Act (2004:1051) On The Tax Agreement Between Sweden And Chile

Original Language Title: Lag (2004:1051) om skatteavtal mellan Sverige och Chile

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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 and

on the fortune that Sweden and Chile signed on 4 June

in 2004, together with the Protocol annexed to the

Agreement and as part of this, apply that law here in

the country. The agreement and the Protocol is written in Swedish,

Spanish and English. The Swedish and English text shown

of the 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3 repealed by law (2011:1412).



Transitional provisions



2004:1051



This law shall enter into force on the day the Government determines and

apply in respect of



a) withholding taxes, on amounts paid or tillgodoförs 1

January of the year immediately following the year in which the agreement

enters into force, or later,



(b)) other taxes on income, the income tax levied on

tax year that begins on 1 January of the year immediately

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



c) wealth tax, if and to the extent a general tax

on capital introduced in Chile after the signing of the agreement,

for tax levied on assets held on 1 January

the years immediately following the date of such General

tax on capital is introduced or later.



Annex



Agreement between the Kingdom of Sweden and the Republic of Chile for the

avoidance of double taxation and the prevention of fiscal evasion

with respect to taxes on income and on capital



The Kingdom of Sweden and the Republic of Chile, desiring to conclude an

Agreement for the avoidance of double taxation and the prevention of

tax evasion with respect to taxes on income and on capital,



have agreed as follows:



CHAPTER I



THE SCOPE OF THE AGREEMENT



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. this Agreement shall apply to taxes on income and on

wealth that accrues to a Contracting State, its

political underavdelningars or local authorities,

regardless of the way in which taxes are levied.



2. taxes on income and on capital, of course, all

taxes levied on income or on capital in its

entirety or on elements of income or wealth, in that

including taxes on gains from the alienation of movable

or immovable property, as well as taxes on capital appreciation.



3. The currently outgoing taxes to which this agreement

applied are especially:



a) in Chile, taxes imposed under the income tax Act, "Ley

sobre Impuesto a la Renta "(in the following referred to as" Chilean

tax "), and



b) in Sweden,



1. the State income tax,



2. the withholding tax rate,



3. the Special income tax for non-residents,



4. the Special income tax for non-resident artists

et al.,



5. the municipal income tax, and



6. the State property tax



(in the following referred to as "Swedish tax").



4. the agreement also apply to taxes for the same or essentially

similar nature and on taxes on capital, after

the signing of the agreement is levied alongside or in place

for the currently outgoing taxes. The competent

the authorities of the Contracting States shall, at the end of

each year, communicate to each other the substantial amendments made to the

the respective tax laws.



CHAPTER II



DEFINITIONS



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) "Chile" refers to the Republic of Chile and includes, in addition to Chile's

territory, any sea area over which the Republic of

Chile, in accordance with international law, exercises

sovereign rights or jurisdiction;



b) "Sweden" means the Kingdom of Sweden and the includes Sweden's

territory, territorial waters of Sweden and other maritime areas

over which Sweden, in accordance with international law,

sovereignty or jurisdiction,



(c)) "a Contracting State" and "the other Contracting

the State "refers to Chile or Sweden, 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 "refers to the business carried on by any person with

resident in one Contracting State or business conducted

by a resident of the other Contracting State,



g) "international transport" means transport by ship or

aircraft used by enterprises of a Contracting State except

When the transport is carried out solely between places in the other

Contracting State,



h) "competent authority" means:



1) in Chile: the Minister of finance or his authorised representative,

and



2) in Sweden: the Minister of finance or his authorised representative

or authority to whom be entrusted to be competent

authority for the purposes of this agreement,



in) "national" means:



1) natural person which has the nationality of a Contracting

State, or



2) legal person or association governed by the

laws in force in a Contracting State.



2. Where a Contracting State applies the agreement at a particular

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 relevant expression is under current

tax law of that State shall take precedence over the

significance of the expression under any 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, company formation

or other similar circumstances and also includes this

State, its political subdivisions and local authorities

and its public bodies or institutions. This

expression, however, does not include a person who is liable to tax in

This State only of income from sources in that State or of

wealth located there.



Income, profits or capital gains acquired by the person

that is fiscally transparent under the laws of one of the

the Contracting States are considered acquired by any person with

resident in one Contracting State to the extent that income or

the profits according to the tax laws of this State is treated as

income, profits or capital gains of a person with

resident there.



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

a resident of both Contracting States, is determined his residence

in the following ways:



a) natural person considered to be resident only of the State in which the

the individual has a permanent home available to his

disposal. If the natural person has such a home in both

States, shall be deemed to be a resident only of the State with which the

his personal and economic relations are strongest

(Centre of life interests),



(b)) if it cannot be settled in the State natural person has

Centre for their living interests or if the person is not in

neither State has a dwelling that is permanently available to the

made available, shall be deemed to be a resident only of the State in which the

the person usually resides,



c) If natural person usually resides in both States or

not reside permanently in any of them, shall be deemed to be resident

only in the State in which the person is a national,



d) If a natural person is a national of both States or is not

nationals of any of them, the competent authorities of the

Contracting States may settle 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, it is considered

He is resident only in the State in which he is a national. If

the person is a national of both Contracting States or

not in any of them, the competent authorities of the

Contracting States shall seek to establish his residence by

mutual agreement. In the absence of such agreement

the person concerned shall not be entitled to any tax credit

or an exemption from tax under this agreement.



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

related to the exploration or extraction of natural resources.



3. The term "permanent establishment" shall also include:



a) site for construction, landscaping or

installation activities and activities of

monitoring in connection therewith, but only where the activities

runs longer than six months, and



(b)) the provision of services, including consultancy services,

by an enterprise through employees or other individuals

engaged by the enterprise for such purpose, if the operation is in progress


within a Contracting State for a period or

time periods that in total exceed 183 days during a

12-month period.



In the calculation of the time limits specified in this paragraph shall

activities of an associated enterprises with

another company in the manner set out in article 9 shall be added together

with the period during which activities are carried out by the latter

the company on corporate activities are identical or

substantially similar.



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 advertising, information provision, or

the pursuit of scientific research for the company, if

the business is of a preparatory or auxiliary character.



5. If a person, who is not such independent representative on

which paragraph 6 of this article applies, is active for a

companies, as well as in a Contracting State and which are regularly

using the power of attorney to conclude contracts in the name, it is considered

This company-notwithstanding the provisions of paragraphs 1 and

2 of this article-to have a permanent establishment in that State in respect of

each activity which that person carries on business. This

does not apply, if the activities of that person engaged in

is limited to those referred to in paragraph 4 and which on the

conducted from a fixed place of business are not

would make this fixed place of business to

permanent establishment under the provisions of that paragraph.



6. the Company is not considered to have a permanent establishment in a Contracting

State only on the basis that the company conducts

business in that State through the intermediary of brokers,

Commissioner, or other independent agent, in

in doing so, provided that such person is engaged in his customary

business activities and that the terms be agreed or

provided in the person's commercial or financial

relations with the company do not differ from those which would be

agreed with independent brokers, agents or

representatives.



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.



CHAPTER III



TAXATION OF INCOME



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. for the purposes of this agreement, the term "fixed

property "has the same meaning as the term under the laws

in the Contracting State in which the property is situated. The expression

However, always include accessory to immovable property, living and

kill equipment in agriculture and forestry, rights to which the

the provisions of civil law relating to immovable property apply,

buildings, tenancies of immovable property, as well as the right to

changeable or fixed remuneration for the use of, or

the right to use mineral occurrence, source or other

natural resource. Ships and aircraft is not considered to be fixed

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 shall also apply to income

of immovable property belonging to the company and on the income of the firm

property used by independent professional activities.



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 or has

engaged in operating on the newly specified manner, the company's income

be taxed in the other State but only so much thereof 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 was a standalone company, which is 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 and with all other persons.



3. In determining permanent establishment the income, deductions

be made for necessary expenses incurred for the fixed

establishment, including included expenses for the company's

management and General Administration, whether the expenditure

raised 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 acquired by the company in a Contracting State

through the use of ships or aircraft in international

traffic shall be taxable only in that State.



2. For the purposes of this article, including the expressions:



a) "income":



1) gross revenues directly derived from the use of ship

or aircraft in international traffic, and



2) interest on the amount directly acquired through the use of

ship or aircraft in international traffic, but only if

interest income in relation to the activities of the rest of the

incidental,



(b)) "the use by ships or aircraft of a company:



1) charter or rental of ships or aircraft on so-called

bare boat basis, and



2) the rental of containers and related equipment,



provided that such charter or rental, in

relation to the company's use of ship or

aircraft in international traffic, is of secondary

importance.



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, the other State, if the

agree, implement the proper adjustment of the amount of the tax

levied for income there. When such adjustments are observed

the other provisions of this agreement and the competent authorities

in the Contracting States is discussing with each other when necessary.



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. Dividend, taxed in the Contracting State in which

the company paying the dividends is a resident, according to

the laws of that State, if it has the right to

However, the distribution 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

the dividend is a company which, directly or indirectly,

control at least 20 per cent of the total number of votes in the


the distributing company, and



b) 10 per cent of the gross amount of the dividends in all other cases.



The provisions of this paragraph shall be without prejudice to the company's taxation

for the profit of which the dividends are paid.



The provisions of this paragraph do not limit at

the application of the additional tax (the "additional tax")

out in Chile provided that the primary corporate tax rate

("the first category tax") can be offset from

the additional tax. In addition, that from such date of

the said regulations cease to apply, the Contracting

States consult with each other with a view to amending the agreement of

to restore the balance of the commitments in the agreement.



3. The term "dividends" is understood in this article income by

shares or other rights, not being debt-claims, with

right to share in profits, as well as income from other rights which

According to the law of the State in which the distributing company has

domicile for tax purposes is treated in the same way as income

of 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,

which 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 non-

distributed profits, even if the delivery or the undistributed

profit consists wholly or partly of income arising in

that other State.



6. the provisions of this article shall not apply if the

main purpose or one of the main objectives, in

one of the people who have influence over the formation of the

company or placement of units or other rights of

because of which the dividend is paid, is to achieve the benefits of

This article by such a formation or such placement.



Article 11



Interest rate



1. interest, stemming from a Contracting State and which

paid to a resident of the other Contracting

the State, may be taxed in that other State.



2. interest may be taxed in the Contracting

State from which it is derived, under the laws of this

State, but if the beneficial owner of the interest is a resident of the

other Contracting State, the tax shall not exceed:



a) 5 per cent of the gross amount of the interest if this is due to the

loans granted by the bank or insurance company,



b) 15 per cent of the gross amount of the interest in all other cases.



3. 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 in particular, income from securities

issued by the State and bonds or

debentures. The term also includes the income which, in accordance with the

State from which income is derived is treated in

the same way for tax purposes as revenue from lending.

The term "interest" does not include income referred to in article

10.



4. the provisions of paragraphs 1 and 2 of this article shall apply

No, if the beneficial owner of the interest is a resident of a

Contracting State, carries on business in the other

Contracting State, from which the interest arises, from which

permanent establishment situated or exercising independent

professional activities in the other State from where located

permanent device, as well as the claim for the interest rate

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 of this agreement.



5. interest shall be deemed to arise from a Contracting State if

the payer is a resident of this State, If

However, the person paying the interest, 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 liability is incurred for the

the interest is paid, and the interest rate borne by the permanent establishment

or the permanent devices, considered the interest 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 beneficial owner of the interest or between both of them and other

person the amount of the interest, for any reason, exceed the amount

which would have been agreed between the payer and the beneficial owner

the interest rate on such relationships do not exist, the

the provisions of this article only on the latter amount. In

such cases are taxable surplus amount referred to in

the law of each Contracting State in accordance with

the other provisions of this agreement.



7. the provisions of this article shall not apply if the

main purpose or one of the main objectives, in

one of the people who have influence over the creation

or the location of the claim in respect of which the interest is paid, is

to achieve the benefits of this article through such creation

or such placement.



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. Such royalties may be taxed in the

Contracting State from which it is derived, according to

the laws of that State, but if the beneficial owner of

the royalty is resident in the other Contracting State,

the tax does not exceed:



a) 5 per cent of the gross amount for the use of royaltyns or

the right to use industrial, commercial or scientific

equipment,



b) 10 per cent of the gross amount of the royaltyns in all other cases.



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 or

video, tape or other means of image or sound reproduction,

patent, trade mark, design or model, plan, secret

recipe or secret manufacturing process or other intangible

assets, as well as for the use of, or the right to use

industrial, commercial or scientific equipment or

for information concerning industrial, commercial

or scientific nature.



4. the provisions of paragraphs 1 and 2 of this article shall apply

No, if the beneficial owner of royalties is a resident of a

Contracting State, carries on business in the other

Contracting State, from which the royalty arises, from which

permanent establishment situated or exercising independent

professional activities in the other State from where located

permanent device, and the right or property in

respect of which the royalty is paid fair owns the context of the

permanent establishment or permanent device. In

in such cases the provisions of article 7 and

Article 14 of this agreement.



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.



7. the provisions of this article shall not apply if the

main purpose or one of the main objectives, in

one of the people who have influence over the creation

or the placement of the right in respect of which the royalty

paid, is to achieve the benefits of this article through such

creation or placement.



Article 13



Capital gain



1. Profit, as a person resident in one Contracting State

acquires from the alienation of immovable property

situated in the other Contracting State, may be taxed in the

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, attributable to a permanent device

in order to exercise an independent profession, as a person with

resident of a Contracting State has in the other Contracting

the State, may be taxed in that other State. The same applies to profits

the alienation of such a permanent establishment (alone

or together with the whole enterprise) or of such a

permanent device.



3. Gains 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 the Contracting State in which the assignor has

resident.



4. Profit, as a person resident in one Contracting State

acquires from the alienation of shares or other

rights representing the capital of a company

resident in the other Contracting State may be taxed in that

If the other Contracting State,



a) profits derived, directly or indirectly, more than 50

percent from immovable property situated in that other

Contracting State, or



b) recipient of the prize at any time during a

12-month period prior to the transfer, directly or indirectly,

owned the shares or other rights representing at least 20

percent of the company's capital, or



c) recipient of the profit is a natural person who has been

a resident of the other Contracting State, a resident of

the first-mentioned Contracting State and the transfer of

shares or rights occurs at any time during the

ten years immediately after the physical person

ceased to be resident in that other State.



Other profit as a person resident in one Contracting State

acquires from the alienation of shares or other

rights representing the capital of a company established

in the other Contracting State may be taxed in that other

Contracting State, but the tax must not exceed 16 per cent

of the amount.



Notwithstanding other provisions of this paragraph, profits

as pension fund resident in one Contracting State acquires

the alienation of shares or other rights

represents the capital of a company resident in the other

Contracting State, be taxable only in the first-mentioned

Contracting State.



5. Gains from the alienation of property other than that

referred to in the preceding paragraphs, shall be taxable only in the

Contracting State of which the alienator is a resident.



Article 14



Independent professional activities



1. income as a physical person resident in one Contracting

State acquires through the exercise of profession or other

independent operations, be taxable only in that State except in the

the following cases, where the income also may be taxed in the other

Contracting State:



a) if physical person in the other Contracting State has

a permanent device, which are regularly at his

disposal to pursue the activity. In such a case, only

the proportion of income as is attributable to that permanent

device be taxed in that other State;



b) if such natural person resident in the other Contracting

State during the period or periods of time as in all

not less than 183 days during a

12-month period. In such a case, only the portion of the

income derived from activities exercised in the other

State, be taxed in that State.



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

otherwise, taxed salary and other remuneration as a person with

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

taxable compensation, as a resident of a

Contracting State receives for work on board

ship or aircraft in international traffic,

only in that State.



Article 16



Directors ' fees



Directors ' fees and other compensation, as a resident of

a Contracting State receives as a member of the Board of Directors

or other similar bodies in companies established in 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 athletes, be taxed in that other State.

Income that is subject to the provisions of this paragraph includes

any income that a person receives from personal activities

performed in the other State related to his

renown as an artist or sport enthusiasts.



2. Notwithstanding the provisions of articles 7, 14 and 15 may,

in cases where the income through personal activities as an artist or

athletes engaged in that capacity does not become the property of the artist

or sportutövaren personally, but another person, this

income will be taxed in the Contracting State in which the artist or

sportutövaren conducts business.



Article 18



Pension and alimony



1. Pension derived from a Contracting State and paid

to a resident of the other Contracting State, may

be taxed in that State.



2. Alimony or other allowance payable to

person resident in one Contracting State shall be taxable only in

This State alimony or other allowance payable

by a resident of one of the Contracting States to

a resident of the other Contracting State shall be taxable,

to the extent that the payment is not deductible for the payer,

only in the first State.



Article 19



Public service



1. a) salaries and other remuneration (except for retirement), as

paid by a Contracting State, its political

subdivisions or local authorities, to the natural person on

because of the work done in this State, the section

or governmental service, shall be taxable only in that State.



b) Such salary and other remuneration shall be taxable only in

the other 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, 16 and 17 shall apply to salaries

and other compensation paid on the basis of work carried out

in connection with business carried on by a Contracting State, a

of its political subdivisions or local authorities.



Article 20



Students



A student, apprentice or business trainee who is, or

immediately before visiting a Contracting State of residence

in the other Contracting State and who is staying in the

first State exclusively for teaching or

practice, not subject to tax in that State for amounts that he or she

receives for his living, teaching or training, on

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.



3. Notwithstanding the provisions of paragraphs 1 and 2,

income as a resident of a Contracting State

acquires and which are not dealt with in the foregoing articles of this

Agreement and arising from the other Contracting State,

be taxed in that other State.



CHAPTER IV



TAXATION OF FORTUNE



Article 22



Fortune



1. Fortune consisting of immovable property the person with

resident in one Contracting State and which is located

in the other Contracting State may be taxed in that other

State.




2. Assets consisting of movable property forming part of the

the operating assets of a permanent establishment which an enterprise of 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.



3. wealth consisting of ship and aircraft used in the

international traffic by an enterprise of a Contracting State

and of movable property that is attributable to the use of such

ships and aircraft, shall be taxable only in that State.



4. All other types of wealth, as a resident of a

Contracting State, be taxable only in that State.



5. the provisions of paragraphs 1, 2, 3 and 4 shall be applied in a

Contracting State only if both Contracting States

a general tax on wealth.



CHAPTER V



METHODS TO AVOID DOUBLE TAXATION



Article 23



The Elimination of double taxation



1. in the case of Chile, double taxation shall be avoided in

the following ways:



a) resident in Chile who receives income or

holding assets in accordance with the provisions of this agreement,

taxed in Sweden may, having regard to the provisions of

Chilean law, set off interest from Swedish tax Chilean tax

to be paid in respect of the same income or wealth

and this paragraph apply to all income referred to in the agreement.



b) where a resident of Chile receives income or

holding assets in accordance with the provisions of this agreement are

exempt from taxation in Chile, Chile at

the determination of the tax levy for General income or

fortune of such person, take into account the income or

assets exempt from taxation.



2. in the case of Sweden, double taxation shall be avoided in

the following ways:



a) where a resident of Sweden acquires income according to

Chilean legislation and in accordance with the provisions of this

Agreement may be taxed in Chile, 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 Chilean tax paid on income.



b) where a resident of Sweden acquires income according to

the provisions of this Agreement shall be taxable only in Chile, may

Sweden for the purpose of determining the tax rate for the Swedish

progressive tax, take into account the income which shall be taxable only

in Chile.



c) Notwithstanding the provisions of subparagraph (a)) in this paragraph is

dividends from companies established in Chile to resident companies

in Sweden exempt from Swedish tax according to the provisions of

the Swedish exemption for dividends paid to

Swedish companies by companies abroad.



(d)) where a resident of Sweden owns capital,

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

should Sweden from tax on that person's fortune set off

an amount equal to the capital tax paid in

Chile. Settlement amount shall not, however, exceed the

part of the Swedish wealth tax, calculated without such

settlement, charged on the fortune that may be taxed in the

Chile.



CHAPTER VI



SPECIFIC PROVISIONS



Article 24



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 conditions, in particular as

relating to residence, are or may be subject to.



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.



3. This article does not entail the obligation for an

Contracting State to grant to a resident of the other

Contracting State such personal deductions for

taxation, such exemptions or reductions for

because of marital status or dependants for family

granted resident in their own State.



4. Except where the provisions of article 9, paragraph 1,

Article 11, paragraph 6, 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.



5. Company resident in a Contracting State, whose capital

is wholly or partly owned or controlled, directly or

indirectly, by one or more residents of the other

Contracting State, shall not be in the first State

subject to taxation or related requirements

other or more burdensome than the taxation and thus

coherent requirements as other similar companies resident in the

first State are or may be subjected.



6. for the purposes of this article the term "taxation" taxes

covered by the agreement.



Article 25



The procedure for the mutual agreement



1. If a person believes that a Contracting State or both

Contracting States took measures for the latter entails

or will result in taxation contrary to

the provisions of this agreement, the person may, without

affect the person's right to make use of the legal remedies

available in the domestic legal system of those States, present the thing

for the competent authority of the Contracting State in which the

the person is a resident or, if the question is about the application of

Article 24, paragraph 1, in the Contracting State in which he is

citizens.



2. If the competent authority finds the complaint justified but

Unable to achieve a satisfactory solution,

the authority shall seek to resolve the matter by mutual

agreement with the competent authority of the other

Contracting State in order to avoid taxation which

contrary to the agreement.



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.



4. the competent authorities of the Contracting States may

enter into direct relations with each other in order to meet

agreement in the cases specified in the preceding paragraphs.



Article 26



Exchange of information



1. the competent authorities of the Contracting States shall

Exchange such information as is necessary to implement the

the provisions of this agreement or of the Contracting

States ' internal legislation concerning taxes covered

by the agreement, insofar as the taxation thereunder

not contrary to the agreement. Exchange of information is limited

not by article 1. Information which a Contracting State

received 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)

establishes, or collect the taxes which are the subject of

agreement or dealing with criminal charges or complaints regarding these

taxes. 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.



2. the provisions of paragraph 1 is not considered to entail the obligation for

a Contracting State to



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).



3. If a Contracting State so requests information under this

Article, the other Contracting State shall obtain the

information which the representation relates in the same way as if it

applied its own taxation, even if the other State at the

This time don't need such information. If the competent

authority of a Contracting State, in particular, shall

the competent authority of the other Contracting State search

provide information under this article in the form

as requested, such as written witness statements and copies of

edited original documents (including books,

documents, reports, records, books of account or

letters) to the same extent as such certificates and

documents can be obtained under the laws and administrative

practice of that other State with respect to its own taxes.



Article 27




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

the diplomatic mission or consular post.



Article 28



Other provisions



1. for the purposes of this agreement, investment funds and

any other kind of Fund managed by the resident in

Chile, taxed in Chile in respect of dividends, interest,

capital gains and other income derived from the property

or investment in Chile.



2. for the purposes of paragraph 3 of article XXII (Consultation) of the

the General Agreement on Trade in Services, they are

Contracting States agree that, notwithstanding that

paragraph, dispute arising between them as to whether a measure

subject to this agreement may, in accordance with paragraph 1,

decided by the Council for Trade in Services only with the

the consent of both Contracting States. Doubt about

the interpretation of this paragraph shall be resolved under article 25, paragraph 3

or, if that fails, according to another procedure that both

Contracting States agree.



3. this agreement does not affect the application of the

provisions of Chilean law DL 600 in the version they have

at the time of signature of this agreement, with the version

they now can get through to change without public

the policy listed here changes.



4. Charges for services performed during a year, and

paid this year by or for an individual with

resident in one Contracting State to a pension plan

recognised for tax purposes in the other Contracting State

shall, during a period of not more than 60 months,

be treated in the same way for tax purposes in the first-mentioned

State that a fee is paid to a pension plan

recognised for tax purposes in that first-mentioned State if



a) payments were made regularly by or for such physical

person to the pension plan during the period immediately before

the person was domiciled in that State, and



(b)), the competent authority of the first State considers that

the pension plan as a whole conform to a pension plan

recognized for tax purposes in that State.



For the purposes of this paragraph includes the phrase

"pension plan" a pension plan which was launched in accordance with

the social security system of a Contracting State.



5. Taking into account that the main objective of the agreement is

to avoid international double taxation is the

Contracting States agree that, in the event that the agreement

rules are applied in such a way that benefits are payable

not been considered or intended, the competent authorities of

the Contracting States shall consult with each other

in accordance with the procedure laid down by mutual agreement according to

Article 25 in order to amend the agreement if deemed necessary.



6. the provisions of this Agreement shall not affect the taxation of the

Chile by resident in Sweden in terms of profit that is

attributable to the permanent establishment in Chile, as regards both the

primary corporate tax ("the first category tax") and

additional tax (the "additional tax") provided that:

the primary corporate tax rate could be offset by additional taxes.



7. with regard to income acquired by the air transport Consortium

Scandinavian Airlines System (SAS) will apply the provisions of

Article 8 paragraph 1 only in terms of the proportion of income that

corresponds to the percentage of the Consortium held by SAS Sweden AB,

the Swedish partner of SAS.



8. with regard to the profit gained by the air transport Consortium

Scandinavian Airlines System (SAS) will apply the provisions of

Article 13 only in respect of the part of the profits as corresponds to the

the share in the Consortium held by SAS Sweden AB, the

Swedish partner of SAS.



9. as regards the wealth held by the air transport Consortium

Scandinavian Airlines System (SAS) will apply the provisions of

Article 22 only in respect of the portion of assets that

corresponds to the percentage of the Consortium held by SAS Sweden AB,

the Swedish partner of SAS.



CHAPTER VII



FINAL PROVISIONS



Article 29



Date of entry into force



1. Each Contracting State shall by diplomatic means

inform the other State when the measures taken under

respective State law required that this agreement

to enter into force. The agreement shall enter into force on the day on which the

the last of these notifications is received.



2. the provisions of this Agreement shall apply:



a) in Chile,



1) in respect of taxes on income as are acquired and the amount

paid, tillgodoförs an account, made available or

recognised as an expense, on 1 January of the calendar year immediately

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



2) in respect of wealth tax, if and to the extent such

tax is introduced in Chile after the signing of this agreement, for

tax levied on assets held on 1 January of the

years following the date on which the wealth tax

introduced or later,



b) in Sweden,



1) in respect of withholding taxes, on amounts paid or

tillgodoförs on 1 January of the year following the

year in which the agreement enters into force or later,



2) in respect of other taxes on income, for income tax

accrual for fiscal years beginning on 1 January of the year

the closest following the year in which the agreement enters into force, or

later,



3) in respect of wealth tax, if and to the extent such

tax is introduced in Chile after the signing of this agreement, for

tax levied on assets held on 1 January of the

years following the date on which the wealth tax

introduced or later.



Article 30



Termination



1. this Agreement shall remain in force indefinitely but either

Contracting State may by 30 June of any

calendar year beginning after the expiration of the year of entry

date of entry into force to terminate the agreement through diplomatic channels

in the other Contracting State.



2. the provisions of this agreement will expire:



a) in Chile,



in the case of tax on income that is acquired, the amounts paid,

tillgodoförs an account, made available or disclosed

that cost, or on capital held, 1 January

the calendar year immediately following the year in which the termination

or later,



b) in Sweden,



1) in respect of withholding taxes, on amounts paid or

tillgodoförs on 1 January of the year immediately following

the end of the six-month period or later,



2) in respect of other taxes on income, for income tax

accrual for the tax year that begins on 1 January of the year

immediately after the end of the six-month period, or

later,



3) in respect of wealth tax, is assessed for tax it

second calendar year that 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 4 June 2004, in duplicate in the

Spanish, Swedish and English languages. In the event that

dispute in the interpretation, the English text shall be

seniority.



For the Government of the Kingdom of Sweden



Bosse Ringholm



For the Government of the Republic of Chile



Nicolás Eyzaguirre



Protocol to the agreement between the Kingdom of Sweden and

The Republic of Chile for the avoidance of double taxation and

Prevention of tax evasion with respect to taxes on income and

at Fortune



At the time of signing the agreement for the avoidance of

double taxation and the prevention of fiscal evasion with respect to

taxes on income and on capital between the Kingdom of

Sweden and the Republic of Chile, the Contracting States

agreed that the following provisions shall constitute a

integral part of the agreement:



Articles 10, 11 and 12



On article 10 paragraph 6, article 11, paragraph 7 and article

12 paragraph 7 shall, as a Contracting State contemplates denying

a resident of the other Contracting State

benefits, the competent authorities shall consult each other.



Articles 11 and 12



If an agreement or an agreement between Chile and the

Member State of the Organisation for economic cooperation and

development provides that Chile exempts from taxation

interest or royalty (either generally or in respect of certain

types of interest or royalties) derived from Chile, or

limits the tax on such interest or royalties (either

generally or in respect of certain types of interest or royalty)

at a lower rate than that set out in article 11, paragraph 2

or article 12 paragraph 2 of the agreement, such waiver or

lower rate apply automatically on interest or royalty

(either generally or in relation to specific types of

interest or royalties) derived from Chile and is rightfully

There is a resident of Sweden, as well as interest or

royalties derived from Sweden and is rightfully applies

a resident of Chile under the same conditions as if

the exception or the lower tax rate was provided for in the

those paragraphs. The competent authorities of Chile shall, without

delay, inform the competent authority of Sweden when

the conditions for the application of this paragraph have been met.



In witness whereof the undersigned, being duly

authorised, have signed this Protocol.



Done at Stockholm on 4 June 2004, in duplicate in the

Spanish, Swedish and English languages. In the event that


dispute in the interpretation, the English text shall be

seniority.



For the Government of the Kingdom of Sweden



Bosse Ringholm



For the Government of the Republic of Chile



Nicolás Eyzaguirre



Convention between the Kingdom of Sweden and the Republic of

Chile for the avoidance of double taxation and the prevention

of fiscal evasion with respect to taxes on income and on

capital



The Kingdom of Sweden and the Republic of Chile, desiring to

conclude a Convention for the avoidance of double taxation and

the prevention of fiscal evasion with respect to taxes on

income and on capital;



Have agreed as follows:



CHAPTER IN



SCOPE OF THE CONVENTION



Article 1



Persons covered



This Convention shall apply to persons who are residents of one

or both of the Contracting States.



Article 2



Taxes covered



1. This Convention shall apply to taxes on income and on

capital imposed on behalf of a Contracting State or of its

political subdivisions or local authorities, irrespective of

the manner in which they are levied.



2. There shall be regarded as taxes on income and on capital

all taxes imposed on total income, on total capital, or on

elements of income or of capital, including taxes on gains from

the alienation of movable or immovable property, as well as

taxes on capital appreciation.



3. The existing taxes to which the Convention shall apply are,

in particular:



(a) in Chile, the taxes imposed under the Income Tax Act ("Ley

sobre Impuesto a la Renta ") (hereinafter referred to as

"Chilean tax"); and



(b) in Sweden,



(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. ");



(v) the municipal income tax (' the municipal income tax ");

and



(vi) the net wealth tax ("the State property tax")



(hereinafter referred to as "Swedish tax").



4. The Convention shall apply also to any identical or

substantially similar taxes and to taxes on capital which are

imposed after the date of signature of the Convention in

addition to, or in place of, the existing taxes. The competent

authorities of the Contracting States shall, at the end of each

year, notify each other of any significant changes which have

been made in their respective taxation laws.



CHAPTER II



DEFINITION



Article 3



General definition



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

otherwise requires:



(a) the term "Chile" means the Republic of Chile and includes,

In addition to the national territory, any other maritime areas

over which the Republic of Chile exercises sovereign rights or

jurisdiction in accordance with international law;



(b) the term "Sweden" means the Kingdom of Sweden and includes

the national territory, the territorial sea of Sweden as well

as other maritime areas over which Sweden in accordance with

international law exercises sovereign rights or jurisdiction;



(c) the terms "a Contracting State" and "the other Contracting

State "mean, as the context requires, Chile or Sweden;



(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

which 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 such carriage is solely between places in

the other Contracting State;



(h) the term "competent authority" means:



(i) in the case of Chile, the Minister of Finance or the

Minister's authorised representative, and



(ii) in the case of Canada, the Minister of Finance, his

authorised representative or the authority which is designated

as a competent authority for the purposes of this Convention;



(i) the term "national" means:



(i) any individual possessing the nationality of a Contracting

State, or



(ii) any legal person or association constituted in accordance

with the laws in force in a Contracting State.



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 the person's

domicile, residence, place of management, place of

incorporation or any other criterion of a similar nature and

also includes that State and any political subdivision, local

authority, governmental body or agency thereof. This term,

However, does not include any person who is liable to tax in

that State in respect only of income from sources in that State

or of capital situated therein.



An item of income, profit or gain derived through a person that

is fiscally transparent under the laws of either Contracting

State shall be considered to be derived by a resident of a

Contracting State to the extent that the item is treated for

the purposes of the taxation law of that Contracting State as

the income, profit or gain of a resident.



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

individual is a resident of both Contracting States, then the

individual's status shall be determined as follows:



(a) the individual shall be deemed to be a resident only of the

State in which the individual has a permanent home available;

If the individual has a permanent home available in both

States, the individual shall be deemed to be a resident only of

the State with which the individual's personal and economic

relations are closer (centre of vital interests);



(b) if the State in which the individual's centre of vital

interests cannot be determined, or if there is not a permanent

Home available to the individual in either State, the

individual shall be deemed to be a resident only of the State

in which the individual has an habitual abode;



(c) if the individual has an habitual abode in both States or

in neither of them, the individual shall be deemed to be a

resident only of the State of which the individual is a

National;



(d) if the individual 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 procedure.



3. Where by reason of the provisions of paragraph 1 a person

other than an individual is a resident of both Contracting

States, then it shall be deemed to be a resident only of the

State of which it is a national. If the person is a national of

both Contracting States or of neither of them, the Contracting

States shall by mutual agreement procedure endeavour to settle

the question. In the absence of a mutual agreement by the

competent authorities of the Contracting States, the person

shall not be entitled to any relief or exemption from tax

provided by the Convention.



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

relating to the exploration for or the exploitation of natural

resources.



3. The term "permanent establishment" shall also include:



(a) a building site or construction or installation project and

the supervisory activities in connection therewith, but only if

such building site, project or activities last more than six

months, and



(b) the furnishing of services, including consultancy services,

by an enterprise through employees or other individuals engaged

by the enterprise for such purpose, where the activities of that

nature continue within a Contracting State for a period or

periods exceeding in the aggregate 183 days within any twelve

month period.



For the purposes of computing the time limits in this

paragraph, activities carried on by an enterprise associated

with another enterprise within the meaning of Article 9 of this

Convention shall be aggregated with the period during which

the activities are carried on by the last mentioned enterprise if

the activities of the associated enterprises are identical or

substantially similar.



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 advertising, supplying information or carrying out

scientific research for the enterprise, if such activity is of

a preparatory or auxiliary character.



5. Notwithstanding the provisions of paragraphs 1 and 2 of this

Article where a person (other than an agent of an independent

status to whom paragraph 6 of this Article applies) is acting

on behalf of an enterprise and has and habitually exercises in

a Contracting State an authority to conclude contracts on

behalf of the enterprise, that enterprise shall be deemed to

have a permanent establishment in that State in respect of any

activities which that person undertakes for 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 provisions of that

paragraph.



6. An enterprise shall not be deemed to have a permanent

establishment in a Contracting State merely because it carries

on business in that 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, and that the conditions that are made or imposed in

their commercial or financial relations with the enterprise do

not differ from those which would generally be agreed with

independent brokers or agents.



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.



CHAPTER III



TAXATION OF INCOME



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. For the purposes of this Convention, 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 include property accessory

to immovable property, livestock and equipment used in

Agriculture and forestry, rights to which 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 natural resources.

Ships 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 or

has carried on business as aforesaid, the profits of the

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

and with all other persons.



3. In determining the profits of a permanent establishment,

There shall be allowed as deductions necessary 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. Profits derived by an enterprise of a Contracting State from

the operation of ships or aircraft in international traffic

shall be taxable only in that State.



2. For the purposes of this Article:



(a) the term "profits" includes:



(i) gross revenues derived directly from the operation of ships

or aircraft in international traffic, and



(ii) interest on amounts derived directly from the operation of

ships or aircraft in international traffic, but only if such

interest is incidental to the operation;



(b) the expression "operation of ships or aircraft" by an

Enterprise, also includes:



(i) the charter or rental on a bare boat basis of ships and

aircraft, and



(ii) the rental of containers and related equipment;



If that charter or rental is incidental to the operation by the

Enterprise of ships or aircraft in international traffic.



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. The Where clause



(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, if it

agrees, make an appropriate adjustment to the amount of tax

charged therein on those profits. 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 that is a resident of a

Contracting State to a resident of the other Contracting State

may be taxed in that other State.



2. 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. However, 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 that controls directly or

indirectly at least 20 per cent of the voting power in the

company paying the dividends, and



(b) 10 per cent of the gross amount of the dividends, in all

other cases.



The provisions of this paragraph shall not affect the taxation

of the company in respect of the profits out of which the

dividends are paid.



The provisions of this paragraph shall not limit the

application of the additional tax to be paid in Chile provided

that the first category tax is fully creditable in computing

the amount of additional tax. In addition, from such time as

This condition ceases to exist the Contracting States shall

consult with each other with a view to amending the Convention

to re-establish the balance of benefits under the Convention.



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 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 that 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 undistributed profits, even

If the dividends paid or the undistributed profits consist

wholly or partly of profits or income arising in such other

State.



6. The provisions of this Article shall not apply if it was the

the main purpose or one of the main purposes of any person

concerned with the creation or assignment of the shares or

other rights in respect of which the dividend is paid to take

advantage of this Article by means of that creation or

assignment.



Article 11



Interest



1. Interest 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 interest may also be taxed in the Contracting

State in which it arises and according to the laws of that

State, but if the beneficial owner of the interest 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 interest derived from

loans granted by banks and insurance companies;



(b) 15 per cent of the gross amount of the interest in all

other cases.



3. The term "interest" as used in this Article means income

from debt-claims of every kind, whether or not secured by

mortgage, and in particular, income from government securities

and income from bonds or debentures, as well as income which is

subjected to the same taxation treatment as income from money

lent by the laws of the State in which the income arises. The

the term "interest" shall not include income dealt with in Article

10.



4. The provisions of paragraphs 1 and 2 of this Article shall

not apply if the beneficial owner of the interest, being a

the 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

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 of this Convention, as the case may be,

shall apply.



5. Interest 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 interest, 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

indebtedness on which the interest is paid was incurred, and

such interest is borne by such permanent establishment or fixed

base, then such interest 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 interest exceeds, for whatever

reason, the amount that 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.



7. The provisions of this Article shall not apply if it was the

the main purpose or one of the main purposes of any person

concerned with the creation or assignment of the debt-claim in

respect of which the interest is paid to take advantage of this

Article by means of that creation or assignment.



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 according to the laws of that

State, but if the beneficial owner of the royalties 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 royalties for the use

of, or the right to use, industrial, commercial or scientific

equipment,



(b) 10 per cent of the gross amount of the royalties in all

other cases.



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 cinematographic films or films, tapes or other

means of image or sound reproduction, patent, trade mark,

design or model, plan, secret formula or process or other

intangible property, 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 of this Article shall

not apply if the beneficial owner of the royalties, being a

the 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 royalties are paid is effectively connected with such

permanent establishment or fixed base. In such case the

the provisions of Article 7 or Article 14 of this Convention, 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 use,

right or information for which they are paid exceeds the amount

that 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.



7. The provisions of this Article shall not apply if it was the

the main purpose or one of the main purposes of any person

concerned with the creation or assignment of the rights in

respect to which the royalties are paid to take advantage of

This Article by means of that creation or assignment.



Article 13



Capital gains



1. Gains derived by a resident of a Contracting State from the

alienation of immovable property situated in the other

Contracting State may be taxed in that other State.



2. Gains from the alienation of movable property forming part

of the business property of a permanent establishment that 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 a fixed base, may be taxed in that other

State.



3. Gains from the alienation of ships or aircraft operated in

international traffic or from movable property pertaining to

the operation of such ships or aircraft shall be taxable only

in the Contracting State of which the alienator is a resident.



4. Gains derived by a resident of a Contracting State from the

alienation of shares or other rights representing the capital

of a company that is a resident of the other Contracting State

may be taxed in that other Contracting State if,



(a) the gains derive more than 50 per cent of their value

directly or indirectly from immovable property situated in that

other Contracting State; or



(b) the recipient of the gain at any time during the 12-month

period preceding such alienation owned, directly or indirectly,

shares or other rights consisting of 20 per cent or more of the

capital of that company; or



(c) the recipient of the gain is an individual who has been a

the resident of that other Contracting State and who has become a

resident of the first-mentioned Contracting State and the

alienation of the shares or other corporate rights occurs at

any time during the ten years next following the date on which

the individual has ceased to be a resident of that other State.



Any other gains derived by a resident of a Contracting State

from the alienation of shares or other rights representing the


capital of a company resident in the other Contracting State

may be taxed in that other Contracting State but the tax so

charged shall not exceed 16 per cent of the amount of the gain.



Notwithstanding any other provision of this paragraph, gains

derived by a pension fund that is a resident of a Contracting

State from the alienation of shares or other rights

representing the capital of a company that is a resident of the

other Contracting State shall be taxable only in the first-

mentioned Contracting State.



5. Gains from the alienation of any property other than that

referred to in the above mentioned paragraphs, shall be taxable

only in the Contracting State of which the alienator is a

resident.



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 except in the following circumstances, when such

income may also be taxed in the other Contracting State:



(a) if such individual has a fixed base regularly available in

the other Contracting State for the purpose of performing the

activities; in that case, only so much of the income as is

attributable to that fixed base may be taxed in that other

State;



(b) if such individual stays in the other Contracting State for

(a) the period or periods amounting to or exceeding in the aggregate

183 days in any twelve month period; in that case, only so much

of the income as is derived from the activities performed in

that other State may be taxed in that State.



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



Income from employment



1. Subject to the provisions of Articles 16, 18 and 19,

salaries, wages and other remuneration derived by a 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

the 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, a person

being an employer who is not a resident of the other State, and



(c) the remuneration is not borne by a permanent establishment

or a fixed base that the person being an employer has in the

other State.



3. Notwithstanding the preceding provisions of this Article,

remuneration derived by a resident of a Contracting State in

respect of an employment exercised aboard a ship or aircraft

operated in international traffic shall be taxable only in that

State.



Article 16



Directors ' fees



Directors ' fees and other payments derived by a resident of a

Contracting State in the capacity as a member of the board of

Directors or a similar organ of a company which is a resident

of the other Contracting State may be taxed in that other

State.



Article 17



Artistes and sportspersons



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 sportsperson, from that resident's

personal activities as such exercised in the other Contracting

State, may be taxed in that other State. The income referred to

in this paragraph shall include any income derived from any

personal activity exercised in the other State related with

that person's renown as an artiste or sportsperson.



2. Notwithstanding the provisions of Articles 7, 14 and 15,

where income in respect of personal activities exercised by an

artiste or a sportsperson in that capacity as such accrues not

to the artiste or sportsperson personally but to another

person, that income may be taxed in the Contracting State in

which the activities of the artiste or sportsperson are

exercised.



Article 18



Pensions and alimony



1. the Pensions arising in a Contracting State and paid to a

resident of the other Contracting State may be taxed in the

the first-mentioned State.



2. Alimony and other maintenance payments paid to a resident of

a Contracting State shall be taxable only in that State.

However, any alimony or other maintenance payments paid by a

resident of one of the Contracting States to a resident of the

other Contracting State shall, to the extent it is not

allowable as a relief to the payer, be taxable only in the

the first-mentioned State.



Article 19



Government service



1. (a) Salaries, wages and other 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 salaries, wages and other remuneration shall

be taxable only in the other Contracting State if the services

are rendered in that 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, 16 and 17 shall apply to

salaries, wages and other 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, apprentice or business trainee 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 that

individual's education or training receives for the purpose of

that individual's maintenance, education or training shall not

be taxed in that State, if 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.



3. Notwithstanding the provisions of paragraphs 1 and 2, items

of income of a resident of a Contracting State not dealt with

in the foregoing Articles of this Convention and arising in the

other Contracting State may also be taxed in that other State.



CHAPTER IV



TAXATION OF CAPITAL



Article 22



Capital



1. Capital represented by immovable property owned by a

the resident of a Contracting State and situated in the other

Contracting State, may be taxed in that other State.



2. Capital represented by 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 by 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, may be taxed in that other State.



3. Capital represented by ships and aircraft operated in

international traffic by an enterprise of a Contracting State

and by movable property pertaining to the operation of such

ships and aircraft, shall be taxable only in that State.



4. All other elements of capital of a resident of a Contracting

State shall be taxable only in that State.



5. The provisions of paragraphs 1, 2, 3 and 4 shall apply in a

Contracting State only if both Contracting States levy a

General tax on capital.



CHAPTER V



METHODS FOR THE AVOIDANCE OF DOUBLE TAXATION



Article 23



Avoidance of double taxation



1. In the case of Chile, double taxation shall be avoided as

follows:



(a) residents in Chile, obtaining income or owning capital

which may, in accordance with the provisions of this

Convention, be subject to taxation in Sweden, may credit the

Swedish tax so paid against any Chilean tax payable in respect

of the same income or capital, subject to the applicable

provisions of the law of Chile, this paragraph shall apply to

all income referred to in the Convention;



(b) where, in accordance with any provision of the Convention,

income derived or capital owned by a resident of Chile is

exempt from tax in Chile, Chile may nevertheless, in

calculating the amount of tax on other income or capital, take

into account the exempted income or capital.



2. In the case of Sweden, double taxation shall be avoided as

follows:



(a) Where a resident of Sweden derives income which under the

laws of Chile and in accordance with the provisions of this

Convention may be taxed in Chile, 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 Chilean 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 Chile, Sweden may, when determining the

graduated rate of Swedish tax, take into account the income

which shall be taxable only in Chile.



(c) Notwithstanding the provisions of sub-paragraph (a) of this

paragraph, dividends paid by a company which is a resident of

Chile 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.



(d) Where a resident of Sweden owns capital which, in

accordance with the provisions of this Convention, may be taxed

in Chile, Sweden shall allow as a deduction from the tax on the

the capital of that resident an amount equal to the capital tax

paid in Chile. Such deduction shall not, however, exceed that

part of the Swedish capital tax, as computed before the

deduction is given, which is appropriate to the capital which

may be taxed in Chile.



CHAPTER VI



SPECIAL PROVISIONS



Article 24



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, in particular with

respect to residence, are or may be subjected.



2. The taxation on a permanent establishment that 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.



3. Nothing in this Article shall be construed as obliging a

Contracting State to grant to residents of the other

Contracting State any personal allowances, reliefs and

reductions for taxation purposes on account of civil status or

family responsibilities that it grants to its own residents.



4. Except where the provisions of paragraph 1 of Article 9,

paragraph 6 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.



5. Companies which are residents 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 subjected in the first-

mentioned State to any taxation or any requirement connected

therewith that is other or more burdensome than the taxation

and connected requirements to which other similar companies of

the first-mentioned State are or may be subjected.



6. In this Article, the term "taxation" means taxes that are

the subject of this Convention.



Article 25



Mutual agreement procedure



1. Where a person considers that the actions of one or both of

the Contracting States result or will result for that person in

taxation not in accordance with the provisions of this

Convention, that person may, irrespective of the remedies

provided by the domestic law of those States, present the case

to the competent authority of the Contracting State of which

that person is a resident or, if that person's case comes under

paragraph 1 of Article 24, to that of the Contracting State of

which that person is a national.



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 a

mutual agreement procedure with the competent authority of the

other Contracting State, with a view to the avoidance of

taxation not in accordance with the Convention.



3. The competent authorities of the Contracting States shall

endeavour to resolve by mutual agreement any (a) procedure

difficulties or doubts arising as to the interpretation or

application of 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 26



Exchange of information



1. The competent authorities of the Contracting States shall

Exchange such information as is necessary for carrying out the

the provisions of this Convention or of the domestic laws in the

Contracting States concerning taxes covered by the Convention

insofar as the taxation thereunder is not contrary to the

Convention. The exchange of information is not restricted by

Article 1. Any information received 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) involved in the assessment or collection

of, the enforcement or prosecution in respect of, or the

determination of appeals in relation to, the taxes covered by

This Convention. 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.



2. In no case shall the provisions of paragraph 1 be construed

so as to impose on a Contracting State the obligation:



(a) to carry out administrative measures at variance with the

the laws and the administrative practice of that or of the other

Contracting State;



(b) to supply information that 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).



3. If information is requested by a Contracting State in

accordance with this Article, the other Contracting State shall

obtain the information to which the request relates in the same

way as if its own taxation were involved even though the other

The State does not, at that time, need such information. If

specifically requested by the competent authority of a

Contracting State, the competent authority of the other

Contracting State shall endeavour to provide information under

This Article in the form requested, such as depositions of

witnesses and copies of unedited original documents (including

books, papers, statements, records, accounts or writings), to

the same extent such depositions and documents can be obtained

under the laws and administrative practices of that other State

with respect to its own taxes.



Article 27



Members of diplomatic missions and consular posts



Nothing in this Convention shall affect the fiscal privileges

of members of diplomatic missions or consular posts under the

General rules of international law or under the provisions of

Special agreements.



Article 28



Miscellaneous rules



1. For the purposes of this Convention, investment funds or any

other fund of any kind, which are being administered by a

person resident in Chile, may be taxed in Chile in respect of

dividends, interest, capital gains and other income derived

from property or investment in Chile.



2. For the purposes of paragraph 3 of Article XXII

(Consultation) of the General Agreement on Trade in Services,

the Contracting States agree that, notwithstanding that

paragraph, any dispute between them as to whether a measure

falls within the scope of this Convention may be brought before

the Council for Trade in Services, as provided by that

paragraph, only with the consent of both Contracting States.

Any doubt as to the interpretation of this paragraph shall be

resolved under paragraph 3 of Article 25 or, failing agreement

under that procedure, pursuant to any other procedure agreed to

by both Contracting States.



3. Nothing in this Convention shall affect the application of

the existing provisions of the Chilean legislation DL 600 as

they are in force at the time of signature of this Convention

and as they may be amended from time to time without changing

the general principle hereof.



4. Contributions in a year in respect of services rendered in

that year paid by, or on behalf of, an individual who is a

the resident of a Contracting State to a pension plan that is

recognised for tax purposes in the other Contracting State

shall, during a period not exceeding in the aggregate 60

months, be treated in the same way for tax purposes in the

the first-mentioned State as a contribution paid to a pension plan

that is recognised for tax purposes in that first-mentioned

State, if



(a) contributions were made by, or on behalf of, such

individual on a regular basis to the pension plan for a period

ending immediately before that individual became a resident of

the first-mentioned State; and



(b) the competent authority of the first-mentioned State agrees

that the pension plan generally corresponds to a pension plan

recognised for tax purposes by that State.




For the purposes of this paragraph, "pension plan" includes (a)

pension plan created under the social security system into a

Contracting State.



5. Considering that the main aim of the Convention is to avoid

international double taxation, the Contracting States agree

that, in the event the provisions of the Convention are used in

such a manner as to provide benefits not contemplated or not

intended, the competent authorities of the Contracting States

shall in an expeditious manner, consult according to the mutual

agreement procedure of Article 25 with a view to amending the

Convention, where necessary.



6. Nothing in this Convention shall affect the taxation in

Chile of a resident in Sweden in respect of profits

attributable to a permanent establishment situated in Chile,

under both the first category tax and the additional tax but

only as long as the first category tax is deductible in

computing the additional tax.



7. With respect to profits derived by the air transport

Consortium Scandinavian Airlines System (SAS) the provisions of

Article 8, 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.



8. With respect to gains derived by the air transport

Consortium Scandinavian Airlines System (SAS), the provisions

of Article 13 shall apply only to such part of the gains as

corresponds to the participation held in that consortium by SAS

Sweden AB, the Swedish partner of SAS.



9. With respect to capital owned by the air transport

Consortium Scandinavian Airlines System (SAS), the provisions

of Article 22 shall apply only to such part of the capital as

corresponds to the participation held in that consortium by SAS

Sweden AB, the Swedish partner of SAS.



CHAPTER VII



FINAL PROVISIONS



Article 29



Entry into force



1. Each of the Contracting States shall notify the other

through diplomatic channels of the completion of the procedures

required by law for the bringing into force of this Convention.

This Convention shall enter into force on the date of the

receipt of the later of these notifications.



2. The provisions of this Convention shall have effect:



(a) in Chile,



(i) in respect of taxes on income obtained and amounts paid,

credited to an account, put at the disposal or accounted as an

expense, on or after the first day of January in the calendar

year next following that in which this Convention enters into

force;



(ii) in respect of taxes on capital, if and to the extent such

the tax will be imposed by Chile after the date of signature of

This Convention, for tax levied in relation to capital owned on

or after the first day of January of the year next following

the date on which the tax on capital has been introduced; and



(b) in Sweden,



(i) in respect of taxes withheld at source, for amounts paid or

credited on or after the first day of January of the year next

following the date on which the Convention enters into force;



(ii) in respect of other taxes on income, on income tax

chargeable for any tax year beginning on or after the first day

of January of the year next following the date on which the

Convention enters into force;



(iii) in respect of taxes on capital, if and to the extent such

the tax will be imposed by Chile after the date of signature of

This Convention, for tax levied in relation to capital owned on

or after the first day of January of the year next following

the date on which the tax on capital has been introduced.



Article 30



Termination



1. This Convention shall continue in effect indefinitely but

either Contracting State may, on or before the thirtieth day of

June in any calendar year beginning after the year in which the

Convention enters into force, give to the other Contracting

State a notice of termination in writing through diplomatic

channels.



2. The provisions of this Convention shall cease to have

effect:



(a) in Chile,



in respect of taxes on income obtained and amounts paid,

credited to an account, put at the disposal or accounted as an

expense, or on capital owned, on or after the first day of

January in the calendar year next following that in which the

the notice is given; and



(b) in Sweden,



(i) in respect of taxes withheld at source, for amounts paid or

credited on or after the first day of January of the year next

following the end of the six month period;



(ii) in respect of other taxes on income, on income tax

chargeable for any tax year beginning on or after the first day

of January of the year next following the end of the six month

period;



(iii) in respect of taxes on capital, for taxes which is assessed

on or after the second calendar year next following the end of

the six month period.



In WITNESS WHEREOF the undersigned, duly authorised to that

effect, have signed this Convention.



DONE in duplicate at Stockholm this 4th day of June 2004, in

the Spanish, Swedish and English languages. In case of

divergence between the texts the English text shall prevail.



For the Government of the Kingdom of Sweden



Bosse Ringholm



For the Government of the Republic of Chile



Nicolás Eyzaguirre



Protocol to the Convention between the Kingdom of Sweden and

the Republic of Chile for the avoidance of double taxation and

the prevention of fiscal evasion with respect to taxes on

income and on capital



At the moment of signing the Convention for the avoidance of

double taxation and the prevention of fiscal evasion with

respect to taxes on income and on capital between the Kingdom

of Sweden and the Republic of Chile, the Contracting States

have agreed that the following provisions shall form an

integral part of the Convention:



Articles 10, 11 and 12



In respect of paragraph 6 of Article 10, paragraph 7 of Article

11 and paragraph 7 of Article 12, it is agreed that when a

Contracting State contemplates to deny benefits to a resident

of the other Contracting State, the competent authorities

should consult with each other.



Articles 11 and 12



It is agreed that if any agreement or convention between Chile

and a member state of the Organisation for Economic Co-

operation and Development provides that Chile shall exempt from

tax interest or royalties (either generally or in respect of

specific categories of interest or royalties) arising in Chile,

or limit the tax charged in Chile on such interest or royalties

(either generally or in respect of specific categories of

interest or royalties) to a rate lower than that provided for

in paragraph 2 of Article 11 or paragraph 2 of Article 12 of

the Convention, such exemption or lower rate shall

automatically apply to interest or royalties (either generally

or in respect of those specific categories of interest or

royalty payments) arising in Chile and beneficially owned by (a)

resident of Sweden and interest or royalties arising in Sweden

and beneficially owned by a resident of Chile under the same

conditions as if such exemption or lower rate had been

specified in those paragraphs. The competent authority of Chile

shall inform the competent authority of Sweden without delay

that the conditions for the application of this paragraph have

been met.



In WITNESS WHEREOF the undersigned, duly authorised to that

effect, have signed this Protocol.



DONE in duplicate at Stockholm this 4th day of June 2004, in

the Spanish, Swedish and English languages. In case of

divergence between the texts the English text shall prevail.



For the Government of the Kingdom of Sweden



Bosse Ringholm



For the Government of the Republic of Chile



Nicolás Eyzaguirre

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