Law (2008:1304) If Agreement Between Sweden And The Isle Of Man For The Avoidance Of Double Taxation Of Companies Using Ships Or Aircraft In International Traffic

Original Language Title: Lag (2008:1304) om avtal mellan Sverige och Isle of Man för undvikande av dubbelbeskattning av företag som använder skepp eller luftfartyg i internationell trafik

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Read the untranslated law here: http://rkrattsbaser.gov.se/sfst?bet=2008:1304

section 1 of the agreement between Kounungariket of Sweden and the Isle of Man

avoidance of double taxation of companies using ships

or aircraft in international traffic signed on

October 30, 2007 to be valid as law in this country. The agreement is

drafted in English. The English text, as well as a Swedish

translation 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.



Transitional provisions



2008:1304



1. this law shall enter into force on the day the Government determines.



2. this law shall apply to the taxes levied for

tax year that begins on 1 January of the year following

immediately following the year in which the law comes into force or later.



Annex



(Translation)



AGREEMENT BETWEEN THE KINGDOM OF SWEDEN AND THE ISLE OF MAN FOR

THE AVOIDANCE OF DOUBLE TAXATION ON ENTERPRISES OPERATING SHIPS

OR AIRCRAFT IN INTERNATIONAL TRAFFIC



The Government of the Kingdom of Sweden and the Government of

the Isle of Man, desiring to conclude an agreement for the

avoidance of double taxation on enterprises operating ships or

aircraft in international traffic, have agreed as follows:



Article 1



Definition



1. For the purposes of this Agreement, unless the context

otherwise requires:



(a) the term "a Party" means the Isle of Man or Australia, as the

context requires; the term "Parties" means the Isle of Man and

Sweden;



(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 maritime areas

over which Sweden in accordance with international law

exercises sovereign rights or jurisdiction;



(c) the term "Isle of Man" means the island of the Isle of Man;



(d) the term "person" includes an individual, a company and any

other body of persons;



(e) the term "company" means any body corporate or any entity

that is treated as a body corporate for tax purposes;



(f) the term "resident of a Party" means any person, who in

the law of that Party 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;



(g) the term "enterprise of a Party means an enterprise

carried on by a resident of a Party;



(h) 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;



(i) the term "income derived from the operation of ships or

aircraft in international traffic "means revenues, gross

receipts and profits derived from:



(i) such operation of ships or aircraft for the transport of

passengers or cargo;



(ii) the rental on a charter basis of ships or aircraft where

the rental is ancillary to the operation of ships or aircraft

in international traffic;



(iii) the sale of tickets or similar documents and the

provision of services connected with such operation, either for

the enterprise itself or for any other enterprise, where such

sale of tickets or similar documents or provision of services

is directly connected with or ancillary to the operation of

ships or aircraft in international traffic;



(iv) the use, maintenance or rental of containers (including

trailers and related equipment for the transport of containers)

used for the transport of goods or merchandise, where the use,

maintenance or rental is directly connected with or ancillary

to the operation of ships or aircraft in international traffic;



(v) interest on funds deposited directly in connection with the

operation of ships or aircraft in international traffic;



(j) the term "competent authority" means:



(i) in the case of the Isle of Man, the Assessor of Income Tax

or his delegate;



(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.



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

the term under other laws of that Party.



Article 2



Avoidance of double taxation



1. Income derived from the operation of ships or aircraft in

international traffic by an enterprise of a Party shall be

taxable only in that Party.



2. The provisions of paragraph 1 shall also apply to income

derived by an enterprise of a Party from the participation in a

a pool, a joint business or an international operating agency.



Article 3



Mutual agreement procedure



1. Where a person 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 4



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. The Agreement shall have

effect 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.



2. Notwithstanding paragraph 1 of this Article, this Agreement

shall only have effect when the Agreement signed on 30 October

2007 between the Kingdom of Sweden and the Isle of Man for the

Exchange of information relating to tax matters shall have

effect.



Article 5



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 of this Article, this Agreement

will be terminated, without giving notice of termination, on

the date of termination of the Agreement signed on 30 October

2007 between the Kingdom of Sweden and the Isle of Man for the

Exchange of information relating to tax matters.



In witness whereof the undersigned being duly authorised

thereto have signed this Agreement.



Done at Oslo, this Thirtieth day of October 2007, in duplicate

in the English language.



For the Government of the Kingdom of Sweden



Ingemar Hansson



For the Government of the Isle of Man



Allan Robert Bell



AGREEMENT BETWEEN THE KINGDOM OF SWEDEN AND THE ISLE OF MAN FOR

AVOIDANCE OF DOUBLE TAXATION OF COMPANIES USING SHIPS

OR AIRCRAFT IN INTERNATIONAL TRAFFIC



The Government of Sweden and the Isle of Man Government, desiring to conclude

an agreement for the avoidance of double taxation of companies

using ships or aircraft in international traffic,

agreed as follows:



Article 1



Definitions



1. Unless the context gives rise to different, have in the application

by this agreement the following expressions the following meaning:



(a)) "a party" means the Isle of Man, or Sweden, depending on

context; "parties" means the Isle of Man and Sweden,



b) "Sweden" means the Kingdom of Sweden and the includes, when

the expression is used in the geographical sense, the territory of Sweden,

Sweden's territorial sea and other maritime areas over which the

Sweden, in conformity with international law, exercises

sovereign rights or jurisdiction;



(c)), "Isle of Man" means the island of the Isle of Man,



d) "person" includes natural persons, companies and other

Association,



e) "company" means any legal person or any other that at

taxation is treated as a legal person,



f) "resident of a party" means the person who, according to

the law of that party is liable to pay tax where due

domicile, residence, place of management, company formation

or any other similar factor,



g) "company of a party" means the business carried on by any person with

resident in a party,



h) "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;



in) "income that is acquired through the use of the ship or

aircraft in international traffic "means revenues,


gross revenue and profits acquired through:



1) such use of the ship or aircraft for the transport of

passengers or goods,



2) rental on charterbasis of the ship or aircraft when

the lease is incidental to

the use of ships or aircraft in international traffic,



3) the sale of tickets or similar documents, as well as

the provision of services in connection with such use,

either for the company or for other companies, when such

the sale of tickets or similar documents, or

provision of services such has immediate link with

or is incidental to

the use of ships or aircraft in international traffic,



4) the use, maintenance or rental of containers (in that

including trailers and other equipment for the transport of

containers) used for the transport of goods or merchandise, when

the use, maintenance or rental directly related

with, or is incidental to

the use of ships or aircraft in international traffic,



5) interest on deposited funds which are directly attributable to the

the use of ships or aircraft in international traffic,



j) "competent authority" means:



1) in the Isle of Man: "the Assessor of Income Tax" or his

authorised representative,



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.



2. When a party applies the agreement at a particular time are considered,

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 shall apply. The importance of the

the term has under the applicable tax laws of that party

prevail over the relevant term has under other

legislation of that party.



Article 2



Avoidance of double taxation



1. The revenue acquired through the use of the ship or

aircraft in international traffic by an enterprise of a party,

shall be taxable only in that party.



2. the provisions of paragraph 1 shall also apply to income as a

companies in a party acquires through participation in a pool, a

joint business or an international operating agency.



Article 3



Mutual agreement



1. If a person believes that a party, or both parties took

measures for him, causes or will cause

taxation contrary to the provisions of this agreement,

He, without prejudice to his right to make use of the

legal remedies in the domestic legal system, these parties

submit the matter to the competent authority of the party where the

He is a resident. The thing to be presented within three years from the

time when the person in question had knowledge of the action

given 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,

authority search decide by mutual agreement

with the competent authority of the other party in order to

avoid taxation contrary to the agreement. Agreement

reached are implemented notwithstanding the time limits in the parties '

internal legislation.



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 meaning of the previous paragraphs.



Article 4



Date of entry into force



1. This agreement shall enter into force on the thirtieth day following the

date of the last written notification-as

each Government should leave when the measures taken

required under their respective legislation, has been provided.

The agreement shall apply to taxes levied for fiscal years

beginning on January 1 of the year following the year after

This agreement enters into force or later.



2. Notwithstanding paragraph 1 of this article, this agreement

only applicable when the agreement between the Kingdom of Sweden and

The Isle of Man on the exchange of information in tax matters

signed on 30 October 2007.



Article 5



Termination



1. this Agreement shall remain in force until terminated by a

party. Either party may terminate the agreement 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 respect of tax charged for tax years beginning

on 1 January of the year immediately following the end of

the six-month period or later.



2. Notwithstanding paragraph 1 of this article, this agreement will terminate

to apply, without written notice of termination, on the date of the agreement between the

The Kingdom of Sweden and the Isle of Man for the exchange of information

in tax matters signed on 30 October 2007 ceases to

apply.



In witness whereof the undersigned, being duly

authorised, have signed this agreement.



Which took place in Oslo on 30 October 2007, in duplicate in the

English language.



For the Government of the Kingdom of Sweden



Ingemar Hansson



For the Government of the Isle of man



Allan Robert Bell