section 1 of the agreement for the avoidance of double taxation and
Prevention of tax evasion with respect to taxes on income
Sweden and Poland signed on november 19, 2004
apply that law in this country. The agreement is written in Swedish,
Polish and English. The Swedish and the English text
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3 repealed by law (2011:1414).
Transitional provisions
2005:248
1. this law shall enter into force on the day the Government determines and
applied with respect to taxes on income, the income
acquired on 1 January of the year immediately following the year
When the Act comes into force or later.
2. By the Act repealed
Regulation (1977:475) of double taxation agreements between
Sweden and Poland, and
Regulation (1977:476) on withholding tax for resident
in Poland, etc.
The repealed regulations shall continue to apply
with respect to taxes on income which are acquired, and
with regard to the tax on capital held, before the end of
the year in which the law comes into force.
Annex
Agreement between the Government of the Kingdom of Sweden and the Republic of
The Government of Poland for the avoidance of double taxation and
Prevention of tax evasion with respect to taxes on income
The Government of the Kingdom of Sweden and the Government of Republic of Poland,
Desiring to conclude an agreement for the avoidance of double taxation
and the prevention of fiscal evasion with respect to taxes on income,
have agreed as follows:
Article 1
Persons to whom the agreement applies
This agreement shall apply to persons who are domiciled in a
Contracting State or in both Contracting States.
Article 2
Taxes covered by the agreement
1. The taxes to which this Agreement shall apply are:
a) in Sweden:
1) state income tax,
2) withholding tax,
3) the Special income tax for non-residents,
4) the Special income tax for non-resident artists
and others, and
5) the municipal income tax,
(in the following referred to as "Swedish tax");
b) in Poland:
1) income tax for physical persons, and
2) corporate tax rate,
(in the following referred to as "Polish 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 taxes referred to in paragraph 1.
The competent authorities of the Contracting States shall
notify each other of the essential changes made in
the respective tax laws.
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) "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;
(b)), "Poland", when the term is used in the geographical
importance, the Republic of Poland's territory and includes areas
outside its territorial waters over which Poland, according to Polish
law and in conformity with international law, exercises
sovereign rights over the seabed, its subsoil and
natural resources,
(c)) "a Contracting State" and "the other Contracting
the State "refers to Sweden or Poland, depending on the context,
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) "enterprise of a Contracting State" and "enterprise of the
other Contracting State "mean undertakings carried on by
resident of a Contracting State, each company
conducted by the resident of the other Contracting
the State,
g) "international transport" means transport by ship or
aircraft used by enterprises of a Contracting State except
When the ship or aircraft are used exclusively between
places in the other Contracting State,
h) "national" means:
1) natural person which has the nationality of a Contracting
State,
2) any legal person, partnership or other association
incorporated under the law of a Contracting
State,
in) "competent authority" means:
1) 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) in Poland: the Minister of finance or his authorised representative or
the authority to which has been assigned to be the competent authority in
the application of this agreement.
2. Where a Contracting State applies the contract at any
time is deemed, unless the context shall give rise to different,
any expression that is not defined in this agreement have the meanings
that statement has at that time under the State's
legislation in respect of such taxes to which the agreement
applied, and the significance of the phrase under the
the applicable tax laws of that State primacy
in front of the importance of the expression given in other legislation in
This state.
Article 4
Resident
1. for the purposes of this agreement, the term "person with
resident in one Contracting State "person under
the laws of that State, is liable to tax there because of
domicile, residence, place of management or any other
similar circumstances and also includes that State, its
political subdivisions, local authorities and
institutions or bodies governed by public law. In the case of a
partnership or estate the term applies, however, only
to the extent the commercial company or estate income
be taxed in that State in the same way as income acquired
of the resident there, either with trading company or
the estate, or of its partners or beneficiaries.
The term "resident of a Contracting State"
However, it does not include a person who is liable to tax in this
State only on income from sources in that State.
2. where by reason of the provisions of paragraph 1 an individual is
a resident of both Contracting States, is determined his residence on
the following ways:
(a)) he is considered to be resident only of the State in which he has a dwelling
permanently available to him; If he has a
such property in both States, he shall be deemed to be a resident only in the
State with which his personal and economic relations are
the strongest (Centre of life interests),
(b)) if it cannot be settled in the State he has Center for
their living interests or if he's not in either State have
a dwelling that is permanently available to him, shall be deemed to
he be a resident only of the State where he usually resides,
(c)) if he usually resides in both States, or if he
not reside permanently in any of them, he shall be deemed to be a resident
only in the State of which he is a national,
d) if he is a national of both States or if he is not
nationals of any of them, the competent authorities of the
Contracting States the question by mutual agreement.
3. where by reason of the provisions of paragraph 1 a person other than the
an individual is a resident of both Contracting States, shall
the competent authorities seek rule by mutual
agreement. Upon such agreement, the competent
authorities in particular take into account where they have their
effective management.
Article 5
Permanent establishment
1. for the purposes of this agreement the term "fixed
establishment means a fixed place of business, from
What a business is wholly or partly carried on.
2. The term "permanent establishment" includes especially:
a) place of business management,
b) branch,
c) offices,
d) factory,
e) workshop, and
f) mine, an oil or gas well, a quarry or any other place of
the extraction of natural resources.
3. Place for building, construction, Assembly or
installation activities or business that consists of
monitoring in connection therewith constitutes a permanent establishment only
If the operation lasts for a period exceeding twelve
months.
4. Notwithstanding the preceding provisions of this article shall be deemed to
the term "permanent establishment" shall not include:
(a)) the use of facilities solely for storage,
exhibition or disclosure of company-owned goods,
(b) holding of a company belonging to) stock in trade solely
for storage, exhibition or distribution,
(c) holding of a company belonging to) stock in trade solely
for working or processing by other company,
d) holding of fixed place of business
exclusively for the purchase of goods or obtaining information
for the company,
e) holding of fixed place of business
exclusively for the enterprise carrying on other activities of the
preparatory or auxiliary nature,
f) holding of fixed place of business
exclusively for combining activities listed in (a) to (e)
above, provided that all the activities
from the habitual place of business because of
This combination is of a preparatory or auxiliary character.
5. If a person who is not an independent representative
at which point 6 apply-is active in a Contracting
State of an enterprise of the other Contracting State and in
the first State has and there are regularly using
authority to conclude contracts in the name of company, this company is considered
-Notwithstanding the provisions of paragraphs 1 and 2 have fixed
establishment in that State in respect of each activity as this
person engaged in for the company. However, this does not apply if the
activities this person conducts are limited to such as
set out in paragraph 4 and which, if it was done from a permanent
place of business, would not make this
fixed place of business to the permanent establishment
in accordance with the provisions of that paragraph.
6. Enterprises of a Contracting State are not considered to have fixed
establishment situated in the other Contracting State only on the
because the company carries on business in that other
State through the intermediary of brokers, Commissioner or other
independent representative, provided that such person
in doing so, conducts its usual business.
7. the fact that a company resident in a
Contracting State controls or is controlled by a
a company resident in the other Contracting State or in a
companies doing business in the other State
(either from a permanent establishment or otherwise),
not in and of itself to constitute either company a permanent establishment
for the other.
Article 6
Income from immovable property
1. income, as a person resident in one Contracting State
acquires immovable property (including income from agriculture
or forestry) situated in the other Contracting State, may
be taxed in that other State.
2. The term "immovable property" has the same meaning as the expression
under the laws of the Contracting State in which the
the property is situated. The term includes, however, always
accessory to immovable property, the living and the dead furniture in
Agriculture and forestry, rights to which the provisions of
private law on immovable property apply, buildings,
tenancies of immovable property and rights to changing
or fixed remuneration for the use of, or the right to
use mineral occurrence, source or another natural resource.
Ships, boats and aircraft is not considered to be real property.
3. the provisions of paragraph 1 shall apply to income acquired
through immediate use, through rental or other
use of immovable property.
4. the provisions of paragraphs 1 and 3 apply also to
income from immovable property belonging to the company and on the income of
immovable property used for the independent professional practice.
Article 7
Income from operating
1. the Income of an enterprise of a Contracting State
acquire, shall be taxable only in that State unless the enterprise
carries on business in the other Contracting State from where
permanent establishment situated. If the enterprise carries on business just now
specified manner, the company's income is taxed in the other
the State, but only so much of them as is attributable to that
permanent establishment.
2. enterprises of a Contracting State carries on business in the
other Contracting State from where the permanent establishment situated
are entered, unless the provisions of paragraph 3 shall give rise to another, in
Each Contracting State to the permanent establishment the
income as it can be assumed that the establishment would have acquired,
If it were a stand-alone company that operated by
the same or similar nature under the same or similar conditions
and independently completed the business with the undertaking to which the
establishment belongs.
3. In determining permanent establishment income deduction is allowed
for expenses incurred for the permanent establishment, including
included expenses for management and General
management, whether the expenditure incurred in the State in which the
permanent establishment is situated or elsewhere.
4. income not attributable to a permanent establishment by reason only of the
the reason to purchase goods through the permanent establishment
merchandise for the enterprise.
5. for the purposes of the preceding paragraphs, income is determined as
is attributable to the permanent establishment by the same procedure
from year to year, unless good and sufficient reasons causing the
other things.
6. Included in income by operating income which are dealt with in particular in
other articles of this agreement, the provisions of these
articles of the rules contained in this article.
Article 8
Sea and air transport
1. income, which is being acquired by an enterprise of a Contracting
State through the use of ships or aircraft in
international traffic, be taxable only in that State.
2. the provisions of paragraph 1 apply to the income
acquired by the air transport Consortium Scandinavian Airlines System
(SAS) only in respect of that part of the income corresponding to the
share in the Consortium held by SAS Sweden AB, the Swedish
shareholder in SAS.
3. the provisions of paragraph 1 shall also apply to income
acquired through participation in a pool, a joint business
or an international operating agency.
Article 9
Companies with associated enterprises
1. In cases where the
a) an enterprise of a Contracting State, either directly or indirectly
participate in the management or control of a company in the other
Contracting State or owns part of the company capital,
or
(b)) the same person participates directly or indirectly in the management,
or control of an enterprise of a Contracting State
as an enterprise of the other Contracting State or own
part in both of these corporate capital, observed the following.
If between businesses in terms of trade relations or
financial relations agreed upon or prescribed conditions, as
differ from those which would have been agreed between each other
independent company, receives all the income, that without such conditions
would have been one company but who, because of
the terms in question did not come about this company, be included in the
This company's income and taxed accordingly.
2. In cases where one Contracting State in the income of a company
in this State do-and accordingly, taxes
-income, for which an enterprise of the other Contracting
State is taxed in the other State, and it thus
ancillary income is such as would have been the company
in the first State on the terms agreed between
the enterprises had been those which would have been agreed between the
independent companies, that other State shall implement
proper adjustment of the amount of tax levied for
the income which, if it considers that the adjustment is justified. At
This adjustment is observed with the other provisions of this agreement and
the competent authorities of the Contracting States
If necessary, consult with each other.
Article 10
Dividend
1. Dividends paid by a company resident in one Contracting State
to a resident of the other Contracting State,
be taxed in that other State.
2. Dividends may be taxed in the
Contracting State in which the company paying the dividends is
the resident, in accordance with the laws of that State, but if the
entitled to dividends is a resident of the other Contracting
the State shall not exceed:
a) 5 per cent of the gross amount of the dividends if the beneficial
to dividends is a company (other than a partnership)
which directly holds at least 25 percent of the paying company
capital,
b) 15 per cent of the gross amount of the dividends in all other cases.
This paragraph does not affect the company's taxation of profit of the
the dividend is paid.
3. The term "dividends" is understood in this article income
of shares or other rights, not being debt-claims, with
right to share in profits, as well as income from other investments in companies,
who, under the law of the State in which the distributing company
is resident for tax purposes shall be treated in the same way as
income from shares.
4. the provisions of paragraphs 1 and 2 shall not apply if the
who is entitled to the dividends is a resident of a Contracting
State and carries on business in the other Contracting State,
where the company paying the dividends is a resident, from where
permanent establishment situated or exercising independent
professional activities in the other State from where located
permanent device, and the proportion due to the
dividend paid owns actual relation to the Permanent
the establishment or the permanent devices. In such a case
apply the provisions of article 7 or article 14.
5. If the company resident in one Contracting State acquires
income from the other Contracting State, that other
State does not tax dividends paid by the company, except to the
so far as the dividend is paid to a resident of the other
State or insofar as the percentage due to the dividend payment
paid owns truly connected with a permanent establishment or
permanent device in that other State, nor on
the company's undistributed profits to a tax payable on
the company's undistributed profits, even if the delivery or the
undistributed profit consists wholly or partly of income
raised in that other State.
Article 11
Interest rate
1. interest, stemming from a Contracting State and which
paid to a resident of the other Contracting
State, shall be taxable only in that other State if the person concerned
is entitled to the interest.
2. The term "interest" for the purposes of this article the income of
each kind of claim, whether secured by mortgage
in immovable property or not, and whether it entails the right to
interest in the debtor's profits or not. The term refers to the particular
income from securities issued by State and
bonds or debentures, including premiums and
profits pertaining to such securities, bonds
or debentures. Penalty for late payment is considered
not that interest for the purposes of this article.
3. the provisions of paragraph 1 shall not apply if the beneficial
the interest rate is a resident of a Contracting State and carries on
on business in the other Contracting State, from the interest rate
stem, from where the permanent establishment situated or exercises
independent professional activities in the other State from where
located permanent device, as well as the claim for which
the interest is paid owns truly connected with the permanent establishment
or the permanent devices. In such a case be applied
the provisions of article 7 or article 14.
4. where by reason of a special relationship between the payer and the
the beneficial owner of the interest or between both of them and other
person the amount of the interest, having regard to the debt claim for which
the interest is paid, exceeds the amount which would have been agreed
between the payer and the beneficial owner of the interest on such
relations do not exist, the provisions of this
article only at the latter amount. In such a case be taxed
excess amounts in accordance with the legislation of each
Contracting State in compliance with the other provisions of
This agreement.
Article 12
Royalty
1. Royalty, as derived from a Contracting State and which
paid to a resident of the other Contracting
the State, may be taxed in that other State.
2. However, Royalties may also be taxed in the Contracting
State from which it is derived, and in accordance with the legislation of the
that Contracting State, but if the beneficial owner of royalties
is resident in the other Contracting State, the tax is not
exceed 5% of the gross amount of the royaltyns.
3. The term "royalties" in this article, of course, every kind of
payments received as compensation for the use of, or
for the right to use copyright to literary, artistic
or scientific work, including cinematograph films and
films or tapes for radio or television broadcasting,
patent, trade mark, design or model, plan, secret
recipe or secret manufacturing method, as well as for the use of
or for the right to use industrial, commercial or
scientific equipment, or for information on the experience knowledge
of industrial, commercial or scientific experience.
4. the provisions of paragraphs 1 and 2 shall not apply if the
who is entitled to the royalty is a resident of a Contracting State
and carries on business in the other Contracting State, from
which the royalty arises, from which the permanent establishment or
exercising independent professional activities in the other State from where
located permanent device, as well as the right or
property in respect of which the royalties are paid owns real
connected with the permanent establishment or the Permanent
the device. In such cases, apply the provisions of article 7
and article 14.
5. Royalties shall be deemed to arise from a Contracting State if
the payer is a resident of this State, If
However, the person paying the royalties, whether he is
resident in a Contracting State or not, in a
Contracting State has a permanent establishment or a permanent
device in connection with which the obligation to pay the royalty
arose, and the royalty charged to the permanent establishment or
the permanent device, are considered royalty come from the
State in which the permanent establishment or the Permanent
the device is available.
6. where by reason of a special relationship between the payer and the
the person entitled to the royalties or between both of them and other
person the amount of the royalties, having regard to the use, the
right or the enlightenment for which royalties are payable,
exceeds the amount which would have been agreed between the payer
and the person entitled to the royalty for such relations not
exist, the provisions of this article shall apply only to
the latter amount. In such a case the taxable surplus amount
According to the law of each Contracting State with
observance of the other provisions of this agreement.
Article 13
Capital gain
1. Profit, as a person resident in one Contracting State
acquires from the alienation of such immovable property
referred to in article 6 and situated in the other Contracting
State, or because of the disposal of shares in a company whose
assets consists mainly of such property, may be taxed
in that other State.
2. Gains from the alienation of movable property forming part
of the operating assets of a permanent establishment which an enterprise of the
a Contracting State has in the other Contracting State,
or of movable property pertaining to a permanent device for
to exercise an independent profession, as resident
of a Contracting State has in the other Contracting State,
may be taxed in that other State. The same applies to the profit of
alienation of such a permanent establishment (alone or
together with the whole enterprise) or of such a permanent
device.
3. Profit as a resident of a Contracting State
acquires from the alienation of ships or aircraft
used in international traffic, or movable property which is
attributable to the use of such ship or aircraft;
shall be taxable only in that State.
The provisions of this paragraph shall apply in respect of profits
acquired by the air transport Consortium Scandinavian Airlines System
(SAS), but only in respect of the part of the profits as corresponds to the
the stake in the consortium which is held by SAS Sweden AB, the
Swedish partner of SAS.
4. Gains from the alienation of property other than that
referred to in paragraphs 1, 2 and 3 shall be taxable only in the
Contracting State of which the alienator is a resident.
5. Profit, due to the disposal of assets, which are acquired by
a natural person who has been domiciled in a Contracting State
and a resident of the other Contracting State shall-without
by way of derogation from paragraph 4-taxed in the
first-mentioned Contracting State if the transfer of the asset
occurs at any time during the ten years following
immediately following the date on which the person ceased to be resident in
the first State.
Article 14
Independent professional activities
1. income, as a physical person resident in a
Contracting State acquires through the exercise of profession or
other independent activity, shall be taxable only in that State if
He's not in the other Contracting State has a permanent
device, which are regularly available to him in order to
exercise activities. If he has such a permanent device,
income may be taxed in that other State but only so much
of them as is attributable to that permanent device.
2. The expression "liberal profession" includes especially independent
scientific, literary and artistic activities,
educational and teaching activities and such
independent operations, as a doctor, lawyer, engineer,
Architect, dentist and an accountant.
Article 15
Single service
1. the provisions of articles 16, 18 and 19 shall give rise
other, taxable wages and other similar remuneration, as a person
resident in one Contracting State receives due
employment, only in that State unless the work is carried out in
the other Contracting State. If the work is performed in this
other State, compensation received for work are taxed
there.
2. Notwithstanding the provisions of paragraph 1 shall be taxable
compensation, as a person resident in one Contracting State
receipt for work performed in the other Contracting State,
only in the first-mentioned State, if:
a) recipient residing in the other State 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 State or on his behalf, and
c) compensation does not affect the establishment or
permanent device which the employer has in the other
State.
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 of
a Contracting State, be taxed in that State. For person with
resident in Sweden receives income from work, which is carried out
on board an aircraft used in international transport of
the air transport Consortium Scandinavian Airlines System (SAS),
taxable income only in Sweden.
Article 16
Directors ' fees
Directors ' fees and other similar remuneration, as a person with
resident in one Contracting State receives as a member of the
Board or other similar bodies in companies established in the
other Contracting State, may be taxed in that other State.
Article 17
Artists and athletes
1. Notwithstanding the provisions of articles 14 and 15,
income, as a resident of a Contracting State
acquire through their personal activities in the other
Contracting State in his capacity as a performer, such as theatre or
movie actor, radio or television artiste, or a musician,
or as an athlete, be taxed in that other State.
2. In cases where the income through personal activities, artist
or athlete carries on in that capacity, not become the property of
the artist or sportsman himself but to another person, this
income, notwithstanding the provisions of articles 7, 14 and
15, be taxed in the Contracting State in which the artist or
the athlete is engaged in the business.
3. Notwithstanding the provisions of paragraphs 1 and 2 shall
income as an artist or sportsman acquires, during the visit of the
a Contracting State, through personal activities excluded
from tax in that Contracting State if the activities
be exercised within the framework of a visit to the substantial part
funded by the other Contracting State, a political
Subdivision, local authority or public institution in
that other State.
Article 18
Pensions, annuities and similar compensation
1. Pensions and other similar remuneration, payment under
social security legislation and annuities, which are derived from
a Contracting State and paid to a resident of
the other Contracting State, may be taxed in the
first-mentioned Contracting State.
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 19
Public service
1. a) Compensation (except for retirement), paid for by a
Contracting State, one of its political subdivisions
or local authorities to natural person because of work
performed in this State, the section or governmental
service, shall be taxable only in that State.
b However, such remuneration shall be taxable only) in the second
Contracting State if the work is performed in this State and
the person in question is domiciled in this State and:
1) is a national of that State, or
2) were not allowed to live in this State solely for the purpose of performing
the work.
2. the provisions of articles 15 and 16 shall apply to
compensation paid on the basis of the work carried out in connection
with business carried on by a Contracting State, one of its
political subdivisions or local authorities.
Article 20
Students
A student or business trainee who is, or immediately
before the stay in one Contracting State of residence in the other
Contracting State and residing in the first State
exclusively for their education or training, is not taxed
in this State for the amount that he receives for his living,
his teaching or training, on condition that
amounts derived from sources outside that State.
Article 21
Other income
1. income as a resident of a Contracting State
acquires and which are not dealt with in the foregoing articles of this
Agreement shall be taxable only in that State, regardless of the origin of income
derived.
2. the provisions of paragraph 1 shall not apply to income, with
excluding income from immovable property referred to in article 6
paragraph 2, if the recipient of the income is resident in a
Contracting State, carries on business in the other
Contracting State from where the permanent establishment situated or
exercising independent professional activities in the other State from where
located permanent device, as well as the right or
property in respect of which the income is paid owns real
connected with the permanent establishment or the Permanent
the device. In such cases, apply the provisions of article 7
and article 14.
Article 22
The Elimination of double taxation
1. in the case of a resident of Sweden shall
double taxation is avoided in the following manner:
a) where a resident of Sweden acquires income according to
Polish law and in accordance with the provisions of this
Agreement may be taxed in Poland, Sweden-with regard to the
the provisions in the Swedish legislation relating to the settlement of
foreign tax (even as they now can get through
to change without the general principle as stated this change)
-from the Swedish tax on income offset an amount
corresponding to the Polish tax paid on income.
b) where a resident of Sweden receives income, which
in accordance with the provisions of this Agreement shall be taxable only in Poland,
get in determining Sweden-Swedish progressive tax-
consider such income which shall be taxable only in Poland.
c) Notwithstanding the provisions of subparagraph (a)) in this paragraph is
dividends from companies established in Poland to resident companies
in Sweden exempt from Swedish tax according to the provisions of
the Swedish exemption for dividends received by
Swedish companies by companies abroad.
2. in the case of a resident of Poland shall
double taxation is avoided in the following manner:
a) where a resident of Poland receives income, as in
accordance with the provisions of this agreement, may be taxed in the
Sweden, Poland shall, except where the provisions of this paragraph (b))
causing other things, exempt such income from tax. When
the tax on other income of such person is calculated, Poland
apply the rate of tax which would have been applicable if the
exempt income is not excluded.
b) where a resident of Poland receives income that in
accordance with the provisions of articles 10 and 12,
taxed in Sweden, Poland from the Polish tax on
such a person's income, deduct an amount equal to the
Swedish tax. The deduction shall not, however, exceed
the part of the tax, as calculated before the deduction, which is attributable
to such income derived from Sweden.
Article 23
Prohibition of discrimination
1. nationals of a Contracting State shall not, in the second
Contracting State be subject to taxation or
coherent demands that are of a different kind or more onerous than
the taxation and related requirements as nationals of
the other State under the same circumstances are or may be
subject to. Notwithstanding the provisions of article 1
This provision also applies to any person who is not domiciled
of a Contracting State or in both Contracting States.
2. the taxation on a permanent establishment which businesses in a
Contracting State has in the other Contracting State,
in that other State shall not be less favourable than
taxation of the company in the other State, that carries
activities of the same kind. This provision is not considered to cause
the obligation of a Contracting State to grant to any person with
resident in the other Contracting State such personal
deduction for tax purposes, such exemption or
tax reduction on the basis of marital status or
dependants against family allowed resident of
their own State.
3. Except where the provisions of article 9, paragraph 1,
Article 11 paragraph 4 or article 12 paragraph 6 applies, the
interest, royalties and other payments from the company in a
Contracting State to a resident of the other
Contracting State tax deductible in determining the
taxable income of such company on the same terms and conditions
as payment to a resident of the first State.
Similarly, debt as a company of a Contracting State has
to a resident of the other Contracting State
deductible in determining such business
taxable assets on the same terms as the debt to
person resident in that State.
4. Enterprises of a Contracting State, the capital of which is wholly or
partly owned or controlled, directly or indirectly, by a
or more persons resident in the other Contracting
the State shall not be subjected in the first State for
taxation or related requirements of other
kind or more burdensome than the taxation and thus
coherent requirements as other similar companies in the
first State are or may be subjected.
5. Notwithstanding the provisions of article 2 shall be applied
the provisions of this article on the taxes of every kind and
nature.
Article 24
The procedure for the mutual agreement
1. If a person believes that a Contracting State or both
Contracting States took measures to him causes
or will result in taxation contrary to
the provisions of this agreement, he may, without prejudice to
his right to make use of the remedies contained in these
the internal legal order of States, submit the matter to the competent
authority of the Contracting State in which he is domiciled
or, in the case of application of article 23, paragraph 1, of the
Contracting State of which he is a national. The matter shall be
within three years from the time the person in question had
knowing the action giving rise to taxation as
contrary to the provisions of the agreement.
2. If the competent authority finds the complaint justified but
Unable to achieve a satisfactory solution,
the authority shall seek decide by mutual
agreement with the competent authority of the other
Contracting State in order to avoid taxation which
contrary to the agreement. Agreement is implemented
Notwithstanding the time limits in the Contracting States
internal legislation.
3. the competent authorities of the Contracting States shall
by mutual agreement, seek to determine or
doubts arising concerning the interpretation or
the application of the agreement. They can also initiate consultations with a view to
eliminate double taxation in cases not covered by
the agreement.
4. the competent authorities of the Contracting States may
enter into direct relations with each other in order to meet
agreement in the sense of the preceding paragraphs.
Article 25
Exchange of information
1. the competent authorities of the Contracting States shall
Exchange such information likely to be relevant to the
the application of the provisions of this agreement or for
Administration or enforcement of internal law in
question about taxes of every kind and nature, for
the Contracting States, or of their political
subdivisions or local authorities, on the taxation
According to this legislation is not contrary to the agreement. The exchange of
information is not restricted by articles 1 and 2.
2. information that a Contracting State received under
paragraph 1 shall be treated as secret in the same manner as
information obtained in accordance with the internal legislation of the
This State and shall be disclosed only to persons or authorities
(including courts and administrative bodies)
sets, receives or collects the taxes referred to in
paragraph 1 or dealing with prosecution or appeal in respect of
These taxes or supervising those
activities. Such persons or authorities shall use the
the information only for such purposes. They may disclose
the information in public court proceedings or in
Court decisions.
3. the provisions of paragraphs 1 and 2 shall not obligation
for a Contracting State that:
a) take administrative measures derogating from the legislation and
administrative practices in force in that Contracting State, or in the
other Contracting State,
b) provide information that is not available under
legislation or the usual administrative practice in this
Contracting State or of the other Contracting State,
c) supply information which would disclose any trade secret,
industrial, commercial or professional secret, or in
trade used the process or information,
the surrender would be contrary to ordre public considerations (
public).
4. Where a Contracting State requests information under this
Article, the other Contracting State shall use the funds
as this State has to obtain the required
the information, even though that other State may not need
information for its own tax purposes. The obligation
in the previous sentence is limited by the provisions of paragraph 3, but
This does not mean the right of a Contracting State to refuse
to supply information solely because the State does not
have their own interest in such information.
5. the provisions of paragraph 3 does not confer a right to a
Contracting State to decline to supply information
solely because the information is held by a bank, other
financial institution, agent, representative or trustee
or because the information concerning the ownership of a person.
Article 26
Assistance for the recovery of taxes
1. the Contracting States shall assist each other in
recovery of tax claims. Such assistance is not limited
by articles 1 and 2. The competent authorities of the
Contracting States may agree on
the application of this article.
2. The term "asset" is understood in this article a
the claim for an amount relating to taxes of every kind and
nature levied for the Contracting States, their
political subdivisions or local authorities, if this
taxation is not contrary to the agreement or any of the other
instrument to which Contracting States are parties,
plus interest, special fees and costs for collection
or precautionary measures related to such amount.
3. When a tax claim of a Contracting State is
enforceable under the laws of the State concerned and when the debtor
According to the law of that State does not have the right to at this
time, prevent its collection, that asset,
at the request of the competent authority of that State, be recognised
for collection by the competent authority of the other
Contracting State. This tax asset to be recovered by
the other State under the provisions of the legislation of that State
law enforcement and collection as if this would be
one of its own tax claims.
4. When a tax claim of a Contracting State in accordance with its
legislation could be the subject of precautionary measures in order to
ensure the recovery of the tax asset shall, at the request
by the competent authority of that State, be recognized for
the taking of precautionary measures by the competent authority in
the other Contracting State. The second State shall take
measures for the enforcement of this tax pursuant to
the provisions of its laws as if this would be one of its
own tax claims. This applies even if the tax claim
at the time when such measures are applied is not enforceable in the
the first State or the debtor has the right to prevent
its recovery.
5. Notwithstanding the provisions of paragraphs 3 and 4, a
tax asset recognised by a Contracting State under
paragraph 3 or 4 shall not, in that State, be touched by time limits or
enjoy any privilege that applies to a tax claim
According to the laws of that State because of the nature of the claim.
A tax asset recognised by a Contracting State under
paragraph 3 or 4 shall not benefit from the preferential rights as
apply for this tax claim under the legislation of the
other Contracting State.
6. case or matter concerning the existence, validity or
the amount of the tax claim of a Contracting State shall
not be brought before the courts or administrative
authorities of the other Contracting State.
7. If, after a request made by a Contracting
State referred to in paragraph 3 or 4, but before the other Contracting
the State recovered and transferred the tax amount to the
first State, tax claim ceases to be
a) in the case referred to in paragraph 3, a tax claim in the
first State that is enforceable under this Government
legislation and that the debtor according to the law of that
State is not entitled to at this time prevent recovery
of, or
(b)) in the case referred to in paragraph 4, a tax claim in the
first State which, under its laws may be subject
for precautionary measures in order to ensure recovery,
the competent authority of the first State as soon as
inform the competent authority of the other State thereof
and in accordance with what the other State determines it shall
first State either stay or withdraw their
request.
8. the provisions of this article do not entail obligations for a
Contracting State to:
a) take administrative measures derogating from the legislation and
administrative practice of that or the other Contracting
the State,
b) take action that is contrary to ordre public considerations (
public),
c) provide assistance if the other Contracting State not exhausted
all reasonable opportunities for recovery or precautionary measures
available under its laws or
administrative practice,
d) provide assistance in cases where the administrative burden for this
State manifestly disproportionate to the benefits that are
to win for the other Contracting State.
Article 27
Limitation of benefits
Notwithstanding other provisions of this agreement, if
a) company resident in one Contracting State is mainly
acquires its income from other States
1) from activities such as banking, maritime, financial or
insurance activities, or
2) by head office, the coordination centre or
similar entity providing administrative or other
services to a group of companies engaged in operating
mainly in other States, and
b) such income, unless the application is made by the
method for avoidance of double taxation normally applicable
of this State, are taxed at a significantly lower, according to the State's
legislation than income of similar activities carried out in
This State or income from activities of head offices;
coordination centre or similar entity providing
administrative or other services to a group of companies
carries on business in that State,
the provisions of this agreement which allow for derogation from the
taxation or reduction of tax is not applied to income
as such a company acquires nor on dividend
paid by such a company.
Article 28
Members of the diplomatic mission and consular posts
The provisions of this Agreement shall not affect the privileges at the
taxation which, according to the General rules of international law or
provisions of specific agreements apply members
of the diplomatic mission and consular offices.
Article 29
Date of entry into force
1. the Contracting States shall notify each other when they
constitutional measures taken under the respective State
legislation is required in order for this agreement to come into force.
2. the agreement shall enter into force on the thirtieth day after the date of
the last of these notifications is received and its
provisions apply to income that is acquired on 1 January
the years immediately following the year in which the agreement enters into
force or later.
3. The date of this agreement, "agreement
between the Government of the Kingdom of Sweden and the people's Republic of Poland
Government for the avoidance of double taxation with respect to
taxes on income and capital ", signed in Stockholm
on June 5, 1975, shall cease to apply. With regard to the tax on
Fortune, the 1975 Agreement shall no longer apply to
Fortune held on 1 January of the year immediately
After the year in which the new agreement enters into force, or later.
Article 30
Termination
This agreement will remain in force until terminated by a
Contracting State. Each Contracting State may, at the
terminate the agreement through diplomatic channels 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 income which is acquired on 1 January of the
calendar years immediately after the end of
the six-month period or later.
In witness whereof the undersigned, being duly
authorised, have signed this agreement.
Done at Stockholm on 19 november 2004, in duplicate in the
Swedish, Polish and English. In the event of a dispute
arise in the interpretation, the English text shall be
seniority.
For the Government of the Kingdom of Sweden
Göran Persson
For the Government of the Republic of Poland
Marek Belka
Convention between the Government of the Kingdom of Sweden and
the Government of the Republic of Poland for the avoidance of
double taxation and the prevention of fiscal evasion with
respect to taxes on income
The Government of the Kingdom of Sweden and the Government of
the Republic of Poland, desiring to conclude a Convention for
the avoidance of double taxation and the prevention of fiscal
evasion with respect to taxes on income, have agreed as
follows:
Article 1
Personal scope
This Convention shall apply to persons who are residents of one
or both of the Contracting States.
Article 2
Taxes covered
(1) The taxes to which this Convention shall apply are:
(a) in Canada:
(i) the national income tax (State income tax),
(ii) the withholding tax on dividends (withholding tax),
(iii) the income tax on non-residents (the Special
income tax for non-residents),
(iv) the income tax on non-resident artistes and athletes (the
Special income tax for non-resident artists, etc.),
and
(v) the municipal income tax (municipal tax),
(hereinafter referred to as "Swedish tax");
(b) in Poland:
(i) the personal income tax, and
(ii) the corporate income tax,
(hereinafter referred to as the "Polish tax").
(2) The Convention shall apply also to any identical or
substantially similar taxes which are imposed after the date of
signature of the Convention in addition to, or in place of, the
taxes referred to in paragraph (1). The competent authorities
of the Contracting States shall notify each other of any
substantial changes which have been made in their respective
taxation laws.
Article 3
General definition
(1) For the purposes of this Convention, unless the context
otherwise requires:
(a) 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;
(b) the term "Poland" when used in a geographical sense means
the territory of the Republic of Poland, including any area
beyond its territorial waters, within which, under the laws of
Poland and in accordance with international law, Poland may
exercise its sovereign rights over the sea bed, its subsoil and
their natural resources;
(c) the terms "a Contracting State" and "the other
Contracting State "mean Canada or Poland, as the context
requires;
(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 terms "enterprise of a Contracting State" and
"enterprise of the other Contracting State" mean respectively
an enterprise carried on by a resident of a Contracting State
and an enterprise carried on by a resident of the other
Contracting State;
(g) the term "international traffic" means any transport by a
ship or aircraft operated by an enterprise of a Contracting
State, except when the ship or aircraft is operated solely
between places in the other Contracting State;
(h) the term "national" means:
(i) any individual possessing the nationality of a Contracting
State;
(ii) any legal person, partnership or association deriving its
status as such from the laws in force in a Contracting State;
(i) the term "competent authority" means:
(i) in Canada, the Minister of Finance, his authorized
representative or the authority which is designated as a
competent authority for the purposes of this Convention;
(ii) in Poland, the Minister of Finance, his authorized
representative or the authority which is designated as a
competent authority for the purposes of this Convention.
(2) As regards the application of the Convention at any time by
a Contracting State, 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 State for the purposes of the
taxes to which the Convention applies, any meaning under the
applicable tax laws of that State prevailing over a meaning
given to the term under other laws of that State.
Article 4
Resident
(1) For the purposes of this Convention, the term "resident of
(a) "Contracting State" means any person who, under the laws of
that State, is liable to tax therein by reason of his domicile,
residence, place of management or any other criterion of a
similar nature, and also includes that State, a political
Subdivision, a local authority and any governmental body or
agency thereof. However, in the case of a partnership or estate
the term applies only to the extent that the income derived by
such partnership or estate is subject to tax in that State as
the income of a resident, either in its hands or in the hands
of its partners or with.
The term "resident of a Contracting State" does not include
any person who is liable to tax in that State in respect only
of income from sources in that State.
(2) Where by reason of the provisions of paragraph (1) an
individual is a resident of both Contracting States, then his
status shall be determined as follows:
(a) he shall be deemed to be a resident only of the State in
which he has a permanent home available to him; If he has a
a permanent home available to him in both States, he shall be
deemed to be a resident only of the State with which his
personal and economic relations are closer (centre of vital
interests);
(b) if the State 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 State, he shall be deemed to be a
resident only of the State in which he has an habitual abode;
(c) if he has an habitual abode in both States or in neither of
them, he shall be deemed to be a resident only of the State of
which he is a national;
(d) if he is a national of both States or of neither of them,
the competent authorities of the Contracting States shall
settle the question by mutual agreement.
(3) Where by reason of the provisions of paragraph (1) (a) the person
other than an individual is a resident of both Contracting
States, the competent authorities of the Contracting States
shall endeavour to settle the question by mutual agreement. In
such an agreement the competent authorities shall pay
particular regard to where the place of effective management of
the person is situated.
Article 5
Permanent establishment
(1) For the purposes of this Convention, the term "permanent
establishment "means a fixed place of business through which
the business of an enterprise is wholly or partly carried on.
(2) The term "permanent establishment" includes especially:
(a) a place of management;
(b) a branch;
(c) an office;
(d) a factory;
(e) a workshop; and
(f) a mine, an oil or gas well, a quarry or any other place of
extraction of natural resources.
(3) A building site or a construction, assembly or installation
project or supervisory activities in connection therewith
constitutes a permanent establishment only if such site,
project or activities continue for a period of more than twelve
months.
(4) Notwithstanding the preceding provisions of this Article,
the term "permanent establishment" shall be deemed not to
include:
(a) the use of facilities solely for the purpose of storage,
display or delivery of goods or merchandise belonging to the
Enterprise;
(b) the maintenance of a stock of goods or merchandise
belonging to the enterprise solely for the purpose of storage,
display or delivery;
(c) the maintenance of a stock of goods or merchandise
belonging to the enterprise solely for the purpose of
processing by another enterprise;
(d) the maintenance of a fixed place of business solely for the
purpose of purchasing goods or merchandise or of collecting
information, for the enterprise;
(e) the maintenance of a fixed place of business solely for the
purpose of carrying on, for the enterprise, any other activity
of a preparatory or auxiliary character;
(f) the maintenance of a fixed place of business solely for any
combination of activities mentioned in sub paragraphs (a) to
(e), provided that the overall activity of the fixed place of
business resulting from this combination is of a preparatory or
auxiliary character.
(5) Notwithstanding the provisions of paragraphs (1) and (2),
where a person-other than an agent of an independent status
to whom paragraph (6) applies-is acting in a Contracting
State on behalf of an enterprise of the other Contracting
State, that enterprise shall be deemed to have a permanent
establishment in the first-mentioned Contracting State in
respect of any activities which that person undertakes for the
the enterprise, if such a person has and habitually exercises in
that State an authority to conclude contracts in the name of
the enterprise, unless the activities of such person are
limited to those mentioned in paragraph (4) which, if exercised
through a fixed place of business, would not make this fixed
place of business a permanent establishment under the
the provisions of that paragraph.
(6) An enterprise of a Contracting State shall not be deemed to
have a permanent establishment in the other Contracting State
merely because it carries on business in that other State
through a broker, general commission agent or any other agent
of an independent status, provided that such persons are acting
in the ordinary course of their business.
(7) The fact that a company which is a resident of a
Contracting State controls or is controlled by a company which
is a resident of the other Contracting State, or which carries
on business in that other State (whether through a permanent
establishment or otherwise), shall not of itself constitute
either company a permanent establishment of the other.
Article 6
Income from immovable property
(1) Income derived by a resident of a Contracting State from
immovable property (including income from agriculture or
forestry) situated in the other Contracting State may be taxed
in that other State.
(2) The term "immovable property" shall have the meaning which
It has under the law of the Contracting State in which the
property in question is situated. The term shall in any case
the include property accessory to immovable property, livestock and
equipment used in agriculture and forestry, rights to which the
the provisions of general law respecting landed property apply,
buildings, usufruct of immovable property and rights to
variable or fixed payments as consideration for the working of,
or the right to work, mineral deposits, sources and other
the natural resources; ships, boats and aircraft shall not be
regarded as immovable property.
(3) The provisions of paragraph (1) shall apply to income
derived from the direct use, letting, or use in any other form
of immovable property.
(4) The provisions of paragraphs (1) and (3) shall also apply
to the income from immovable property of an enterprise and to
income from immovable property used for the performance of
independent personal services.
Article 7
Business profits
(1) The profits of an enterprise of a Contracting State shall
be taxable only in that State unless the enterprise carries on
business in the other Contracting State through a permanent
establishment situated therein. If the enterprise carries on
business as aforesaid, the profits of the enterprise may be
taxed in the other State but only so much of them as is
attributable to that permanent establishment.
(2) Subject to the provisions of paragraph (3), where an
Enterprise of a Contracting State carries on business in the
other Contracting State through a permanent establishment
situated therein, there shall in each Contracting State be
attributed to that permanent establishment the profits which it
might be expected to make if it were a distinct and separate
enterprise engaged in the same or similar activities under the
the same or similar conditions and dealing wholly independently
with the enterprise of which it is a permanent establishment.
(3) In determining the profits of a permanent establishment,
There shall be allowed as deductions expenses which are
incurred for the purposes of the permanent establishment,
including executive and general administrative expenses so
incurred, whether in the State in which the permanent
establishment is situated or elsewhere.
(4) No profits shall be attributed to a permanent establishment
by reason of the mere purchase by that permanent establishment
of goods or merchandise for the enterprise.
(5) For the purposes of the preceding paragraphs, the profits
to be attributed to the permanent establishment shall be
determined by the same method year by year unless there is good
and sufficient reason to the contrary.
(6) Where profits include items of income which are dealt with
separately in other Articles of this Convention, then the
the provisions of those Articles shall not be affected by the
the provisions of this Article.
Article 8
Shipping and air transport
(1) the Profits of an enterprise of a Contracting State from the
operation of ships or aircraft in international traffic shall
be taxable only in that State.
(2) With respect to profits derived by the air transport
Consortium Scandinavian Airlines System (SAS) the provisions of
paragraph (1) shall apply only to such part of the profits as
corresponds to the participation held in that consortium by SAS
Sweden AB, the Swedish partner of SAS.
(3) The provisions of paragraph (1) shall also apply to profits
from the participation in a pool, a joint business or an
international operating agency.
Article 9
Associated enterprises
(1) Where:
(a) an enterprise of a Contracting State participates directly
or indirectly in the management, control or capital of an
Enterprise of the other Contracting State, or
(b) the same persons participate directly or indirectly in the
management, control or capital of an enterprise of a
Contracting State and an enterprise of the other Contracting
State,
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.
(2) Where a Contracting State includes in the profits of an
Enterprise of that State-and taxes accordingly-profits on
which an enterprise of the other Contracting State has been
charged to tax in that other State and the profits so included
are profits which would have accrued to the enterprise of the
the first-mentioned State if the conditions made between the two
enterprises had been those which would have been made between
independent enterprises, then that other State shall make an
appropriate adjustment to the amount of the tax charged therein
on those profits, if it considers this adjustment to be
justified. In determining such adjustment, due regard shall be
had to the other provisions of this Convention and the
competent authorities of the Contracting States shall if
necessary consult each other.
Article 10
Dividends
(1) Dividends paid by a company which is a resident of a
Contracting State to a resident of the other Contracting State
may be taxed in that other State.
(2) However, such dividends may also be taxed in the
Contracting State of which the company paying the dividends is
a resident and according to the laws of that State, but if the
beneficial owner of the dividends is a resident of the other
Contracting State, the tax so charged shall not exceed:
(a) 5 per cent of the gross amount of the dividends if the
beneficial owner is a company (other than a partnership), which
holds directly at least 25 per cent of the capital of the
company paying the dividends;
(b) 15 per cent of the gross amount of the dividends in all
other cases.
This paragraph shall not affect the taxation of the company in
respect of the profits out of which the dividends are paid.
(3) The term "dividends" as used in this Article means income
from shares or other rights, not being debt-claims,
participating in profits, as well as income from other
corporate rights which is subjected to the same taxation
treatment as income from shares by the laws of the State of
which the company making the distribution is a resident.
(4) The provisions of paragraphs (1) and (2) shall not apply if
the beneficial owner of the dividends, being a resident of a
Contracting State, carries on business in the other Contracting
State of which the company paying the dividends is a resident,
through a permanent establishment situated therein, or performs
in that other State independent personal services from a fixed
base situated therein, and the holding in respect of which the
dividends are paid is effectively connected with such permanent
establishment or fixed base. In such case the provisions of
Article 7 or Article 14, as the case may be, shall apply.
(5) Where a company which is a resident of a Contracting State
derives profits or income from the other Contracting State,
that other State may not impose any tax on the dividends paid
by the company, except insofar as such dividends are paid to a
the resident of that other State or insofar as the holding in
respect of which the dividends are paid is effectively
connected with a permanent establishment or a fixed base
situated in that other State, nor subject the company's
undistributed profits to a tax on the company's undistributed
profits, even if the dividends paid or the undistributed
profits consist wholly or partly of profits or income arising
in such other State.
Article 11
Interest
(1) Interest arising in a Contracting State and beneficially
owned by a resident of the other Contracting State shall be
taxable only in that other State.
(2) The term "interest" as used in this Article means income
from debt-claims of every kind, whether or not secured by
mortgage and whether or not carrying a right to participate in
the debtor's profits, and in particular, income from government
Securities and income from bonds or debentures, including
premiums and prizes attaching to such securities, bonds or
debentures. Penalty charges for late payment shall not be
regarded as interest for the purpose of this Article.
(3) The provisions of paragraph (1) shall not apply if the
beneficial owner of the interest, being a resident of a
Contracting State, carries on business in the other Contracting
State in which the interest arises, through a permanent
establishment situated therein, or performs in that other State
independent personal services from a fixed base situated
therein, and the debt-claim in respect of which the interest is
paid is effectively connected with such permanent establishment
or fixed base. In such case the provisions of Article 7 or
Article 14, as the case may be, shall apply.
(4) Where, by reason of a special relationship between the
payer and the beneficial owner or between both of them and some
other person, the amount of the interest, having regard to the
the debt-claim for which it is paid, exceeds the amount which would
have been agreed upon by the payer and the beneficial owner in
the absence of such relationship, the provisions of this
Article shall apply only to the last-mentioned amount. In such
case, the excess part of the payments shall remain taxable
According to the laws of each Contracting State, due regard
being had to the other provisions of this Convention.
Article 12
Royalties
(1) Royalties arising in a Contracting State and paid to a
resident of the other Contracting State may be taxed in that
other State.
(2) However, such royalties may also be taxed in the
Contracting State in which they arise and in accordance with
the law of that Contracting State, but if the beneficial owner
of the royalties is a resident of the other Contracting State,
the tax so charged shall not exceed 5 per cent of the gross
the amount of the royalties.
(3) The term "royalties" as used in this Article means
payments of any kind received as a consideration for the use
of, or the right to use, any copyright of literary, artistic or
scientific work including cinematograph films, or films or
tapes for radio or television broadcasting, any patent, trade
mark, design or model, plan, secret formula or process, or for
the use of, or the right to use, industrial, commercial, or
scientific equipment, or for information concerning industrial,
commercial or scientific experience.
(4) The provisions of paragraphs (1) and (2) shall not apply if
the beneficial owner of the royalties, being a resident of a
Contracting State, carries on business in the other Contracting
State in which the royalties arise, through a permanent
establishment situated therein, or performs in that other State
independent personal services from a fixed base situated
therein, and the right or property in respect of which the
the royalties are paid is effectively connected with such permanent
establishment or fixed base. In such case the provisions of
Article 7 or Article 14, as the case may be, shall apply.
(5) Royalties shall be deemed to arise in a Contracting State
When the payer is a resident of that State. Where, however, the
the person paying the royalties, whether a resident of a
Contracting State or not, has in a Contracting State (a)
permanent establishment or a fixed base in connection with
which the obligation to pay the royalties was incurred, and
such royalties are borne by such permanent establishment or
fixed base, then such royalties shall be deemed to arise in the
State in which the permanent establishment or fixed base is
situated.
(6) Where, by reason of a special relationship between the
payer and the beneficial owner or between both of them and some
other person, the amount of the royalties, having regard to the
the use, right or information for which they are paid, exceeds the
the amount which would have been agreed upon by the payer and the
beneficial owner in the absence of such relationship, the
the provisions of this Article shall apply only to the last-
mentioned amount. In such case, the excess part of the payments
shall remain taxable according to the laws of each Contracting
State, due regard being had to the other provisions of this
Convention.
Article 13
Capital gains
(1) Gains derived by a resident of a Contracting State from the
alienation of immovable property referred to in Article 6 and
situated in the other Contracting State, or from the alienation
of shares in a company the assets of which consist principally
of such property, may be taxed in that other State.
(2) Gains from alienation of movable property forming part of
the business property of a permanent establishment which an
Enterprise of a Contracting State has in the other Contracting
State or of movable property pertaining to a fixed base
available to a resident of a Contracting State in the other
Contracting State for the purpose of performing independent
personal services, including such gains from the alienation of
such a permanent establishment (alone or with the whole
Enterprise) or of such fixed base, may be taxed in that other
State.
(3) Gains derived by a resident of a Contracting State from the
alienation of ships or aircraft operated in international
traffic or movable property pertaining to the operation of such
ships or aircraft, shall be taxable only in that State.
With respect to gains derived by the air transport consortium
Scandinavian Airlines System (SAS), the provisions of this
paragraph shall apply only to such portion of the gains as
corresponds to the participation held in that consortium by SAS
Sweden AB, the Swedish partner of SAS.
(4) Gains from the alienation of any property other than that
referred to in paragraphs (1), (2) and (3), shall be taxable
only in the Contracting State of which the alienator is a
resident.
(5) Notwithstanding the provisions of paragraph (4), gains from
the alienation of any property derived by an individual who has
been a resident of a Contracting State and who has become a
resident of the other Contracting State, may be taxed in the
the first-mentioned State if the alienation of the property occurs
at any time during the ten years next following the date on
which the individual has ceased to be a resident of the first-
mentioned State.
Article 14
Independent personal services
(1) Income derived by an individual who is a resident of a
Contracting State in respect of professional services or other
the activities of an independent character shall be taxable only in
that State unless he has a fixed base regularly available to
him in the other Contracting State for the purpose of
performing his activities. If he has such a fixed base, the
the income may be taxed in the other State but only so much of it
as is attributable to that fixed base.
(2) The term "professional services" includes especially
independent scientific, literary, artistic, educational or
teaching activities as well as the independent activities of
physicians, lawyers, engineers, architects, dentists and
Accountants.
Article 15
Dependent personal services
(1) Subject to the provisions of Articles 16, 18 and 19,
salaries, wages and other similar remuneration derived by a
the resident of a Contracting State in respect of an employment
shall be taxable only in that State unless the employment is
exercised in the other Contracting State. If the employment is
so exercised, such remuneration as is derived therefrom may be
taxed in that other State.
(2) Notwithstanding the provisions of paragraph (1),
remuneration derived by a resident of a Contracting State in
respect of an employment exercised in the other Contracting
State shall be taxable only in the first-mentioned State if:
(a) the recipient is present in the other State 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 State; and
(c) the remuneration is not borne by a permanent establishment
or a fixed base which the employer has in the other State.
(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 Contracting State may be taxed in that
State. Where a resident of Sweden derives remuneration in
respect of an 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 16
Directors ' fees
Directors ' fees and other similar payments derived by a
the resident of a Contracting State in his capacity as a member of
the board of directors of a company which is a resident of the
other Contracting State may be taxed in that other State.
Article 17
Artistes and sportsmen
(1) Notwithstanding the provisions of Articles 14 and 15,
income derived by a resident of a Contracting State as an
artiste, 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 Contracting State,
may be taxed in that other State.
(2) Where income in respect of personal activities exercised by
an artiste or a sportsman in his capacity as such accrues not
to the artiste or sportsman himself but to another person, that
income may, notwithstanding the provisions of Articles 7, 14
and 15, be taxed in the Contracting State in which the
the activities of the artiste or sportsman are exercised.
(3) Notwithstanding the provisions of paragraphs (1) and (2)
income derived by an artiste or sportsman visiting a
Contracting State from his personal activities as such shall be
exempt from tax in that Contracting State where the activities
are being exercised, if the activities are exercised within the
framework of a visit which is substantially supported by the
other Contracting State, a political subdivision, a local
authority or a public institution thereof.
Article 18
Pensions, annuities and similar payments
(1) Pensions and other similar remuneration, disbursements
under the Social Security legislation and annuities arising in
a Contracting State and paid to a resident of the other
Contracting State may be taxed in the first-mentioned
Contracting State.
(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 19
Government service
(1) (a) Remuneration, other than a pension, paid by a
Contracting State or a political subdivision or a local
authority thereof to an individual in respect of services
rendered to that State or subdivision or authority shall be
taxable only in that State.
(b) However, such remuneration shall be taxable only in the
other Contracting State if the services are rendered in that
The State and the individual is a resident of that State who:
(i) is a national of that State; or
(ii) did not become a resident of that State solely for the
purpose of rendering the services.
(2) The provisions of Articles 15 and 16 shall apply to
remuneration in respect of services rendered in connection with
a business carried on by a Contracting State or a political
subdivision or a local authority thereof.
Article 20
The student's
Payments which a student or business apprentice who is or was
immediately before visiting a Contracting State a resident of
the other Contracting State and who is present in the first-
mentioned State solely for the purpose of his education or
training receives for the purpose of his maintenance, education
or training shall not be taxed in that State, provided that
such payments arise from sources outside that State.
Article 21
Other income
(1) Items of income of a resident of a Contracting State,
wherever arising, not dealt with in the foregoing Articles of
This Convention shall be taxable only in that State.
(2) The provisions of paragraph (1) shall not apply to income,
other than income from immovable property as defined in
paragraph (2) of Article 6, if the recipient of such income,
being a resident of a Contracting State, carries on business in
the other Contracting State through a permanent establishment
situated therein, or performs in that other State independent
personal services from a fixed base situated therein, and the
right or property in respect of which the income is paid is
effectively connected with such permanent establishment or
fixed base. In such case the provisions of Article 7 or Article
14, as the case may be, shall apply.
Article 22
Elimination of double taxation
(1) In the case of a resident of Sweden, double taxation shall
be avoided as follows:
(a) Where a resident of Sweden derives income which under the
laws of Poland and in accordance with the provisions of this
Convention may be taxed in Poland, Sweden 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 Polish tax paid
in respect of such income.
(b) Where a resident of Sweden derives income which, in
accordance with the provisions of this Convention, shall be
taxable only in Poland, Sweden may, when determining the
graduated rate of Swedish tax, take into account the income
which shall be taxable only in Poland.
(c) Notwithstanding the provisions of sub-paragraph (a) of this
paragraph, dividends paid by a company which is a resident of
Poland to a company which is a resident of Sweden shall be
exempt from Swedish tax according to the provisions of Swedish
law governing the exemption of tax on dividends paid to Swedish
companies by companies abroad.
(2) In the case of a resident of Poland, double taxation shall
be avoided as follows:
(a) Where a resident of Poland derives income which, in
accordance with the provisions of this Convention, may be taxed
in Sweden, Poland shall, subject to the provisions of
subparagraph (b), exempt such income from tax. Poland may in
calculating the amount of tax on the remaining income of such
resident apply the rate of tax which would have been applicable
If the exempted income had not been so exempted.
(b) Where a resident of Poland derives items of income which in
accordance with the provisions of Articles 10 and 12, may be
taxed in Sweden, Poland shall allow as a deduction from the tax
on the income of that resident an amount equal to the income
tax paid in Sweden. Such deduction shall not, however, exceed
that part of the tax, as computed before the deduction is
given, which is attributable to such items of income derived
from Sweden.
Article 23
Non-discrimination
(1) nationals of a Contracting State shall not be subjected in
the other Contracting State to any taxation or any requirement
connected therewith, which is other or more burdensome than the
taxation and connected requirements to which nationals of that
other State in the same circumstances are or may be subjected.
This provision shall, notwithstanding the provisions of Article
1, also apply to persons who are not residents of one or both
of the Contracting States.
(2) The taxation on a permanent establishment which an
Enterprise of a Contracting State has in the other Contracting
State shall not be less favourably levied in that other State
than the taxation levied on enterprises of that other State
carrying on the same activities. This provision shall not be
construed as obliging a Contracting State to grant to residents
of the other Contracting State any personal allowances, reliefs
or reductions for taxation purposes on account of civil status
or family responsibilities which it grants to its own
residents.
(3) Except where the provisions of paragraph (1) of Article 9,
paragraph (4) of Article 11, or paragraph (6) of Article 12,
apply, interest, royalties and other disbursements paid by an
Enterprise of a Contracting State to a resident of the other
Contracting State shall, for the purpose of determining the
the taxable profits of such enterprise, be deductible under the
same conditions as if they had been paid to a resident of the
the first-mentioned State. Similarly, any debts of an enterprise of
a Contracting State to a resident of the other Contracting
State shall, for the purpose of determining the taxable capital
of such enterprise, be deductible under the same conditions as
If they had been contracted to a resident of the first-
mentioned State.
(4) Enterprises of a Contracting State, the capital of which is
wholly or partly owned or controlled, directly or indirectly,
by one or more residents of the other Contracting State, shall
not be subject in the first-mentioned State to any taxation or
any requirement connected therewith which is other or more
burdensome than the taxation and connected requirements to
which other similar enterprises of the first-mentioned State
are or may be subjected.
(5) The provisions of this Article shall, notwithstanding the
the provisions of Article 2, apply to taxes of every kind and
Description.
Article 24
Mutual agreement procedure
(1) Where a person considers that the actions of one or both of
the Contracting States result or will result for him in
taxation not in accordance with the provisions of this
Convention, he may, irrespective of the remedies provided by
the domestic law of those States, present his case to the
competent authority of the Contracting State of which he is a
resident or, if his case comes under paragraph (1) of Article
23, to that of the Contracting State of which he is a national.
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 Convention.
(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
Contracting State, with a view to the avoidance of taxation
which is not in accordance with the Convention. Any agreement
reached shall be implemented notwithstanding any time limits in
the domestic law of the Contracting States.
(3) The competent authorities of the Contracting States shall
endeavour to resolve by mutual agreement any difficulties or
doubts arising as to the interpretation or application of the
Convention. They may also consult together for the elimination
of double taxation in cases not provided for in the Convention.
(4) The competent authorities of the Contracting States may
communicate with each other directly for the purpose of
reaching an agreement in the sense of the preceding paragraphs.
Article 25
Exchange of information
(1) The competent authorities of the Contracting States shall
Exchange such information as is foreseeably relevant for
carrying out the provisions of this Convention or of the
Administration or enforcement of the domestic laws concerning
taxes of every kind and description imposed on behalf of the
Contracting States, or of their political subdivisions or local
authorities, insofar as the taxation thereunder is not contrary
to the Convention. The exchange of information is not
restricted by Articles 1 and 2.
(2) Any information received under paragraph (1) by (a)
Contracting State shall be treated as secret in the same manner
as information obtained under the domestic laws of that State
and shall be disclosed only to persons or authorities
(including courts and administrative bodies) concerned with the
assessment or collection of, the enforcement or prosecution in
respect of, the determination of appeals in relation to the
taxes referred to in paragraph (1), or the oversight of the
above. Such persons or authorities shall use the information
only for such purposes. They may disclose the information in
public court proceedings or in judicial decisions.
(3) In no case shall the provisions of paragraphs (1) and (2)
be construed so as to impose on a Contracting State the
bond:
(a) to carry out administrative measures at variance with the
laws and administrative practice of that or of the other
Contracting State;
(b) to supply information which is not obtainable under the
laws or in the normal course of the administration of that or
of the other Contracting State;
(c) to supply information which would disclose any trade,
business, industrial, commercial or professional secret or
trade process, or information the disclosure of which would be
contrary to public policy (ordre public).
(4) If information is requested by a Contracting State in
accordance with this Article, the other Contracting State shall
use its information gathering measures to obtain the requested
information, even though that other State may not need such
information for its own tax purposes. The bond contained
in the preceding sentence is subject to the limitations of
paragraph (3) but in no case shall such limitations be
construed to permit a Contracting State to decline to supply
information solely because it has no domestic interest in such
information.
(5) In no case shall the provisions of paragraph (3) be
construed to permit a Contracting State to decline to supply
information solely because the information is held by a bank,
other financial institution, nominee or person acting in an
Agency or a fiduciary capacity or because it relates to
ownership interests in a person.
Article 26
Assistance in the collection of taxes
(1) The Contracting States shall lend assistance to each other
in the collection of revenue claims. This assistance is not
restricted by Articles 1 and 2. The competent authorities of
the Contracting States may by mutual agreement settle the mode
of application of this Article.
(2) The term ' revenue claim ' as used in this Article means an
amount owed in respect of taxes of every kind and description
imposed on behalf of the Contracting States, or of their
political subdivisions or local authorities, insofar as the
taxation thereunder is not contrary to this Convention or any
other instrument to which the Contracting States are parties,
as well as interest, administrative penalties and costs of
collection or conservancy related to such amount.
(3) When a revenue claim of a Contracting State is enforceable
under the laws of that State and is owed by a person who, at
that time, cannot, under the laws of that State, prevent its
collection, that revenue claim shall, at the request of the
competent authority of that State, be accepted for purposes of
collection by the competent authority of the other Contracting
State. That revenue claim shall be collected by that other
State in accordance with the provisions of its laws applicable
to the enforcement and collection of its own taxes as if the
the revenue claim were a revenue claim of that other State.
(4) When a revenue claim of a Contracting State is a claim in
respect of which that State may, under its law, take measures
of conservancy with a view to ensure its collection, that
revenue claim shall, at the request of the competent authority
of that State, be accepted for purposes of taking measures of
Conservancy by the competent authority of the other Contracting
State. That other State shall take measures of conservancy in
respect of that revenue claim in accordance with the provisions
of its laws as if the revenue claim were a revenue claim of
that other State even if, at the time when such measures are
applied, the revenue claim is not enforceable in the first-
mentioned State or is owed by a person who has a right to
prevent its collection.
(5) Notwithstanding the provisions of paragraphs (3) and (4) (a)
revenue claim accepted by a Contracting State for purposes of
paragraph (3) or (4) shall not, in that State, be subject to
the time limits or accorded any priority applicable to a
revenue claim under the laws of that State by reason of its
nature as such. In addition, a revenue claim accepted by a
Contracting State for the purposes of paragraph (3) or (4)
shall not, in that State, have any priority applicable to that
revenue claim under the laws of the other Contracting State.
(6) Proceedings with respect to the existence, validity or the
the amount of a revenue claim of a Contracting State shall not be
brought before the courts or administrative bodies of the other
Contracting State.
(7) Where, at any time after a request has been made by a
Contracting State under paragraph (3) or (4) and before the
other Contracting State has collected and remitted the relevant
revenue claim to the first-mentioned State, the relevant
revenue claim ceases to be
(a) in the case of a request under paragraph (3), (a) the revenue
claim of the first-mentioned State that is enforceable under
the laws of that State and is owed by a person who, at that
time, cannot, under the laws of that State, prevent its
collection, or
(b) in the case of a request under paragraph (4), (a) the revenue
claim of the first-mentioned State in respect of which that
State may, under its law, take measures of conservancy with a
view to ensure its collection
the competent authority of the first-mentioned State shall
promptly notify the competent authority of the other State of
that fact and, at the option of the other State, the first-
mentioned State shall either suspend or withdraw its request.
(8) In no case shall the provisions of this Article be
construed so as to impose on a Contracting State the
bond:
(a) to carry out administrative measures at variance with the
laws and administrative practice of that or of the other
Contracting State;
(b) to carry out measures which would be contrary to public
policy (public policy);
(c) to provide assistance if the other Contracting State has
not pursued all reasonable measures of collection or
Conservancy, as the case may be, available under its laws or
administrative practice;
(d) to provide assistance in those cases where the
administrative burden for that State is clearly
disproportionate to the benefit to be derived by the other
Contracting State.
Article 27
Limitation on benefits
Notwithstanding any other provisions of this Convention, where
(a) a company that is a resident of a Contracting State derives
its income primarily from other States
(i) from activities such as banking, shipping, financing or
insurance, or
(ii) from being the headquarters co-ordination centre or
similar entity providing administrative services or other
support to a group of companies which carry on business
primarily in other States; and
(b) except for the application of the method of elimination of
double taxation normally applied by that State, such income
would bear a significantly lower tax under the laws of that
State than income from similar activities carried out within
that State or from being the headquarters co-ordination centre
or similar entity providing administrative services or other
support to a group of companies which carry on business in that
State, as the case may be,
any provisions of this Convention conferring an exemption or a
reduction of taxes shall not apply to the income of such company
and to the dividends paid by such company.
Article 28
Members of diplomatic missions and consular posts
Nothing in this Convention shall affect the fiscal privileges
of members of diplomatic missions and consular posts under the
General rules of international law or under the provisions of
Special agreements.
Article 29
Entry into force
(1) Each of the Contracting States shall notify the other of
the completion of the procedures required by its law for the
entry into force of this Convention.
(2) The Convention shall enter into force on the thirtieth day
After the receipt of the later of these notifications and shall
thereupon have effect on income derived on or after the first
day of January of the year next following that of the entry
into force of the Convention.
(3) On the day when this Convention shall have effect "the
Convention between the Government of the Kingdom of Sweden and
the Government of the Polish People's Republic for the
avoidance of double taxation with respect to taxes on income
and capital ", signed in Stockholm, Sweden, on June 5, 1975, shall cease
to have effect. In relation to taxes on capital the Convention
of 1975 shall cease to have effect on capital held on or after
the first day of January of the year next following that of the
entry into force of the new Convention.
Article 30
Termination
This Convention shall remain in force until terminated by a
Contracting State. Either Contracting State may terminate the
The Convention, through diplomatic channels, by giving written
notice of termination at least six months before the end of any
calendar year. In such case, the Convention shall cease to have
effect in respect of income derived on or after the first day
of January of the calendar year next following the end of the
six months period.
In witness whereof the undersigned being duly authorized
thereto have signed this Convention.
Done at Stockholm, this 19th day of November, 2004, in
duplicate in the Swedish, Polish and English languages. In the
case of any divergency of interpretation, the English text
shall prevail.
For the Government of the Kingdom of Sweden
Göran Persson
For the Government of the Republic of Poland
Marek Belka