Law (2009:1116) If Agreement Between Sweden And The British Virgin Islands For The Avoidance Of Double Taxation Of Natural Persons

Original Language Title: Lag (2009:1116) om avtal mellan Sverige och Brittiska Jungfruöarna för undvikande av dubbelbeskattning av fysiska personer

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Read the untranslated law here: http://rkrattsbaser.gov.se/sfst?bet=2009:1116

Article 1 the agreement between the Government of the Kingdom of Sweden and

British Virgin Islands Government for avoidance of

double taxation of natural persons, which was signed on

May 18, 2009, to be valid as law in this country. The agreement is

drafted in English and appears in annex to this law.



section 2 of the tax rules of the agreement shall apply only to

the part these causes restriction of the tax liability in

Sweden that would otherwise exist.



3 repealed by law (2011:1429).



Övergångsbestämmeler



2009:1116



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 GOVERNMENT OF THE KINGDOM OF SWEDEN AND

THE GOVERNMENT OF THE BRITISH VIRGIN ISLANDS FOR THE

AVOIDANCE OF DOUBLE TAXATION ON INDIVIDUALS



The Government of the Kingdom of Sweden and the Government of

the British Virgin Islands, 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 the British Virgin Islands: income tax

(hereinafter referred to as the "British Virgin Islands 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"). (in the following

known 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)) "a party" means the British Virgin Islands or Sweden,

Depending on the context; "parties" refers to the British

Virgin Islands and Sweden,



(b) the term "British Virgin Islands" means the territory

of the Virgin Islands as referred to in the Virgin Islands

Constitution Order, 2007;



(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 the British Virgin Islands, the Financial

The Secretary or a person or authority designated by him in

writing;



(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

the 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 the British Virgin Islands in respect of an

individual, any individual who, under the laws of the British

Virgin Islands 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 the British Virgin Islands double taxation shall be

avoided in accordance with the laws of the British Virgin

Islands.



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



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

the laws of the British Virgin Islands and in accordance with the

the provisions of this Agreement may be taxed in the British

Virgin Islands, Sweden shall allow-subject to the

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 British Virgin

Icelandic 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 the British Virgin Islands, Sweden may, when

determining the graduated rate of Swedish tax, take into

account the income which shall be taxable only in the British

The Virgin Islands.



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 the British Virgin Islands:



in respect of British Virgin Islands tax, on taxes chargeable

for any calendar 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:



(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 18th May 2009

between the Kingdom of Sweden and the British Virgin Islands

for the exchange of information relating 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 18th May 2009

between the Kingdom of Sweden and the British Virgin Islands

for the exchange of information relating to taxes.



In witness whereof the undersigned being duly authorised

thereto have signed this Agreement.



Done at Copenhagen, this 18th day of May 2009, in duplicate

in the English language.



For the Government of the Kingdom of Sweden



Lars Grundberg



For the Government of the British Virgin Islands



Danica Penn



(Translation)



INDIVIDUALSAVTAL BETWEEN THE GOVERNMENT OF THE KINGDOM OF SWEDEN AND

BRITISH VIRGIN ISLANDS GOVERNMENT FOR AVOIDANCE OF

DOUBLE TAXATION OF NATURAL PERSONS



The Government of the Kingdom of Sweden and the British Virgin Islands

Government, 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 the British Virgin Islands: income tax (in the following

referred to as "tax in the British Virgin Islands '),



b) in Sweden:



1) 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.



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)) "a party" means the British Virgin Islands or Sweden,

Depending on the context; "parties" refers to the British

Virgin Islands and Sweden,



b) "British Virgin Islands" means the territory of the Virgin Islands

as specified in the Virgin Islands ' Constitution Order 2007 ",



c) "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,



d) "competent authority" means:



1) in the British Virgin Islands, the Minister of finance or a person

or authority appointed by him in writing,



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) 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. 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 ":



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 physical

person who is liable to tax in Sweden only for income

have source in Sweden,



(b)) in the British Virgin Islands in relation to the physical person, each

natural person who under the law in the UK

Virgin Islands are permanently resident there ("ordinarily

resident ").



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 of the parties

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

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,

receive compensation received for work are taxed there.



2. Notwithstanding the provisions of paragraph 1, be taxed

compensation, as a resident of a party in receipt of

work carried out in the other party only in the

former party, if



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 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 fixed amount,

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 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 of the work carried out in

This second party and the individual is a resident of this

party and did not get to live in that party exclusively to

carry out 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 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. the British Virgin Islands, double taxation should be eliminated

in accordance with the laws of the British Virgin Islands.



2. In Sweden, double taxation shall be eliminated in the following

way:



a) where a resident of Sweden receives income that

in accordance with the laws of the British Virgin Islands and in accordance

with the provisions of this agreement, may be taxed in the UK

Virgin Islands, Sweden – having regard to the provisions of

Swedish legislation relating to the deduction of foreign taxes

(also in the version they can get through to change without the

general principle referred to this change) – from the Swedish

tax deduct a sum equivalent to the tax in the UK

Virgin Islands paid on income.



b) where a resident of Sweden receives income that

in accordance with the provisions of this Agreement shall be taxable only in

The British Virgin Islands, Sweden in determining

Swedish progressive tax consider such income is taxed

only in the British Virgin Islands.



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 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 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

then



(a)) in the British Virgin Islands:

in the case of income tax in the British Virgin Islands, on tax

out for the calendar year that begins on 1 January of the calendar year in which

immediately after 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 following

the date on which the agreement enters into force 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

during the time when the agreement between the Kingdom of Sweden and

The British Virgin Islands on the exchange of information relating to

taxes signed on May 18, 2009.



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 the 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 the British Virgin Islands on the exchange of

information with respect to taxes signed on May 18, 2009

ceases to be valid.



In witness whereof the undersigned, being

duly authorized, have signed this agreement.



Done at Copenhagen on 18 May 2009 in duplicate in

English language.



For the Government of the Kingdom of Sweden



Lars Grundberg



For the Government of the British Virgin Islands



Danica Penn