section 1 of the agreement for the avoidance of double taxation and the prevention of
tax evasion with respect to taxes on income in Sweden and Ukraine
signed on 14 August 1995, together with the
protocol attached to the agreement and which are part of this,
apply that law in this country. The agreement is written in Swedish, Ukrainian
and English. The Swedish and the English text appears in annex
to this law.
section 2 of the tax rules of the agreement shall apply only in so far as
These involve restriction of the tax liability in Sweden that would otherwise
would exist.
3 repealed by law (2011:1374).
Transitional provisions
1995:1339
1. this law shall enter into force on the day the Government determines.
2. this law shall apply to income that is acquired on 1
January of the year immediately following the year in which the agreement enters into force, or
later.
3. The following provisions shall no longer apply as regards
the relationship between Sweden and Ukraine, namely:
-Act (1982:708) about the double taxation treaty between Sweden and
The Soviet Union,
-Decree (1971:130) on the implementation of the Protocol between Sweden
and the Soviet Union concerning mutual tax exemption for
aviation companies and their employees,
-Decree (1973:563) on the implementation of the Protocol between Sweden
and the Soviet Union concerning mutual tax exemption for
maritime companies.
The specified conditions shall, however, continue to apply
(a)) on income which is acquired before 1 January of the year following that in which the
the law will enter into force, and
(b)) in respect of tax on wealth, on taxes imposed by
taxation year after the Act came into force or at the previous
the annual assessment.
Annex
AGREEMENT BETWEEN THE UNITED STATES AND UKRAINE TO AVOID DOUBLE TAXATION
AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME
Sweden and Ukraine, desiring to conclude an agreement to avoid
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 who are domiciled in a
Contracting State or in both Contracting States.
Article 2
Taxes covered by the agreement
1. this Agreement shall apply to taxes on income and on
capital gain in respect of a Contracting State, its
political subdivisions or local authorities,
regardless of the way in which taxes are levied.
2. taxes on income are understood all taxes based on income
in its entirety or on elements of income, including included taxes
on gains from the alienation of movable or immovable property, taxes
on the total payroll that is paid by the businesses, and taxes
on capital appreciation.
3. The taxes to which this Agreement shall apply are:
a) in Ukraine:
1) tax on profit (income) from companies (podatok na pributok
(dokhody) pidpriemstv);
2) the income tax on citizens (pributkovy podatok z gromadyan)
(in the following referred to as "ukranisk tax")
b) in Sweden:
1) state income tax, withholding tax rate tax and seamen's
in that involved,
2) the Special income tax for non-residents,
3) the Special income tax for non-resident artists, among others.
and
4) the municipal income tax
(in the following referred to as "Swedish tax").
4. the agreement shall apply also with regard to new taxes on income and
in the capital, following the signing of this agreement introduced in
a Contracting State. the competent authorities of the Contracting
States shall by mutual agreement determine whether a
tax imposed in any of the Contracting States, such
tax agreement shall apply in accordance with
the previous sentence.
5. the agreement also apply to taxes for the same or essentially
Similarly, after the signing of this agreement accrue at
addition to or in place of the taxes listed in paragraph 3. The
competent authorities of the Contracting States shall notify the
each other the essential changes taken in the respective
tax legislation.
6. The provisions of this agreement do not apply to penalty fees,
paid for violation of tax legislation in a
Contracting State.
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) "Ukraine" includes, when utttrycket is used in the geographical
meaning, the territorial sea, and any area outside the
territoalvattnet which, in accordance with the rules of international law
has been declared or will henceforth be explained as an area
in which Ukraine may exercise rights with respect to the sea bed,
its surface and natural resources;
b) "Sweden" refers to the Kingdom of Sweden and the includes, when
the expression is used in the geographical sense, the territory of Sweden,
Sweden's territorial sea and other maritime areas over which the
Sweden, in conformity with international law, the sovereign is exercised
rights or jurisdiction;
(c)) "a Contracting State" and "the other Contracting State"
referring to Ukraine or Sweden, as the context requires;
d) "person" includes "natural person, company or other association;
e) "company" refers to the legal person or other person for tax purposes
be treated as legal persons;
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 each company conducted by
a resident of the other Contracting State;
g) "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;
h) "national" refers to:
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;
in) "competent authority" refers to:
1) in Ukraine, the Minister of finance or his authorised representative, befullmäktige
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 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, place of incorporation or
other similar circumstances, without prejudice to
(a)) the term does not include a person who is liable to tax in this
State only on income from sources in that State; and
b) regarding trading companies and estates includes the specified
the term such a person only to the extent that the income is taxable
in this State in the same way as income acquired by the person
a resident there, either with trading company or the estate, or
with its co-owner.
2 by reason of the provisions of paragraph 1 an individual is a resident
in both Contracting States, his residence is determined as follows:
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 dwelling
in both States, he shall be deemed to be a resident of the State with which his
personal and economic relations are the strongest (Centre for
life interests);
(b)) if it cannot be settled in the State he has the Centre of its
living or if he's not in either State have a
residence permanently at his disposal, he is deemed to have
a resident of 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 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 person is deemed to
be a resident of the State in which its place of effective management.
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) business premises or any other premises used as a sales outlet,
g) a permanent installation or construction used
for the exploration of natural resources,
h) mine, an oil or gas well, a quarry or any other place of
the extraction of natural resources.
3. Place for building, construction, Assembly or
installation activities or business that consists of monitoring
in connection therewith constitutes a permanent establishment only if the business
continues for a period exceeding twelve months.
4. Notwithstanding the preceding provisions of this article shall be deemed to
the term "permanent establishment" shall not include:
(a)) the use of facilities solely for storage, exhibition
or disclosure of 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 companies,
d) holding of fixed place of business exclusively
for purchases of goods or obtaining information for the company,
e) holding of fixed place of business exclusively
to engage in other activities of the enterprise of the preparatory
or Assistant art,
f) holding of a fixed place of business
exclusively for combining activities set out in paragraphs
a) to (e)), provided that all operations carried out
from the habitual place of business because of
This combination is of a preparatory or auxiliary character.
5. If a person who is not the independent representative on
what paragraph 6 applies-is working for a company, as well as in a
Contracting State, and which are regularly using power of Attorney
to conclude agreements in the company name, this company-without
by way of derogation from points 1 and 2 to have a permanent establishment in
This State in respect of each activity 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 4
and as if it were performed from a fixed place of
business-would not make this fixed place of
business activities in a permanent establishment under the provisions of
that paragraph.
6. the Company is not considered to have a permanent establishment in a Contracting
State only on the basis that the company conducts business operations
in this State through the intermediary of brokers, Commissioner or other
independent representative, provided that such person
in doing so, conducts its usual business.
7. the fact that a company resident in a Contracting
State controls or is controlled by a company established in
the other Contracting State or a company engaged in
business activities in the other State (either from a permanent establishment
or alternative way), does not in and of itself to either
the company constitutes a permanent establishment of the other.
Article 6
Income from immovable property
1. income which a resident of a Contracting State
acquires immovable property (in that included income of 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
avalsslutande ennligt the law of the 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
EA is applied, buildings, tenancies of immovable property
and to the right of changing or fixed remuneration for the
the use of all right to use mineral occurrence, source or
other natural resource. Ships, boats and aircraft is not considered to be
immovable property
3. the provisions of paragraph 1 shall apply to income that is acquired through
immediately 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 the soul permanent occupation.
Article 7
Income from operating
1. the Income of an enterprise of a Contracting State
acquire, be taxable only in that State unless the enterprise
conducts business or has carried on business in the other
Contracting State through permanent establishment situated there. If
the company carries on business or have been operating for just
specified manner, the company's income is taxed in the other State,
but only so much thereof as is attributable to that permanent
establishment.
2. enterprises of a Contracting State, carries on business or
has conducted business in the other Contracting State from where
permanent establishment situated, attributed, unless the provisions of paragraph
3 rise to the other, in either Contracting State to the Permanent
establishment the income that it can be assumed that the establishment would
has acquired, it was an independent company, which
operated by the same or a similar nature in the same
or similar conditions independently and finished the business with it
undertaking to which the establishment belongs.
3. In determining the income of a permanent establishment shall be allowed
deduction for expenses incurred for the permanent establishment,
hereunder included expenses for management and General
management, whether the expenditure incurred in the State in which the
permanent establishment is situated or elsewhere. The deduction is allowed
not, however, for amounts that the permanent establishment may have
paid to the company's head office or other company
of Office (if not the amounts represent actual
expenditure) in the form of royalties, fees or other similar
payment for the use of patents or other rights, or
in the form of reimbursement for specific services or for business management
or-except in the case of bank business in the form of interest on
capital lent to the permanent establishment.
4. To the extent that the income attributable to the permanent establishment used in
a Contracting State shall 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 allocation method used shall, however, be such that
the result is 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 permanent establishment
merchandise for the enterprise.
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 or capital gains
treated specially in other articles of this agreement,
concerned the provisions of these articles of the rules of
the present 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. For the purpose of this article is included in income, which
acquired through the use of a ship or aircraft in
international traffic:
a) income acquired by lease of unmanned ship
or aircraft; and
b) income earned through usage, maintenance or
rental of containers (including trailers and other
equipment for the transport of containers) used for the
the transport of goods or merchandise;
where such rental or the use, maintenance or rental,
as the case may be, is incidental to the
relation to the use of the ship or aircraft in
international traffic.
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. When companies from different countries have agreed to conduct
international air services of the Consortium, the provisions
in paragraphs 1, 2 and 3 as regards the income earned by
Aviation Consortium only in respect of that part of the income
equal to the share in the Consortium held by companies with
resident in one Contracting State.
Article 9
Companies with associated enterprises
1. In cases where the
a) an enterprise of a Contracting State, either directly or indirectly
participate in the management or control of a company in the other
Contracting State or owns part of the company capital,
or
(b)) the same person participates directly or indirectly in the management or
control of a company of a Contracting State
an enterprise of the other Contracting State or own part
in both of these corporate capital, observed the following.
If between businesses in terms of trade relations or
financial relations agreed upon or prescribed conditions,
which differ from those which would have been agreed between the hike
independent company, receives all the income, that without such conditions
would have been one company but who, because of
the terms in question did not come about this company, be included in the
This company's income and taxed accordingly.
2. where a Contracting State includes in the income of a
companies in that State and taxes accordingly
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 if the conditions agreed between the 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 the income of that
State. for such adjustment complied with the other provisions of this
Agreement and the competent authorities of the Contracting States
shall if necessary consult 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 may be taxed
in 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, but if the recipient is entitled to
dividend tax may not exceed:
a) 5 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 20 per cent of the company's
capital,
b) 10 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. Such dividends shall, notwithstanding the provisions of paragraph
2-shall be taxable only in the Contracting State in which the person entitled
to the dividends is a resident if he is a company (other than
for a partnership) which holds directly at least 25 per cent of the
paying the company's total voting power and if at least 50 per cent
of the total number of votes in the company who is entitled to the
investigation held by persons resident in that Contracting
State.
4. The term "dividends" is understood in this article income by
shares or other rights, not being debt, with the right
to share in profits, as well as income from other investments in companies, which
According to the law of the State in which the distributing company has
domicile for tax purposes is treated in the same way as income
of shares.
5. the provisions of paragraphs 1, 2 and 3 shall not apply if the
who is entitled to the dividends is a resident of a Contracting State
and conducts business or has carried on business in the other
Contracting State, where the company paying the dividends is
residence, from where the permanent establishment situated or exercising independent
professional activity or has exercised independent professional activity
or has exercised independent professional activities in the other State
from there located a permanent device, and the proportion due to
out of which the dividends are paid is the owner of real connection with the fixed
the establishment or the permanent devices. In such a case
apply the provisions of article 7 or article 14.
6. If the company resident in a Contracting State receives income
from the other Contracting State, that other State may not
taxing dividends paid by the company, 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 or taxing the 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 be taxed in the Contracting
State from which it originates, according to the laws of that State,
But if the recipient is entitled to the interest, the tax does not exceed
10 per cent of the gross amount of the interest.
3. a) Notwithstanding the provisions of paragraph 2 of this article is
interest, stemming from a Contracting State when the person has
the right to interest, or when the loan for which interest is paid
guaranteed or insured by, the Government of the other
Contracting State or any of its political subdivisions
or local government or any of its agencies, the exceptions
from taxation in the first State.
b) Notwithstanding the provisions of article 7 of this agreement and
paragraph 2 of this article interest, stemming from a Contracting
State if the beneficial owner of the interest is a resident of the other
Contracting State, exempt from taxation in the
first State, provided that the interest is paid with
reason of loan granted, guaranteed or insured by
a body with such power for the other State's behalf.
4. Notwithstanding the provisions of paragraph 2, interest arising
of a Contracting State shall be taxable only in the other
Contracting State, when the recipient is a resident
in this other State is entitled to the interest rate and the interest rate paid
with anledningav debt incurred at the corporate sales
on credit of merchandise or industrial, commercial or scientific
equipment to a company in the first State except in cases
When the sale is made between associated or claim arises
between related persons.
5. 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
of securities, issued by the State, and bonds
or debentures, including premiums and prizes in that
relating to such securities, bonds or debentures;
Penalty for late payment is not considered as interest
for the purposes of this article.
6. the provisions of paragraphs 1, 2, 3 (a)) and 4 shall not apply,
If the beneficial owner of the interest is a resident of a Contracting
State and carries on business or has carried on business in the
other Contracting State and carried on business in the other
Contracting State, from which the interest arises, from which
permanent establishment or exercise or have exercised independent
professional activities in the other State from where located permanently
device, as well as the claim in respect of which the interest is paid is the owner
effectively connected with that permanent establishment or habitual
the device. In such cases, apply the provisions of article 7
and article 14.
7. 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 or not, has in a Contracting State a permanent establishment
or permanent device in connection with which the liability
incurred for which the interest is paid, and the interest rate charged to the
permanent establishment or permanent device, are considered to
rate stem from the State in which the permanent establishment or
the device is permanently.
8. By reason of a special relationship between the payer
and 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
räntanbetalas, exceeds the amount which would have been agreed upon
between the payer and the beneficial owner of the interest on such
relations do not exist, the provisions of this
article only at the latter amount. In such a case be taxed
excess amounts in accordance with the legislation of each Contracting
State in accordance with the other provisions of this agreement.
Article 12
Royalty
1. Royalty, as derived from a Contracting State and paid
to the person resident in the other Contracting State, may
be taxed in that other State.
2. Royalties may be taxed in the Contracting
State from which it originates, according to the laws of that State,
But if the recipient is entitled to receive royalties, the tax is not
exceed 10 per cent of the gross amount of the royaltyns. Notwithstanding the
the previous sentence is royalties exempt from taxation in the
Contracting State in which it arises if the royalty pertains to
payment related patents relating to industrial know-how and knowledge
If production methods as well as the royalty attributable to
Agriculture, pharmaceutical industry, computers, computer software
and construction, secret recipe or method of manufacture, or
for information concerning industrial, kommiersiell
or scientific nature.
3. The term "royalties" in this article, of course, every kind of
payments received as compensation for the use of, or
for the right to use copyright to literary, artistic
or scientific work, including cinematograph films and video
or tapes for radio or television broadcasting, any patent, trade mark,
pattern or model, drawing, secret recipe 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 or has carried on business in the other Contracting
State, from which the royalty arises, from which the Permanent
establishment and exercise or have exercised independent professional activity
in the other State from where located permanent device,
and the right or property in respect of which the royalty
paid owns truly connected with the permanent establishment or the
permanent device. In such cases, the applicable provisions applicable
in 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, a local authority
or a resident of that State. However, if the person
paying the royalties, whether he is a resident of a Contracting
State or not, has in a Contracting State a permanent establishment
or permanent device in connection with which the obligation to
pay the royalty arises, and the royalty charged to the fixed
establishment or permanent device, are considered royalty
derive from the State in which the permanent establishment or the
permanent device, see.
6. where by reason of a special relationship between the payer and the
the person entitled to the royalties or between both of them and other
personal 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
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.
7. the provisions of this article shall not apply if the main
the purpose or one of the main objectives of a person
involved in the creation or the determination of the rights of
which the royalty is paid was to achieve the benefits of this article
with the help of this creation or control.
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, or
gain on transfer of shares in a corporation or partnership
whose assets consists mainly of such property,
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 Gain as person 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;
beksattas only in that State.
As regards the profit gained by the air transport Consortium
of companies from different countries apply the provisions of this
point only in respect of that part of the profits as corresponds to the
share of the Consortium held by companies resident in a
Contracting State.
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. Notwithstanding the provisions of paragraph 4, the profit, such as physical
person who has been resident in one Contracting State and
received resident in the other Contracting State acquires at
because of the transfer of property, be taxed in the first-mentioned
the State of the transfer of the property occurs at any time
over a period of five years after the date on which the natural person
ceased to be resident in that State.
Article 14
Independent professional activities
1. income, as a natural person resident in one Contracting
State acquires through the exercise of profession or other independent
activities, shall be taxable only in that State unless he in other
Contracting State has a permanent device which
regularly available to him in order to pursue the activity.
If he has such a permanent device, income is taxed
in the other State but only so much of them as is attributable
to this permanent device.
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 and 19 shall give rise
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 a second
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 period or time periods
that total does not exceed 183 days in any twelve month period;
and
b) compensation paid by employers who do not live in the
other State or on his behalf; as well as the
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
contract closing state, be taxed in that State. If a resident
in a Contracting State receives income from work, which is carried out
on board an aircraft used in international transport
by an air transport consortium formed by companies from different countries
including a resident company is taxed in that State, such
compensation only in that State.
Article 16
Directors ' fees
Directors ' fees and other similar remuneration, as a person with
resident in one Contracting State receives as a member of the
Board 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
the State acting as artist, such as theater or film actor,
radio or television artist, or a musician, or 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.
Article 18
Pensions, annuities and similar compensation
1. Except where the provisions of article 19 paragraph 2 shall give rise to another
receive a pension or other similar remuneration, payment under
social security legislation and annuities, which are derived from a
Contracting State and paid to a resident of this
other Contracting State, be taxed in that State.
2. The term "annuity" means a prescribed amount, which
be paid periodically at specified times during a person's lifetime
or during a specified or ascertainable period of time, and based on
because of the obligation to effect such payments as
In contrast, the corresponding compensation for full consideration in money or
pennigars value.
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, political underavdelningars or local
Government 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 other State and
the person in question is domiciled in this State and:
1) is a national of that State, or
2) were not allowed to live in this State solely to carry out the work.
2. a) Pensions, paid by, or out of funds created by, a
Contracting State, its political subdivisions or local
authorities to the natural person on the basis of the work carried out in
This State, political underavdelningars or 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 remuneration
and the pension paid on the basis of the work carried out in connection
with business carried on by a Contracting State, its political
subdivisions or local authorities.
Article 20
Students
1. A student, business apprentice or trainee, who is or
immediately before visiting a Contracting State a resident of
the other Contracting State and who is staying in the former
State exclusively for their education or training, are taxed
not in this State for the amount that he receives for his living,
their instruction or education, provided that the amounts
derived from sources outside that State.
2. In respect of grants, scholarships, or income from any
employment that is not subject to the provisions of paragraph 1, shall
a student or business trainee referred to in paragraph 1 shall be
eligible to receive the same exemptions, reliefs and benefits
at the taxation applicable to persons resident in the State
as he visits, this paragraph shall apply only if the student or
the trainees will stay more than six months in 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 where the income is 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
set permanent establishment or exercise of independent professional activities
in the other State from where located permanent device, as well as
the right or property in respect of which the income is paid
owns truly connected with the permanent establishment or the
permanent device. In such cases, apply the provisions
in article 7 or article 14.
Article 22
The Elimination of double taxation
1. as regards double taxation shall be avoided in Ukraine the following
way:
As far as tillämpninen to the provisions of Ukrainian legislation
If the tax exemption to be paid outside the territory of Ukraine,
(which shall not be in contradiction to the principles
at this point), the Swedish tax, paid in accordance with the Swedish
legislation and in accordance with the provisions of this agreement, regardless
whether this happened directly or by deduction, on profits, income or
property derived from Sweden, deducted from the Ukrainian tax
calculated on such profits, income or property.
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
Ukrainian legislation and in accordance with the provisions of this
Agreement may be taxed in the Ukraine, Sweden-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 Ukrainian tax paid for income.
b) where a resident of Sweden receives income, which
in accordance with the provisions of this Agreement shall be taxable only in Ukraine,
get in determining Sweden-Swedish progressive tax-for
the setting of that rate, and only in order to achieve this
purpose, take into account the income which shall be taxable only in Ukraine.
c) Notwithstanding the provisions of paragraph a is dividends from companies
resident in Ukraine to companies established in Sweden the exceptions
from Swedish tax to the extent that the dividends would have been exempt
from taxation under Swedish law if both companies had
been Swedish. Such exemption is granted, however, only if the
1) the gain of the dividend will be paid subject to the normal
corporate income tax in Ukraine or an income tax comparable thereto, or
2) dividends paid by a company resident in Ukraine exclusively
or almost exclusively consists of the dividends received by the company during the
the year or previous years received on shares held by the company
holding in company resident in a third State, the dividend would
have been exempt from tax in Sweden on the shares in respect of which the dividend
paid had held directly by the company domiciled in Sweden.
d) for the purposes of paragraphs 2 (a) and (c) of this article shall be deemed to
the expressions "the Ukrainian tax paid" and "the normal
corporate income tax in Ukraine or an income tax comparable "
include Ukrainian income tax that would have been paid, but that the
because of the temporary provisions of Ukrainian legislation intended
to promote economic development have not been paid, or paid with
lower amounts.
e) the provisions of paragraph 2 (d) apply only in respect of the five
first years from the date of entry into force of this agreement. The
competent authorities shall consult each other to determine
These provisions shall apply after this period.
3. Notwithstanding other provisions of this Agreement shall, with the
except for cases where the application of the method to avoid
double taxation normally applied by the State of residence, paragraph 2
(d) of this article and the other provisions of this agreement which permits the
exemptions from or reductions of taxes shall not apply to income
as a company resident in a Contracting State acquires and not
either on the dividends paid by the company such as
(a)) the company acquires its income primarily from other States
1) from activities such as banking, maritime, financial or
insurance business or
2) by head office, the coordination centre or a
similar entity providing administrative or other
services to a group of companies engaged in operating mainly
in other States, and
b) such income significantly, according to the State beskattaas läre
legislation than income of similar activities carried out in
This State or income from activities like huvudkontro,
coordination centre or similar entity providing
administrative or anra services to a group of companies
carries on business in that State.
Article 23
Prohibition of discrimination
1. nationals of a Contracting State which are not in the second
Contracting State be subject to taxation or
coherent demands that are of a different kind or more onerous than
the taxation and related requirements as nationals of
the other State under the same circumstances are or may be
subject to. Notwithstanding the provisions of article 1 shall apply
This provision also on the person who is not domiciled in a
Contracting State or in both Contracting States.
2. A stateless person resident in one Contracting State shall
not in either agreement closing state become subject to taxation
or related requirements which are of a different kind or more
burdensome than the taxation and related requirements
nationals of the State in question under the same circumstances are or may
be subject to.
3. 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.
4. Except where the provisions of article 9, paragraph 1, article
11 paragraph 8 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.
5. Enterprises of a Contracting State, the capital of which is wholly or
partly owned or controlled, directly or indirectly, by one or
several residents in the first State to be the subject of
taxation or related requirements of other
kind or more burdensome than the taxation and related
requirements which other similar companies of the first State is
or may be subjected.
6. the provisions of this article shall apply to the taxes
covered by this agreement.
7. The provisions of this Agreement shall not be construed to
There is an obligation on a Contracting Party to allow the person
resident in the other Contracting State such personal
deduction for tax purposes, such exemption or
tax reduction allowed resident of the own
the State under provisions other than those of General
tax law or on grounds of marital status or
family obligations.
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 beskattnng as contrary to the provisions
in this agreement, he may, without prejudice to his right to
use of the rätsmedel that are 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, in the Contracting State in which the
He is a national. The matter shall be presented within three years from the
time when the person in question had knowledge of the operation being 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 to resolve the matter 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 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 taxation in cases not covered by the agreement.
4. the competent authorities of the Contracting States may
enter into direct relations with each other in order to meet
agreement in the cases specified in the preceding paragraphs.
Article 25
Exchange of information
1. the competent authorities of the agreement closing States shall
Exchange such information as is necessary to implement the
the provisions of this agreement or of the Contracting State
internal legislation and in particular to prevent tax evasion and
in order to facilitate the application of the law for the prevention of
tax evasion with respect to taxes covered by the agreement, in the
so far as the taxation thereunder is not contrary to this
agreements. Information which a Contracting State received shall
be treated as secret and shall be disclosed only to persons or
authorities (including courts and administrative
authorities) which defines, collects or collect or deal with
criminal charges or complaints in relation to the taxes covered by the agreement.
Such persons or authorities shall use the information
only for such purposes. They may disclose the information in public
court proceedings or in judicial decisions.
2. the provisions of paragraph 1 is not considered to entail the obligation for an
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 normal practice.
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
provisions of specific agreements apply diplomatic
representatives or consular officials.
Article 27
Date of entry into force
The Contracting States shall inform diplomatic channels
each other when the constitutional measures according to the respective
State law required that this Agreement shall enter into force
have been taken. This agreement shall enter into force on the date of the
the last of these notifications is received and shall apply
a) in Sweden:
as regards income, acquired on 1 January of the year closest to the
After the year in which the agreement enters into force or later;
b) in Ukraine:
(a)) in respect of taxes on dividends, interest or royalties for
payments on the sixtieth day after the date of
the agreement enters into force or later;
2) with respect to tax on profits (income) from the company regarding
tax year that begins on 1 January of the calendar year following
immediately following the this agreement enters into force or later;
3) in the case of income tax for the citizens of Ukraine, foreign
nationals and stateless persons for payments on the 60th
the day immediately following the day on which the agreement enters into force, or
later.
Article 28
Termination
This agreement will remain in force until terminated by a
Contracting State. Each Contracting State may, at the
diplomatic means, termination agreement by notice thereof at least
six months before the end of each calendar year, beginning
After the end of those years from the date on which the agreement enters into
force in the event of such termination, the agreement ceases to be valid
a) in Sweden:
with regard to income acquired on 1 January of the calendar year
that immediately after the year in which the notice of
termination is submitted or later;
b) in Ukraine:
1) in respect of taxes on dividends, interest or roylaty for
payments on the sixtieth day after the date of
the notification is submitted or later;
2) betäffande tax on profit (income) from the company regarding
tax year that begins on 1 January of the calendar year following
immediately following that in which the notice is submitted or later;
3) in the case of income tax for the citizens of Ukraine, foreign
nationals and stateless persons for payments on the 60th
the day immediately following the day on which the notification is submitted, or
later.
In witness whereof the undersigned, being duly
authorization, have signed this agreement.
Done at Kiev on 14 August 1995, in triplicate, on
English, Ukrainian and Swedish languages. In the event of
differences, the English text shall constitute an official record.
For Sweden
Pierre Schori
For Ukraine
M.i. Syvulskij
PROTOCOL
At the signing of the agreement between Sweden and Ukraine for
the avoidance of double taxation and the prevention of fiscal evasion with respect to
taxes on income, the undersigned have agreed that the
the following provisions shall form an integral part of the agreement.
I. Article 2
Social security charges are not covered by this agreement even if they are included in
total business calculation of salaries and allowances.
II. Ad article 11
Interest received from or on loans guaranteed by the Swedish
State Agency "SwedeCorp" shall be exempt from tax in
Ukraine.
III. On article 13
The second sentence of paragraph 3 of article 13 deals with capital gains
from transfer of property belonging to a consortium. If a
a partner in a consortium will receive a capital gain because
of transfer of property belonging to his partner, the
other provisions of article 13 (including the first sentence
in point 3) are applied.
In witness whereof the undersigned, being duly
authorization, have signed this Protocol.
Done at Kiev on 14 August 1995, in triplicate in English,
Ukrainian and Swedish languages. In the event of skilaktigheter shall
the English text shall prevail.
For Sweden
Pierre Schori
For Ukraine
M.i. Syvulskij
