Article 1 the agreement between the Kingdom of Sweden and Bermuda for
avoidance of double taxation of natural persons
signed on april 16, 2009 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3 repealed by law (2011:1430).
Transitional provisions
2009:1119
1. this law shall enter into force on the day the Government determines.
2. This Act shall apply
(a)) in respect of withholding taxes, on amounts paid or
tillgodoförs on 1 January of the year immediately following the
the date the law enters into force, or later, and
(b)) in respect of other taxes on income, to taxes levied
for tax years beginning on 1 January of the year
the immediately following the date the law enters into force, or
later.
Annex
AGREEMENT BETWEEN THE KINGDOM OF SWEDEN AND BERMUDA FOR THE
AVOIDANCE OF DOUBLE TAXATION ON INDIVIDUALS
The Government of the Kingdom of Sweden and the Government of
Bermuda, 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
of 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 Bermuda: any tax imposed by the Bermuda which
is substantially similar to the existing taxes of Sweden to
which this Agreement applies, but does not include payroll
Dachshund
(hereinafter referred to as "Bermudian 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.
Article 3
General definition
1. For the purposes of this Agreement, unless the context
otherwise requires:
(a) the term "a Party" means Bermuda or Canada, as the
context requires; the term "Parties" means the Bermuda and
Sweden;
(b) the term "Bermuda" means the Islands of Bermuda;
(c) 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;
(d) the term "competent authority" means:
(i) in the case of Bermuda, the Minister of Finance or an
authorised representative of the Minister;
(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;
(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:
(a) in Sweden in respect of an individual any individual who,
under the laws of Canada, 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 Canada in respect only of
income from sources in Canada;
(b) in Bermuda in respect of an individual any individual
the who, under the laws of Bermuda is ordinarily resident.
2. Where by reason of the provisions of paragraph 1 an
individual is a resident of 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 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.
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
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 ask the
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
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 Bermuda double taxation shall be avoided in accordance
with the laws of Bermuda.
2. In Sweden, double taxation shall be avoided as follows:
(a) Where a resident of Sweden derives income which under the
the laws of Bermuda and in accordance with the provisions of this
Agreement may be taxed in Bermuda, 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 to the
Bermudian 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 Bermuda, Sweden may, when determining the
graduated rate of Swedish tax, take into account the income
which shall be taxable only in Bermuda.
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 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 13
Entry into force
1. Each of the Parties shall notify the other in writing of
the completion of the procedures required by its law for the
entry into force of this Agreement.
2. The Agreement shall enter into force on the thirtieth day
After the receipt of the later of these notifications and
shall thereupon have effect:
(a) in Bermuda:
in respect of Bermudian tax, on taxes chargeable for any fiscal
year of any April 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:
(i) in respect of taxes withheld at source, for amounts paid
or credited on or after the first day of January of the year
next following the date on which the Agreement enters into
force;
(ii) in respect of other taxes on income, on taxes chargeable
for any tax year beginning on or after the first day of
January of the year next following the date on which the
Agreement enters into force.
3. Notwithstanding paragraph 2, this Agreement shall only
have effect when the Agreement signed on April 16, 2009
between the Kingdom of Sweden and Bermuda on the exchange of
information with respect to taxes shall have effect.
Article 14
Termination
1. This Agreement shall remain in force until terminated by a
Party. Either Party may terminate the Agreement, through
diplomatic channels, by giving written notice of termination
at least six months before the end of any calendar year. In
such case, the Agreement shall cease to have effect
(i) in respect of taxes withheld at source, for amounts paid
or credited on or after the first day of January of the year
next following the end of the six month period;
(ii) in respect of other taxes on income, 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 month
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 April 16, 2009
between the Kingdom of Sweden and Bermuda on the exchange of
information with respect to taxes.
In witness whereof the undersigned being duly authorised
thereto have signed this Agreement.
Done at Washington, this 16th day of April, 2009, in duplicate
in the English language.
For the Government of the Kingdom of Sweden
Jonas Hafström
For the Government of Bermuda
Paula Ann Cox
(Translation)
AGREEMENT BETWEEN THE KINGDOM OF SWEDEN AND BERMUDA TO AVOID
OF DOUBLE TAXATION OF NATURAL PERSONS
The Government of the Kingdom of Sweden and the Government of Bermuda, which
wish 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 persons who are 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 Bermuda: every tax levied in Bermuda and in
mainly similar kind as those currently closing
taxes in Sweden on which this agreement
apply, but that does not include the tax on payroll
(in the following referred to as "tax in Bermuda"),
b) in Sweden:
1) state income tax,
2) the Special income tax for non-residents,
3) the Special income tax for non-resident artists
and others, and
4) the municipal income tax
(in the following referred to as "Swedish tax").
2. the agreement also apply to taxes for the same or essentially
Similarly, after the signing of the agreement at
addition to or in place of the currently outgoing
the taxes. The parties ' competent authorities shall notify the
each other the essential changes to the respective
tax legislation in respect of natural persons.
Article 3
General definitions
1. Unless the context gives rise to different, have at
the application of this agreement
the following expression, the following meaning:
a) "party" refers to Bermuda or Sweden, depending on
context; "parties" refers to Bermuda and Sweden,
b) "Bermuda" refers to Bermuda,
c) "Sweden" means the Kingdom of Sweden and the includes, when
the expression is used in the geographical sense, Swedish
territory, Sweden's territorial waters and other
maritime areas over which Sweden, in accordance with
the rules of international law, exercises sovereign rights or
jurisdiction,
d) "competent authority" means:
1) in Bermuda: the Minister of finance or his authorised
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,
e) "company" means the exercise 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. 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
significance of the expression have under applicable
tax legislation in this part prevail over the
significance of the expression have under other legislation in
This party.
Article 4
Resident
1. for the purposes of this agreement, the expression "person
a resident of a party ":
a) in Sweden as regards natural persons, any natural person
which, according to the law in Sweden is taxable where the
because of the domicile, residence or any other similar
circumstance. This expression, however, does not include
natural person who is liable to tax in Sweden only for income
that have source in Sweden,
b) in Bermuda with respect to natural person, any natural person
as under the laws of Bermuda's permanent resident
where ("ordinarily resident").
2. Where a natural person on the basis of the provisions of paragraph 1
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 has
such a residence in both parties, he is considered to be a 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 a resident only of the party where he usually resides,
(c)) if he usually resides in both parties or not
reside permanently in any of them, the competent
authorities settle the question by mutual agreement.
Article 5
Single 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 receives because of
employment, only in that party, unless the work is not performed
in the other party. If the work performed in this other party, may
compensation received for work are taxed there.
2. Notwithstanding the provisions of paragraph 1, be taxed
compensation as a resident of a party receives for work
conducted in the other party, only in the former
party, if
a) recipient residing in the other party during the time period or
time periods that in total not exceeding 183 days during a
twelve month period commencing or ending in 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 an enterprise
in a party, be taxed in that party.
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
through their personal business of the other party as
of the 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
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 specified times during a person's
lifetime or during a specified or ascertainable period of time, and
that is because of the obligation to give effect to these
payments as compensation for the corresponding consideration in the
money or money value.
Article 9
Public service
1. a) salaries and other remuneration, other than a pension, as
be paid by one party, one of its political subdivisions,
bodies governed by public law or local authorities to physical
person on the basis of the work carried out in this party,
the section, bodies or Government service, taxed
only in that party.
b) Such salary and other similar remuneration shall be taxable
However only in the other party of the work carried out in
This second party and the person in question is domiciled in that Contracting Party
and not received resident in that party exclusively to
carry out the work.
2. The provisions of articles 5, 6 and 7 apply to the pay and
other similar remuneration paid for work as
performed in connection with business carried on by one party, one of
its political subdivisions, public law
bodies or local authorities.
Article 10
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 11
The Elimination of double taxation
1. In Bermuda to double taxation be eliminated in accordance with the
the laws of Bermuda.
2. In Sweden, double taxation shall be eliminated in the following
way:
a) where a resident of Sweden receives income that
under the laws in Bermuda and in accordance with
the provisions of this agreement, may be taxed in Bermuda,
Sweden – having regard to the provisions in Swedish
legislation relating to the deduction of foreign taxes (even in
the version they can get through to change without public
the policy listed here change) – from the Swedish tax
deduct an amount equal to the tax paid in respect of Bermuda
on the income.
b) where a resident of Sweden receives income that
in accordance with the provisions of this Agreement shall be taxable only in
Bermuda, must in determining Sweden Swedish progressive
tax consider such income which shall be taxable only in Bermuda.
Article 12
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
make use of the remedies available 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
Unable to 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 prejudice
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
the application of the agreement.
4. the competent authorities of the Parties shall enter into direct
connected with each other in order to reach agreement in
the meaning of the previous paragraphs.
Article 13
Date of entry into force
1. Each Party shall notify the other party
If when the actions were taken in accordance with their respective
legislation required that this agreement should enter into force.
2. the agreement shall enter into force on the thirtieth day following the date
When the last of these notifications is received and applied
a) in Bermuda:
in the case of tax in Bermuda, on tax levied on
fiscal year starting in april after 1 January of the year
that immediately following the year in which the agreement enters into force
or later,
b) in Sweden:
1) in respect of withholding taxes, on amounts paid or
tillgodoförs on 1 January of the year immediately after the
date of entry into force of the agreement or later,
2) in respect of other taxes on income, to taxes levied
for tax years beginning on 1 January of the year following
immediately following the date on 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 Bermuda on the Exchange
of information relating to taxes signed on april 16
2009 is applicable.
Article 14
Termination
1. this Agreement shall remain in force until terminated by a
party. Either party may terminate the agreement by
diplomatic means leave written notice thereof at least six
months before the end of any calendar year. In the event of such
termination agreement ceases to be valid
1) in respect of withholding taxes, on amounts paid or
tillgodoförs on 1 January of the year immediately following
the end of the six-month period or later,
2) in respect of other taxes on income, to taxes levied
for tax years beginning on 1 January of the year following
immediately following the end of the six-month period or later.
2. Notwithstanding paragraph 1, the agreement ceases to apply without
notice of termination, on the date on which the agreement between the
The Kingdom of Sweden and Bermuda on the exchange of information
with respect to taxes signed on april 16, 2009 ceases to
apply.
In witness whereof the undersigned, being
duly authorized, have signed this agreement.
That took place in Washington on april 16, 2009, in duplicate in the
English language.
For the Government of the Kingdom of Sweden
Jonas Hafström
For the Government of Bermuda
Paula Ann Cox
