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3 repealed by law (2011:1431).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
