Law (2008:1303) If Agreement Between Sweden And The Isle Of Man For The Avoidance Of Double Taxation Of Natural Persons

Original Language Title: Lag (2008:1303) om avtal mellan Sverige och Isle of Man för undvikande av dubbelbeskattning av fysiska personer

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Read the untranslated law here: http://rkrattsbaser.gov.se/sfst?bet=2008:1303

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

avoidance of double taxation of natural persons

signed on 30 October 2007, to be valid as law in this

the country. The agreement is drawn up in English. The English text

as well as an English 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.



3 repealed by law (2011:1425).



Transitional provisions



2008:1303



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 INDIVIDUALS



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 individuals with respect to

taxes on income, have agreed as follows:



Article 1



Individuals covered



This Agreement shall apply to individuals who are residents in

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 Isle of Man:



taxes on income or profit;



(hereinafter referred to as "Manx 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 the Isle of Man or Australia, as the

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

Sweden;



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



(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 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 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;



(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

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 in respect of an individual any individual who,

under the laws of that Party, 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 that Party in respect only

of income from sources in that Party.



2. Where by reason of the provisions of paragraph 1 an

individual is a resident in 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

the first-mentioned Party if:



(a) the recipient is present in the other Party for a period or

period not exceeding in the aggregate 183 days in any 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. Where (a)

resident of Sweden derives remuneration in respect of an

the employment exercised aboard an aircraft operated in

international traffic by the air transport consortium

Scandinavian Airlines System (SAS), such remuneration shall be

taxable only in Sweden.



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

the directors of a company which is 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

the Social Security legislation and annuities arising in 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 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 Isle of Man double taxation shall be avoided as

follows:



Subject to the provisions of the laws of the Isle of Man

regarding the allowance as a credit against Manx tax of tax

payable in a territory outside the Isle of Man (which shall not


affect the general principle hereof);



(i) subject to the provisions of sub-paragraph (iii)), where (a)

resident of the Isle of Man derives income which, in accordance

with the provisions of this Agreement, may be taxed in Sweden,

the Isle of Man shall allow as a deduction from the tax on the

the income of that resident, an amount equal to the income tax paid

in Sweden;



(ii) such deduction shall not, however, exceed that part of the

the income tax, as computed before the deduction is given, which is

attributable to the income which may be taxed in Sweden;



(iii) where a resident of the Isle of Man derives income which,

in accordance with the provisions of this Agreement shall be

taxable only in Ireland, the Isle of Man may include this income

in the tax base, but shall allow as a deduction from the income

tax that part of the income tax which is attributable to the

income derived from Sweden.



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 Isle of Man and in accordance with the provisions

of this Agreement, may be taxed in the Isle of Man, United Kingdom 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 Manx 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 Isle of Man, Sweden may, when determining

the graduated rate of Swedish tax, take into account the income

which shall be taxable only in the Isle of Man.



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

the action resulting in taxation not in accordance with the

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. 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.



2. The Agreement shall have effect:



(a) in the Isle of Man:



in respect of Manx tax, on taxes chargeable for any tax year

beginning on or after the sixth day of January of the year next

following that in which the Agreement enters into force;



(b) in Sweden:



in respect of Swedish tax, 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.



3. Notwithstanding paragraph 2 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 14



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 NATURAL PERSONS



The Government of the Kingdom of Sweden and the Isle of Man Government, which

wish to conclude an agreement for the avoidance of double taxation of

natural persons with respect to taxes on income, have come

agree on the following:



Article 1



Natural persons to whom the agreement applies



This agreement applies to natural persons 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 the Isle of Man:



taxes on income or profits



(in the following referred to as "treasure of the Isle of Man"),



b) in Sweden:



1. the 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 accrue at

addition to or in place of the currently outgoing

the taxes. The competent authorities of the Parties 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 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)), "Isle of Man" means the island of the Isle of Man,



c) "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;



d) "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,



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 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 4



Resident



1. for the purposes of this agreement, the term "person with

a resident of a party "in the case of a natural person, natural person

under the law of that party is liable to tax there because

of domicile, residence or other similar circumstances. This

expression, however, does not include the natural person who is

taxable in this party only for income from a source in this

party.



2. where by reason of the provisions of paragraph 1 an individual is

resident in both parties, is determined his residence as follows:



(a)) he is considered to be resident only in the party in which he has a dwelling

permanently available to him. If he has a

such property in both parties, he is considered to be a resident only in the

party with which his personal and economic relations are

the 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 in the parties decide by mutual

agreement.



Article 5



Single service



1. the provisions of articles 6, 7, 8 and 9 leads

other, taxable wages and other similar remuneration paid by person

a resident of a party receives on account of employment, only in

that party, unless the work is carried out in the other party. If

the work is performed in this other party, receives compensation received

for work are taxed there.




2. Notwithstanding the provisions of paragraph 1 shall be taxable

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

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. If the resident in

Sweden receives remuneration for work performed on board a

aircraft used in international transport of

the air transport Consortium Scandinavian Airlines System (SAS),

such remuneration shall be taxable only in Sweden.



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 by

their personal business of the other party as

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

However, payments made as remuneration for fully answering

consideration in 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 to 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 given

a resident of 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 that

allowed 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 the Isle of Man, double taxation should be avoided in the following

way:



Having regard to the provisions of the Isle of man legislation

allow tax paid in a territory other than that of the Isle

of Man to offset taxes in Isle of Man (without the General

principle laid down this change):



1) if resident of Isle of Man receives income that

in accordance with the provisions of this agreement may be taxed in Sweden,

to Isle of Man-with regard to the provisions of 3) below-

from the tax on the income of the person in question set off a

amount equal to the income tax paid in Sweden,



2) settlement amount shall not, however, exceed that part of the

income taxes, as calculated before the deduction, which is attributable to

such income may be taxed in Sweden,



3) if resident of Isle of Man receives income, which

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

Isle of Man income may include in the tax base, but shall

from the income tax set off an amount equal to the portion of the

income tax which is attributable to the income earned

from Sweden.



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



a) where a resident of Sweden acquires income according to

Isle of man legislation and in accordance with the provisions of

This agreement may be taxed in the Isle of Man, Sweden-with

subject to the provisions of Swedish legislation concerning

deduction of foreign tax (as it may be changed from

time to time without changing the general principle set out here

change)-from the Swedish tax on income offset a

amount equal to the tax paid on income in the Isle of

Man.



b) where a resident of Sweden receives income, which

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

Man, get in determining Sweden Swedish progressive tax

consider such income which shall be taxable only in the Isle of Man.



Article 12



Mutual agreement



1. If an individual considers that a party, or both parties

taken measures as 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 13



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.



2. the agreement shall apply:



(a)) in the Isle of Man:



in the case of tax in the Isle of Man, on the tax imposed for

tax year that begins on april 6 this year that most closely follows the

the year in which the agreement enters into force or later,



b) in Sweden:



in the case of Swedish tax, on taxes imposed for fiscal years

beginning on 1 January of the year immediately following the year in which the

the agreement enters into force or later.



3. Notwithstanding paragraph 2 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 14



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