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Act (2005:248) On The Tax Agreement Between Sweden And Poland

Original Language Title: Lag (2005:248) om skatteavtal mellan Sverige och Polen

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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3 repealed by law (2011:1414).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 By the Act repealed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The repealed regulations shall continue to apply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