Law (2009:1126) If Agreement Between Sweden And Guernsey For The Avoidance Of Double Taxation Of Natural Persons

Original Language Title: Lag (2009:1126) om avtal mellan Sverige och Guernsey för undvikande av dubbelbeskattning av fysiska personer

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now

Read the untranslated law here: http://rkrattsbaser.gov.se/sfst?bet=2009:1126

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3 repealed by law (2011:1432).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