkrattsbaser.gov.se/sfst?bet=2009:1127

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

avoidance of double taxation of companies using ships

or aircraft in international traffic signed

on October 28 2008 to apply that law in this country. The agreement

is written 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



2009:1127



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 STATES OF GUERNSEY FOR THE AVOIDANCE OF DOUBLE TAXATION ON ENTERPRISES OPERATING SHIPS OR AIRCRAFT IN INTERNATIONAL TRAFFIC



The Government of the Kingdom of Sweden and the States of Guernsey ("the Parties"), desiring to conclude an Agreement for the avoidance of double taxation on enterprises operating ships or aircraft in international traffic, have agreed as follows:



Article 1



Definition



1. For the purposes of this Agreement, unless the context otherwise requires:



(a) 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;



(b) the term "Guernsey" means Guernsey, Alderney and Herm, including the territorial sea adjacent to those islands, in accordance with international law;



(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 "resident of a Party" means any person, who, under the law of that Party is liable to tax therein by reason of his domicile, residence, place of management, place of incorporation or any other criterion of a similar nature;



(f) the term "enterprise of a Party means an enterprise carried on by a resident of a Party;



(g) the term "international traffic" means any transport by a ship or aircraft operated by an enterprise of a Party, except when the ship or aircraft is operated solely between places in the other Party;



(h) the term "income derived from the operation of ships or aircraft in international traffic" means revenues, gross receipts and profits derived from:



in) such operation of ships or aircraft for the transport of passengers or cargo;



II) the rental on a charter basis of ships or aircraft where the rental is ancillary to the operation of ships or aircraft in international traffic;



III) the sale of tickets or similar documents and the provision of services connected with such operation, either for the enterprise itself or for any other enterprise, where such sale of tickets or similar documents or provision of services is directly connected with or ancillary to the operation of ships or aircraft in international traffic;



(iv)) the use, maintenance or rental of containers (including trailers and related equipment for the transport of containers) used for the transport of goods or merchandise, where the use, maintenance or rental is directly connected with or ancillary to the operation of ships or aircraft in international traffic;



v) interest on funds deposited directly in connection with the operation of ships or aircraft in international traffic;



(i) the term "competent authority" means:



in) in the case of Guernsey, the Administrator of Income Tax or his delegate;



II) 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.



2. As regards the application of the Agreement at any time by a 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 2



Avoidance of double taxation



1. Income derived from the operation of ships or aircraft in international traffic by an enterprise of a Party shall be taxable only in that Party.



2. The provisions of paragraph 1 shall also apply to income derived by an enterprise of a Party from the participation in a pool, a joint business or an international operating agency.



Article 3



Mutual agreement procedure



1. Where a person considers that the actions of one or both of the Parties result or will result for him in taxation not in accordance with the provisions of this Agreement, he may, irrespective of the remedies provided by the domestic law of those Parties, present his case to the competent authority of the Party of which he 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 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 Parties.



3. The competent authorities of the 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 Parties may communicate with each other directly for the purpose of reaching an agreement in the sense of the preceding paragraphs.



Article 4



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 Parties has notified the other in writing that the 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 calendar year next following that in which this Agreement enters into force.



2. Notwithstanding paragraph 1, this Agreement shall only have effect when the Agreement signed on 28 October 2008 between the Kingdom of Sweden and the States of Guernsey for the exchange of information relating to tax matters shall have effect.



Article 5



Termination



1. This Agreement shall remain in force until terminated by either Party. Either Party may terminate the Agreement 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 calendar year next following the end of the six months period.



2. Notwithstanding paragraph 1, this Agreement will be terminated, without giving notice of termination, on the date of termination of the Agreement signed on 28 October 2008 between the Kingdom of Sweden and the States of Guernsey for the exchange of information relating to tax matters.



In witness whereof the undersigned being duly authorised thereto have signed this Agreement.



Done at Helsinki, this 28th day of October 2008, in duplicate in the English language.



For the Government of the Kingdom of Sweden



Anders Borg



For the States of Guernsey



Lyndon Trott



(Translation)



AGREEMENT BETWEEN the KINGDOM of the NETHERLANDS and GUERNSEY for the AVOIDANCE of DOUBLE TAXATION of COMPANIES USING SHIPS or AIRCRAFT in international traffic



The Swedish Government and the Government of Guernsey (the "parties"), desiring to conclude an agreement for the avoidance of double taxation of companies using ships or aircraft in international traffic, have agreed as follows:



Article 1



Definitions



1. Unless the context gives rise to different, for the purposes of this agreement the following expressions the following meaning:



a) "Sweden" means the Kingdom of Sweden and the includes, when the expression is used in the geographic significance, Sweden's territory, territorial waters of Sweden and other maritime areas over which Sweden, in accordance with international law, exercises sovereign rights or jurisdiction;



b) "Guernsey" means Guernsey, Alderney and Herm, including the territorial sea adjacent to these islands in accordance with international law,



c) "person" includes a natural person, company or other association,



d) "company" means any legal person or any other that for tax purposes is treated as a legal person,



e) "resident of a party" means the person who, under the law of that party is liable to tax there because of domicil, residence, place of management, company formation or other similar circumstances,



f) "company of a party" means the business carried on by a resident of a party,



g) "international transport" means transport by ships or aircraft used by companies in a party, except when the ship or aircraft are used exclusively between places in the other party,



h) "income that is acquired through the use of the ship or


aircraft in international traffic "means revenues, gross receipts and profits acquired through:



1) such use of the ship or aircraft to transport passengers or goods,



2) rental on charterbasis of the ship or aircraft when the lease is incidental to the use of ships or aircraft in international traffic,



3) the sale of tickets or similar documents, and the provision of services in connection with such use, either for the company or for other company, when the sale of tickets or similar documents or the provision of services such has immediate connection with or is incidental to the use of ships or aircraft in international traffic,



4) the use, maintenance or rental of containers (including trailers and other equipment for the transport of containers) used for the transport of goods or merchandise, if the use, maintenance or rental directly associated with, or is incidental to the use of ships or aircraft in international traffic,



5) interest on deposited funds which are directly attributable to the use of ships or aircraft in international traffic,



in) "competent authority" means:



1) in Guernsey, the Administrator of Income Tax ", or his representative,



2) in Sweden, the Minister of finance or his authorised representative or the authority which has been assigned to be a competent authority for the purposes of this agreement.



2. When a party applies the contract at any time is deemed, unless the context otherwise raises, each expression that is not defined in the agreement have the same meaning as the expression has at that time under the law of that party in respect of such taxes to which the agreement applies and the importance that the term has under the applicable tax laws of that party take precedence over the significance of the expression have under other legislation of that party.



Article 2



Avoidance of double taxation



1. The revenue acquired through the use of ships or aircraft in international traffic by an enterprise of a party, shall be taxable only in that party.



2. the provisions of paragraph 1 shall also apply to income that a company in a party acquires through participation in a pool, a joint business or an international operating agency.



Article 3



The procedure for the mutual agreement



1. If a person believes that a party, or both parties acted as for him, causes or will result in taxation contrary to the provisions of this agreement, he may, without prejudice to his right to make use of the remedies in the domestic legal system, these parties submit the matter to the competent authority of the Contracting Party where he is resident. The thing to be presented within three years from the time the person in question had knowledge of the action giving rise to taxation contrary to the provisions of the agreement.



2. If the competent authority finds the complaint justified but are unable to achieve a satisfactory solution, the authority shall seek to determine the matter by mutual agreement with the competent authority of the other party in order to avoid taxation which is contrary to the agreement. Agreement is carried out without prejudice to the time limits in the domestic law of the parties.



3. the competent authorities of the Parties shall, by mutual agreement, seek to determine difficulty or doubt arising in respect of the interpretation or application of the agreement.



4. the competent authorities of the parties may enter into direct relations with each other in order to reach agreement in the sense of the preceding paragraphs.



Article 4



Date of entry into force



1. This agreement shall enter into force on the thirtieth day after the date of the last written notification – which the parties should leave when the measures were taken as required under their respective legislation, has been provided. The agreement shall apply to taxes levied for the fiscal year that begins on 1 January of the calendar year immediately following the year in which the agreement enters into force or later.



2. Notwithstanding paragraph 1, this Agreement shall apply only when the agreement between the Kingdom of Sweden and the Guernsey on the exchange of information in tax matters signed on 28 October 2008.



Article 5



Termination



1. this Agreement shall remain in force until terminated by either party. Either party may terminate the agreement by notification to that effect at least six months before the end of any calendar year. In the event of such termination, the agreement ceases to apply in respect of tax levied for the fiscal year that begins on 1 January of the calendar year immediately following the expiry of the six-month period or later.



2. Notwithstanding paragraph 1, this agreement ceases to apply, without termination, on the date of agreement between the Kingdom of Sweden and the Guernsey on the exchange of information in tax matters signed on 28 October 2008, expires.



In witness whereof the undersigned, being duly authorised, have signed this agreement.



Done at Helsinki on 28 October 2008, in duplicate in the English language.



For the Government of the Kingdom of Sweden



Anders Borg



For the Government of Guernsey



Lyndon Trott