section 1 of the agreement for the avoidance of double taxation with respect to
taxes on income and on capital as Sweden and Albania
signed on 26 March 1998 shall apply that law here in
the country. The agreement is drawn up in English and its contents
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 exist.
3 repealed by law (2011:1393).
Transitional provisions
1998:1652
This law shall enter into force on the day the Government determines and
applied
(a)) in respect of taxes on income, on income which is acquired on 1
January immediately following the date on which the agreement enters into force, or
later,
(b)) in respect of tax on capital, capital that are assessed
the second calendar year following the year in which the agreement enters into force, or
later.
1999:649
The Government states that the law (1998:1652) if
double taxation treaties between Sweden and Albania shall take
in force on 31 december 1999.
Annex
AGREEMENT BETWEEN THE GOVERNMENT OF THE KINGDOM OF SWEDEN AND THE REPUBLIC OF ALBANIA
GOVERNMENT FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF
TAX EVASION WITH RESPECT TO TAXES ON INCOME AND ON CAPITAL
The Government of the Kingdom of Sweden and the Government of the Republic of Albania
that, in order to further develop and promote its economic
relationships, are entering into an agreement for the avoidance of double taxation
and the prevention of fiscal evasion with respect to taxes on income and
on capital, have agreed as follows:
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. The currently outgoing taxes to which this Agreement shall apply
is:
a) in Albania:
1) tax on profits of legal persons,
2) tax on small businesses,
3) income tax for physical persons, and
4) taxes on wealth,
(in the following referred to as "Albanian tax");
b) 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
5) State property tax,
(in the following referred to as "Swedish tax").
2. the agreement also apply to taxes for the same or essentially
similar kind, which after signature of the contract accrues at the side
of or in place of the taxes referred to in paragraph 1. The competent
the authorities of the Contracting States shall notify each other of the
significant changes taken in the respective tax laws.
Article 3
General definitions
1. Unless the context gives rise to different, have in the application of
This agreement the following expressions the following meaning:
a) "Albania" refers to the Republic of Albania and refers to when expression
used in the territory of the Republic of Albania geographic significance,
as well as the territorial waters and airspace above as well as any
area outside the territorial waters of the Republic of Albania which
The Republic of Albania in accordance with international law rules
and the laws of the Republic of Albania may exercise rights with respect to
on the seabed and its subsoil and their natural resources;
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 line with the folkrätttens rules, exert
sovereign rights or jurisdiction;
(c)) "a Contracting State" and "the other Contracting State"
relates to Albania and Sweden, as the context requires;
d) "person" includes natural persons, companies and other
personal association;
e) "company" means any legal person or any other that for tax purposes
be treated as a legal person;
f) "enterprise of a Contracting State" and "enterprise of the other
Contracting State "refers to the business carried on by any person with
resident in one Contracting State or business conducted
by a resident of the other Contracting State;
1) natural person which has the nationality of a Contracting State,
2) any legal person, partnership or other association
incorporated under the law of a Contracting
State;
h) "international transport" means transport by ships or aircraft
used by the enterprises of a Contracting State, except when the ship or
the aircraft are used exclusively between places in the other
Contracting State;
in) "competent authority" means:
1) in Albania, the Finance Minister or this authorised representative,
2) in Sweden, the Minister of finance or his authorised representative or
the authority to which has been assigned to be the competent authority in
the application of this agreement.
2. Where a Contracting State applies, unless the contract is considered
context gives rise to different, each expression that is not defined
in the agreement, have the same meaning as the expression has, according to the State's
legislation in respect of such taxes to which the agreement applies.
Article 4
Resident
1. for the purposes of this agreement, the term "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 other similar circumstances.
However, the term does not include a person) that is taxable
in this State, only of income from sources in that State.
(b)) in respect of income which is acquired by a partnership, include
the term such a person only to the extent that its income is taxed
in this State in the same way as income acquired by the person
a resident there, either in the company or in its
co-owner.
2. where by reason of the provisions of paragraph 1 an individual is a resident
in both Contracting States, is determined his residence on the following
way:
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
housing in both sterna, are deemed to be a resident of the State with which the
his personal and economic relations are the strongest (Centre
for 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 stadigvaraned allowed 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 may settle the question by mutual agreement.
3. where by reason of the provisions of paragraph 1 a person other than the physical
person is a resident of both Contracting States, the
competent authorities by mutual agreement, seek to determine
in any Contracting State shall be deemed to have established this person sklal
for the purposes of this agreement.
Article 5
Permanent establishment
1. for the purposes of this agreement, the term "permanent establishment"
a fixed place of business, from which a
entrepreneurial activity 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
the extraction of natural resources,
g), space for building, construction, installation or
Assembly operations or business that consists of monitoring
in connection therewith, but only where the activities in progress during a
period exceeding nine months within a 12-month period
beginning or ending in the calendar year concerned, and
h) provision of services, including consultancy services, by an
companies through employees or other personnel engaged by the
the company for such purposes, but only if the operation is in progress
(in respect of the same or contiguous projects) within a
Contracting State for a period or periods of time as
a total of more than nine months within a 12-month period
starting or ending in the calendar year in question.
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 the storage or
exhibition of company of goods,
(b) holding of a company belonging to) stock in trade solely
for storage or exhibition,
(c) holding of a company belonging to) stock in trade solely
for working or processing by other companies,
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 set out in paragraphs
(a) to (e), provided that the activities carried out from
the permanent place of business because of this
combination is of a preparatory or auxiliary character.
4. If a person who is not the independent representative on
which paragraph 5 applies-is present in a Contracting State
for an enterprise of the other Contracting State and in the
first State has and which regularly use proxy
to conclude agreements in the company name, this company-without
by way of derogation from paragraphs 1 and 2 to have a permanent establishment
in that State in respect of any activities which that person carries out the
for the company. However, this does not apply if the activity for which this
personal conduct is limited to that specified in paragraph 3 and
as if it were performed from a fixed place of business
-would not make this fixed place of business
to the permanent establishment under the provisions of that paragraph.
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 State through the Agency
by brokers, Commissioner, or other independent agent,
in doing so, provided that such person is engaged in his customary
business operations. If such an agent's activities are pursued
exclusively or almost exclusively for the company, he shall be deemed to
not be such independent representative referred to in this paragraph.
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, does not in and of itself to either
the company carries out 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 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 for fixed
property, the living and the dead furniture in agriculture and forestry,
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 use
of, or the right to use mineral occurrence, source or other
natural resource. Ships, boats and aircraft is not considered to be fixed
property.
3. the provisions of paragraph 1 shall apply to income acquired
through immediate use, through rental or other use
of immovable property.
4. the provisions of paragraphs 1 and 3 shall also apply to income
of immovable property belonging to the company and on the income of the firm
property used by independent professional activities.
Article 7
Income from operating
1. the Income of an enterprise of a Contracting State
acquire, shall be taxable only in that State unless the enterprise
carries on business in the other State contract out from where located
permanent establishment. If the enterprise carries on business in the newly specified
way, the company's income is taxed in the other State, but
only so much of them as is attributable to that permanent
establishment.
2. enterprises of a Contracting State carries on business in the
other Contracting State from where the permanent establishment situated,
are entered, unless the provisions of paragraph 3 shall give rise to another, in
each avtalsslutade State to that permanent establishment the
income as it may be assumed that establishment skulleha acquired, if
It has been an independent company, which is operated by
the same or similar nature under the same or similar conditions and
independently finished 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 the drifställe only in the reason
purchase of goods through the Agency of the permanent establishment of the enterprise.
6. for the purposes of the preceding paragraphs, income that is determined
attributable to the permanent establishment by the same procedure years from
years, unless good and tillräkcliga reasons causing the other.
7. Included in the inkosmt of operating income which are dealt with specifically in other
articles of this agreement, the provisions of those articles shall not be affected
the rules contained in this article.
Article 8
International traffic
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. the provisions of paragraph 1 apply to the income
acquired by the air transport Consortium Scandinavian Airlines System (SAS)
only in the case of that part of the income corresponding to the proportion of
the Consortium held by SAS Sweden AB, the Swedish partner in
Scandinavian Airlines System (SAS).
3. the provisions of paragraph 1 shall also apply to income acquired
through participation in a pool, a joint business or an
international operating agency.
Article 9
Companies with associated enterprises
1. In cases where the
a) an enterprise of a Contracting State participates directly or indirectly in
management or control of an enterprise of the other Contracting
State or own part in this undertaking, or
(b)) the same person participates directly or indirectly in the management or
control of a company of a Contracting State as an
business in the other Contracting State, or owns part of both 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,
all income, which would have been one company but will
because of the conditions in question did not come about this company,
included in this corporate income and taxed, in agreement
thereby.
2. In cases where one Contracting State in the income of an enterprise in the
This state do-and in accordance therewith tax-
income, for which an enterprise of the other Contracting State
be taxed in that other State and the income so included
is such as would have been the company in the first
the State of the conditions agreed between the companies had been such
which would have been agreed between the wandering independent company, shall
the other State conduct the proper adjustment of the amount of the tax
levied for income in that State. for such adjustment iakktas
the other provisions of this agreement and the competent authorities
in the Contracting States is discussing with each other when necessary.
Article 10
Dividend
1. Dividends paid by a company resident in a Contracting State to the
a resident of the other Contracting State may be taxed in the
that other State.
2. Dividends may be taxed in the Contracting
State of which the company paying the dividends is a resident, according to
the laws of that State, if the recipient has the right to dividend
may not exceed:
a) 5 per cent of the gross amount of the dividends if the beneficial owner of
the dividends is a company (other than a partnership), which
directly holds at least 25 percent of the paying company's capital;
b) 15 per cent of the gross amount of the dividends in all other cases.
The competent authorities of the Contracting States may meet
agreement on the way to implement these limits.
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 by
shares of each class or other rights that are not requirements,
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.
4. the provisions of paragraphs 1 and 2 shall not apply if the
entitled to dividends is a resident of a Contracting State, and
carries on business in the other Contracting State in which the company
paying the utdelninen residence, from where the permanent establishment situated
or exercising independent professional activities in the other State from
where located permanent device, and the proportion due to
the dividend will be 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 an agreement ending 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 that other State or insofar as the
the proportion due to which the dividend is paid owns real
connected with the permanent establishment or permanent device of this
other State, nor tax company's undistributed profits,
Although the dividend or the undistributed profits wholly or
partially consists of income arising in that other State.
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 is derived, under the legislation of that State, but the
If the recipient is entitled to the interest, the tax does not exceed 5
per cent of the gross amount of the interest.
The competent authorities of the Contracting States may meet
agreement on the way to implement this restriction.
3. 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 profits therein relating
to such securities, bonds or debentures;
Penalty for late payment is not considered as interest at
the application of this article.
4. 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 beyond
independent professional activities in the other State from where located
permanent device, as well as the claim in respect of which the interest is paid
owns truly connected with the permanent establishment or the
permanent device. In such cases, apply the provisions
in article 7 or article 14.
5. interest shall be deemed to arise from a Contracting State where the payer is
the State itself, a political subdivision, local authority or
resident of this state; however, if the person
paying the interest, whether he is domiciled in a Contracting State
or not, has in a Contracting State a permanent establishment or
permanent device in connection with which the liability arose on
the interest is paid, and the interest rate borne by the permanent establishment
or the permanent devices, considered the interest derived from the
State in which the permanent establishment or the permanent devices
There is.
6. where by reason of a special relationship between the payer and the
the beneficial owner of the interest or between both of them and any other person
the amount of the interest, having regard to the debt claim for which the interest rate
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 to
the latter amount. In such a case the taxable surplus amount
According to the law of each Contracting State in accordance with
the other provisions of this agreement.
Article 12
Royalty
1. Royalty, as derived from a Contracting State and paid
to a resident of the other Contracting State, may
be taxed in that other State.
2. Royalties may also be taxed in the Contracting State
from which it is derived, under the legislation of that State, but if the
the recipient is entitled to the royalties, the tax may not exceed 5
per cent of the gross amount of the royaltyns.
The competent authorities of the Contracting States may meet
agreement on the way to implement this restriction.
3. With the words "royalty" is understood in this article each kind of
bealtning received as compensation for the use of, or
for the right to use, 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 secret
method of manufacture or for information on experience knowledge of
industrial, 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, as well as the right or
property in respect of which the royalties are 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. Royalties 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 royalties, whether he is domiciled in a Contracting State
or not, has in a Contracting State a permanent establishment or
permanent device in connection with which the obligation to pay
the royalty arises, and the royalty charged to 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
royalty amount, taking into account the utilization, the right
or the enlightenment for which royalties are payable, the excess
the amount which would have been agreed between the payer and the
who is entitled to royalties if such links do not exist,
the provisions of this article shall apply only to the latter
amount. In such case, the excess amount is taxed according to the
the law of each Contracting State in accordance with
the other provisions of this agreement.
Article 13
Capital gain
1. Profit as a resident of a Contracting State acquires
the alienation of such immovable property referred to in article
6 and situated in the other Contracting State, or
on alienation of shares in a company whose assets
consists mainly of such property, may be taxed in that
other State.
2. Gains from the alienation of movable property forming part of the
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 because
of transfer of such a permanent establishment (alone or
together with the whole enterprise) or of such a permanent
device.
3. Profit as a company resident in one Contracting State
acquires from the alienation of ships or aircraft
used in international traffic, or movable property which is
attributable to the use of such ship or aircraft;
shall be taxable only in that State.
The provisions of this paragraph shall apply in respect of profits
acquired by the air transport Consortium Scandinavian Airlines System
(SAS) but only in respect of that part of the profits as corresponds to the
the stake 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 property other than that
referred to in paragraphs 1, 2 and 3 shall be taxable only in the Contracting
State of which the alienator is a resident.
5. Gain due to the sale of shares or other rights
the company, which is being acquired by a natural person who has been domiciled
in a Contracting State a resident of the other
Contracting State may-without prejudice to the provisions of
paragraph 4-taxed in the first-mentioned Contracting State if
the transfer of shares or rights occur at
any time during the 10 years immediately after the
that the person has ceased to be resident in that State.
Article 14
Independent professional activities
1. income as a physical person resident in one Contracting
State acquires through the exercise of profession or other similar
independent operations, be taxable only in that State except
in the following circumstances, which also are taxable income
in the other Contracting State:
(a)) if he's in the other Contracting State has a permanent
device which are regularly available to him in order to
exercise activities; in such case, only so much of
income as is attributable to that permanent device
be taxed in the other Contracting State, or
b) if his stay in the other Contracting State lasts
over a period of time or time periods equal to or
more than 183 days during a 12-month period, starting
or ending in the calendar year in question; in such a case,
only so much of the income as is derived from his activities
exercised in the other State, be taxed in that 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, dentist, lawyer, engineer, architect and
Auditor exercises.
Article 15
Single service
1. the provisions of articles 16, 18, 19 and 20
causing the other, taxable wages and other similar remuneration,
as a resident of a Contracting State carries on the basis
of employment, only in that State unless the work is carried out
in the other Contracting State. If the work is done in this second
State, the remuneration 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, if all of the
the following conditions are met:
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 calendar year
in question,
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 performed on board the ship or aircraft,
used in international traffic by an enterprise of a
Contracting State, be taxed in that State. For person with
resident in Sweden receives income from work, which is carried out on board
the aircraft used in international transport of
the air transport Consortium Scandinavian Airlines System (SAS), taxed
income only in Sweden.
Article 16
Directors ' fees
Directors ' fees and other similar remuneration, as a person with
resident in one Contracting State receives as a member of the
Board or other similar bodies in companies established in the
other Contracting State, may be taxed in that other State.
Article 17
Artists and athletes
1. Notwithstanding the provisions of articles 14 and 15,
income, as a resident of a Contracting State acquires
through their personal business in the other Contracting State
as entertainment artist, such as theatre or
movie actor, radio or television artiste, or a musician,
or as athletes, be taxed in that other State.
2. In cases where the income through personal business, as
Entertainment artist or athletes exercising in that capacity,
don't go to underhållsningsartisten or sportutövaren yourself
without another person, that income may, notwithstanding the
the provisions of articles 7, 14 and 15, be taxed in the
Contracting State where entertainment artist or
sportutövaren exercise activities.
Article 18
Pensions, annuities and similar compensation
1. Pensions and other similar remuneration, payment under
social security legislation and annuities, which are derived
from a Contracting State and paid to a resident
in the other Contracting State, may be taxed in the
first-mentioned Contracting State.
2. The term "annuity" means a fixed amount,
paid periodically at specified times during a person's
lifetime or during a specified or ascertainable period of time
and that is because of the obligation to give effect to these
However, payments made as remuneration for fully answering
consideration in money or money value.
Article 19
Public service
1. a) Compensation (except for retirement), paid for by a
Contracting State, one of its political subdivisions
or local authorities to natural person because of work
performed in this State, the section or governmental service,
shall be taxable only in that State.
b However, such remuneration shall be taxable only) in the second
Contracting State in which the natural person's domicile,
If the work is performed in this State, and the person in question:
1) is a national of that State, or
2) were not allowed to live in this State solely for the purpose of performing
the work.
2. the provisions of articles 15 and 16 shall apply to remuneration
paid on the basis of the work carried out in connection with
motion carried on by a Contracting State, its political
subdivisions or local authorities.
Article 20
Students and business apprentices
1. A student or business trainee who is, or immediately before
stayed in a Contracting State a resident of the other
Contracting State and residing in the förstnämda State
exclusively for their education or training, is not taxed in
This State is for the amount that he receives for his uppehålle, their
teaching or training, provided that the amounts derived
from feeling outside that State.
2. Such a student or business trainee referred to in paragraph 1
shall, during the time of such teaching or practice, moreover,
in the case of grants, scholarships and remuneration from employment,
What is not covered by paragraph 1, be entitled to the same relief,
relief and benefit in taxation, which applies to students
or business trainees who are resident in the State in which he resides
provided that the student or business trainee vistas
in this State for a period exceeding 12 consecutive osm
the following months.
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 where the income is 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
and carries on business in the other Contracting State from where
set permanent establishment or exercise of independent professional activities
in the other State from where located permanent device,
and the right or property in respect of which the income is paid
owns truly connected with the permanent establishment or the
permanent device. In such cases, apply the provisions
in article 7 or article 14.
3. Notwithstanding the provisions of paragraphs 1 and 2, income
as a resident of a Contracting State acquires not
dealt with in the foregoing articles of this agreement and arising from
the other Contracting Government taxed in this second
State.
Article 22
Fortune
1. Fortune consisting of such immovable property referred to in article
6, the resident of a Contracting State owns and
which is situated in the other Contracting State may be taxed
in that other State.
2. Assets consisting of movable property forming part of the
the operating assets of a permanent establishment which an enterprise of a
Contracting State has in the other Contracting State, or
of movable property attributable to 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.
3. Assets held by an enterprise of a Contracting
State which consists of ships and aircraft in international traffic
and of movable property that is attributable to the use of such
ships and aircraft shall be taxable only in that State.
The provisions of this paragraph shall apply in respect of Fortune
held by the air transport Consortium Scandinavian Airlines System
(SAS) only in respect of the part of the fortune that corresponds to
the share in the Consortium held by SAS Sweden AB, the Swedish
shareholder in SAS.
Article 23
The Elimination of double taxation
Double taxation shall be avoided as follows:
1. in the case of Albania:
a) where a resident of Albania receives income or holds
Fortune, which according to the provisions of this agreement may be taxed
in Sweden, Albania from Albanian income tax offset
an amount equal to the income tax paid in Sweden
and from Albanian tax on assets offset an amount
corresponding to the capital tax paid in Sweden.
Such deduction shall not, however, exceed that part of the
Albanian tax, calculated before the deduction, as everything after
the facts are attributable to the income or wealth
which may be taxed in Sweden.
b) where a resident of Albania receives income or holds
Fortune, which according to the provisions of this agreement are exempt
from taxation in Albania, Albania, however, in determining the
of the amount of tax on the remaining income of that person, or
Fortune, take into account the exempted income or capital
from taxation.
2. in the case of Sweden
a) where a resident of Sweden förvärar income according to
Albanian legislation and in accordance with the provisions of this
Agreement may be taxed in Sweden-Albania, with 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 Albanian tax paid on income.
b) where a resident of Sweden acquires income according to
Albanian legislation and the provisions of this Agreement shall be taxable
only in Albania, in determining Sweden-Swedish
progressive taxes-consider such income which shall be taxable only in
Albania.
c) Notwithstanding the provisions of subparagraph (a)) of this paragraph, dividends
from companies established in Albania to companies established in Sweden
exempt from Swedish tax according to the provisions of Swedish law
If the tax exemption of dividends received by the Swedish company from
affiliates abroad.
d) for the purposes of (a)) of this paragraph are considered to the expression "the
Albanian tax paid "include the Albanian tax
would have been paid but not paid or paid with lower
amounts due to time-limited provisions on incentives
in the Albanian legislation is intended to promote economic
development to the extent that such exemption or tax credit
be granted for profits from production, industrial operations or
manufacturing activities or from agriculture, forestry, fishing
or tourist industry (in that included restaurants and hotels),
provided that the activities exercised in Albania. At
the application of c) in this paragraph a tax of 15 per cent
on a Swedish tax base shall be deemed to have been paid in respect of
the said activities, under the conditions set out in
the previous sentence.
e) (d)) shall apply for the first ten years
which this Agreement shall apply. This time period can be extended by
mutual agreement between the competent authorities.
f) where a resident of Sweden owns capital which
According to the legislation in Albania and in accordance with the provisions
in this agreement, may be taxed in Sweden, Albania, from tax
on this person's fortune hot set off an amount equivalent
the property tax paid in Albania on such fortune.
Settlement amount shall not, however, exceed that part of the
Swedish wealth tax, calculated without such a settlement, which
charged on the fortune that get taxed in Albania.
Article 24
Prohibition of discrimination
1. nationals of a Contracting State shall not, in the second
Contracting State be subject to taxation or
coherent demands that are of a different kind or more onerous than
the taxation and related requirements as nationals
in the other State under the same circumstances are 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 in a
Contracting State has in the other State, the closing agreement
in that other State shall not be less favourable than the taxation
firms in the other State, that carries on business for the same
kind. This provision is not considered to entail the obligation for an
Contracting State to grant to a resident of the other
Contracting State such personal deduction for tax purposes,
such exemptions or reductions because of
marital or dependent on family permitted person
established in their own State.
3. Except where the provisions of article 9, paragraph 1, article 11
paragraph 6, or article 12 paragraph 6 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
companies under the same conditions as the payment to the person
in 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 residents of the other Contracting State, shall
not in the first State become subject to taxation or
related requirements are of a different kind or more
burdensome than the taxation and related requirements
like other similar companies in the försnämnda State are or may be
subject to.
5. Notwithstanding the provisions of article 2 shall be applied
the provisions of this article on the taxes of every kind and
nature. However, this paragraph does not apply to fees and
other similar payments.
Article 25
The procedure for the mutual agreement
1. If a person believes that a Contracting State or both
Contracting States took measures to him causes
or will result in taxation contrary to
the provisions of this agreement, he may, without prejudice to
his right to make use of the remedies contained in these
the internal legal order of States, submit the matter to the
competent authority of the Contracting State in which he has
domicile or, in the case of application of article 24, paragraph 1,
in the Contracting State of which he is a national. The matter shall
be presented within three years from the time the person in question
learned about the action that gave 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 determine the matter by mutual agreement
with the competent authority of the other Contracting State
in order to avoid taxation which is contrary to the agreement.
Agreement reached shall be implemented notwithstanding
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 estimate 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 26
Exchange of information
1. the competent authorities of the Contracting States shall
Exchange such information as is necessary to implement the
the provisions of this agreement or of the Contracting State
internal legislation concerning taxes covered by the agreement,
insofar as the taxation thereunder is not contrary to
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
administrative authorities) 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 shall reveal upplysnigarna at public trial or
in judicial decisions.
2. the provisions of paragraph 1 is not considered to be meföra duty of a
Contracting State to
a) take administrative measures derogating from the legislation and
administrative practices in force in that Contracting State, or in the second
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 General considerations of public policy.
Article 27
Members of the diplomatic mission and consular posts
The provisions of this Agreement shall not affect the privileges at the
taxation which, according to the General rules of international law or
provisions of specific agreements apply members
the diplomatic mission or consular post.
Article 28
Limitation of benefits
Notwithstanding other provisions of this agreement, if
a) company resident in one Contracting State acquires its
revenue mainly 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, which carries on business conducted in other
States, and
b) such income, unless the application is made by the
method for avoiding double taxation normally applied by
This State, shall be taxable according to the laws of the State significantly lower
than income of similar activities carried out within this State
or income from activities such as head office, the coordination centre
or similar entity providing administrative or
other services to a group of companies that conduct business in this
State,
the provisions of this agreement which allow for derogation from the
taxation or reduction of tax is not applied to income
so + such company acquires and nte or on dividends paid by
such a company.
Article 29
Date of entry into force
1. This agreement shall be ratified in both Contracting States and
the ratification documents shall be exchanged in Tirana as soon as possible.
2. the agreement shall enter into force with utväexlingen of
the instruments of ratification and its provisions shall apply in the case
If the income acquired or wealth held on 1
January of the calendar year immediately following the year in which the agreement
enters into force, or later.
Article 30
Termination
This agreement will remain in force until the expire of a
Contracting State. Each Contracting State may, at the
diplomatic channels, terminate the agreement by notification
at least six months before the end of any calendar year. In the event
of such termination, the agreement will apply in the case of revenue that
fövärvas or förmågenhet held on 1 January of the
calendar year immediately following the year in which the notice of
termination is submitted or later.
In witness whereof, the undersigned, being duly
authorization, have signed this agreement.
Done at Stockholm on 26 March 1998, in duplicate in the
English language.
For the Government of the Kingdom of Sweden
Lena Hjelm-Wallen
For the Government of the Republic of Albania
Paskal Milo
