Law (2009:1115) If Agreement Between Sweden And The British Virgin Islands On The Mutual Agreement Procedure In Connection With The Adjustment Of Profits Of Associated Enterprises

Original Language Title: Lag (2009:1115) om avtal mellan Sverige och Brittiska Jungfruöarna om förfarande för ömsesidig överenskommelse vid justering av inkomst mellan företag i intressegemenskap

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Read the untranslated law here: http://rkrattsbaser.gov.se/sfst?bet=2009:1115

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