Article 1 the agreement between the Kingdom of Sweden and the Guernsey for
avoidance of double taxation of natural persons
signed on October 28 2008 to apply that law here in
the country. The agreement is drawn up 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.
3 repealed by law (2011:1432).
Transitional provisions
2009:1126
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 INDIVIDUALS
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 individuals with
respect to taxes on income, have agreed as follows:
Article 1
Individuals covered
This Agreement shall apply to individuals who are residents
in one or both of the Parties.
Article 2
Taxes covered
1. The existing taxes to which the Agreement shall apply are:
(a) in the case of Guernsey: income tax
(hereinafter referred to as "Guernsey tax");
(b) in the case of Sweden:
(i) the national income tax (State income tax);
(ii) the income tax on non-residents (the Special
income tax for non-residents);
(iii) the income tax on non-resident artistes and athletes
(the Special income tax for non-resident artists
etc.); and
(iv) the municipal income tax (municipal 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 existing taxes. The competent authorities of the Parties
shall notify each other of any significant changes that have
been made in their taxation laws concerning individuals and
which may affect matters covered by the Agreement.
Article 3
General definition
1. For the purposes of this Agreement, unless the context
otherwise requires:
(a) the term "Guernsey" means Guernsey, Alderney and Herm,
including the territorial sea adjacent to those islands, in
accordance with international law;
(b) the term "Sweden" means the Kingdom of Sweden and, when
used in a geographical sense, includes the national
territory, the territorial sea of Canada as well as other
the maritime areas over which Sweden in accordance with
international law exercises sovereign rights or jurisdiction;
(c) the term "competent authority" means:
(i) 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;
(d) the term "enterprise" applies to the carrying on of any
business;
(e) 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.
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 4
Resident
1. For the purposes of this Agreement, the term "resident of
(a) "Party" means in respect of an individual any individual
the who, under the laws of that Party, is liable to tax therein
by reason of his domicile, residence or any other criterion
of a similar nature. This term, however, does not include an
individual who 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 an
individual is a resident in both Parties, then his status
shall be determined as follows:
(a) he shall be deemed to be a resident only of the Party in
which he has a permanent home available to him; If he has a
a permanent home available to him in both Parties, he shall be
deemed to be a resident only of the Party with which his
personal and economic relations are closer (centre of vital
interests);
(b) if the Party 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 Party, he shall be deemed to
be a resident only of the Party in which he has an habitual
abode;
(c) if he has an habitual abode in both Parties or in neither
of them, the competent authorities of the Parties shall
settle the question by mutual agreement.
Article 5
Income from employment
1. Subject to the provisions of Articles 6, 7 and 8,
salaries, wages and other similar remuneration, other than a
pension, derived by a resident of a Party in respect of an
employment shall be taxable only in that Party unless the
the employment is exercised in the other Party. If the employment
is so exercised, such remuneration as is derived therefrom
may be taxed in that other Party.
2. Notwithstanding the provisions of paragraph 1,
remuneration derived by a resident of a Party in respect of
an employment exercised in the other Party shall be taxable
only in the first-mentioned Party if:
(a) the recipient is present in the other Party for a period
or periods not exceeding in the aggregate 183 days in any
the 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 Party; and
(c) the remuneration is not borne by a fixed place of
business through which the business is wholly or partly
carried on which the employer has in the other Party.
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 Party, may be taxed in that Party.
Where a resident of Sweden derives remuneration in respect of
an employment exercised aboard an aircraft operated in
international traffic by the air transport consortium
Scandinavian Airlines System (SAS), such remuneration shall
be taxable only in Malaysia. Where a resident of Guernsey
derives remuneration in respect of an employment exercised
aboard an aircraft operated in international traffic by
Aurigny Air Services, such remuneration shall be taxable only
in Guernsey.
Article 6
Directors ' fees
Directors ' fees and other similar payments derived by a
resident of a Party in his capacity as a member of the board
of directors of a company which is a resident of the other
Party may be taxed in that other Party.
Article 7
Artistes and sportsmen
1. Income derived by a resident of a Party "as an entertainer,
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 Party, may be taxed
in that other Party.
2. Where income in respect of personal activities exercised
by an entertainer or a sportsman in his capacity as such
accrues not to the entertainer or sportsman himself but to
another individual or legal entity, that income may be taxed
in the Party in which the activities of the entertainer or
sportsman are exercised.
Article 8
Government service
1. (a) Salaries, wages and other similar remuneration, other
than a pension, paid by a Party or a political subdivision or
a statutory body or a local authority thereof to an individual
in respect of services rendered to that Party or subdivision or
body or authority shall be taxable only in
that Party.
(b) However, such salaries, wages and other similar
remuneration shall be taxable only in the other Party if the
services are rendered in that Party and the individual is a
the resident of that Party who did not become a resident of that
Party solely for the purpose of rendering the services.
2. The provisions of Articles 5, 6 and 7 shall apply to
salaries, wages and other similar remuneration in respect of
services rendered in connection with a business carried on by
a Party or a political subdivision or a statutory body or a
local authority thereof.
Article 9
The student's
Payments which a student or business apprentice who is or was
immediately before visiting a Party a resident of the other
Party and who is present in the first-mentioned Party solely
for the purpose of his education or training receives for the
the purpose of his maintenance, education or training shall not
be taxed in that Party, provided that such payments arise
from sources outside that Party.
Article 10
Elimination of double taxation
1. In Guernsey double taxation shall be avoided as follows:
Subject to the provisions of the laws of Guernsey regarding
the allowance as a credit against tax payable of Guernsey tax
in a territory outside Guernsey (which shall not affect the
the general principle hereof);
(i) subject to the provisions of sub-paragraph (iii), where (a)
resident of Guernsey derives income which, in accordance with
the provisions of this Agreement, may be taxed in Sweden,
Guernsey shall allow as a deduction from the tax payable in
respect of that income, an amount equal to the income tax
paid in Sweden;
(ii) such deduction shall not, however, exceed that part of
the income tax, as computed before the deduction is given,
which is attributable to the income which may be taxed in
Sweden;
(iii) where a resident of Guernsey derives income which, in
accordance with the provisions of this Agreement shall be
taxable only in Sweden, Guernsey may include this income in
calculating the amount of tax on the remaining income of such
resident.
2. In Sweden, double taxation shall be avoided as follows:
(a) Where a resident of Sweden derives income which under the
laws of Guernsey and in accordance with the provisions of
This Agreement may be taxed in Guernsey, 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 tothe
Guernsey tax paid in respect of such income.
(b) Where a resident of Sweden derives income which, in
accordance with the provisions of this Agreement, shall be
taxable only in Guernsey, Sweden may, when determining the
graduated rate of Swedish tax, take into account the income
which shall be taxable only in Guernsey.
Article 11
Mutual agreement procedure
1. Where an individual 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 12
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.
2. The Agreement shall have effect:
(a) in Guernsey:
in respect of Guernsey tax, 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;
(b) in Sweden:
in respect of Swedish tax, 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.
3. Notwithstanding paragraph 2, 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 13
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
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 SWEDEN AND THE GUERNSEY FOR AVOIDANCE
OF DOUBLE TAXATION OF NATURAL PERSONS
The Government of the Kingdom of Sweden and the Government of Guernsey
("the parties"), desiring to conclude an agreement for the avoidance of
double taxation of natural persons with respect to taxes on
income, have agreed as follows:
Article 1
Natural persons to whom the agreement applies
This agreement shall apply to the natural persons who have their habitual residence in
a party, or both parties.
Article 2
Taxes covered by the agreement
1. The currently outgoing taxes to which this agreement
applied is:
a) in Guernsey: income tax,
(referred to below as the "tax in Guernsey"),
b) in Sweden:
1. the State income tax,
2. the Special income tax for non-residents,
3. the Special income tax for non-residents
artists and others, and
4. the municipal income tax
(in the following referred to 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 the currently
outgoing taxes. The parties ' competent authorities shall
notify each other of the essential changes made in
respective tax legislation concerning natural persons
and that may affect the operation of this agreement.
Article 3
General definitions
1. Unless the context gives rise to different, have at
the application of this agreement the following expressions below specified
importance:
a) "Guernsey" means Guernsey, Alderney and Herm, including
the territorial sea adjacent to these islands in
accordance with international law,
b) "Sweden" means the Kingdom of Sweden and the includes, when
the expression is used in the geographical sense, Swedish
territory, territorial waters of Sweden and other maritime areas
over which Sweden, in accordance with international law
rules, sovereignty or jurisdiction,
c) "competent authority" means:
1) in Guernsey: "the Administrator of Income Tax" or his
agents,
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,
d) "company" means the exercise of any form of movement,
e) "international transport" means transport by ship or
aircraft used by companies in a party, except when the ship
or aircraft are used exclusively between places in the
other party.
2. When a party applies the contract at any time shall be deemed to,
unless the context gives rise to different, every expression
not defined in this agreement have the meaning the term has
at this time, according to the party's legislation in respect of
such taxes to which the agreement applies and the importance
as the term has under the applicable tax laws in
This party prevail over the meaning of the expression
have under other legislation of that party.
Article 4
Resident
1. for the purposes of this agreement, the expression "person
a resident of a party "in the case of a natural person, any natural
person who, under the law of that party is liable to pay tax
where by reason of domicile, residence or any other similar
circumstance. This expression, however, does not include physical
person who is liable to tax in that Contracting Party only for income
from the source in this party.
2. where by reason of the provisions of paragraph 1 an individual is
resident in both parties, is determined his residence on the following
way:
(a)) he is considered to be resident only in the party in which he has a
residence permanently at his disposal. If he
have such a residence in both parties, he is considered to be a resident
the only party with which his personal and economic
relations are strongest (Centre of life interests),
(b)) if it cannot be determined which party he has Center for
their living interests or if he's not in either party
has a permanent home available to him;
He is considered to be a resident only of the party in which he habitually
vistas,
(c)) if he usually resides in both parties or not
reside permanently in any of them, the competent parties
authorities settle the question by mutual agreement.
Article 5
Single service
1. the provisions of articles 6, 7 and 8 rise
other, taxable wages and other similar remuneration (with
excluding pension) as a resident of a party claiming
on account of employment, only in that party, unless the
the work is performed in the other party. If the work is performed in this
other party, compensation received for work are taxed
there.
2. Notwithstanding the provisions of paragraph 1 shall be taxable
compensation, as a resident of a party in receipt of
work carried out in the other party only in the
former party
a) recipient residing in the other party during the period of time
or periods the total of which does not exceed 183 days
during a 12-month period commencing or ending in the
the tax year in question, and
b) the remuneration is paid by the employer who is not domiciled
in the other party, or on his behalf, and
c) compensation does not burden a fixed place for
business activities the employer has in the other Contracting Party
and from which the business is wholly or partly carried on.
3. Notwithstanding the preceding provisions of this article,
remuneration for work performed on board the ship or
aircraft used in international traffic by a
companies in a party, be taxed in that party. If the person with
resident in Sweden claiming compensation for work performed
on board an aircraft used in international transport
of the air transport Consortium Scandinavian Airlines System (SAS),
such remuneration shall be taxable only in Sweden. If the person
resident in Guernsey in receipt of remuneration for work
performed on board an aircraft used in international
traffic of Aurigny Air Services, such compensation
shall be taxable only in Guernsey.
Article 6
Directors ' fees
Directors ' fees and other similar remuneration, as a person with
a resident of a party receives as a member of the Board of
company resident in the other party, may be taxed in that
other party.
Article 7
Artists and athletes
1. income which a resident of a party acquires by
their personal business of the other party as
artist, such as a theatre or movie actor, radio or
television artist, or a musician, or as a
sportsmen and women, may be taxed in that other party.
2. In cases where the income through personal activities, artist
or athletes exercising in that capacity, not become the property of
artist or sportutövaren yourself without other natural or
legal person, that income may be taxed in the Contracting Party where
artist or sportutövaren exercise activities.
Article 8
Public service
1. a) salaries and other similar remuneration, other than
pension, paid by a party, one of its political
subdivisions, bodies governed by public law or local
authorities to the natural person on the basis of work carried out
in this section, parties or governmental agencies,
service, shall be taxable only in that party.
b) Such salary and other similar remuneration shall be taxable
However only in the other party if the work is performed in
This party and the individual is a resident of that party
and not received resident in that party exclusively to perform
the work.
2. The provisions of articles 5, 6 and 7 apply to the salary
and other similar remuneration paid for work
performed in connection with business carried on by one of the parties, a
of its political subdivisions, public law bodies
or local authorities.
Article 9
Students
A student or business trainee who is, or immediately
before the stay in a party domiciled in the other party and
staying in the first-mentioned party solely for their
teaching or training, is not taxed in that party for
amount that he receives for his livelihood, his teaching
or traineeship, provided that the amounts derived from the
source outside that party.
Article 10
The Elimination of double taxation
1. In Guernsey will double taxation should be avoided in the following
way:
Having regard to the provisions of the law of Guernsey as
allow tax paid in a territory other than that of
Guernsey to offset tax in Guernsey (who shall not affect
the general principle as stated here),
1) If a resident of Guernsey receives income that
in accordance with the provisions of this agreement may be taxed in Sweden,
to Guernsey – having regard to the provisions of 3) below-
from the tax on the income offset an amount equal to the
income tax paid in Sweden,
2) settlement amount shall not, however, exceed that part
of the income tax, as calculated before the deduction, which is attributable
to such income may be taxed in Sweden,
3) if resident of Guernsey receives income, which
in accordance with the provisions of this Agreement shall be taxable only in
Sweden, Guernsey consider that income in the calculation of the
the tax on that person's other income.
2. In Sweden, double taxation shall be avoided as follows:
a) where a resident of Sweden receives income that
According to the law of Guernsey and in accordance with
the provisions of this agreement, may be taxed in Guernsey, the
Sweden – having regard to the provisions in Swedish
legislation relating to the deduction of foreign taxes (such as
they may be changed from time to time without the
general principle referred to this change) – from the Swedish
tax on income set off an amount equal to the tax
paid on income in Guernsey.
b) where a resident of Sweden receives income, which
in accordance with the provisions of this Agreement shall be taxable only in
Guernsey, Sweden at the determination of the Swedish progressive
tax consider such income which shall be taxable only in Guernsey.
Article 11
The procedure for the mutual agreement
1. If an individual considers that a party, or both parties
taken measures as for him, causes or will
give rise to taxation contrary to the provisions of this
Agreement, he may, without prejudice to his right to use
the remedies contained in these parties ' internal
legal order, submit the matter to the competent authority in
the party where he is resident. The matter shall be submitted 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 cannot achieve a satisfactory
solution, the authority shall seek decide by mutual
agreement with the competent authority of the other
the party, in order to avoid taxation contrary to
the agreement. Agreement is carried out without barriers
by the time limits in the domestic law of the parties.
3. the competent authorities of the Parties shall, by mutual
understanding search determine difficulty or doubt as
arise regarding the interpretation or application of
the agreement.
4. the competent authorities of the parties may enter into direct
connected with each other in order to reach agreement in
the meaning of the previous paragraphs.
Article 12
Date of entry into force
1. This agreement shall enter into force on the thirtieth day following the
date of the last written notification – as
the parties should leave when the measures required under
each party's legislation – has been provided.
2. the agreement shall apply:
a) in Guernsey:
in respect of the tax in Guernsey, Guernsey on the tax 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,
b) in Sweden:
as regards the Swedish tax on tax levied on
tax year that begins on 1 January of the calendar year in which
the closest following the calendar year in which the agreement enters into force
or later.
3. without prejudice to paragraph 2, this Agreement shall apply only
When the agreement between the Kingdom of Sweden and the Guernsey if
Exchange of information in tax matters signed on
October 28, 2008.
Article 13
Termination
1. this Agreement shall remain in force until terminated by
any 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 ends
the agreement will apply in respect of tax levied on
tax year that begins on 1 January of the calendar year in which
immediately after the end of the six-month period, or
later.
2. Notwithstanding paragraph 1, this agreement ceases to apply, without
termination, the date on which the agreement between the Kingdom of Sweden
and Guernsey on Exchange of information in tax matters
signed on 28 October 2008, expires.
In witness whereof the undersigned, being
duly authorized, have signed this agreement.
Done at Helsinki on October 28, 2008, in duplicate
in English language.
For the Government of the Kingdom of Sweden
Anders Borg
For the Government of Guernsey
Lyndon Trott
