section 1 of the agreement for the avoidance of double taxation on income
derived from international air transport as Sweden and
Oman signed on 8 July 1998 shall apply that law here in
the country. The agreement is written in Swedish, Arabic and English.
The Swedish and English text appears in annex to this
team.
section 2 of the agreement's tax rules shall apply only if these
involves restriction of the tax liability in Sweden that would otherwise
would exist.
Transitional provisions
1999:892
This law shall enter into force on the day the Government determines and
apply to income acquired from 1 January
1995.
Annex
AGREEMENT BETWEEN THE
THE KINGDOM OF SWEDEN
GOVERNMENT AND
THE SULTANATE OF OMAN
GOVERNMENT FOR
AVOIDANCE OF
DOUBLE TAXATION ON
INCOME DERIVED
FROM INTERNATIONAL
AIR TRANSPORT
The Government of the Kingdom of Sweden and the Government of the Sultanate of Oman;
Desiring to conclude an agreement for the avoidance of double taxation
on income derived from international air transport;
Have agreed as follows:
Article 1
Taxes covered by the agreement
1. The taxes to which the agreement shall apply are:
(a)) of the Kingdom of Sweden:
1) state income tax,
2) the municipal income tax,
(in the following referred to as "Swedish tax");
(b)) in the Sultanate of Oman:
1) corporate income tax on incomes,
2) gains tax on commercial and industrial
establishments,
(in the following referred to as "Omani tax").
2. the agreement also apply to taxes for the same or essentially
similar kind of either Contracting State for
the signing of the agreement is levied alongside or in place
for the taxes referred to in paragraph 1 of this article.
The competent authorities of the Contracting States shall
immediately notify each other the essential changes that
taken in the respective tax legislation which affects this
agreements.
Article 2
Definitions
1. Unless the context gives rise to different, have in this agreement
the following expression, the following meaning:
(a)) "a Contracting State" and "the other Contracting
the State "refers to the Kingdom of Sweden or the Sultanate of Oman,
Depending on the context;
b) "tax" refers to the Swedish tax or Omani tax, depending on the
context;
c) "enterprise of a Contracting State" refers to the
1) Oman Air and Gulf Air, or
2) Scandinavian Airlines System (SAS);
the number of companies listed above can be extended or replaced by
other companies by utväxlande by letter or other similar
arrangement between the two Contracting States;
d) "international traffic" with reference to the transport aircraft
used by an enterprise of a Contracting State, except when the
the aircraft are used exclusively between places in the other
Contracting State;
e) "competent authority" refers to:
-in the Kingdom of Sweden, the Minister of finance or his authorised
authorised representative,
-in the Sultanate of Oman, the Deputy Prime Minister for
financial and Economic Affairs, or his
accredited representative.
2. Where a Contracting State applies the provisions of this
contract shall not, unless the context otherwise raises, each
expressions that are not defined in this agreement have the meaning
the expression has, according to the State in respect of such
the taxes which are the subject of this agreement.
Article 3
Avoidance of double taxation
1. income and profit as a company of a Contracting State
acquired through the use of aircraft in international
traffic is exempt from taxation in the other Contracting
State.
2. the provisions of paragraph 1 of this article shall also apply to
share in income and profit as a company of a Contracting State
acquired through the use of aircraft in international
traffic through the participation in a pool, a joint business or
an international operating agency.
3. For the purposes of this article:
(a)) refers to the term "operation of aircraft" operations in
the form of the carriage by air of passengers, baggage, live
equipment, goods or mail carried by undertakings in a
Contracting State, and involving the sale of tickets
or equivalent documents for such transportation;
(b)) interest on funds that are directly attributable to the use of
aircraft in international traffic shall be regarded as income from
the use of such aircraft.
4. Profit as a company of a Contracting State acquires at
because of the transfer of the aircraft, which it owns and
use in international traffic, and whose income from this
business shall be taxable only in that State, as well as the profit that this
company acquires as a result of the sale of spare parts and
other equipment related to the use of such
aircraft, shall be exempt from taxation in the other
Contracting State.
Article 4
Renegotiation
If companies in the Kingdom of Sweden taxed by such
referred to in article 1, on such income referred to in article 3,
in a State in which Gulf Air is the national
air transport company, the Contracting States without
delay enter into negotiations with a view to the
adjusting the exemption from taxation provided for in article 3 of
This agreement.
Article 5
The procedure for the mutual agreement
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 this
agreements.
Article 6
Date of entry into force
The Contracting States shall inform diplomatic channels
each other when the constitutional measures according to the respective
legisla-tion is required for this agreement to enter into force have
been taken. The agreement shall enter into force on the day on which the last of these
notifications are received and shall apply to income
and profit gained from the first of January 1995.
Article 7
Termination
This agreement will remain in force indefinitely but either
Contracting State may terminate the agreement through diplomatic channels on
by notification to that effect at least six months before the end of
any calendar year following after five years from the date of
entry into force of the agreement. In the event of such termination ends
the agreement will apply in respect of the financial year begins on the first
January of the calendar year immediately following the end of the
year in which the termination took place or later.
In witness whereof the undersigned, being duly
authorized by their respective Governments, have signed this agreement.
Done at Muscat on 8 July 1998, ..., in duplicate in the
Arabic, Swedish and English languages. All languages are equally
an official record. In the event that disputes arise in interpreting
the English text shall prevail.
For The Kingdom Of
The Swedish Government
Lave Johnsson
For The Sultanate
Oman's Government
Ahmed bin Abdulnabi Makki
AGREEMENT BETWEEN THE
THE GOVERNMENT OF THE
KINGDOM OF SWEDEN AND
THE GOVERNMENT OF THE
THE SULTANATE OF OMAN FOR
THE AVOIDANCE OF DOUBLE
TAXATION OF INCOME
DERIVED FROM
INTERNATIONAL AIR
TRANSPORT
The Government of the Kingdom of Sweden and the Government of
the Sultanate of Oman;
Desiring to conclude an Agreement for the Avoidance of Double
Taxation of Income derived from international air transport;
Have agreed as follows:
Article 1
Taxes covered
(1) The taxes which are the subject of this Agreement are:
(a) In the Kingdom of Sweden:
(i) the National income tax;
(ii) the Municipal income tax;
(hereinafter referred to as "Swedish tax");
(b) In the Sultanate of Oman:
(i) the Company Income Tax;
(ii) the Profit Tax on Commercial and Industrial
establishments;
(hereinafter referred to as "Omani tax").
(2) This Agreement shall also apply to any identical or
substantially similar taxes which are imposed by either
Contracting State after the date of signature of this Agreement
In addition to, or in place of, the taxes referred to in
paragraph (1) of this Article.
Each Contracting State shall immediately inform the other
Contracting State of any substantial changes which have been
made in its respective taxation laws which affect this
Agreement.
Article 2
Definition
(1) In this Agreement, unless the context otherwise requires:
(a) the terms "a Contracting State" and "the other Contracting
State "mean the Kingdom of Sweden or the Sultanate of Oman as
the context requires;
(b) the term "tax" means Swedish tax or Omani tax as the
context requires;
(c) the term "enterprise of a Contracting State" means:
1) Oman Air or Gulf Air, or
2) Scandinavian Airlines System (SAS);
the above mentioned enterprises may be added to or replaced by
other enterprises through the exchange of letters or any other
similar arrangements between the two Contracting States;
(d) the term "international traffic" means any transport by an
aircraft operated by an enterprise of a Contracting State
except when the aircraft is operated solely between places in
the other Contracting State;
(e) the term "competent authority" means:
-in the case of the Kingdom of Sweden, the Minister of Finance
or his authorised representative,
-in the case of the Sultanate of Oman, the Deputy Prime
The Minister for Financial and Economic Affairs or his authorised
Representative Office-tive.
(2) In the application of the provisions of this Agreement by (a)
Contracting State any term not otherwise defined shall, unless
the context otherwise requires, have the meaning which it has
under the laws of that Contracting State relating to the taxes
which are the subject of this Agreement.
Article 3
Avoidance of double taxation
(1) the Income and profits derived from the operation of aircraft
in international traffic by an enterprise of a Contracting
State shall be exempt from tax in the other Contracting State.
(2) The provisions of paragraph (1) of this Article shall also
apply to the share of the income and profits from the operation of
aircraft in international traffic derived by an enterprise of a
Contracting State through participation in a pool, a joint
business or an international operating agency.
(3) For the purposes of this Article:
(a) the term "operation of aircraft" means transportation by
air of passengers, baggage, livestock, goods or mail, carried
on by an enterprise of a Contracting State, and includes the
sale of tickets or similar documents for such transportation,
(b) interest on funds directly connected with the operation of
aircraft in international traffic shall be regarded as income
from the operation of such aircraft.
(4) Gains derived by an enterprise of a Contracting State from
the alienation of aircraft owned and operated by the enterprise
in international traffic, the income from which is taxable only
in that State, and gains from the alienation of spares and
equipment used by the enterprise in the operation of such
aircraft shall be exempt from tax in the other Contracting
State.
Article 4
Renegotiation
If an enterprise of the Kingdom of Sweden is charged to tax of
the kind referred to in Article 1, with respect to the income and
profits referred to in Article 3, in any State of which Gulf
Air is the national carrier, the Contracting States shall open
negotiations without delay with a view to adjusting accordingly
the exemptions afforded by Article 3 of this Agreement.
Article 5
Mutual agreement procedure
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
Agreement. They may also consult together for the elimination
of double taxation in cases not provided for in this Agreement.
Article 6
Entry into force
Each Contracting State shall notify the other through
diplomatic channels of the completion of the relevant
procedures required by its law to bring this Agreement into
force. The Agreement shall enter into force on the date of the
later of these notifications and shall thereupon have effect as
regards the income and gains arising on or after the first day of
January, 1995.
Article 7
Termination
This Agreement shall remain in force indefinitely but either
Contracting State may terminate it by giving notice of
termination through diplomatic channels, at least six months
before the end of any calendar year after the fifth year
following that of the entry into force. In such event this
The agreement shall cease to be effective for any year of
assessment commencing on or after 1 January in the calendar
year next following that in which such notice is given.
In witness whereof the undersigned, duly authorised thereto by
their respective Governments, have signed this Agreement.
Done in duplicate at Muscat this eighth day of July 1998
AD, ...., in Arabic, Swedish and English languages, all texts
being equally authentic. In case of divergence of
interpretation, the English text shall prevail.
For the Government
of the Kingdom of Sweden
Lave Johnsson
For the Government of
the Sultanate of Oman
Ahmed bin Abdulnabi Makki
