Law (2009:1122) If Agreement Between Sweden And Jersey For The Avoidance Of Double Taxation Of Natural Persons

Original Language Title: Lag (2009:1122) om avtal mellan Sverige och Jersey för undvikande av dubbelbeskattning av fysiska personer

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Read the untranslated law here: http://rkrattsbaser.gov.se/sfst?bet=2009:1122

section 1 of the agreement between the Kingdom of Sweden and Jersey for

avoidance of double taxation of natural persons

signed on 28 October 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 are to be applied only to the

share these results in reduction of the tax liability in

Sweden that would otherwise exist.



3 repealed by law (2011:1431).



Transitional provisions



2009:1122



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



2. This law shall apply to taxes levied for

fiscal years beginning 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 JERSEY FOR THE

AVOIDANCE OF DOUBLE TAXATION ON INDIVIDUALS



The Government of the Kingdom of Sweden and the Government of

Jersey, 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 Jersey: the income tax; (hereinafter referred

to as "Jersey 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-residents 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.



Article 3



General definition



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

otherwise requires:



(a) the term "a Party" means Jersey or Sweden, as the context

requires; the term "Parties" means Jersey and Sweden;



(b) the term "Jersey" means the Bailiwick of Jersey, including

its territorial sea;



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

used in a geographical sense, includes the national territory,

the territorial sea of Sweden as well as other maritime areas

over which Sweden in accordance with international law

exercises sovereign rights or jurisdiction;



(d) the term "competent authority" means;



(i) in the case of Jersey, the Treasury and Resources Minister

or his authorised representative;



(ii) in the case of Sweden, the Minister of Finance, his

authorised representative or the authority which is designated

as a competent authority for the purposes of this Agreement;



(e) the term "enterprise" applies to the carrying on of any

business;



(f) 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 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, 8 and 9,

salaries, wages and other similar remuneration derived by a

resident of a Party in respect of an employment shall be

taxable only in that Party unless 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

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

twelve month period commencing or ending in the fiscal year

concerned; and



(b) the remuneration is paid by, or on behalf of, an employer

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 Sweden.



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 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



Pension



1. Pensions and other similar remuneration, disbursements

under the Social Security legislation and annuities arising in

a Party and paid to a resident of the other Party may be taxed

in the first-mentioned Party.



2. The term "annuity" means a stated sum payable periodically

at stated times during life or during a specified or

ascertainable period of time under an obligation to make the

payments in return for adequate and full consideration in

money or money's worth.



Article 9



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 10



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

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 11



Elimination of double taxation



1. In Jersey double taxation shall be avoided as follows:



Subject to the provisions of the laws of Jersey regarding the

allowances of credit against Jersey tax of tax payable in a

territory outside Jersey (which shall not affect the general

principle hereof);



(i) subject to the provisions of sub-paragraph (iii), where (a)

resident of Jersey derives income which, in accordance with


the provisions of this Agreement, may be taxed in Sweden,

Jersey shall allow as a credit from the Jersey tax on the

the income of that resident, 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 credit is given, which

is attributable to the income which may be taxed in Sweden;



(iii) where a resident of Jersey derives income which, in

accordance with the provisions of this Agreement shall be

taxable only in Sweden, Jersey may include this income in the

tax base, but shall allow as a credit from the Jersey tax that

part of the income tax which is attributable to the income

derived from Sweden.



2. In Sweden, double taxation shall be avoided as follows:



(a) Where a resident of Sweden derives income which under the

laws of Jersey and in accordance with the provisions of this

Agreement may be taxed in Jersey, Sweden shall allow-subject

to the provisions of the



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 Jersey 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 Jersey, Sweden may, when determining the

graduated rate of Swedish tax, take into account the income

which shall be taxable only in Jersey.



Article 12



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



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 13



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 Jersey:



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;



(b) in Sweden:



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.



3. Notwithstanding paragraph 2, this Agreement shall only have

effect when the Agreement signed on 28 October 2008 between

the Kingdom of Sweden and Jersey for the exchange of

information relating to tax matters shall have effect. 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 14



Termination



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

Party. Either Party may terminate the Agreement by giving

written notice of termination at least six months before the

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 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 Jersey 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 Government of Jersey



Frank Walker



(Translation)



AGREEMENT BETWEEN THE KINGDOM OF SWEDEN AND THE JERSEY FOR THE AVOIDANCE OF

DOUBLE TAXATION OF NATURAL PERSONS



The Government of the Kingdom of Sweden and the Government of Jersey

wish to conclude an agreement for the avoidance of double taxation of

natural persons with respect to taxes on income, have come

agree as follows:



Article 1



Natural persons to whom the agreement applies



This agreement shall apply to natural persons domiciled 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 Jersey: income tax, (hereinafter called "tax in

Jersey "),



(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



(referred to below as "Swedish tax").



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

similar kind, as after the signing of the agreement will be charged at

addition to or in place of the currently outgoing

the taxes. The competent authorities of the Parties shall notify each other

the essential changes that were made to the respective

tax legislation relating to natural persons.



Article 3



General definitions



1. Unless the context shall give rise to another, have at

the application of this agreement the following expressions below specified

meaning:



(a)) "a party" means Jersey or Sweden, depending on

context; "parties" means Jersey and Sweden,



(b)) "Jersey" means the Bailiwick of Jersey, including its

territorial waters,



(c)) "Sweden" means the Kingdom of Sweden and the includes, when

the term is used in the geographical sense, Swedish

territory, the territorial sea and other sea areas

over which Sweden, in accordance with international law,

within the sovereignty or jurisdiction of third countries,



d) "competent authority" means:



1) Jersey: "the Treasury and Resources Minister," or

his authorised representative,



2) in Sweden: the Minister of finance or his authorised representative

or authority to whom contracted to be competent

authority for the purposes of this agreement,



e) "company" means the pursuit of any form of movement,



f) "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) where a party applies the agreement 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 the time, according to the party's legislation in respect of

such taxes on which the agreement is implemented and the importance

as the term has under the applicable tax laws in this

party possesses primacy over the meaning of the term has

According to the legislation of that party.



Article 4



Resident



1. for the purposes of this agreement the term "person

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 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 that is permanently available to him. If he has

such a residence in both parties, he is considered to be resident only in

the 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 dwelling that is permanently available to him, shall be deemed to

he be resident only in the party in which he is permanently resident,



c) if he is permanently resident in both parties or not

reside permanently in any of them, to the parties ' competent

authorities settle the matter by mutual agreement.



Article 5



Individual service



1. the provisions of articles 6, 7, 8 and 9

causing the other, taxable wages and other similar remuneration

as a resident of a party in receipt of due

employment, only in that party, unless the work is carried out in

the other party. If the work is done in this other party, may

compensation received for work are taxed there.



2. Notwithstanding the provisions of paragraph 1 are taxed

compensation, as the resident of a party claiming for work

conducted in the other party, only in the former party

If



(a)) the recipient residing in the other party during the time period or

periods not exceeding a total of 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 do not live in

the other party or on behalf of, and



c) compensation is not charged a habitual place of

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 may

remuneration for work carried out on board the ship or

aircraft used in international traffic of a

companies in a party, be taxed in that party. If the person with

a resident of Sweden derives remuneration for work performed

on board an aircraft used in international transport

of the air transport Consortium Scandinavian Airlines System (SAS), to

such compensation is taxed only in Sweden.



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 Directors in

resident company of the other party, may be taxed in this

other party.



Article 7



Artists and sportsmen and women



1. income, as a resident of a party acquires by

his personal business of the other party as

artist, such as theater or film 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 business, as an artist

or sportsmen and women 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



Pension



1. Pensions and other similar remuneration, payment under

social security legislation and annuities, which are derived

from a party and paid to a resident of the

other party, may be taxed in the first-mentioned party.



2. The term "annuity" means a prescribed amount, which

be paid periodically at stated times during a person's

life or during a specified or ascertainable period of time, and

based on the due obligation to execute these

payments in return for full, however, respondents

consideration in money or money value.



Article 9



Public service



1. a) Salary 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 the work carried out in

This party, section, body, or Government service,

be taxed only in that party.



b) Such salary and other similar remuneration are taxed

However only in the other party if the work is done in this

party and the individual in question is domiciled in that Contracting Party and

not got a resident of that party exclusively to perform

the work.



2. the provisions of articles 5, 6 and 7 apply to the pay and

other similar compensation is paid because of work

performed in connection with the motion of a party, one of

its political subdivisions, public law bodies

or local authorities.



Article 10



Students



Student or business trainee who is, or immediately

before the stay in one of the parties was domiciled in the other party and

staying in the first-mentioned party solely for its

teaching or training, not taxed in that Contracting Party for

amount that he receives for his subsistence, education

or training, provided that the amounts derived from the

source outside that party.



Article 11



The Elimination of double taxation



1. In Jersey double taxation shall be avoided as follows:



Having regard to the provisions of the legislation of the States of Jersey

allow tax paid in a territory other than that of

Jersey to offset tax in Jersey (that should not affect the

general principle referred to here),



1) if resident of Jersey acquires income according to

the provisions of this agreement may be taxed in Sweden, the

Jersey – having regard to the provisions of 3) below – from

the treasure of the Jersey on the income of the person in question set off a

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, that is attributable to

such income may be taxed in Sweden,



3) if resident of Jersey acquires income, which

in accordance with the provisions of this agreement are subject to tax only in the

Sweden, the Jersey tax base income include, but

to be from the tax in Jersey to set off an amount equal to the

part of the income tax which is attributable to the income that

acquired from Sweden.



2. In Sweden double taxation shall be avoided as follows:



a) If resident in Sweden acquires income

According to Jersey's legislation and in accordance with the provisions

in this agreement, may be taxed in Jersey, to Sweden — with

regard to the provisions of Swedish legislation relating to the

deduction of foreign tax (as it may be changed

from time to time without changing the general principle referred to

This change) – from the Swedish tax on income offset

an amount equal to the tax paid on income in

Jersey.



b) If resident in Sweden acquires income, which

in accordance with the provisions of this agreement are subject to tax only in Jersey,

may in determining Sweden Swedish progressive tax

consider such income which is taxed only in Jersey.



Article 12



Mutual agreement procedure



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 State party where he is resident. The matter should be submitted within three

years from the date on which the person in question had knowledge of the

action that give rise to taxation contrary to

the provisions of the agreement.



2. If the competent authority finds the objection based but

cannot bring about a satisfactory resolution,

Searching Authority shall decide by mutual

agreement with the competent authority of the other

in order to avoid taxation contrary to

the agreement. Agreement reached is carried out without prejudice to the

time limits in the parties ' internal laws.



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 sense of the preceding paragraphs.



Article 13



Date of entry into force



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

date of the last written notification — which

the parties should leave when the measures required under

their respective laws – have been provided.



2. the agreement should be applied:



(a)) in Jersey:



the tax levied for fiscal years beginning on

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

enters into force or later,



(b)) in Sweden:



the tax levied for fiscal years beginning on

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

enters into force or later.



3. by way of derogation from paragraph 2, this agreement is only applicable

When the agreement between the Kingdom of Sweden and Jersey for the Exchange

of information in tax matters signed on 28 October

2008 is applicable.



Article 14



Termination



1. this agreement will remain in force until it is terminated by a

party. Each party can terminate the agreement in writing by

notice to that effect at least six months before the expiry of any

calendar year. In the event of such termination, the agreement ceases to

apply in the case of the tax levied for tax year

starting on 1 January of the year following directly after the end

of the six-month period or later.



2. by way of derogation from paragraph 1, this agreement ceases to apply, without

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

Jersey for 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

English language.



For the Government of the Kingdom of Sweden



Anders Borg



For Jersey's Government



Frank Walker