Lag (2003:758) On The Tax Agreement Between Sweden And Portugal

Original Language Title: Lag (2003:758) om skatteavtal mellan Sverige och Portugal

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section 1 of the agreement for the avoidance of double taxation and

Prevention of tax evasion with respect to taxes on income

Sweden and Portugal signed on 29 August 2002,

apply that law in this country. The agreement is written in Swedish,

Portuguese and English. The Swedish and English text

Annex to this law.



section 2 of the tax rules of the agreement shall apply only to the

some of these causes restriction of the tax liability in Sweden

that would otherwise exist.



3 repealed by law (2011:1408).



Transitional provisions



2003:758



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

shall apply, subject to paragraph V of the Protocol to the

the agreement, with respect to



a) withholding taxes, on amounts which are acquired on January 1, 2000

or later,



(b)) other taxes on income, to taxes imposed for

fiscal years beginning on or after January 1, 2000.



Annex



Convention between the Kingdom of Sweden and the Portuguese

Republic for the avoidance of double taxation and the

Prevention of fiscal evasion with respect to taxes on income



The Kingdom of Sweden and the Portuguese Republic, desiring to

conclude a Convention for the avoidance of double taxation and

the prevention of fiscal evasion with respect to taxes on

income, have agreed as follows:



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 imposed on

behalf of a Contracting State or of its political or

administrative subdivisions or local authorities, irrespective

of the manner in which they are levied.



2. There shall be regarded as taxes on income all taxes imposed

on total income or on elements of income, 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:



a) in the case of Portugal:



(i) the Personal income tax Imposto sobre o Rendimento das (

Pessoas Singulares-IRS),



(ii) the Corporate income tax (Imposto sobre o Rendimento das

Pessoas Colectivas-IRC),



(iii) the Local surtax on corporate income tax (Derrama);



(hereinafter referred to as "Portuguese tax");



b) in the case of 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 (municipal

income tax),



(hereinafter referred to as "Swedish tax").



4. The Convention shall apply also to any identical or

substantially similar taxes which are imposed after the date of

signature of the Convention in addition to, or in place of, the

taxes referred to in paragraph 3. The competent authorities of

the Contracting States shall notify each other of any

substantial 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 "Portugal" means the territory of the Portuguese

Republic situated in the European Continent, the Archipelagoes

of Azores and Madeira, the respective territorial sea and any

other zone in which, according to Portuguese and International

Law, the Portuguese Republic has sovereign rights or

jurisdiction for the purpose of exploring and exploiting,

conserving and managing the natural resources, whether living

or non-living, of the waters superjacent to the sea-bed and of

the sea-bed and its subsoil;



(b)) the term "Sweden" means the Kingdom of Sweden and, when used

in a geographical sense, 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 Portugal or Sweden, as the context requires; the

the term "the Contracting States" means Portugal and 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 ship

or aircraft operated by an enterprise of a Contracting State,

except when the ship or aircraft is operated solely between

places in the other Contracting State;



h) the term "national" means:



(1) all individuals possessing the nationality of a

Contracting State;



(2) any legal person, association or other entity

deriving its status as such from the laws in force in: (a)

Contracting State;



in) the term "competent authority" means:



(1) in the case of Portugal, the Minister of Finance,

the Director General of Taxation (Director Geral dos Impostos)

or their authorized representative;



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

authorized representative or the authority which is designated

as a competent authority for the purposes of this Convention.



2. As regards the application of the Convention at any time by

a Contracting State any term not defined therein shall, unless

the context otherwise requires, have the meaning that it has at

that time under the law of that State for the purposes of the

taxes to which the Convention applies, any meaning under the

applicable tax laws of that State prevailing over a meaning

given to the term under other laws of that State.



Article 4



Resident



1. For the purposes of this Convention, the term "resident of a

Contracting State "means any person who, under the laws of that

State, is liable to tax therein by reason of his domicile,

residence, place of management or any other criterion of a

similar nature, and also includes that State, any governmental

body or agency, a political or administrative subdivision or

local authority thereof. But this term does not include any

person who is liable to tax in that State in respect only of

income from sources in that State. However, this term applies

also in the case of a Swedish partnership, but only to the

extent that the income derived by such partnership is subject

to tax in Sweden as the income of a resident, either in its

hands or in the hands of its partners.



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

individual is a resident of both Contracting States, then his

status shall be determined as follows:



a) he shall be deemed to be a resident only of the State in

which he has a permanent home available to him; If he has a

a permanent home available to him in both States, he shall be

deemed to be a resident only of the State with which his

personal and economic relations are closer (centre of vital

interests);



b) if the State in which he has his centre of vital interests

cannot be determined, or if he has not a permanent home

available to him in either State, he shall be deemed to be a

resident only of the State in which he has an habitual abode;



c) if he has an habitual abode in both States or in neither of

them, he shall be deemed to be a resident only of the State of

which he is a national;



d) if he is a national of both States or of neither of them,

the competent authorities of the Contracting States shall

settle the question by mutual agreement.



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

other than an individual is a resident of both Contracting

States, the competent authorities of the Contracting States

shall endeavour to settle the question by mutual agreement.



Article 5



Permanent establishment



1. For the purposes of this Convention, the term "permanent

establishment "means a fixed place of business through which

the business of an enterprise is wholly or partly carried on.



2. The term "permanent establishment" includes especially:



a) a place of management;



b) a branch;



c) an office;



d) a factory;



e) a workshop; and



f) a mine, an oil or gas well, a quarry or any other place of

extraction of natural resources.



3. a) A building site or construction or installation project

constitutes a permanent establishment only if it load more

than six months within any twelve month period.



b) Subject to the provisions of paragraphs 4, 6 and 7 of this

The article, an enterprise of a Contracting State which is

furnishing services including consultancy services through

employees or other personnel in the other Contracting State

shall be deemed to have a permanent establishment in that other

State but only where such activity load for more than six

months within any twelve month period.



4. Notwithstanding the preceding provisions of this Article,

the term "permanent establishment" shall be deemed not to

include:



(a)) the use of facilities solely for the purpose of storage,

display or delivery of goods or merchandise belonging to the

Enterprise;



b) the maintenance of a stock of goods or merchandise belonging

to the enterprise solely for the purpose of storage, display or

delivery;



c) the maintenance of a stock of goods or merchandise belonging

to the enterprise solely for the purpose of processing by

another enterprise;




d) the maintenance of a fixed place of business solely for the

purpose of purchasing goods or merchandise or of collecting

information, for the enterprise;



e) the maintenance of a fixed place of business solely for the

purpose of carrying on, for the enterprise, any other activity

of a preparatory or auxiliary character;



f) the maintenance of a fixed place of business solely for any

combination of activities mentioned in sub paragraphs a) to (e)),

provided that the overall activity of the fixed place of

business resulting from this combination is of a preparatory or

auxiliary character.



5. Notwithstanding the provisions of paragraphs 1 and 2, where

a person-other than an agent of an independent status to whom

paragraph 6 applies-is acting on behalf of an enterprise and

has, and habitually exercises, in a Contracting State an

authority to conclude contracts in the name of the enterprise,

that enterprise shall be deemed to have a permanent

Re-establishment in that State in respect of any activities which

that person undertakes for the enterprise, unless the

activities of such a 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.



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. The term "immovable property" shall have the meaning which

It has under the law of the Contracting State in which the

property in question is situated. The term shall in any case

the include property accessory to immovable property, livestock and

equipment used in agriculture and forestry, rights to which the

the provisions of general law respecting landed property apply,

buildings, usufruct of immovable property and rights to

variable or fixed payments as consideration for the working of,

or the right to work, mineral deposits, sources and other

the natural resources; ships 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.



The provisions of paragraph 1 shall also apply to income from

movable property or income derived from services connected with

the use or the right to use immovable property which, under the

taxation law of the Contracting State in which the property in

question is situated, is assimilated to income from immovable

property.



4. The provisions of paragraphs 1 and 3 shall also apply to the

income from immovable property of an enterprise and to income

from immovable property used for the performance of independent

personal services.



Article 7



Business profits



1. The profits of an enterprise of a Contracting State shall be

taxable only in that State unless the enterprise carries on

business in the other Contracting State through a permanent

establishment situated therein. If the enterprise carries on

business as aforesaid, the profits of the enterprise may be

taxed in the other State but only so much of them as is

attributable to that permanent establishment.



2. Subject to the provisions of paragraph 3, where an

Enterprise of a Contracting State carries on business in the

other Contracting State through a permanent establishment

situated therein, there shall in each Contracting State be

attributed to that permanent establishment the profits which it

might be expected to make if it were a distinct and separate

enterprise engaged in the same or similar activities under the

the same or similar conditions and dealing wholly independently

with the enterprise of which it is a permanent establishment.



3. In the determination of the profits of a permanent

establishment, there shall be allowed as deductions expenses

which are incurred for the purposes of the permanent

establishment, including executive and general administrative

expenses so incurred, whether in the State in which the

permanent establishment is situated or elsewhere.



4. No profits shall be attributed to a permanent establishment

by reason of the mere purchase by that permanent establishment

of goods or merchandise for the enterprise.



5. For the purposes of the preceding paragraphs, the profits to

be attributed to the permanent establishment shall be

determined by the same method year by year unless there is good

and sufficient reason to the contrary.



6. Where profits include items of income which are dealt with

separately in other Articles of this Convention, then the

the provisions of those Articles shall not be affected by the

the provisions of this Article.



Article 8



Shipping and air transport



1. Profits of an enterprise of a Contracting State from the

operation of ships or aircraft in international traffic shall

be taxable only in that State.



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

from the participation in a pool, a joint business or an

international operating agency.



Article 9



Associated enterprises



1. Where:



a) an enterprise of a Contracting State participates directly

or indirectly in the management, control or capital of an

Enterprise of the other Contracting State, or



b) the same persons participate directly or indirectly in the

management, control or capital of an enterprise of a

Contracting State and an enterprise of the other Contracting

State,



and in either case conditions are made or imposed between the

the two enterprises in their commercial or financial relations

which differ from those which would be made between independent

enterprises, then any profits which would, but for those

conditions, have accrued to one of the enterprises, but, by

reason of those conditions, have not so accrued, may be

included in the profits of that enterprise and taxed

accordingly.



2. Where a Contracting State includes in the profits of an

Enterprise of that State-and taxes accordingly-profits on

which an enterprise of the other Contracting State has been

charged to tax in that other State and the profits so included

are profits which would have accrued to the enterprise of the

the first-mentioned State if the conditions made between the two

enterprises had been those which would have been made between

independent enterprises, then that other State shall make an

appropriate adjustment to the amount of the tax charged therein

on those profits where that other State considers the

adjustment justified. In determining such adjustment, due

regard shall be had to the other provisions of this Convention

and the competent authorities of the Contracting States shall

If necessary consult each other.



Article 10



Dividends



1. Dividends paid by a company which is a resident of a

Contracting State to a resident of the other Contracting State

may be taxed in that other State.



2. However, such dividends may also be taxed in the Contracting

State of which the company paying the dividends is a resident,

and according to the laws of that State, but if the beneficial

owner of the dividends is a resident of the other Contracting

State, the tax so charged shall not exceed 10 per cent of the

the gross amount of the dividends.



The provisions of the previous sentence shall not apply with

respect to dividends paid by a company which is a resident of a

Contracting State to a company which is a resident of the other

Contracting State with respect to which the provisions of the

Directive on the common system of taxation applicable in the

case of parent companies and subsidiaries of different Member

States (90/435/EEC) as it may be changed from time to time, are

applicable.



The competent authorities of the Contracting States may by

mutual agreement settle the mode of application of this

limitation.



This paragraph shall not affect the taxation of the company in

respect of the profits out of which the dividends are paid.



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

from shares, "jouissance" shares or "jouissance" rights, mining

shares, founders ' shares or other rights, not being debt-

claims, participating in profits, as well as income from other

corporate rights which is subjected to the same taxation

treatment as income from shares by the laws of the State of

which the company making the distribution is a resident.



The term "dividends" as used in this Article also beginning

profits paid under an arrangement for participation in profits

(associação em participação).



4. The provisions of paragraphs 1 and 2 shall not apply if the

beneficial owner of the dividends, being a resident of a

Contracting State, carries on business in the other Contracting

State of which the company paying the dividends is a resident,

through a permanent establishment situated therein, or performs

in that other State independent personal services from a fixed

base situated therein, and the holding in respect of which the


dividends are paid is effectively connected with such permanent

establishment or fixed base. In such case the provisions of

Article 7 or Article 14, as the case may be, shall apply.



5. Where a company which is a resident of a Contracting State

derives profits or income from the other Contracting State,

that other State may not impose any tax on the dividends paid

by the company, except insofar as such dividends are paid to a

the resident of that other State or insofar as the holding in

respect of which the dividends are paid is effectively

connected with a permanent establishment or a fixed base

situated in that other State, nor subject the company's

undistributed profits to a tax on the company's undistributed

profits, even if the dividends paid or the undistributed

profits consist wholly or partly of profits or income arising

in such other State.



Article 11



Interest



1. Interest arising in a Contracting State and 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 10 per cent of the gross amount of the

interest. The competent authorities of the Contracting States

may by mutual agreement settle the mode of application of this

limitation.



3. Notwithstanding the provisions of paragraph 2 interest,

mentioned in paragraph 1, shall be taxable only in the

Contracting State where the beneficial owner of the interest is

a resident if one of the following requirements is ugly file led;



(a) the payer or the recipient of the interest is the

Contracting State itself, a statutory body, a political or

administrative subdivision or a local authority thereof or the

The Central Bank of a Contracting State;



(b) the interest is paid in respect of a loan granted by Caixa

Geral de Depósitos (CGD), Banco Nacional Ultramarino (BNU),

Instituto de Apoio ʼs-Pequenas e Médias Empresas e Investimento

(IAPMEI), Investimento e Comércio Externo Português (ICEP),

Companhia de Seguros de Crédito (COSEC), Organismo Coordenador

do POE, Fundo de Internacionalização das Empresas Portuguesas

(FIEP) or any other institution of a public character with the

objective to promote exports or development;



(c) the interest is paid in respect of a loan granted by The

Swedish International Development Cooperation Agency (SIDA),

The Swedish Export Credit Corporation (SEK), Swedfund

International AB, The Swedish Export Credits Guarantee Board

(Exportkreditnämnden) or any other institution of a public

character with the objective to promote exports or development;



(d) the interest is paid in respect of a loan granted by any

other financial institution which may be agreed upon between

the competent authorities of the Contracting States.



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

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

mortgage and whether or not carrying a right to participate in

the debtor's profits, and in particular, income from government

Securities and income from bonds or debentures, including

premiums and prizes attaching to such securities, bonds or

debentures as well as all other income assimilated to income

from money lent by the taxation law of the State in which the

the income arises. Penalty charges for late payment shall not be

regarded as interest for the purpose of this Article.



5. The provisions of paragraphs 1, 2 and 3 shall not apply if

the beneficial owner of the interest, being a resident of a

Contracting State, carries on business in the other Contracting

State in which the interest arises, through a permanent

establishment situated therein, or performs in that other State

independent personal services from a fixed base situated

therein, and the debt-claim in respect of which the interest is

paid is effectively connected with such permanent establishment

or fixed base. In such case the provisions of Article 7 or

Article 14, as the case may be, shall apply.



6. 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 he is 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.



7. Where, by reason of a special relationship between the payer

and the beneficial owner or between both of them and some other

person, the amount of the interest, having regard to the debt-

claim for which it is paid, exceeds the amount which would have

been agreed upon by the payer and the beneficial owner in the

absence of such relationship, the provisions of this Article

shall apply only to the last-mentioned amount. In such case,

the excess part of the payments shall remain taxable according

to the laws of each Contracting State, due regard being had to

the other provisions of this Convention.



Article 12



Royalties



1. Royalties arising in a Contracting State and paid to a

resident of the other Contracting State may be taxed in that

other State.



2. However, such royalties may also be taxed in the Contracting

State in which they arise, and 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 10 per cent of the gross amount of the

royalties. The competent authorities of the Contracting States

may by mutual agreement settle the mode of application of this

limitation.



3. The term "royalties" as used in this Article means payments

of any kind received as a consideration for the use of, or the

right to use, any copyright of literary, artistic or scientific

work including cinematograph films and films or tapes for radio

or television broadcasting, any patent, trade mark, design or

model, plan, secret formula or process, or for the use of, or

the right to use, industrial, commercial, or scientific

equipment, or for information concerning industrial, commercial

or scientific experience.



The term "royalties" also includes payments in consideration

for technical assistance in connection with the use of, or the

right to use, any copyright, goods or information as referred

to in this paragraph.



4. The provisions of paragraphs 1 and 2 shall not apply if the

beneficial owner of the royalties, being a resident of a

Contracting State, carries on business in the other Contracting

State in which the royalties arise, through a permanent

establishment situated therein, or performs in that other State

independent personal services from a fixed base situated

therein, and the right or property in respect of which the

the royalties are paid is effectively connected with such permanent

establishment or fixed base. In such case the provisions of

Article 7 or Article 14, as the case may be, shall apply.



5. Royalties shall be deemed to arise in a Contracting State

When the payer is a resident of that State. Where, however, the

the person paying the royalties, whether he is 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 these 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

the amount which would have been agreed upon by the payer and the

beneficial owner in the absence of such relationship, the

the provisions of this Article shall apply only to the last-

mentioned amount. In such case, the excess part of the payments

shall remain taxable according to the laws of each Contracting

State, due regard being had to the other provisions of this

Convention.



Article 13



Capital gains



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

alienation of immovable property referred to in Article 6 and

situated in the other Contracting State 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 which an

Enterprise of a Contracting State has in the other Contracting

State or of movable property pertaining to a fixed base

available to a resident of a Contracting State in the other

Contracting State for the purpose of performing independent

personal services, including such gains from the alienation of

such a permanent establishment (alone or with the whole

Enterprise) or of such fixed base, may be taxed in that other

State.



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

alienation of ships or aircraft operated in international

traffic or movable property pertaining to the operation of such

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



4. Gains derived by an individual who is a resident of a

Contracting State from the alienation of shares or other

corporate rights in an entity which is a resident of the other

Contracting State, and gains from the alienation of any other

securities which are subjected in that other State to the same

taxation treatment as gains from the alienation of such shares


or other rights, may be taxed in that other Contracting State,

but only if:



(a)) the individual has been a resident of that other Contracting

State at any time during the five years immediately preceding

the alienation of the shares, rights or securities; and



(b)) the individual was the owner of the above mentioned shares,

rights or securities while he was a resident of that other

State.



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

referred to in paragraphs 1 to 4 shall be taxable only in the

Contracting State of which the alienator is a resident.



Article 14



Independent personal services



1. Income derived by a resident of a Contracting State in

respect of professional services or other activities of an

independent character shall be taxable only in that State.

However, in the following circumstances such income may be

taxed in the other Contracting State:



(a)) if he has a fixed base regularly available to him in the

other Contracting State for the purpose of performing his

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

attributable to that fixed base may be taxed in that other

Contracting State; or



b) if his stay in the other Contracting State is for a period

or periods amounting to or exceeding in the aggregate 183 days

in any period of 12 months; in such case, only so much of the

income as is attributable to services performed in that other

Contracting State may be taxed in that other 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



Dependent personal services



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

salaries, wages and other similar remuneration derived by a

the resident of a Contracting State in respect of an employment

shall be taxable only in that State unless the employment is

exercised in the other Contracting State. If the employment is

so exercised, such remuneration as is derived therefrom may be

taxed in that other State.



2. Notwithstanding the provisions of paragraph 1, remuneration

derived by a resident of a Contracting State in respect of an

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, an employer

the who is not a resident of the other State; and



c) the remuneration is not borne by a permanent establishment

or a fixed base which the employer has in the other State.



3. Notwithstanding the preceding provisions of this Article,

remuneration derived in respect of an employment exercised

aboard a ship or aircraft operated in international traffic by

an enterprise of a Contracting State, may be taxed in that

State.



Article 16



Directors ' fees



Directors ' fees and other similar payments derived by a

the resident of a Contracting State in his capacity as a member of

the board of directors or supervisory board (in Portugal,

Conselho fiscal) or of another similar organ of a company which

is a resident of the other Contracting State may be taxed in

that other State. However, Article 15 shall apply in relation

to payments made by such a company to a member of any board or

bodies referred to above in respect of the exercise of a

permanent or regular activity.



Article 17



Artistes and athletes



1. Notwithstanding the provisions of Articles 14 and 15, income

derived by a resident of a Contracting State as an entertainer,

such as a theatre, motion picture, radio or television artiste,

or a musician, or as an athlete, from his personal activities

as such exercised in the other Contracting State, may be taxed

in that other State.



2. Where income in respect of personal activities exercised by

an entertainer or an athlete in his capacity as such accrues

not to the entertainer or athlete himself but to another

person, that income may, notwithstanding the provisions of

Articles 7, 14 and 15, be taxed in the Contracting State in

which the activities of the entertainer or athlete are

exercised.



Article 18



Pension



Subject to the provisions of paragraph 2 of Article 19,

pensions and other similar remuneration paid to a resident of a

Contracting State in consideration of past employment shall be

taxable only in that State.



Article 19



Government service



1. a Salaries, wages) and other similar remuneration, other

than a pension, paid by a Contracting State or a political or

administrative 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 similar remuneration

shall be taxable only in the other Contracting State if the

services are rendered in that State and the individual is a

the resident of that State who:



(1) is a national of that State; or



(2) did not become a resident of that State solely for

the purpose of rendering the services.



2. a) Any pension paid by, or out of funds created by, a

Contracting State or a political or administrative 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 pension shall be taxable only in the other

Contracting State if the individual is a resident of, and a

national of, that State.



3. The provisions of Articles 15, 16, 17 and 18 shall apply to

salaries, wages and other similar remuneration, and to

pensions, in respect of services rendered in connection with a

business carried on by a Contracting State or a political or

administrative subdivision or a local authority thereof.



Article 20



The student's



Payments which a student or business apprentice who is or was

immediately before visiting a Contracting State a resident of

the other Contracting State and who is present in the first-

mentioned State solely for the purpose of his education or

training receives for the purpose of his maintenance, education

or training shall not be taxed in that State, provided that

such payments arise from sources outside that State.



Article 21



Other income



1. Items of income of a resident of a Contracting State,

wherever arising, not dealt with in the foregoing Articles of

This Convention shall be taxable only in that State.



2. The provisions of paragraph 1 shall not apply to income,

other than income from immovable property as defined in

paragraph 2 of Article 6, if the recipient of such income,

being a resident of a Contracting State, carries on business in

the other Contracting State through a permanent establishment

situated therein, or performs in that other State independent

personal services from a fixed base situated therein, and the

right or property in respect of which the income is paid is

effectively connected with such permanent establishment or

fixed base. In such case the provisions of Article 7 or Article

14, as the case may be, shall apply.



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.



4. Notwithstanding any other provisions of this Convention,

disbursements under the Social Security legislation arising in

a Contracting State and paid to a resident of the other

Contracting State may be taxed in the first-mentioned State.



CHAPTER IV



METHODS FOR ELIMINATION



OF DOUBLE TAXATION



Article 22



Elimination of double taxation



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

follows:



a) Where a resident of Portugal derives income which, in

accordance with the provisions of this Convention may be taxed

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

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

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

part of the income tax as computed before the deduction is

given, which is attributable to the income which may be taxed

in Sweden;



b) Where in accordance with any provision of the Convention

income derived by a resident of Portugal is exempt from tax in

This State, Portugal may nevertheless, in calculating the amount

of tax on the remaining income of such resident, take into

account the exempted income.



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

follows:



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

the laws of Portugal and in accordance with the provisions of this

Convention may be taxed in Portugal, 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 Portuguese

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 Portugal, Sweden may, when determining the

graduated rate of Swedish tax, take into account the income

which shall be taxable only in Portugal.



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

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

Portugal 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.



CHAPTER V



SPECIAL PROVISIONS



Article 23



Non-discrimination



1. Nationals of a Contracting State shall not be subjected in

the other Contracting State to any taxation or any requirement

connected therewith, which is other or more burdensome than the

taxation and connected requirements to which nationals of that

other State in the same circumstances are or may be subjected.

This provision shall, notwithstanding the provisions of Article

1, also apply to persons who are not residents of one or both

of the Contracting States.



2. The taxation on a permanent establishment which an

Enterprise of a Contracting State has in the other Contracting

State shall not be less favourably levied in that other State

than the taxation levied on enterprises of that other State

carrying on the same activities. This provision shall not be

construed as obliging a Contracting State to grant to residents

of the other Contracting State any personal allowances, reliefs

and reductions for taxation purposes on account of civil status

or family responsibilities which it grants to its own

residents.



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

paragraph 7 of Article 11, or paragraph 6 of Article 12, apply,

interest, royalties and other disbursements paid by an

Enterprise of a Contracting State to a resident of the other

Contracting State shall, for the purpose of determining the

the taxable profits of such enterprise, be deductible under the

same conditions as if they had been paid to a resident of the

the first-mentioned State. Similarly, any debts of an enterprise of

a Contracting State to a resident of the other Contracting

State shall, for the purpose of determining the taxable capital

of such enterprise, be deductible under the same conditions as

If they had been contracted to a resident of the first-

mentioned State.



4. Enterprises of a Contracting State, the capital of which is

wholly or partly owned or controlled, directly or indirectly,

by one or more residents of the other Contracting State, shall

not be subjected in the first-mentioned State to any taxation

or any requirement connected therewith which is other or more

burdensome than the taxation and connected requirements to

which other similar enterprises of the first-mentioned State

are or may be subjected.



5. The provisions of this Article shall, notwithstanding the

the provisions of Article 2, apply to taxes of every kind and

Description.



Article 24



Mutual agreement procedure



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

the Contracting States result or will result for him in

taxation not in accordance with the provisions of this

Convention, he may, irrespective of the remedies provided by

the domestic law of those States, present his case to the

competent authority of the Contracting State of which he is a

resident or, if his case comes under paragraph 1 of Article 23,

to that of the Contracting State of which he is a national. The

the case must be presented within three years from the first

notification of the action resulting in taxation not in

accordance with the provisions of the Convention.



2. The competent authority shall endeavour, if the objection

appears to it to be justified and if it is not itself able to

arrive at a satisfactory solution, to resolve the case by

mutual agreement with the competent authority of the other

Contracting State, with a view to the avoidance of taxation

which is not in accordance with the Convention. Any agreement

reached shall be implemented notwithstanding any time limits in

the domestic law of the Contracting State.



3. The competent authorities of the Contracting States shall

endeavour to resolve by mutual agreement any difficulties or

doubts arising as to the interpretation or application of the

Convention. They may also consult together for the elimination

of double taxation in cases not provided for in the Convention.



4. The competent authorities of the Contracting States may

communicate with each other directly for the purpose of

reaching an agreement in the sense of the preceding paragraphs.



Article 25



Exchange of information



1. The competent authorities of the Contracting States shall

Exchange such information as is necessary for the carrying out

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

the Contracting States concerning taxes covered by this

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) concerned with the

assessment or collection of, the enforcement or prosecution in

respect of, or the determination of appeals in relation to, the

taxes covered by the 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

laws and administrative practice of that or of the other

Contracting State;



b) to supply information which is not obtainable under the laws

or in the normal course of the administration of that or of the

other Contracting State;



c) to supply information which would disclose any trade,

business, industrial, commercial or professional secret or

trade process, or information, the disclosure of which would be

contrary to public policy (ordre public).



Article 26



Assistance in recovery



1. The Contracting States agree to provide mutual assistance

and support for recovering, in accordance with the respective

the provisions and rules of their legislation or regulations, the

taxes covered by this Convention, when these amounts are

definitely due under the laws and regulations of the

Contracting States seeking the assistance for such recovery.



2. At the request of the applicant State, the requested State

shall, with a view to the recovery of an amount of tax, take

measures of conservancy even if the claim is contested or is

not yet the subject of an instrument permitting enforcement,

insofar as such is permitted by the laws and administrative

practice of the requested State.



3. The competent authorities of the Contracting States shall

consult each other to decide the mode of application of this

Article in case they consider the rendering of assistance in

recovery of taxes feasible.



Article 27



Limitations of benefits



Notwithstanding any other provisions of this Convention, where



(a)) a company that is a resident of a Contracting State derives

its income primarily from other States



(i) from the activities of banking, shipping, financing or

insurance or



(ii) from being the headquarters co-ordination centre or

similar entity providing administrative services or other

support to a group of companies which carry on business

primarily in other States; and



b) except for the application of the method of elimination of

double taxation normally applied by that State, such income

would bear a significantly lower tax under the laws of that

State than income from similar activities carried out within

that State or from being the headquarters co-ordination centre

or similar entity providing administrative services or other

support to a group of companies which carry on business in that

State, as the case may be,



any provisions of this Convention conferring an exemption or a

reduction of taxes shall not apply to the income of such company

and to the dividends paid by such company.



Article 28



Diplomatic agents and consular officers



Nothing in this Convention shall affect the fiscal privileges

of diplomatic agents or consular officers under the general

rules of international law or under the provisions of special

agreements.



CHAPTER VI



FINAL PROVISIONS



Article 29



Entry into force



The Convention shall enter into force on the thirtieth day

After the later of the dates on which the respective

Governments have notified each other in writing that the

formalities constitutionally required in their respective

States have been complied with, and its provisions shall have

effect:



a) in the case of Portugal:



(i) in respect of taxes withheld at source, the fact

giving rise to them appearing on or after the first day of

January 2000;



(ii) in respect of other taxes as to income arising in

the fiscal year beginning on or after the first day of January

2000;



b) in the case of Sweden:



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

paid on or after the first day of January 2000;



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

chargeable for any fiscal year beginning on or after the first

day of January 2000.



Article 30



Termination



This Convention shall remain in force until terminated by a

Contracting State. Either Contracting State may terminate the

The Convention, through diplomatic channels, by giving written

notice of termination at least six months before the end of any

calendar year after the expiration of a period of three years

from the date of its entry into force. In such event the

Convention shall cease to have effect:



a) in the case of Portugal:



(i) in respect of taxes withheld at source, the fact

giving rise to them appearing on or after the first day of

January next following the date on which the period specified

in the said notice of termination expires;




(ii) in respect of other taxes as to income arising in

the fiscal year beginning on or after the first day of January

next following the date on which the period specified in the

said notice of termination expires;



b) in the case of Sweden:



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

paid on or after the first day of January in the year next

following the end of the six month period;



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

chargeable for any fiscal year beginning on or after the first

day of January in the year next following the end of the six

month period.



In WITNESS whereof the undersigned being duly authorized

thereto have signed the present Convention and have affixed

thereto their seals.



Done at Helsingborg this 29th. day of August 2002, in duplicate

in the Portuguese, Swedish and English languages, all texts

being equally authentic. In case of divergence between the

texts the English text shall prevail.



For the Kingdom of Sweden



Anna Lindh



For the Portuguese Republic



António Martins da Cruz



Protocol



At the moment of signing the Convention between the Kingdom of

Canada and the Portuguese Republic for the Avoidance of Double

Taxation and the Prevention of Fiscal Evasion with respect to

Taxes on Income, the undersigned have agreed that the following

provisions shall form an integral part of the Convention.



I. Ad Article 2, paragraph 3



1. It is agreed that the Convention also shall apply to



a) in the case of Portugal: Local immovable property tax

(Contribuição Autárquica), and



b) in the case of Canada: the real estate tax (the State

property tax).



2. The provisions in the Convention concerning income from

immovable property shall also apply, mutatis mutandis, in

relation to the taxes referred to in paragraph 1.



II. Ad Article 8



With respect to profits derived by the air transport consortium

Scandinavian Airlines System (SAS) the provisions of paragraph

1 of Article 8 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.



III. Ad Article 13, paragraph 3



With respect to gains derived by the air transport consortium

SAS, the provisions of this paragraph 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.



IV. Ad Article 15, paragraph 3



Where a resident of Sweden derives remuneration in respect of

an employment exercised aboard an aircraft operated in

international traffic by the air transport consortium SAS, such

remuneration shall be taxable only in Malaysia.



V. Ad Article 29



Notwithstanding the provisions of Article 29, the provisions of

Article 8 and paragraph 3 of Article 13 and respective

the provisions of this Protocol shall have effect in both

Contracting States with respect to the fiscal years beginning

on or after 1 January 1985.



In WITNESS whereof the undersigned being duly authorized

thereto have signed the present Protocol and have affixed

thereto their seals.



Done at Helsingborg this 29th day of August 2002, in duplicate

in the Portuguese, Swedish and English languages, all texts

being equally authentic. In case of divergence between the

texts the English text shall prevail.



For the Kingdom of Sweden



Anna Lindh



For the Portuguese Republic



António Martins da Cruz



Agreement between the Kingdom of Sweden and the Portuguese Republic

for the avoidance of double taxation and the prevention of

tax evasion with respect to taxes on income



The Kingdom of Sweden and the Portuguese Republic, which are

enter into an agreement for the avoidance of double taxation and

Prevention of tax evasion with respect to taxes on income,

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 imposed on behalf of

a Contracting State, its political or administrative

underavdelningars or local authorities, irrespective

by the way in which taxes are levied.



2. of course, With taxes on income all taxes imposed on

income in its entirety or on elements of income, including

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 is:



a) in Portugal:



1. the tax on natural person's income (Imposto sobre o

Rendimento das Pessoas Singulares-IRS),



2. tax on corporate income (Imposto sobre o Rendimento

das Pessoas Colectivas-IRC), and



3. the supplementary tax on corporate income tax

(Derrama);



(in the following referred to as "Portuguese tax");



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-residents

artists and others, and



5. the municipal income tax,



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



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

Similarly, after the signing of the agreement accrue at

addition to or in place of the taxes listed in paragraph 3. The

competent authorities of the Contracting States shall

notify each other of the essential changes made in

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) "Portugal" means the territory of the Portuguese Republic on the

European continent, Azores and Madeira archipelagos,

the respective territorial sea and any other zone over which the

The Portuguese Republic in accordance with the law of Portugal

and the rules of international law may exercise sovereign rights or

jurisdiction for the purpose of exploring and exploiting, conserving and

management of natural resources, both living and dead, in the water

above the seabed, the ocean floor or in its documentation;



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

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

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

Sweden, in conformity with international law, exercises

sovereign rights or jurisdiction;



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

the State "refers to Portugal or Sweden, as the context requires;

"the Contracting States" means Portugal and Sweden;



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

Association;



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

taxes are treated as entity;



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 ship or aircraft are used exclusively between

places in the other Contracting State;



h) "national" means:



1) natural person which has the nationality of a

Contracting State,



2) legal person, association, or other

Association incorporated under the legislation of

a Contracting State;



in) "competent authority" means:



1) in Portugal: the Minister of finance, the Director General of

taxation (Director Geral dos Impostos) or their

authorized representative, and



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

representative or the authority which has been assigned to be competent

authority for the purposes of this agreement.



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 or any other

similar circumstances and also includes that State, its

public-sector bodies or institutions, political or

administrative subdivisions and local authorities. This

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

This State only of income from sources in that State.

However, the term also includes Swedish trading company,

but only to the extent to which trading company's income is

taxable in Sweden in the same way as income acquired

by a resident there, either with trading company or

with its co-owner.



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

a resident of both Contracting States, is determined his residence on

the following ways:



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

permanently available to him. If he has a

such property in both States, he shall be deemed to be a resident only in the


State with which his personal and economic relations are

the strongest (Centre of life interests);



(b)) if it cannot be settled in the State he has Center for

their living interests or if he's not in either State have

a dwelling that is permanently available to him, shall be deemed to

he be a resident only of the State where he usually resides.



(c)) if he usually resides in both States, or if he

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

only in the State of which he is a national;



d) if he is a national of both States or if he is not

nationals of any of them, the competent authorities of the

Contracting States 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, shall

the competent authorities seek rule by mutual

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 of

the extraction of natural resources.



3. a) Site for construction, landscaping or

installation activities constitutes a permanent establishment only if

the operation lasts longer than six months for a

12-month period.



b) except where the provisions of paragraphs 4, 6 and 7 of this

the item causing the other, an enterprise should, as

provides services, including counseling, by employees

or other personnel in the other Contracting State, shall be deemed to

have a permanent establishment in the other State but only if this

activities going on for longer than six months for a

12-month period.



4. Notwithstanding the preceding provisions of this article shall be deemed to

the term "permanent establishment" shall not include:



(a)) the use of facilities solely for storage,

exhibition or disclosure of company-owned goods,



(b) holding of a company belonging to) stock in trade solely

for storage, exhibition or distribution,



(c) holding of a company belonging to) stock in trade solely

for working or processing by other company,



d) holding of fixed place of business

exclusively for the purchase of goods or obtaining information

for the company,



e) holding of fixed place of business

exclusively for the enterprise carrying on other activities of the

preparatory or auxiliary nature,



f) holding of a fixed place of business

exclusively for combining activities listed in

paragraphs (a) to (e), provided that all the activities

conducted from the permanent place of business in

because of this combination is of a preparatory or auxiliary

Article



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

what paragraph 6 apply, works for a company, as well as in a

Contracting State, and which are regularly using power of Attorney

to conclude agreements in the company name, this company-without

by way of derogation from paragraphs 1 and 2 have fixed

place of business in that State in respect of each activity as this

person engaged in for the company. However, this does not apply, if the

activity which that person carries is limited to such

referred to in paragraph 4 and which, if it was done from a

fixed place of business, would not make this

fixed place of business to the permanent establishment

in accordance with 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 operations.



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. The term "immovable property" has the meaning the term has

According to the legislation of the Contracting State in which the property

is located. However, the term always includes accessories

immovable property, the living and the dead furniture in agriculture and

forestry, rights to which the provisions of private law

If immovable property apply, buildings, tenancies of immovable

property, and the right of changing or fixed remuneration

for the use of, or the right to use mineral occurrence,

source or another natural resource. Ships and aircraft shall be deemed to

not be real property.



3. the provisions of paragraph 1 shall apply to income acquired

through immediate use, through rental or other

use of immovable property.



The provisions of paragraph 1 shall also apply to income from movable

property or the income from the provision of services

which are connected with, the use or the right to use immovable

property which, according to the tax laws of the Contracting

State in which the immovable property is situated, are included in the

income from 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 business just now

specified manner, the company's income is taxed in the other

the 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 belongs.



3. In determining permanent establishment the income, deductions

be made for expenses incurred for the permanent establishment,

hereunder included expenses for the company's management and

General management, whether the expenditure incurred in the

State in which the permanent establishment is situated or elsewhere.



4. income not attributable to a permanent establishment by reason only of the

the reason to purchase goods through the permanent establishment

merchandise for the enterprise.



5. for the purposes of the preceding paragraphs, income is determined as

is attributable to the permanent establishment by the same procedure

from year to year, unless good and sufficient reasons causing the

other things.



6. Included in income by operating income which are dealt with in particular in

other articles of this agreement, the provisions of these

articles of the rules contained in this article.



Article 8



Sea and air transport



1. income 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. the provisions of paragraph 1 shall also apply to income

acquired through participation in a pool, a joint business

or an international operating agency.



Article 9



Companies with associated enterprises



1. In cases where the



a) an enterprise of a Contracting State, either directly or indirectly

participate in the management or control of a company in the other

Contracting State or owns part of the company capital,

or



(b)) the same person participates directly or indirectly in the management,

or control of an enterprise of a Contracting State

as an enterprise of the other Contracting State or own

part in both of these corporate capital, observed the following.



If between businesses in terms of trade relations or

financial relations agreed upon or prescribed conditions, as

differ from those which would have been agreed between each other

independent company, receives all the income, that without such conditions

would have been one company but who, because of

the terms in question did not come about this company, be included in the

This company's income and taxed accordingly.



2. In cases where one Contracting State in the income of a company

in this State do-and accordingly, taxes

-income, for which an enterprise of the other Contracting

State is taxed in the other State, and it thus

ancillary income is such as would have been the company

in the first State on the terms agreed between

the enterprises had been those which would have been agreed between the

independent companies, that other State shall implement


proper adjustment of the amount of tax levied for

the income of that other State considers the adjustment

eligible. In compliance with the other provisions of such adjustment

This agreement and the competent authorities of the Contracting

States are in talks 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. Dividends may be taxed in the

Contracting State of which the company paying the dividends has

the resident, in accordance with the laws of that State, but if the

entitled to dividends is a resident of the other Contracting

the State may not exceed 10 per cent of the dividend

gross amount.



The provisions of the preceding sentence shall not apply to

dividends paid by a company resident in a

Contracting State to a company established in the other

Contracting State in which the provisions of the directive on

the common system of taxation applicable to parent companies and subsidiaries

established in different Member States (90/435/EEC) in the version

the future can get through to change, are applicable.



The competent authorities of the Contracting States may

reach agreement on the way to implement these

limitations.



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

for the benefit of which the dividends are paid.



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

shares, participation or other similar evidence, mining shares,

stiftarandelar or other rights, not being debt-claims,

with the right to share in profits, as well as income from other investments in

companies who, under the law of the State in which the distributing

company is resident for tax purposes shall be treated in the same way

as income from shares.



The term "dividends" in this article also includes profit

paid through an arrangement with the share in profits (associação

em participação).



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

the company's undistributed profits, even if the delivery or the

undistributed profit consists wholly or partly of income

raised in that other State.



Article 11



Interest rate



1. interest, stemming from a Contracting State and which

paid to a resident of the other Contracting

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 may not exceed 10

per cent of the gross amount of the interest. The competent authorities of the

Contracting States may agree on way

to implement these limits.



3. the interest rate referred to in paragraph 1 are taxed, notwithstanding

the provisions of paragraph 2, only in the Contracting State in which the

the beneficial owner of the interest is a resident if one of the following

conditions are met;



(a)) the paying or receiving interest is a Contracting

State, its bodies, political or

administrative subdivision or local authority or

the Central Bank of a Contracting State,



b) the interest is paid on account of a loan granted by Caixa Geral

de Depósitos (CGD), Banco Nacional Ultramarino (BNU), Instituto

de Pequenas e Médias Empresas ʼs-Apoio e Investimento (IAPMEI),

Investimento e Comércio Externo Português (ICEP), Companhia de

Seguros de Crédito (COSEC), Organismo Coordenador do POE, Fundo

de Internacionalização das Empresas Portuguesas (FIEP) or by

another institution of public character with the purpose

to promote exports or development,



c) the interest is paid on account of a loan granted by the Board of

international development cooperation agency (SIDA), Swedish

Export Credit Corporation (SEK), Swedfund International AB,

Export credits guarantee Board, or by another institution of

public law in nature with a view to promoting the export or

development,



d) the interest is paid on account of a loan granted by a different

financial institution that the competent authorities of the

Contracting States items agreement.



4. The term "interest" for the purposes of this article the income of

each kind of claim, whether secured by mortgage

in immovable property or not, and whether it entails the right to

interest in the debtor's profits or not. The term refers to the particular

income from securities issued by State and

bonds or debentures, including premiums and

profits pertaining to such securities, bonds

or debentures, as well as any other income included in

income of borrowed money under the tax laws of the

State where the income arises. Penalty fee for late

payment is not considered as interest for the purpose of this

article.



5. the provisions of paragraphs 1, 2 and 3 shall not apply if the

who is entitled to the interest is resident in a Contracting State

and carries on business in the other Contracting State, from

What interest rate are derived, from where the permanent establishment situated or

exercising independent professional activities in the other State from where

located permanent device, as well as the claim for which

the interest is paid owns truly connected with the permanent establishment

or the permanent devices. In such a case be applied

the provisions of article 7 or article 14.



6. 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.



7. where by reason of a special relationship between the payer and the

the beneficial owner of the interest or between both of them and other

person the amount of the interest, having regard to the debt claim for which

the interest is paid, exceeds the amount which would have been agreed

between the payer and the beneficial owner of the interest on such

relations do not exist, the provisions of this

article only at the latter amount. In such a case be taxed

excess amounts in accordance with the legislation of each

Contracting State in compliance with the other provisions of

This agreement.



Article 12



Royalty



1. Royalty, as derived from a Contracting State and which

paid to a resident of the other Contracting

the State, may be taxed in that other State.



2. 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 10 per cent of the gross amount of the royaltyns. The

competent authorities of the Contracting States may meet

agreement on the way to implement these limits.



3. The term "royalties" in this article, of course, every kind of

payments received as compensation for the use of, or

for the right to use copyright to literary, artistic

or scientific work, including cinematograph films and video

or tapes for radio or television broadcasting, any patent,

trademark, design or model, plan, secret formula or

secret manufacturing method, as well as for the use by or for the

the right to use industrial, commercial or scientific

equipment, or for information concerning findings of

industrial, commercial or scientific experience.



The term "royalties" also includes payments that make up

compensation for technical assistance in connection with the use of

or in connection with the right to use such copyright, such

subject-matter or information referred to in this paragraph.



4. the provisions of paragraphs 1 and 2 shall not apply if the

who is entitled to the royalty is a resident of a Contracting State

and carries on business in the other Contracting State, from

which the royalty arises, from which the permanent establishment or

exercising independent professional activities in the other State from where

located permanent device, as well as the right or

property in respect of which the royalties are paid owns real

connected with the permanent establishment or the Permanent

the device. In such cases, apply the provisions of article 7

and article 14.




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

the payer is a resident of that State.

However, the person paying the royalties, whether he is

resident in a Contracting State or not, in a

Contracting State has a permanent establishment or a permanent

device in connection with which the obligation to pay the royalty

arose, and the royalty charged to the permanent establishment or

the permanent device, are considered royalty come from the

State in which the permanent establishment or the Permanent

the device is available.



6. where by reason of a special relationship between the payer and the

the person entitled to the royalties or between both of them and other

person the amount of the royalties, having regard to the use, the

right or the enlightenment for which royalties are payable,

exceeds the amount which would have been agreed between the payer

and the person entitled to the royalty for such relations not

exist, the provisions of this article shall apply only to

the latter amount. In such a case the taxable surplus amount

According to the law of each Contracting State with

observance of the other provisions of this agreement.



Article 13



Capital gain



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

acquires from the alienation of such immovable property

referred to in article 6 and situated in the other Contracting

the State, may be taxed in that other State.



2. Gains from the alienation of movable property forming part

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

a Contracting State has in the other Contracting State,

or of movable property, 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. Profit as a resident of a Contracting State

acquires from the alienation of ships or aircraft

used in international traffic, or movable property which is

attributable to the use of such ship or aircraft;

shall be taxable only in that State.



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

State acquires from the alienation of shares or other

rights in the company which is a resident of the other

Contracting State and profit from the sale of every kind

of securities, as in that other State shall be treated in the same way

as the profit on the sale of such shares and other

rights, may be taxed in that other Contracting State,

but only if



a) the natural person has been resident in that other

Contracting State at any time during a period of five years

immediately before the transfer of the shares, rights or

the securities; and



b) the natural person was the owner of the aforementioned shares,

rights or securities where he was habitually resident in this

other State.



5. Gains from the alienation of property other than that

referred to in paragraphs 1 to 4 shall be taxable only in the Contracting

State of which the alienator is a resident.



Article 14



Independent professional activities



1. income which a resident of a Contracting State

acquires through the exercise of profession or other independent

activities, shall be taxable only in that State. Such income may

be taxed in the other Contracting State if the



a) he in that other Contracting State has a permanent

device, which are regularly available to him in order to

exercise activities. In such a case, only the portion of the

income as is attributable to that permanent device

be taxed in that other Contracting State; or



(b)) he is staying in that other Contracting State during

time period or periods totalling or

exceeding 183 days in any twelve month period. In such a case

may, however, only the portion of the income as is attributable to the

activities in that other Contracting State

be taxed in that other 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

other, taxable wages and other similar remuneration paid by person

resident in one Contracting State receives due

employment, only in that State unless the work is carried out in

the other Contracting State. If the work is performed in this

other State, compensation received for work are taxed

there.



2. Notwithstanding the provisions of paragraph 1 shall be taxable

compensation, as a person resident in one Contracting State

receipt for work performed in the other Contracting State,

only in the first-mentioned State if



a) recipient residing in the other State during the time period or

time periods that in total not exceeding 183 days during a

twelve-month period commencing or ending in the

the tax year in question, and



b) the remuneration is paid by the employer who is not domiciled in

the other State or on his behalf, and



c) compensation does not affect the establishment or

permanent device which the employer has in the other

State.



3. Notwithstanding the preceding provisions of this article,

remuneration for work performed on board the ship or

aircraft, used in international traffic by an enterprise

in one Contracting State, be taxed in that State.



Article 16



Directors ' fees



Directors ' fees and other similar remuneration, as a person with

resident in one Contracting State receives as a member of the

Board of directors or Supervisory Board (in Portugal, conselho fiscal)

or other similar bodies in companies established in other

Contracting State, may be taxed in that other State.

Article 15 shall, however, apply to remuneration, for

the exercise of a permanent or regular activity, as

paid by such a company to a member of such a Board

or body specified above.



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 the capacity as entertainment artist, such as

theatrical or movie actor, radio or television artist

or a musician, or as athletes, are taxed in

that other State.



2. In cases where the income through personal business, as

Entertainment artist or athletes engaged in this

property, not become the entertainment artist or

sportutövaren itself without another person, that income may, without

by way of derogation from the provisions of articles 7, 14 and 15, be taxed in the

the Contracting State where entertainment artist or

sportutövaren conducts business.



Article 18



Pension



Except where the provisions of article 19 paragraph 2 shall give rise to another,

taxed pension and other similar remuneration, as with

reason of past employment paid to the person with

resident in one Contracting State, only in that State.



Article 19



Public service



1. a) salaries and other similar compensation (with the exception of

pension), paid by a Contracting State, one of its

political or administrative subdivisions or local

authorities to the natural person on the basis of the work carried out in

This State, section or governmental service, taxed

only in that State.



b) Such salary and other similar remuneration shall be taxable, however,

only in the other Contracting State if the work is performed in

This State and the person concerned is domiciled in this State and



1) is a national of that State, or



2) were not allowed to live in this State solely to

carry out the work.



2. a) Pensions paid by, or out of funds created by,

a Contracting State, its political or

administrative subdivisions or local authorities to

natural person on the basis of the work done in this State,

the section or Government service, shall be taxable only in

This state.



(b) However, such pension shall be taxable only) in the second

Contracting State of the habitual residence of the person concerned and is

citizens of this State.



3. the provisions of articles 15, 16, 17 and 18 shall apply to

wages and other similar remuneration, and to pensions payable at the

because of the work done in connection with business carried on

of a Contracting State, its political or

administrative subdivisions or local authorities.



Article 20



Students



A student or business trainee who is, or immediately

before visiting a Contracting State a resident of the

other Contracting State and who is staying in the former

State exclusively for their education or training,

not subject to tax in that State, for the amount that he receives for

subsistence, their education or training, in

condition that the amounts derived from sources outside this

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.



4. Notwithstanding the other provisions of this agreement,

payments under the social security legislation, which

derived from a Contracting State and paid to a

a resident of the other Contracting State, be taxable

in the first State.



CHAPTER IV



METHODS TO AVOID



DOUBLE TAXATION



Article 22



The Elimination of double taxation



1. in the case of Portugal double taxation shall be avoided in

the following ways:



a) where a resident of Portugal receives income that

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

should Portugal, from the tax on the income of that person set off the

an amount equal to the tax paid in Sweden.

Settlement amount shall not, however, exceed that part of the

income tax, calculated without such a settlement, charged on

the income which may be taxed in Sweden.



b) where a resident of Portugal receives income that

According to the provisions of this agreement, is exempted from the

taxation in this State, Portugal may, in determining the

the charge for the remaining income of such person, take into account

the income that is 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

Portuguese legislation and in accordance with the provisions of

This agreement may be taxed in Portugal, Sweden-with

subject to the provisions of Swedish legislation concerning

deduction of foreign taxes (even in the version in the future

can get through to change without the general principle set out

This change)-from the Swedish tax on income offset a

the Portuguese tax paid on

income.



b) where a resident of Sweden acquires income according to

the provisions of this Agreement shall be taxable only in Portugal,

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 Portugal.



c) Notwithstanding the provisions of (a)) above is dividends from

companies established in Portugal to a company established in Sweden

exempt from Swedish tax according to the provisions of Swedish law

If the tax exemption for dividends paid to Swedish companies

from companies abroad.



CHAPTER V



SPECIFIC PROVISIONS



Article 23



Prohibition of discrimination



1. nationals of a Contracting State shall not, in the second

Contracting State be subject to taxation or

coherent demands that are of a different kind or more onerous than

the taxation and related requirements as nationals of

the other State under the same circumstances are or may be

subject to. Notwithstanding the provisions of article 1

This provision also applies to any person who is not domiciled

of a Contracting State or in both Contracting States.



2. the taxation on a permanent establishment which businesses in a

Contracting State has in the other Contracting State,

in that other State shall not be less favourable than

taxation of the company in the other State, that carries

activities of the same kind. This provision is not considered to cause

the obligation of a Contracting State to grant to any person with

resident in the other Contracting State such personal

deduction for tax purposes, such exemption or

tax reduction on the basis of marital status or

dependants against family allowed resident of

their own State.



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

paragraph 7 of article 11 or paragraph 6 of article 12 apply, the

interest, royalties and other payments from the company in a

Contracting State to a resident of the other

Contracting State tax deductible in determining the

taxable income of such company on the same terms and conditions

as payment to a resident of the first State.

Similarly, debt as a company of a Contracting State has

to a resident of the other Contracting State

deductible in determining such business

taxable assets on the same terms as the debt to

person resident in that State.



4. Enterprises of a Contracting State, the capital of which is wholly or

partly owned or controlled, directly or indirectly, by a

or more persons resident in the other Contracting

the State shall not be subjected in the first State for

taxation or related requirements of other

kind or more burdensome than the taxation and thus

coherent requirements as other similar companies in the

first State are or may be subjected.



5. Notwithstanding the provisions of article 2 shall be applied

the provisions of this article on the taxes of every kind and

nature.



Article 24



The procedure for the mutual agreement



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

Contracting States took measures to him causes

or will result in taxation contrary to

the provisions of this agreement, he may, without prejudice to

his right to make use of the remedies contained in these

the internal legal order of States, submit the matter to the competent

authority of the Contracting State in which the person is domiciled,

or if the question is whether the application of article 23, paragraph 1, of the

Contracting State of which he is a national. The matter shall be

within three years from the time the person in question had

knowing the action giving rise to taxation as

contrary to the provisions of the agreement.



2. If the competent authority finds the complaint justified but

Unable to achieve a satisfactory solution,

the authority shall seek 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. Agreement shall

be carried out without prejudice to the time limits of the Contracting

States ' internal legislation.



3. the competent authorities of the Contracting States shall

by mutual agreement, seek to determine or

doubts arising concerning the interpretation or

the application of the agreement. They can also initiate consultations with a view to

eliminate double taxation in cases not covered by

the agreement.



4. the competent authorities of the Contracting States may

enter into direct relations with each other in order to meet

agreement in the cases specified in the preceding paragraphs.



Article 25



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).



Article 26



Assistance in recovery



1. the Contracting States undertake, in accordance with

rules and regulations of the respective State laws and

regulations provide mutual assistance and support in

the recovery of the taxes to which this agreement applicable when the

These amounts are due and payable under the legislation of

the Contracting State requesting assistance.



2. At the request of the requesting State, it shall

requested State shall take measures to ensure the recovery

of the tax, even if the asset has been appealed or if no

the enforcement title even exists unless it is permitted


According to the law and administrative practice of the requested State.



3. the competent authorities of the Contracting States shall

deliberate on way to carry out the purposes of this

article in case they consider the aid assistance at

recovery of taxes feasible.



Article 27



Limitation of benefits



Notwithstanding other provisions of this Agreement shall, if



(a)) a company resident in a Contracting State acquires

their income mainly from other States



1) from banking, shipping, finance,

insurance activities, or



2) to be headquartered, co-ordination centre

or a similar entity providing administrative

or other services to a group of companies engaged in

operating mainly in other States; and



b) such income is taxed-unless the application

is done by the method of avoiding double taxation

normally applied by that State-with a rate of

significantly lower under that State's legislation than that

applied either on income from similar activities

been conducted within this State or on income from head office,

co-ordination centre or a similar device that

provides administrative or other services to a

Group of companies, which carries on business in that State,



the provisions of this agreement which impose exceptions or

limitation of taxation does not apply to income that

such a company acquires nor on dividend paid

of such a company.



Article 28



Diplomatic representatives and consular



officials



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

diplomatic representatives or consular officials.



CHAPTER VI



FINAL PROVISIONS



Article 29



Date of entry into force



This agreement shall enter into force on the thirtieth day after the date on

When the last of the written notifications-each

Government should leave when the measures required under

respective State law-has been provided and its

provisions shall apply:



a) in Portugal



1. as regards withholding taxes, if the event giving

rise to taxes occurred on January 1, 2000 or

later;



2. in respect of other taxes, for taxation years that

beginning on 1 January 2000 or later;



b) in Sweden



1. in respect of withholding taxes, on amounts acquired the

1 January 2000 or later;



2. in respect of other taxes on income, for taxes

in respect of fiscal years beginning on 1 January 2000

or later.



Article 30



Termination



This agreement will remain in force until terminated by a

Contracting State. Each Contracting State may, at the

terminate the agreement through diplomatic channels by

notice to that effect at least six months before the expiry of any

calendar year following the expiration of a period of three years

After the agreement came into force. In the event of such

termination agreement ceases to be valid:



a) in Portugal



1. as regards withholding taxes, if the event giving

rise to taxation occurs on 1 January of the calendar year

that immediately following the date of the time period, as

specified in the said notice of termination expires;

or later;



2. in respect of other taxes, for taxation years that

starting on 1 January of the calendar year immediately following

the date on which the period specified in the said notice

on termination, expiry or later;



b) in Sweden



1. in respect of withholding taxes, on amounts acquired the

1 January of the calendar year immediately following the end of

the six-month period or later;



2. in respect of other taxes on income, for taxes

in respect of fiscal years beginning on 1 January of the

calendar years immediately after the end of

the six-month period or later.



In witness whereof the undersigned, being duly

authorised, have signed this agreement and provided the same with

its seal.



That happened in Helsingborg on 29 August 2002 in duplicate in

Swedish, Portuguese and English languages. All three languages

are equally authentic. In the event that a dispute arises at

However, the interpretation, the English text shall prevail.



For The Kingdom Of Sweden



Anna Lindh



For The Portuguese Republic



António Martins da Cruz



Protocol



At the signing of the agreement between the Kingdom of Sweden and

The Portuguese Republic for the avoidance of double taxation and

Prevention of tax evasion with respect to taxes on income,

the undersigned have agreed that the following provisions shall

be an integral part of the agreement.



In paragraph 3 Of article 2.



1. This agreement shall also apply to



a) in Portugal: local property taxes (Contribuição Autárquica),

and



b) in Sweden: the State property tax.



2. the provisions of the contract relating to income from immovable property

shall also apply, mutatis mutandis, in respect of the taxes

referred to in paragraph 1.



II. To article 8



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.



III. Ad article 13 paragraph 3



As regards the profit gained by the air transport Consortium SAS

provisions of this paragraph apply only in respect of the

part of the profits as corresponds to the participation in the Consortium held

SAS Sweden AB, the Swedish partner of SAS.



IV. Ad article 15 paragraph 3



If resident in Sweden receives income from work,

which is performed on board an aircraft which is used in

international traffic by the air transport Consortium SAS, taxed

income only in Sweden.



V. to article 29



Notwithstanding the provisions of article 29, the provisions

in article 8 and article 13 paragraph 3 and the respective provisions

in this Protocol, shall apply in both Contracting States in

the case of fiscal years beginning on 1 January 1985 or

later.



In witness whereof the undersigned, being duly

authorised, have signed this Protocol and have provided the same

with their seal.



That happened in Helsingborg on 29 August 2002 in duplicate in

Swedish, Portuguese and English languages. All three languages

are equally authentic. In the event that a dispute arises at

However, the interpretation, the English text shall prevail.



For The Kingdom Of Sweden



Anna Lindh



For The Portuguese Republic



António Martins da Cruz

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