Article 1 the agreement between the Government of the Kingdom of Sweden and
British Virgin Islands Government on the procedure for the exchange of
agreement on the adjustment of profits of
associated enterprises signed on May 18, 2009
apply that law in this country. The agreement is drawn up in English
and set out 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.
Transitional provisions
2009:1115
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 ON THE ACCESS TO
MUTUAL AGREEMENT PROCEDURES IN CONNECTION WITH THE ADJUSTMENT
OF PROFITS OF ASSOCIATED ENTERPRISES
The Government of the Kingdom of Sweden and the Government of
the British Virgin Islands, desiring to conclude an Agreement
on the access to mutual agreement procedures in connection
with the adjustment of profits of associated enterprises,
have agreed as follows:
Article 1
Taxes covered
The taxes to which this Agreement shall apply are:
(a) in the British Virgin Islands: income tax (hereinafter
referred to as "the British Virgin Islands tax");
(b) in Sweden:
(i) the national income tax (State income tax);
and
(ii) the municipal income tax (municipal tax)
(hereinafter referred to as "Swedish tax").
Article 2
Definition
1. For the purposes of this Agreement, unless the context
otherwise requires:
(a) the term "Party" means the British Virgin Islands or
Canada as the context requires; the term "Parties" means the
British Virgin Islands and Singapore;
(b) the term "Sweden" means the Kingdom of Sweden and, when
used in a geographical sense, includes the national
territory, the territorial sea of Canada as well as other
the maritime areas over which Sweden in accordance with
international law exercises sovereign rights or jurisdiction;
(c) the term "British Virgin Islands" means the territory
of the Virgin Islands as referred to in the Virgin Islands
Constitution Order, 2007;
(d) the term "resident of a Party" means
(i) in Canada, any person, who, under the law of Singapore is
liable to tax therein by reason of his domicile, residence,
place of management, place of incorporation or any other
criterion of a similar nature; This term, however, does not
include a person who is liable to tax in Canada in respect
only of income from sources in Canada;
(ii) in the British Virgin Islands, an individual ordinarily
resident in the British Virgin Islands, and a company,
partnership or other entity created under the laws of the
British Virgin Islands; provided that an entity created under
the laws of the British Virgin Islands shall not be deemed to
be resident in the British Virgin Islands unless its
effective management is carried on in the British Virgin
Islands;
(e) the term "enterprise" applies to the carrying on of any
business;
(f) the term "enterprise of a Party means an enterprise
carried on by a resident of a Party;
(g) 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, or an
authorised representative or the authority which is
designated as a competent authority for the purposes of this
Agreement.
2. As regards the application of this 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 3
Principles applying to the adjustment of profits of
associated enterprises
Where:
(a) an enterprise of a Party participates directly or
indirectly in the management, control or capital of an
Enterprise of the other Party, or
(b) the same persons participate directly or indirectly in
the management, control or capital of an enterprise of a
Party and an enterprise of the other Party,
and in either case conditions are made or imposed between the
the two enterprises in their commercial or financial relations
which differ from those which would be made between
independent enterprises, then any profits which would, but
for those conditions, have accrued to one of the enterprises,
but, by reason of those conditions, have not so accrued, may
be included in the profits of that enterprise and taxed
accordingly.
Article 4
Mutual agreement procedures
1. Where an enterprise considers that, in any case to which
This Agreement applies, the principles set out in Article 3
have not been observed, it may, irrespective of the remedies
provided by the domestic law of the Party concerned, gift
its case to the competent authority of the Party of which it
is a resident. The case must be presented within three years
from the first notification of the action which is contrary
or is likely to be contrary to the principles set out in
Article 3. The competent authority shall then without delay
notify the competent authority of the other Party.
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 5
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:
(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 6
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)
AGREEMENT BETWEEN THE GOVERNMENT OF THE KINGDOM OF SWEDEN AND THE UK
VIRGIN ISLANDS GOVERNMENT ON THE PROCEDURE FOR THE EXCHANGE OF
AGREEMENT ON THE ADJUSTMENT OF PROFITS OF
COMMUNITY of INTEREST
The Government of the Kingdom of Sweden and the British Virgin Islands
Government, desiring to conclude an agreement on the procedure for
mutual agreement in connection with the adjustment of profits between
associated enterprises, have agreed as follows:
Article 1
Taxes covered by the agreement
The taxes to which this Agreement shall apply are:
(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, and
2) the municipal income tax
(in the following referred to as "Swedish tax").
Article 2
Definitions
1. Unless the context gives rise to different, have at
the application of this agreement the following expressions below specified
importance:
a) "party" means the British Virgin Islands or Sweden,
Depending on the context; "parties" refers to the British
Virgin Islands and Sweden,
b) "Sweden" means the Kingdom of Sweden and the includes, when
the expression is used in the geographical sense, Swedish
territory, territorial waters of Sweden and other maritime areas
over which Sweden, in accordance with international law
rules, sovereignty or jurisdiction,
c) "British Virgin Islands" means the territory of the Virgin Islands
as specified in the Virgin Islands ' Constitution Order 2007 ",
d) "resident of a party" means
1) in the case of Sweden, a person who, under the law of
Sweden is taxable there because of domicile, residence,
place of management, place of incorporation or any other
similar circumstances. This expression includes, however,
not the person who is liable to tax in Sweden only for income
that have source in Sweden,
2) in the case of the British Virgin Islands, natural person
in accordance with the laws of the British Virgin Islands is
permanent resident ("ordinarily resident"), and companies,
partnership, or other entity that is incorporated under
the law of the British Virgin Islands. An entity that is
incorporated under the laws of the British Virgin Islands are considered
not be domiciled in the British Virgin Islands if not its
effective management is practiced in the British Virgin Islands,
e) "company" means the exercise of any form of movement,
f) "company of a party" means a business carried on by a
person resident in a party,
g) "competent authority" means:
1) in the case of the British Virgin Islands, the Minister of finance or
person or authority appointed by him in writing,
2) in the case of Sweden, the Minister of finance, his
authorised representative or the authority which contracted
to be a competent authority for the purposes of this agreement.
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 is implemented 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 3
In cases where:
(a)) of a party directly or indirectly involved in
management or control of a company in the other party
or owns part of the company's capital, or
(b)) the same person participates directly or indirectly in the management,
or the control of a company in a party that is a
companies of the other party or own some of both of these
corporate capital, observed the following.
If between businesses in terms of trade relations or
financial relations agreed upon or prescribed conditions,
that differs from what would have been agreed between the
independent companies, receives all the income, that without such
the conditions would have been one company but on
because of the conditions in question did not come about this company,
included in this corporate income and are taxed in
accordingly.
Article 4
The procedure for the mutual agreement
1. where an undertaking, in a case covered by this agreement,
considers that the principles set out in article 3 has not been
been observed, it may, without prejudice to its right to
make use of the remedies available under the
It is for the domestic legal system of the party concerned, submit the matter for
the competent authority of the Contracting Party in which the company has
resident. The thing to be presented within three years from the time
When the company in question had knowledge of the action that is inconsistent
toward or likely can be assumed to be contrary to the principles
specified in article 3. The competent authority shall then without
immediately inform the competent authority of the other
party.
2. If the competent authority finds the complaint justified
but cannot achieve a satisfactory
solution, the competent authority shall give its decision by search
a mutual agreement with the competent authority of
the other party in order to avoid taxation which conflict
against the agreement. Agreement is carried out without
barriers of time limits in the domestic law of the parties.
3. the competent authorities of the Parties shall, by mutual
understanding search determine difficulty or doubt as
arise regarding the interpretation or application of
the agreement.
4. the competent authorities of the parties may enter into direct
connected with each other in order to meet such
agreement referred to in the preceding paragraphs.
Article 5
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 shall
applied
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 6
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 apply
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
