section 1 of the agreement for the avoidance of double taxation and
Prevention of tax evasion with respect to taxes on income
Sweden and the Republic of the Philippines signed on 24 June 1998,
apply that law in this country. The agreement is drawn up in English and
its content is laid down in the annex to this law.
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 apply.
3 repealed by law (2011:1397).
Transitional provisions
1999:638
1. this law shall enter into force on the day the Government determines.
2. This Act shall apply
(a)) in respect of withholding taxes: the amount paid to the
persons residing outside of the source country on January 1
calendar year following the year in which the law comes into force or later,
(b)) in respect of other taxes on income: fiscal years
the calendar begins on 1 January of the year following that in which the law is effective
in force or later.
3. Through law repeals Act (1987:1183) if
double taxation treaties between Sweden and the Republic of the Philippines, as well as
Regulation (1989:900) of double taxation agreements between
Sweden and the Republic of the Philippines.
The repealed regulations shall continue to apply
(a)) in respect of withholding taxes: the amount paid to the
persons residing outside of the source country before 1 January
calendar year following the year in which the law comes into force,
(b)) in respect of other taxes on income: fiscal years
starting before January 1 calendar year following the year in which the law
enters into force.
Annex
AGREEMENT BETWEEN THE KINGDOM OF SWEDEN AND THE REPUBLIC OF THE PHILIPPINES
AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION
WITH RESPECT TO TAXES ON INCOME
The Government of the Kingdom of Sweden and the Government of the Republic of the Philippines
Desiring to conclude an agreement for the avoidance of double taxation
and the prevention of fiscal evasion with respect to taxes on income
have agreed as follows:
Article 1
Persons to whom the agreement applies
This agreement shall apply to persons 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 for a
Contracting State, its political underavdelningars or local
authorities, irrespective of the manner in which taxes
be taken out.
2. taxes on income are understood all taxes paid on income
in its entirety or on elements of income, including taxes
on gains from the alienation of movable or immovable property, and in
Republic of the Philippines, taxes on the total amount of corporate
salary payments.
3. The currently outgoing taxes, on which the agreement shall apply,
is:
a) in Sweden:
1) state income tax, withholding tax rate in that involved,
2) the Special income tax for non-residents,
3) the Special income tax for non-resident artistes etc.,
4) the municipal income tax, and
(in the following referred to as "Swedish tax");
the income tax imposed under Title II and the stock transaction
tax in accordance with Section 124-A of the National Internal
Revenue Code of the Republic of the Philippines,
(in the following referred to as "Philippine tax").
4. the agreement also apply to taxes for the same or essentially
Similarly, after the signing of the agreement after
the signing of the agreement is levied alongside or in place
for the currently outgoing taxes. The competent authorities
of the Contracting States shall notify each other of the essential
changes to the respective tax legislation.
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)) 1) "Sweden" means the Kingdom of Sweden and the includes, when
the expression is used in the geogrfisk importance, Sweden's territory,
Sweden's territorial sea and other maritime areas over which
Sweden, in conformity with international law, exercises
sovereign rights or jurisdiction;
2) "Republic of the Philippines" refers to the Republic of the Republic of the Philippines and includes,
When the expression is used in the geographic significance, the archipelago
represents the Republic of Republic of the Philippines under its Constitution and
laws, adjacent areas, and other such areas in the sea
and the airspace over the Philippines, in accordance
with international law, exercises sovereign rights, jurisdiction
or similar rights,
(b)) "a Contracting State" and "the other Contracting State"
relates to Sweden or Republic of the Philippines, depending on the context,
c) "person" includes a natural person, company or other association,
d) "company" refers to the legal person or other that at
taxes are treated as legal person
e) "enterprise of a Contracting State" and "enterprise of the other
Contracting State "refers to the business carried on by the person
resident in one Contracting State, the respective companies
conducted by a resident of the other Contracting State,
f) "international traffic" refers to transport by ship or
aircraft used by enterprises of a Contracting State except
When the ship or aircraft are used exclusively between sites
in the other Contracting State,
g) "national" refers to:
1) natural person which has the nationality of a Contracting State,
2) a legal person or any association constituted under
the laws in force in a Contracting State,
h) "competent authority" refers to:
1) in Sweden, the Minister of finance, his authorized representative or
the authority to which has been assigned to be the competent authority in
the application of this agreement,
2) Republic of the Philippines: The Secretary of Finance/Commissioner of
Internal Revenue or their authorised representative; or
the authority to which has been assigned to be the competent authority in
the application of this agreement.
2. Where a Contracting State applies the contract at any time
be considered, unless context raises other, every expression
that are not defined in this agreement have the meaning the term has
at this time, according to the State law in question if the
such taxes to which the agreement shall apply, and the importance of
the term has under the applicable tax laws of that State,
prevail over the relevant term is given in other
legislation of that State.
Article 4
Resident
1. for the purposes of this agreement reference to the expression "any person with
resident in one Contracting State "person who under the law
in this State is taxable there because of domicil, settlement,
place of management or any other similar circumstance and
also includes that State and its bodies,
political subdivisions and local authorities. The expression
However, it does not include a person who is liable to tax in that State
only on income from sources in that State. In the case of trading companies
or estate the term applies only to the extent that the trading company's
or estate income subject to tax in that State in the same way as
income that are acquired by resident there, either in
handelsboaglet or the estate, or of its members.
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 shall be deemed to have established in the State where he has a home that
permanently available to him; If he has such a
property in both States, he shall be deemed to be a resident of the State with
which his personal and economic relations are 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 is resident in the State where he usually resides.
(c)) if he usually resides in both States, or if he does not
reside permanently in any of them, he is considered to be resident in the
State of which he is a national;
d) if he is a national of both States or if he is not
nationals of any of them, the competent authorities of the
Contracting States the question by mutual agreement.
3. where by reason of the provisions of paragraph 1 a person other than the
an individual is a resident of both Contracting States, the
competent authorities seek decide by mutual
agreement.
Article 5
Permanent establishment
1. for the purposes of this agreement reference to the expression "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,
f) mine, an oil or gas well, a quarry or any other place of
mining or exploration of natural resources,
g) place for building, construction, Assembly or
installation activities and activities consisting of monitoring
in connection therewith, but only where the activities in progress during a
period exceeding six months,
h) the supply of services, including consultancy services,
If such activities are carried out by enterprises by employees or
other personnel engaged by the enterprise for such services,
but only if the operation is in progress (in relation to the same or
coherent project) within a Contracting State for a
time period or periods of time as a total exceeding six
months during a period of 12 months.
3. 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 the company belonging to goods,
(b) holding of a company belonging to) stock in trade solely
for storage, exhibition or distribution,
(c) holding of a company belonging to) stock in trade solely
for working or processing by other company,
d) holding of fixed place of business
exclusively for the purchase of goods or obtaining information
for the company,
e) holding of fixed place of business
exclusively for the enterprise carrying on other activities of the
preparatory or auxiliary nature,
f) holding of fixed place of business
exclusively for combining activities set out in paragraphs
a)-(e)), provided that all the activities
conducted from the permanent place of business in
because of this combination is of a preparatory or auxiliary
art.
4. If a person (who is not an independent representative on
which paragraph 5 applies) is operating in a Contracting State
for an enterprise of the other Contracting State shall
companies deemed to have a permanent establishment in that State if:
a) the person has and in this State are regularly using power of Attorney
to conclude agreements in the company name, if the operation is not
limited to those set out in paragraph 3 of this article, or
(b)) the individual does not have such power of attorney but regularly in the
förtsnämnda State holds stock from which he
your company regularly extradite goods.
5. Enterprises of a Contracting State are not considered to have a permanent establishment
in the other Contracting State solely on the grounds that
the company carries on business in that other State through
mediation of brokers, Commissioner or other independent
Representative, provided that such person thereby
conducts its usual business.
6. the fact that a company resident in a Contracting
State controls or is controlled by a resident company
in the other Contracting State or a company engaged in
business activities in the other State (either from a permanent establishment
or otherwise), shall not of itself be either
the company constitutes a permanent establishment of the other.
Article 6
Income from immovable property
1. income, as a person resident in one Contracting State
acquires immovable property (including income from agriculture
or woodland) 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 for fixed
property, the living and the dead furniture in farm and forest land,
rights to which the provisions of civil law concerning the
property apply, buildings, tenancies of immovable property
as well as the right of changing or fixed remuneration for the
the use of, or the right to use mineral occurrence, source
or other natural resource. Ships, boats 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.
4. the provisions of paragraphs 1 and 3 shall also apply to income
of immovable property belonging to the company and on income from immovable property
used for the independent professional practice.
Article 7
Income from operating
1. the Income of an enterprise of a Contracting State to acquire,
shall be taxable only in that State unless the enterprise carries on
on business in the other Contracting State from which permanent
establishment. If the enterprise carries on business recently,
get the company's income is taxed in the other State, but only to the
much of them as is attributable to that permanent establishment.
2. enterprises of a Contracting State carries on business in the
other Contracting State from where the permanent establishment situated,
are entered, unless the provisions of paragraph 3 shall give rise to another, in
Each Contracting State to the permanent establishment the
income as it can be assumed that the establishment would have acquired,
If it were a stand-alone company, which operated
of the same or a similar nature under the same or similar conditions
and independently completed the business with the undertaking to which the
establishment belongs.
3. In determining permanent establishment income shall be allowed a deduction for
expenditure incurred for the permanent establishment, including
included expenses for management and General Administration,
whether the expenditure incurred in the State in which the permanent establishment
is situated or elsewhere.
4. To the extent that the income attributable to the permanent establishment used in a
Contracting State be determined on the basis of a division of
the company's entire income on the different parts of the company, preventing
the provisions of paragraph 2 shall not be of this Contracting State
the taxable income is determined by such a procedure. The
the allocation method used shall, however, be such that the result
consistent with the principles set out in this article.
5. income not attributable to a permanent establishment by reason only of the
the reason to purchase goods through the Agency of the permanent establishment
for the company.
6. 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.
7. Included in income by operating income which are dealt with in particular in
other articles of this agreement, the provisions of these
articles of the rules contained in this article.
Article 8
Sea and air transport
1. income, which is being acquired by an enterprise of a Contracting
State through the use of ships or aircraft in international
traffic, shall be taxable only in that State.
2. Notwithstanding the provisions of paragraph 1, the income from the source
of a Contracting State which is acquired by a company in the
other Contracting State by the use of the ship or
aircraft in international traffic shall be taxable in the first-mentioned
the State, but the tax so charged shall not exceed the
the lowest of the following amounts:
(a)) one and a half per cent of the gross revenues that have source in
that State, and
(b)) the minimum tax that may be imposed on the income of the same kind,
acquired under similar conditions of person resident in
a third State.
3. the provisions of paragraphs 1 and 2 shall also apply to income
acquired through participation in a pool, a joint business
or an international operating agency.
4. the provisions of paragraph 1 apply to the income
acquired by the air transport Consortium Scandinavian Airlines System
(SAS) only in respect of that part of the income corresponding to the
share in the Consortium held by SAS Sweden AB, the Swedish
part owner of Scandinavian Airlines System (SAS).
Article 9
Companies with associated enterprises
1. In cases where:
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 a company of a Contracting State
an enterprise of the other Contracting State or own part i
both of these corporate capital, observed the following.
If between businesses in terms of trade relations or financial
relations agreed upon or prescribed conditions, which differ from
those which would have been agreed between independent companies,
get all the income, that without such conditions would have been the
one company but because of the conditions in question are not
established this company, be included in this corporate income and
be 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 included
income is such as would have been the company in the
first State of the conditions avtalts between companies
had been those which would have been agreed between each other
independent companies, the other State conduct due
adjustment of the amount of tax levied on income.
When such adjustments are observed with the other provisions of this agreement and
the competent authorities of the Contracting States deliberates
where appropriate, with each other.
Article 10
Dividend
1. Dividends paid by a company resident in a Contracting State to the
a resident of the other Contracting State,
be taxed in that other State.
2. Dividends may be taxed in a Contracting
the State where the company paying the dividends is a resident, according to
the laws of that State, but if the beneficial owner of
dividends is a resident of the other Contracting State,
the tax does not exceed:
a) 10 per cent of the gross amount of the dividends if the beneficial
to dividends is a company (other than a partnership)
which directly holds at least 25 percent of the paying
the company's capital;
b) 15 per cent of the gross amount of the dividends in all other cases.
This paragraph does not affect the company's taxation of profit of the
the dividend is paid.
3. The term "dividends" is understood in this article income
of shares or other rights, not debt, with the right
to share in profits, as well as income from other investments in companies, which
According to the tax laws of the State in which the distributing company
is resident for tax purposes shall be treated in the same way as
income from shares.
4. the provisions of paragraphs 1 and 2 shall not apply if the
entitled to the dividends is a resident of a Contracting State
and carries on business in the other Contracting State, where the
company paying the dividends is a resident, from which the Permanent
establishment or exercise of independent professional activity in this
other State from where located permanent device, as well as the
share on account of which the dividend is paid is the owner of genuine link
with the permanent establishment or the permanent devices. In
such cases, apply the provisions of article 7 and
Article 14.
5. If the company resident in a Contracting State receives income
from the other Contracting State, that other State may not
taxing dividend that the company pays, except to the extent that the dividend
paid to a resident of the other State, or in the
so far the proportion due to which the dividend is paid owns real
connected with the permanent establishment or permanent device of this
other State, nor on the company's undistributed profits charge a
tax payable on the company's undistributed profits, even if
the dividend or the undistributed profits wholly or partly
consists of income arising in that other State.
6. the provisions of this Agreement shall not prevent a Contracting State
to impose, in addition to corporation tax, a tax on profit transfers
from a branch to its head office. The tax thus levied
shall not exceed 10% of the amount transferred. If
Republic of the Philippines in an agreement to avoid double taxation with
a third State which is entered into after the date of signature of this
contract takes in a provision that exempts income referred to in
Article 8 of this agreement from the tax referred to in this paragraph or
limits the tax rate to below 20 per cent, such exemption shall
or such lesser rate automatically applied between Sweden
and the Republic of the Philippines.
Article 11
Interest rate
1. interest, stemming from a Contracting State and paid
to a resident of the other Contracting State, may
be taxed in that other State.
2. interest may also be taxed in the Contracting State
from which it originates, according to the laws of that State,
But if the beneficial owner of the interest is a resident of the other
a Contracting State may not exceed 10% of the
gross amount of the interest.
3. Notwithstanding the provisions of paragraph 2, interest arising
from a Contracting State and paid to a person with
resident in the other Contracting State shall be taxable only in
the other State if the interest is paid in respect of:
a) a bond, debt or other similar debt obligation
issued by the Government or one of its political
subdivisions or local authorities in the former
contract end state, or
(b)) a lånbeviljat, återfinansierat, guaranteed or insured,
or a line of credit granted, återfinansierad, guaranteed or insured
by
1) in the Republic of the Philippines, the Bangko Sentral ng Pilipinas (BSP),
2. in Sweden, the Riksbanken, the Swedish International
Development Cooperation (SIDA), The Swedish Export Credit Corporation (SEK),
Export credits guarantee Board, or other institution of a public character
with a view to promote exports or development,
3) other public-sector institutions or credit institutions,
that the competent authorities of the Contracting States may
particularly agree.
4. The term "interest" shall be understood in this article income of each
kind of claim, whether secured by mortgage
property or not, and whether it entails the right to share in the
debtor's profits or not. The term refers to the particular income by
securities issued by the State and bonds
or debentures, including premiums and prizes
relating to such securities, bonds or debentures;
Penalty for late payment is not considered as interest at
the application of this article.
5. the provisions of paragraphs 1 and 2 shall not apply if the
is entitled to the interest is resident in a Contracting State and
carries on business in the other Contracting State, from the
the interest is derived, from where the permanent establishment situated or exercises
independent professional activities in the other State from where located
permanent device, as well as the claim for the interest rate
paid owns truly connected with the permanent establishment or the
permanent device. In such cases, apply the provisions
in article 7 or article 14.
6. interest shall be deemed to arise from a Contracting State if the payer
is the State itself, a political subdivision, local authority
or a resident of that State. However, if the person
paying the interest, whether he is a resident of a Contracting
State has a permanent establishment or a permanent device in connection
by which the debt is incurred on which the interest is paid, and the interest rate
borne by the permanent establishment or the Permanent
the device is deemed to be the rate obtained from the State in which the Permanent
establishment or permanent device, see.
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 of such relationships
not exist, the provisions of this article shall apply only
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 12
Royalty
1. Royalty, which costs from a Contracting State and paid
to a resident of the other Contracting State,
be taxed in that other State.
2. the Roaltyn shall, however, be taxed in the Contracting State
from which it is derived, under the legislation of that State, but if the
the beneficial owner of royalties is a resident of the other
Contracting State, the tax shall not exceed 15 per cent of
royaltyns gross amount.
3. The term "royalties" in this article, of course, every kind of
payments received as compensation for the use of, or
for the right to use copyright to literary, artistic
or scientific work, including cinematograph films and films
or tapes for radio or television broadcasting, any patent, trade mark,
pattern or model, drawing, secret recipe or secret
method of manufacture or for information on experience knowledge of
industiell, commercial or scientific experience.
4. the provisions of paragraphs 1 and 2 shall not apply if the
are entitled to the royalty is a resident of a Contracting State, and
carries on business in the other Contracting State, from the
royalties derived from the permanent establishment situated there or exercise
independent professional activities in the other State from where located
permanent device, and the right or property in question
If the royalty is paid owns real connection with the fixed
establishment or habitual anodningen. In such a case
apply the provisions of article 7 or article 14.
5. Royalties shall be deemed to arise from a Contracting State if the payer
is the State itself, a political subdivision, local authority or
resident of this State. If, however, the person who
paying the royalties, whether he is a resident of a Contracting
State has a permanent establishment or a permanent device in connection
by which the obligation to pay the royalty raised, and royalties
borne by the permanent establishment or the permanent device,
be regarded as royalties derived from the State in which the permanent establishment
or the permanent devices are available.
6. where by reason of a special relationship between the payer and the
who is entitled to the royalties or between both of them and any other person
the amount of the royalties, having regard to the use, right or
the enlightenment for which royalties are paid, exceeds the amount
which would have been agreed between the payer and the beneficial owner
to royalties if such links do not exist, the
the provisions of this article only on the latter amount. In
such cases are taxable surplus amount under the law
in each Contracting State in compliance with other
provisions of this agreement.
Article 13
Capital gain
1. Profit, as a person resident in one Contracting State acquires
the alienation of such 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
the operating assets of a permanent establishment which an enterprise of a
Contracting State has in the other Contracting State, or
of movable property, attributable to a permanent device to
exercise independent professional activity, as the resident of a
Contracting State has in the other Contracting State, may
be taxed in that other State. The same applies to profit due to
the transfer 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 are attributable
to the use of such ships or aircraft, shall be taxable
only in that State.
The provisions of this paragraph shall apply in respect of profits
acquired by the air transport Consortium Scandinavian Airlines System
(SAS), but only in respect of the part of the profits as corresponds to the
share in the consortium which is held by SAS Sweden AB, the Swedish
part owner of Scandinavian Airlines System (SAS).
4. Gains from the alienation of shares in a company whose
the property mainly consists of immovable property situated in a
Contracting State may be taxed in that State. Profit due to
transfer of an interest in a partnership or a trust whose
the property mainly consists of immovable property situated in a
Contracting State may be taxed in that State.
5. Gains from the alienation of property other than that
referred to in paragraphs 1, 2, 3 and 4 shall be taxable only in the Contracting
State of which the alienator is a resident.
6. Profit, due to the disposal of assets, which are acquired by
a natural person who has been domiciled in a Contracting State
and a resident of the other Contracting State shall-without
by way of derogation from point 5-taxed in the former
Contracting State if the transfer of the assets occurs at
any time during the 10 years immediately after the date
When the person has ceased to be resident in that State.
Article 14
Independent professional activities
1. income as a resident of a Contracting State acquires
through the exercise of profession or other independent activity
shall be taxable only in that State. Such income shall, however, also
be taxed in the other Contracting State if:
a) he in that other Contracting State has a permanent
device which are regularly available to him in order to exercise
activities, or
b) he allowed in the second State during the time period or periods
that total is at least 183 days during a
period of twelve months,
but only so much of the income as is attributable to the
habitual devices and to activities carried out in
the other State.
2. The expression "liberal profession" includes especially independent
scientific, literary and artistic activities, educational
and teaching, as well as such independent operations
as a doctor, lawyer, engineer, architect, dentist, accountant
exercises.
Article 15
Single service
1. the provisions of articles 16, 18, 19 and 20 prompts
other, taxable wages and other similar remuneration, as a person with
resident in one Contracting State receives on account of employment,
only in that State unless the work is carried out in the other
Contracting State. If the work is performed in that other State, may
compensation received for work are taxed there.
2. Notwithstanding the provisions of paragraph 1 shall be taxable compensation,
as a resident of a Contracting State receives for
work performed in the other Contracting State, only in the
first 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 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 permanent establishment or habitual
device which the employer has in the other State.
3. Notwithstanding the preceding provisions of this article,
remuneration for work, been carried out on board the ship or aircraft
in international traffic by an enterprise of a Contracting State,
be taxed in that State. where a resident of Sweden claiming
income from work, which is carried out on Board of an aircraft
used in international traffic by the air transport Consortium Scandinavian
Scandinavian Airlines System (SAS), income is taxed only in Sweden.
Article 16
Directors ' fees
Directors ' fees and other similar remuneration, as resident
in a Contracting State receives as a member of the Board of directors or
other similar bodies in companies resident in the other Contracting
the State, may be taxed in that other State.
Article 17
Artists and athletes
1. Notwithstanding the provisions of articles 14 and 15, income,
as a resident of a Contracting State acquires by
their personal business in the other Contracting State in
as a performer, such as theater or film actor, radio
or television artist, or a musician, or as a
athlete, be taxed in that other State.
2. In cases where the income through personal business, as an artist or
athlete exercising as such, do not become the property of the artist
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 artist or athlete exercising
the business.
3. the provisions of paragraphs 1 and 2 shall not apply to income
that is acquired by an artist or athlete through activities in
a Contracting State if the visit to that Contracting State
to the substantial part is financed by public funds from the other
Contracting State, its political subdivisions,
local authorities or public law bodies.
Article 18
Pension and payments under the social security legislation
1. Except where the provisions of article 19 paragraph 2 shall give rise to another,
taxable pensions and other similar remuneration on the occasion
of past employment paid to a resident of a
Contracting State, only in that State.
2. without hiner of the provisions of paragraph 1 of this article and of the
Article 19 paragraph 2, payment to a physical person with
resident in one Contracting State under the social insurance legislation
in the other Contracting State, be taxable only in that
other State.
3. the provisions of paragraph 1 of this article does not preclude
any of the Contracting States to tax their own
citizens.
Article 19
Public service
1. a) Compensation (except for retirement), paid for by a
Contracting State, its political subdivisions, or
local authorities to natural person because of work
performed in this State, the section or governmental service,
shall be taxable only in that State.
b However, such remuneration shall be taxable only) in the second
Contracting State if the work is performed in that State and the individual
in question is domiciled in this State and
1) is a national of that State, or
2) were not allowed to live in this State solely for the purpose of performing
the work.
2. a) Pensions, paid by, or out of funds created by,
a Contracting State, any of its political subdivisions
or local authorities to natural person because of work
performed in this State, the section or local government
service, shall be taxable only in that 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 and 18 shall apply to
compensation and pension payable by reason of work
performed in connection with business carried on by a Contracting State,
one of its political subdivisions or local authorities.
Article 20
Students and trainees
A student or business trainee who is, or immediately before
stay in a Contracting State a resident of the other
Contracting State and residing in the first State
exclusively for their education or training, is not taxed
in this State for the amount that he receives for his livelihood, his
teaching or training, provided that the amounts
derived from sources outside that State.
Article 21
Other income
1. income as a resident of a Contracting State
acquires and which are not dealt with in the foregoing articles of this
Agreement shall be taxable only in that State, regardless of the origin of income
derived.
2. the provisions of paragraph 1 shall not apply to income, other than
for income from immovable property referred to in article 6, paragraph 2, of
the recipient of the income is resident in a Contracting State and
carries on business in the other Contracting State from where located
permanent establishment or exercise of independent professional activity in this
other State from where located permanent device, as well as the
right or property in respect of which the income is paid is the owner
effectively connected with the permanent establishment or the Permanent
the device. In such cases, apply the provisions of article 7
and article 14.
3. income which are not dealt with in the foregoing articles of this agreement,
as a resident of a Contracting State and who acquires
derived from the other Contracting State, may, notwithstanding
the provisions of paragraphs 1 and 2, be taxed in that other State.
Article 22
The Elimination of double taxation
1. In the Republic of the Philippines shall, in accordance with the rules and
limitations in Philippine law (even in the version in the future
can get through to change without the general principle set out here
change), double taxation is avoided in the following manner:
In accordance with the principles set out in this agreement, the taxes, paid
or debited according to Swedish law, either directly or
through tax credits, on income from a source in Sweden, offset
from Philippine tax in compliance with the following restrictions:
1) settlement amount, which relates to tax paid or
charged by Sweden, shall not exceed the proportion of the tax
covered by the agreement, and from any such deduction shall be allowed;
and corresponding to the share that the taxpayer's taxable
income from sources in Sweden is of his entire taxable
income for the same tax year;
2) the entire settlement amount shall not exceed the proportion of the tax
covered by the agreement, and from any such deduction shall be allowed;
and corresponding to the share of the skattksyldiges taxable
income from sources outside the Republic of the Philippines is of the whole of his
taxable income for the same tax year.
In cases where a Philippine company owns, directly or indirectly, more than
50% of the voting rights in a company from which it receives
dividend during a tax year, the Republic of the Philippines shall also allow
a tax credit for the tax that was paid by or charged in Sweden
the Swedish distributing company, charged on such profits of the
the dividend was paid. Settlement amount shall not, however,
exceed the amount of the part of the Philippine income tax,
calculated without such a settlement, charged on the income,
taxed in Sweden.
2. in the case of Sweden, double taxation shall be avoided in the following
way:
a) where a resident of Sweden acquires income according to
Philippine lagstilftning and in accordance with the provisions of this
Agreement may be taxed in the Republic of the Philippines, the Sweden-having regard to the
the provisions in the Swedish legislation relating to the settlement of
foreign tax (even as they now can get by
be changed without changing the general principle as stated this change)-from
the Swedish tax on income offset an amount equivalent
the tax paid on the income.
b) where a resident of Sweden receives income, which according to
the provisions of this Agreement shall be taxable only in the Republic of the Philippines,
Sweden-in determining Swedish progressive tax-take into account the
such income which shall be taxable only in the Republic of the Philippines.
c) Notwithstanding the provisions of subparagraph (a)) of this paragraph, dividends
from companies established in the Republic of the Philippines to the resident company
Sweden exempt from Swedish tax according to the provisions of
the Swedish exemption for dividends received by Swedish
companies by subsidiaries abroad.
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 national
other Contracting State under the same conditions is or may
be subject to. Notwithstanding the provisions of article 1 shall apply
This provision also on the person who is not domiciled in a
Contracting State or in both Contracting States.
2. the taxation on a permanent establishment which businesses of a Contracting
State has in the other Contracting State, shall in that other
State may not be less favourable than the taxation of companies in this
other State, that carries out activities of the same kind. This provision
are not considered to entail the obligation of a Contracting State to grant to
a resident of the other Contracting State such
personal deduction for tax purposes, such exemption or
tax reduction on account of civil status or dependants
against the family allowed resident of their own State.
3. Except where the provisions of article 9, paragraph 1, article
11 paragraph 7 or paragraph 6 of article 12 apply, interest, royalties
and other payments from the company in a Contracting State to the
a resident of the other Contracting State tax deductible
in determining the taxable income of such
company on the same terms as payment to a resident of
the first State. Similarly, the debt that companies in a
Contracting State to a resident of the other
Contracting State tax deductible in determining such
corporate taxable fortune on the same terms and conditions as the debt
to a resident of the first 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
persons resident in areas other Contracting State, shall
not in the first State become subject to taxation or
related requirements are of a different kind or more onerous
than the taxation and related requirements as other
similar businesses in the first State are or may be
subject to.
5. With the "taxation" means taxes that are in this article are covered by the
the agreement.
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 lead to taxation contrary to the provisions
in this agreement, he may, without prejudice to his right to
make use of the remedies available in those States ' internal
legal order, submit the matter to the competent authority of the
Contracting State of which he is a resident or, if the question is about
the application of article 23, paragraph 1, of the Contracting State
of which he is a national. The matter should be presented within three years from
the time when the person in question had knowledge of the action
given rise to taxation 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 search decide by mutual agreement with the
the competent authority of the other Contracting State in
order to avoid taxation which is contrary to the agreement.
Agreement is carried out without prejudice to the time limits
in the domestic law of the Contracting States.
3. the competent authorities of the Contracting States shall
by mutual agreement, seek to determine or
doubts arising concerning the interpretation or application
of the agreement. They can also consult in order to eliminate
double taxation in cases not covered by the agreement.
4. the competent authorities of the Contracting States may
enter into direct relations with each other in order to meet
agreement in the sense of the preceding paragraphs.
Article 25
Exchange of information
1. the competent authorities of the Contracting States shall
Exchange such information as is necessary to implement the
the provisions of this agreement or of the Contracting State
internal legislation concerning taxes covered by the agreement,
insofar as the taxation thereunder is not contrary
against the agreement. Exchange of information is not restricted by article 1.
Information received as a Contracting State shall be treated
such as secret in the same manner as information obtained under the
the internal law of that State and shall be disclosed only to
persons or authorities (including courts and
management bodies) which defines, collects or collect the
taxes covered by the agreement or deal with prosecution or
appeal in respect of those taxes. These persons or
authorities shall use 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 that:
a) take administrative measures derogating from the legislation and
administrative practices in force in that Contracting State, or in the
other Contracting State,
b) provide information that is not available under the legislation
or the usual administrative practice in this Contracting State
or of the other Contracting State,
c) supply information which would disclose any commercial, industrial,
commercial or professional secret or of a commercial project.
procedures or information whose transmission would
contrary to the General account.
Article 26
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 determine
in specific agreements apply diplomatic representatives
and consular officials.
Article 27
Other provisions
1. the provisions of this Agreement shall not preclude the Republic of the Philippines to
According to its legislation to tax their own citizens resident
in Sweden. For taxes paid because it allowed
However no offsetting.
2. Notwithstanding the other provisions of this agreement, if
a) company resident in one Contracting State is mainly
acquires its income from other States
1) from activities such as banking, maritime, financial or
insurance activities, or
2) by head office, the coordination centre or similar
entity providing administrative or other services
to a group of companies engaged in operating mainly in
other States, and
b) such income, unless the application is made by the
method for avoidance of double taxation normally applicable
of that State, be taxed significantly lower under the State's
law than income of similar activities carried out in
This State or income from activities of head offices;
coordination centre or similar entity providing
administrative or other services to a group of companies
who carries on business in that State, the provisions of this
agreement permitting exemption from taxation or reduction
the tax does not apply to income that such a company acquires
nor on the dividends paid by the company.
Article 28
Date of entry into force
1. the Contracting States shall notify each other when they
constitutional measures taken under the respective State
legislation required that this agreement should enter into force.
2. the agreement shall enter into force on the thirtieth day following the date
When the last of these notifications is received and its provisions
applied:
(a)) with respect to tax content we source, on amounts
be paid to the person resident outside of the source country on January 1
the calendar year immediately following the year in which the agreement enters into force, or
later,
b) in the case of other taxes on income, in the case of taxable years
beginning on January 1 of the calendar year immediately following the year in which the
the agreement enters into force or later.
3. Agreement between the Republic of Republic of the Philippines and the Kingdom of Sweden
for the avoidance of double taxation and the prevention of fiscal evasion
with respect to taxes on income signed at Manila on 7 May 1987,
shall be repealed and its provisions shall no longer
apply from the date on which this Agreement shall apply in accordance with
the provisions of paragraph 2.
Article 29
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 notification
the other at least six months before the end of any calendar year. In
the event of such termination, the agreement ceases to be valid:
(a)) with respect to tax content at the source, on amounts
be paid to the person resident outside of the source country on January 1
the calendar year immediately following the year in which the termination takes place or
later,
b) in the case of other taxes on income, in the case of taxable years
beginning on January 1 of the calendar year immediately following the year in which the
notice is given or later.
In witness whereof the undersigned, being duly
authorization, have signed this agreement.
Which took place in Manila on June 24, 1998, in duplicate, in English
the language.
For the Government of the Kingdom of Sweden
Peter Ahlgren
For the Government of the Republic of the Philippines
Salvador M. Enriquez Jr.
