section 1 of the agreement for the avoidance of double taxation with respect to
taxes on income and capital as Sweden and Hungary
signed on 12 October 1981, together with the
Protocol thereto apply to Sweden.
The agreement and the Protocol's content appears in annex to this
team.
section 2 of the Agreement shall apply only in so far as it entails
restriction of the tax liability in Sweden that would otherwise
exist.
paragraph 3, If a person believes it taken any measure of
He has led or will result in taxation
contrary to the provisions of the agreement, he can apply for
correction under article 25 paragraph 1 of the agreement. Such application shall
be made to the Government and should be submitted within the time specified in the
that provision.
4 repealed by law (2011:1311).
Annex
Agreement between the Government of the Kingdom of Sweden and the people's Republic of Hungary
Government for the avoidance of double taxation with respect to taxes on
income and wealth
The Government of the Kingdom of Sweden and the people's Republic of Hungary's Government
have, taking into account the principles set forth in the European
final document of the Conference on security and cooperation and caused by
the desire to avoid double taxation with respect to taxes on income
and fortune, entered into the following agreements:
Article 1
Persons to whom the agreement applies
This agreement shall apply to persons domiciled in a Contracting
State or in both States.
Article 2
Taxes covered by the agreement
1. this Agreement shall apply to taxes on income and on capital,
accrual of a Contracting State or of its local authorities
behalf, independent of the way the tax is applicable.
2. taxes on income and capital, of course, all taxes, which
is paid on income or wealth in its entirety or in parts of
income or wealth, therein included taxes on profits by
transfer of movable or immovable property, as well as taxes on capital appreciation.
3. The currently outgoing taxes, on which the agreement shall apply,
is:
(a)) in the people's Republic of Hungary:
1) income taxes;
2) gains the cats;
3) the special corporate taxes;
4) construction tax;
5) building value cat;
6) marks the cat;
7) contribution to local development;
8) tax on dividends and profit distribution from operating
companies;
(in the following referred to as "Hungarian tax").
b) in Sweden:
1) state income tax, withholding tax rate tax and seamen's in that
involved;
2) replacement levy and the tax statutes;
3) bevillingsavgiften for some public performances;
4) the municipal income tax; as well as the
5) State property tax
(in the following referred to as "Swedish tax").
4. This agreement shall also apply to taxes for the same or essentially
Similarly, after the signing of the agreement will be incurred in either
Contracting State in addition to or in place of the
present output taxes. The competent authorities of the
Contracting States shall each year communicate to each other the essential
changes implemented 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)) "the people's Republic of Hungary" is referring to, when used in a geographical
meaning, the people's Republic of Hungary's territory;
b) "Sweden" refers to the Kingdom of Sweden and the includes each outside
Sweden's territorial waters situated area in which Sweden in accordance with
Swedish law and in conformity with the General rules of international law there own
exercise rättgiheter with respect to the exploration and exploitation
of natural resources on the ocean floor or in its documentation;
c) "person" includes a natural person, company or other association;
d) "company" refers to the legal person or another that the tax
respect be treated as legal persons;
e) "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 operated by
a resident of the other Contracting State;
f) "international traffic" refers to transport by vessels, aircraft
or road vehicles used by companies who have their real
management in a Contracting State, except when the ship, aircraft or
the vehicle is used exclusively between places in the other Contracting
the State;
g) "national" refers to:
1) natural persons who are nationals of a Contracting State;
2) legal persons and associations incorporated under
the laws in force in a Contracting State;
h) "competent authority" refers to:
1) in the people's Republic of Hungary, the Minister of finance or his authorised
authorised representative;
2) in Sweden, the Minister for the budget or his authorized representative.
2. Where a Contracting State applies this agreement is considered, unless
no context, causing the other, each expression that is not defined
in the agreement, have the same meaning as the expression has, according to the State's
relating to such taxes to which the agreement shall apply.
Article 4
Beneficial owner
1. for the purposes of this agreement reference to the expression "any person with
resident in one Contracting State "person under the legislation of
This State is taxable there because of domicile, residence, place
for management or other similar circumstances. The expression
However, it does not include a person who is liable to tax in that State
only on income from sources in that State or of Fortune
located there.
2. where by reason of the provisions of paragraph 1 an individual is a resident of
both of the Contracting States, is determined his residence 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 home in
both States, he shall be deemed to be a resident of the State in which he has
Centre for their living 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 has a home that
Permanent stands at his disposal, he is deemed to be resident in the
State where he usually resides.
(c)) if he usually resides in both States, or if he does not
reside permanently in any of them, he shall be deemed to be a resident of the State
of which he is a national.
d) if he is a national of both States or if he is not
nationals of any of them, the competent authorities of the
Contracting States the question by mutual agreement.
3. where by reason of the provisions of paragraph 1 a person, who is not a natural
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 which
a business is wholly or partly carried on.
2. The term "permanent establishment" includes especially:
a) place for business management;
b) branch;
c) Office;
d) facility;
e) workshop; and
f) mine, an oil or gas well, a quarry or any other place of
the extraction of natural resources.
3. Place for construction, landscaping or installation work is
a permanent establishment only if the operation lasts more than 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 disclosure;
(c) holding of a company belonging to) stock in trade solely for
working or processing by other company merchandise;
d) holding of fixed place of business exclusively
for purchases of goods or acquisition of information for
the company;
e) holding of fixed place of business exclusively
to engage in other activities of the undertaking of preliminary or
Deputy art;
f) holding of fixed place of business exclusively
to combine the activities listed in paragraphs a)-(e)), during
provided that all the activities from the
permanent place of business because of this
combination is of a preparatory or auxiliary character.
5. If a person, who is not such independent representative at any point
6 apply, works for a company, as well as in one Contracting State
have and which regularly uses full power to conclude agreements in
the company's name, it is considered that company-notwithstanding the provisions of
paragraphs 1 and 2 to have a permanent establishment in that State in respect of each
activity which that person carries on business. However, this does
No, if the activities of such person are limited to the
such as set out in paragraph 4 and which, if it was done from a
fixed place of business-would not make this
fixed place of business a permanent establishment under the
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 is doing business in this
State through the intermediary of brokers, Commissioner or other independent
Representative, if such a person thus engaged in their customary
business operations.
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 otherwise), shall not of itself be either company
constitute a permanent establishment of the other.
Article 6
Income from immovable property
1. income, as a person resident in one Contracting State acquires
of immovable property (in that included income from agriculture and 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 under the
the law of the Contracting State in which the property is situated.
The term includes, however, always accessory to immovable property, live
and kill the equipment in agriculture and forestry, rights to which the
the provisions of civil law relating to immovable property apply, usufruct
of immovable property and rights to changing or fixed remuneration
for the use of, or the right to use mineral discovery, source
or other natural resource. Ships, boats and aircraft is not considered to
be real property.
3. the provisions of paragraph 1 shall apply to income that is acquired through
immediately use, through rental or other use of the fixed
property.
4. the provisions of paragraphs 1 and 3 shall also apply to the income of
immovable property belonging to the company and on income from immovable property
used for the independent professional practice.
Article 7
Income from operating
1. Operating Income, acquired by the company in a Contracting
State, shall be taxable only in that State unless the enterprise carries on
on business in the other Contracting State from which permanent
establishment. If the enterprise carries on business recently, may
the company's income be taxed in that other State but only so much
part thereof as is attributable to that permanent establishment.
2. enterprises of a Contracting State carries on business in the other
Contracting State from where the permanent establishment situated, are entered, if
not the provisions of paragraph 3 shall give rise to another, in each
Contracting State to the permanent establishment the income that it
can be adopted to establishment would have acquired, if there has been a
independent company, which operated out of the same or similar
battles over the same or similar conditions and independently completed
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
expenditure for management and public administration, whether
expenditure incurred in the State in which the permanent establishment is situated
or elsewhere.
4. income is not considered to be attributable to a permanent establishment by reason only of the
the reason to purchase goods through the Agency of the permanent establishment for
the company, or that the goods are delivered to the permanent establishment of
to be used by this.
5. 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 sufficient reasons causing the other.
6. Included in income by operating income such as that dealt with in particular in
other articles of this agreement, the provisions of these articles
not by the rules of the present article.
Article 8
International transport
1. income of shipping, aviation or road transport in
international traffic shall be taxable only in the Contracting State in which the
the company has its place of effective management.
2. About the company, engaged in maritime transport in international traffic,
effective management on board a vessel, is considered the lead in the
Contracting State in which the ship has its home port or, if any
such a port does not exist, in the Contracting State in which the ship's owner
is domiciled.
3. the provisions of paragraph 1 apply to the income
acquired by the Swedish, Danish and Norwegian aviation Consortium
Scandinavian Airlines System (SAS) but only in respect of the part of the
the income corresponding to the share of the consortium which is held by AB
Aerotransport (ABA), the Swedish partner of Scandinavian Airlines
System (SAS).
4. the provisions of paragraph 1 shall also apply to income acquired
through participation in a pool, a joint business or an
international operating agency.
5. the provisions of paragraphs 1, 3 and 4 shall apply even if the company
have an agency in the other State of goods or passengers.
This applies however only activities directly connected with the
shipping, aviation and road transport or related
activities of subsidiary art.
Article 9
Companies with associated enterprises
1. In cases where the
a) an enterprise of a Contracting State participates directly or indirectly in
in the management or monitoring of a company in the other
Contracting State or own part in this undertaking, or
b) the same persons participate directly or indirectly in the management or
monitoring of an enterprise 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, that without such conditions would have been one
the company but because of the conditions in question are not added in this
companies, included in this corporate income and are taxed in
accordingly.
2. In cases where the income, for which an enterprise of a Contracting State
subject to tax in that State, also be included in the income of an enterprise in the
the other Contracting State and taxed in accordance
Thus in that other State and the income so included is
such as would have been firm in that other State if they
conditions agreed between the enterprises had been those which would have
agreed between independent enterprises, then the first
the State implement proper adjustment of the amount of the tax imposed
of income in that State. for such other adjustment observed
provisions of this agreement and the competent authorities of the
Contracting States are in talks with each other when necessary.
Article 10
Dividend
1. Dividends paid by a company resident in 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, 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 owner of
the dividends is a company (other than a partnership) which directly
mastered 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.
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, mining stiftarandelar shares, or other rights, not
is debt, with the right to share in profits, as well as income from other
shares in the company, which under the law of the State where the
distributing company is resident for tax purposes shall be treated in the same
as income from shares.
4. Notwithstanding the provisions of paragraph 1 are dividends from companies with
a resident of the people's Republic of Hungary to the companies established in Sweden
exempt from Swedish tax to the extent that the dividend according to Swedish law
would have been exempt from taxation if both companies had been
Swedish companies.
5. 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, which the company
paying the dividends is a resident, from a permanent establishment situated there
or exercising independent professional activities in the other State from where
located permanent device, and the proportion due to the
dividend paid owns truly connected with the permanent establishment
or the permanent devices. In such a case be applied
the provisions of article 7 or article 14.
6. If the company resident in a Contracting State receives income
from the other Contracting State, that other State may not
taxing dividend that the company pays, except to the extent that the dividend
paid to a resident of that other State or insofar as the
share on account of which the dividend is paid possesses genuine link with
permanent establishment or permanent device in the other State, and
nor does not tax the company distributed profit, even if the dividend
or not distributed profits consists wholly or partly of income
arising in that other State.
Article 11
Interest rate
1. interest, stemming from a Contracting State and paid to the
a resident of the other Contracting State, be taxable only
in the other State, if the person concerned is entitled to the interest.
2. The term "interest" shall be understood in this article income of each
kind of claim, either the issued secured by property or
not and either the right to participate in the debtor's profits or
do not. The term refers to the particular income from securities, issued
by the State, and income from bonds or debentures, including
included premiums and profits relating to the
securities, bonds or debentures;
3. the provisions of paragraph 1 shall not apply if the beneficial owner of
the interest rate is a resident of a Contracting State and carries on business
in the other Contracting State, from which the interest arises, from which
permanent establishment situated or exercising independent professional activities in
the other State from where located permanent device, as well as the
the claim in respect of which the interest is 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.
4. with regard to cases in which the special relations between
the payer and the beneficial owner of the interest or between both of them and
other person gives rise to the amount of the interest, having regard to the debt
for which the interest is paid, exceeds the amount which would be
agreed between the payer and the beneficial owner of the interest, if
such links 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 a resident of the other Contracting State, be taxable
only in the other State, if the person concerned has the right to
the royalty.
2. The term "royalties" in this article, of course, every kind of
payments received as compensation for the use by or for the
the right to use any copyright of literary, artistic or
scientific works (cinema films as well as films and tapes for
television or radio broadcast herein involved), patent, trademark,
design or model, plan, secret formula or secret
method of manufacture as well as for the use of, or the right to use
industrial, commercial or scientific equipment, or for
information concerning industrial, commercial or
scientific nature.
3. the provisions of paragraph 1 shall not apply if the beneficial owner of
the royalty is domiciled in a Contracting State, carries on business in
the other Contracting State, from which the royalty arises, from which
permanent establishment situated or exercising independent professional activities in
the other State from where located permanent device, as well as the
right or property in respect of which the royalties are paid owns real
connected with the permanent establishment or the Permanent
the device. In such cases, apply the provisions of article 7
and article 14.
4. with regard to cases in which the special relations between
the payer and the beneficial owner of royalties or between both of them
and other person gives rise to royalty amount, taking into account the
utilization, the right or the enlightenment for which royalties are payable,
exceeds the amount which would have been agreed between the payer and the
the person entitled to the royalty, if such links do not exist,
the provisions of this article shall apply only to the last-mentioned amount.
In such case, the excess amount is taxed in accordance with the laws of
Each Contracting State shall, subject to compliance with other provisions of
This agreement.
Article 13
Capital gain
1. Profit, as a person resident in one Contracting State acquires at
alienation of such immovable property referred to in article 6 and
situated in the other Contracting State, as well as profit by
the transfer of shares or similar rights in a company, whose
assets consist mainly of such immovable property, may be taxed in the
that other State.
2. Gains from the alienation of movable property that is included in the fixed
establishment which an enterprise of a Contracting State has in the
other Contracting State or of movable property pertaining to
permanent device to exercise an independent profession;
as a resident of a Contracting State has in the other
Contracting State, may be taxed in that other State. the same
apply to gains from the alienation of such a permanent establishment (for
out of or in connection with the transfer of the whole enterprise) or of such a
permanent device.
3. Gains from the alienation of ships, aircraft or
road vehicles used in international traffic, or movable property
that is attributable to the use of such ships, aircraft or
vehicles shall be taxable only in the Contracting State in which the company has
effective management.
4. Gains from the alienation of any property other than that referred to in
paragraphs 1, 2 and 3 shall be taxable only in the Contracting State in which the
alienator is a resident.
Article 14
Independent professional activities
1. income, as a person resident in one Contracting State acquires
through the exercise of profession or other independent activity,
be taxable only in that State unless he in the other Contracting
the State has a permanent device, which are regularly at his
disposal to pursue the activity. If he has such a permanent
device, the income taxed in the other State but only so
large part thereof as is attributable to that permanent device.
2. The expression "liberal profession" includes especially independent
scientific, literary and artistic activities, educational and
teaching activities as well as such independent operations, as a doctor,
lawyers, engineers, architects, dentists and accountants.
Article 15
Single service
1. the provisions of articles 16, 18, 19 and 20 prompts
other, taxable wages and other similar remuneration, as a person with
resident in one Contracting State receives on account of employment,
only in that State unless the work is carried out in the other
Contracting State. If the work is performed in that other State, may
compensation received for work are taxed there.
2. Notwithstanding the provisions of paragraph 1 shall be taxable compensation, which
person resident in one Contracting State receives for work
performed in the other Contracting State, only in the former
State, if:
a) recipient resides in that other State during the period or time periods
that total does not exceed 183 days in the calendar year in question,
and
(b)) the compensation is paid by or on behalf of employers who do not
a resident of the other State, and
c) compensation does not affect the permanent establishment or habitual
device which the employer has in that other State.
3. Notwithstanding the preceding provisions of this article,
remuneration for work carried out on board ships, aircraft or
road vehicles in international traffic, shall be taxable in the
Contracting State in which the company has its place of effective management. If the person
resident in Sweden receives income from work, which is carried out on board
the aircraft used in international traffic by the air transport
the Consortium Scandinavian Airlines System (SAS), taxed income
only in Sweden.
Article 16
Directors ' fees
Directors ' fees and other similar payments, as a person with
resident in one Contracting State receives as a member of the
Board or other similar bodies in companies established in 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 by their
personal business in the other Contracting State in the capacity of
artist, such as a theatre or movie actor, radio or
television artist or musician or athlete, taxed in this
other State.
2. In cases where the income through activities, as an artist or sportsman
exercising as such, do not become the property of the artist or athlete
but another person, that income may, notwithstanding the
the provisions of articles 7, 14 and 15, be taxed in the
Contracting State in which the artist or athlete is exercising active
device, if the person in question directly or indirectly controlled by
the artist or athlete.
3. Notwithstanding the provisions of paragraph 1 of this article shall
income, which is acquired through such activities as referred to in paragraph 1
What is exercised in a Contracting State, be exempt from
taxation in that State, if the activities are exercised within the framework of a
cultural agreement between the Contracting States or if this
mainly financed by public funds of the other Contracting
State.
Article 18
Pensions
Except where the provisions of article 19 paragraph 2 shall give rise to another,
pensions and other similar remuneration due to previous
employment, annuities or payments under social security
the legislation is paid to a resident of a Contracting
State may be taxed in the Contracting State from which compensation
derived.
Article 19
Public service
1. a) Compensation (except for retirement), paid for by a
Contracting State or of its local authorities to natural person
on the basis of the work carried out in that Member State or its 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 State and the individual in
the case is a resident of this State and:
1) is a national of that State; or
2) were not allowed to live in this State solely to perform the work.
2. a) Pensions, paid by, or out of funds created by, a
Contracting State or of its local authorities to natural person
on the basis of the work performed in this State or its local
Government service, shall be taxable only in that State.
(b) However, such pension shall be taxable only) in the second
Contracting State, if the person concerned is resident 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 or manufacture carried on by a Contracting
State or its local authorities.
Article 20
Students
1. Amount, which a student or business trainee, or craft
or intern in a technical occupation or in agriculture or
forestry, which has, or immediately prior to the stay of a Contracting
State resident in the other Contracting State and who is staying in the
the former agreement closing state exclusively for their education
or training, receives for their support, their training or
teaching is not taxed in that State, provided that:
the amounts paid to him from sources outside that State.
As such, the student receives scholarship for full-time studies at
University or other institution of higher education or income
as such, the intern receives for their traineeship,
is not taxed in the Contracting State in which he resides.
2. students at a university or other institution for teaching
in one Contracting State, which during a temporary stay in the other
Contracting State holds employment in that other State during a
period of no more than 100 days in a calendar year for the purpose of obtaining
practical experience in connection with the studies, be taxed in that other
State only for the portion of the income from employment that exceeds 1
500 Swedish kronor per calendar month, or the equivalent in Hungarian
currency. The exemption granted under this paragraph, however, with a
total amount of no more than 4 500 Swedish kronor per calendar year, or
the equivalent in Hungarian currency. Amount that is tax free under this
paragraph involves personal deduction for that calendar year.
3. the competent authorities may agree on such
Amendment of paragraph 2 of this article specified the amounts offered
reasonable taking into account the change in monetary value, amended legislation
of a Contracting State or other similar circumstances.
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 this 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 located
permanent establishment or exercise of independent professional activity in this
other State from where located permanent device, as well as the
right or property on account of which the income is paid is the owner
effectively connected with the permanent establishment or the Permanent
the device. In such cases, apply the provisions of article 7
and article 14.
Article 22
Fortune
1. Fortune consisting of such immovable property referred to in article 6,
which are held by resident in a Contracting State and is
situated in the other Contracting State, may be taxed in that other
State.
2. Assets consisting of movable property that is included in the fixed
establishment which an enterprise of a Contracting State has in the
other Contracting State or of movable property, that are attributable
to permanent device to exercise independent professional
hot, as the resident of a Contracting State has in the other
Contracting State, may be taxed in that other State.
3. wealth consisting of ships, aircraft and road vehicles
used in international traffic and by movable property that is owed
to the use of such ships, aircraft and vehicles, are taxed
only in the Contracting State in which the undertaking has its real
management.
4. All other types of assets, which are held by resident of
a Contracting State, be taxable only in that State.
Article 23
The Elimination of double taxation
1. double taxation is avoided in the people's Republic of Hungary on the following
way:
a) where a resident of the people's Republic of Hungary receives income
or holds the fortune, which according to the provisions of this agreement,
taxed in Sweden, the people's Republic of Hungary, unless
the provisions of paragraphs (b) and (c))) gives rise to different, some praise from such
income or capital from tax.
b) If a resident of the people's Republic of Hungary receives income that
in accordance with the provisions of article 10, may be taxed in Sweden, shall
The people's Republic of Hungary from the tax on the income of that person set off the
an amount equal to the tax paid in Sweden.
Settlement amount shall not, however, exceed that part of the tax,
calculated without such a settlement, charged on the from Sweden
earned income.
c) If income acquired or wealth held by the person
established in the people's Republic of Hungary in accordance with the provisions of the agreement are
exempt from tax in the people's Republic of Hungary, people's Republic of
Hungary, however, in determining the tax on that person's remaining
income or wealth, take into account the income or wealth that
exempted from the tax.
2. In Sweden, double taxation shall be avoided as follows:
a) where a resident of Sweden receives income or holds
Fortune, which according to the provisions of this agreement, may be taxed in the
The people's Republic of Hungary, Sweden, unless the provisions of
paragraph b) below or in article 10 paragraph 4 shall give rise to another,
1) from the tax on the income of that person an amount credit
equivalent to the income tax paid in the people's Republic of Hungary;
2) from the tax on that person's fortune set off an amount
equal to the capital tax paid in the people's Republic of
Hungary.
Settlement amount shall not, however, in either case, exceed
the portion of income tax and wealth tax, estimated
without such a settlement, charged on the income or the assets
which may be taxed in the people's Republic of Hungary.
b) where a resident of Sweden receives income or holds
Fortune, which according to the provisions of this Agreement shall be taxable only in
The people's Republic of Hungary, Sweden may include income or
wealth in the tax base but from tax on
income or wealth avdraga the part of income tax
respective wealth tax levied on the income
collected from the people's Republic of Hungary or the Fortune held
there.
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 national
other State in the same circumstances are or may be subject to. Without
by way of derogation from article 1, this provision also
the person who is not domiciled in a Contracting State, or in both
States.
2. the taxation on a permanent establishment which businesses of a Contracting
State has in the other Contracting State, that other State
not be less advantageous than the taxation of the company in this second
State, that carries out activities of the same kind. This provision is considered to
not involve obligation of a Contracting State to grant to a person
resident in the other Contracting State such personal deductions
for tax purposes, exemptions or reductions because of
marital or dependent on family, which allowed a person with
live in their own State.
3. Except where the provisions of article 9, paragraph 1, article 11
paragraph 4 or article 12 paragraph 4 shall apply, interest, royalties, and
other payment from the company of a Contracting State to the person with
resident in the other Contracting State tax deductible at
the determination of the taxable income of such company on
same conditions as payment to a resident of the first-mentioned
State. Similarly, debt as a company of a Contracting State
have to a resident of the other Contracting State
deductible in determining such taxable
fortune on the same basis as liability 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
coherent requirements that are more burdensome than the taxation and thus
coherent requirements which other similar companies of the first
State are or may be subjected.
5. Notwithstanding the provisions of article 2 shall apply the provisions
in the present article on the taxes of every kind and nature.
Article 25
The procedure for the mutual agreement
1. If a person alleges that a Contracting State or both
States took measures to him causes or will
bring a warring against the provisions of this agreement, may
He-without prejudice to his right to make use of the
legal remedies in the domestic legal system of those States, present
matter to the competent authority of the Contracting State in which he
is a resident or, if the question is whether the application of article 24, paragraph 1, in
the Contracting State of which he is a national. The matter shall be submitted
within three years from the time the person in question had knowledge of the
action giving rise to taxation contrary to
the provisions of this agreement.
2. If the competent authority finds the complaint justified but not
can bring about a satisfactory resolution, shall
authority to resolve the matter by mutual agreement with the
competent authority of the other Contracting State for the purpose of
avoid taxation which conflict with this agreement. Agreement
met is carried out without prejudice to the time limits of the Contracting
States ' internal legislation.
3. the competent authorities of the Contracting States shall by
mutual agreement, seek to determine difficulty or doubt as
arise regarding the interpretation or application of this agreement. The
can also initiate consultations with a view to eliminating double taxation in cases
not covered by the agreement.
4. the competent authorities of the Contracting States may enter into
direct connection with each other in order to reach agreement in
the cases specified in the preceding paragraphs. If oral proceedings
be considered to facilitate an agreement, such consultations take place
in a Commission consisting of representatives of the competent
the authorities of the Contracting States.
Article 26
Exchange of information
1. the competent authorities of the Contracting States shall exchange
such information as is necessary to implement the provisions
in this agreement, or in the internal law of the Contracting States
in the case of taxes covered by the agreement insofar as the taxation on
because of this legislation is not contrary to the agreement. The exchange of
information is not restricted by article 1. Information as a
Contracting State received shall be treated as secret in the same
as the information obtained in accordance with the internal law
in this State and shall be disclosed only to persons or authorities (in that
including courts and administrative bodies) which defines, collects
or collect the taxes covered by the agreement or deal with
criminal charges or complaints in respect of those taxes. These persons or
authorities shall use the information only for such purposes. The
may disclose the information in public court proceedings or in domstolsav
doings.
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 practice in this State or of the other Contracting
the State;
b) provide information that is not available under the legislation
or the usual administrative practice in this State or in the second
Contracting State;
c) supply information which would disclose any trade secret,
industrial, commercial or professional secret or of a commercial
used procedure or information whose transmission would
contrary to General considerations of public policy.
Article 27
Members of such missions or posts
The provisions of this Agreement shall not affect the privileges in taxation
ningshänseende, which, according to the General rules of international law or
provisions of specific agreements of persons who
belongs to the missions or posts.
Article 28
Date of entry into force
1. the Contracting States shall notify each other when
the necessary constitutional measures to the agreement shall
enter into force.
2. the agreement shall enter into force sixty days after the date of the last of the
the notifications referred to in paragraph 1 and its provisions shall apply:
(a)) in respect of income which is acquired on 1 January immediately following the
year in which the agreement enters into force or later;
b) in the case of fortune are assessed other calendar year closest to
After this agreement enters into force or later.
3. Agreement between the Kingdom of Sweden and the Kingdom of Hungary for
avoidance of double taxation with respect to direct taxes, which
signed in Budapest on June 17, 1936, shall cease to be valid
with the entry into force of the present agreement and shall not
longer apply on income and on capital on which this
agreement becomes applicable in accordance with the provisions of paragraph 2 of this
article.
Article 29
Termination
This agreement will remain in force indefinitely but each of the
Contracting Governments owning to-30 June
during a calendar year beginning after the expiration of a period of five
years from the date of the entry into force of the agreement-diplomatically
terminate the agreement in writing of the other Contracting State
Government.
In the event of such termination, the agreement ceases to apply in respect of
income acquired on 1 January following the year in which such
notice is given or later and fortune are taxed
second calendar year immediately following that in which the notice is given or later.
In witness whereof the undersigned, being duly
authorised, have signed this agreement and provided the same with their
seal.
Done at Stockholm on 12 October 1981, in duplicate, in English
the language.
PROTOCOL
At the signing yesterday of the agreement between the people's Republic of Hungary
Government and the Government of the Kingdom of Sweden for the avoidance of double
taxation with respect to taxes on income and wealth has
the undersigned agree to the following provisions, which shall be
an integral part of the agreement.
1. in article 2, paragraph 3
The currently outgoing Hungarian income taxes referred to in
Article 2, paragraph 3 (a)) 1) of the agreement are:
(a)) the General income tax
b) income tax for persons engaged in intellectual activities;
as well as the
c) income tax for domestic and support agriculture.
The currently outgoing Hungarian gains taxes referred to in article
2 paragraph 3 a) 2) of the agreement are:
a) corporate income tax
b) gains tax for State companies
2. Ad article 5 paragraph 1
The term "place of business" means also place
manufacturing.
3. Article 10, paragraph 2 (a))
Economic associations with foreign partners can be established in
The people's Republic of Hungary also in the form of a partnership with unlimited
accountability. If such association is established in this form, the
the provisions of article 10 in respect of dividends
from the Association.
In witness whereof the undersigned, being duly
authorised, have signed this Protocol.
Done at Stockholm on 12 October 1981, in duplicate, in English
the language.
