The agreement for the avoidance of double taxation with respect to taxes on income and fortune as Sweden and Yugoslavia signed on June 18, 1980, together with the Protocol thereto apply in Sweden. the Protocol Agreement and the content is apparent from annexes I and II to this regulation.



For the purposes of the agreement and the Protocol shall be observed the guidelines annexed to the regulation as annex 3.



Annex 1 Agreement between the Kingdom of Sweden and the Socialist Federal Republic of Yugoslavia for the avoidance of double taxation with respect to taxes on income and wealth, the Kingdom of Sweden and the Socialist Federal Republic of Yugoslavia, desiring to conclude an agreement for the avoidance of double taxation with respect to taxes on income and on capital, have agreed as follows: Article 1 persons covered by the agreement 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 capital, which is applicable by each of the Contracting States, its political subdivisions or local authorities, irrespective of the way the tax is applicable. The agreement also apply to contributions that is applicable in Yugoslavia, with the exception of social security contributions.



2. taxes on income and capital, of course, all taxes based on income or wealth in its entirety or on elements of income or wealth, therein included taxes on profits by the transfer of movable or immovable property, as well as taxes on capital appreciation.

For the purposes of this agreement referred to by the term taxes even such contributions referred to in paragraph 1 of this article.



3. The currently outgoing taxes, on which the agreement shall apply are: (a)) concerning Sweden: 1) the State income tax, withholding tax and seamen's cat in that involved;



2) replacement levy and the tax statutes;



3) allocation fee for show public performances;



4) the municipal income tax; and 5) State property tax;



(referred to below as "Swedish tax").



b) concerning Yugoslavia: 1) tax and contributions which is applicable on the revenue acquired by the associations of associated labour;



2) tax and contributions which is applicable to personal income acquired by individual service;



3) tax and spending on personal income acquired by agricultural activities;



4) tax and spending on personal income acquired by independent operations of an economic or non-economic nature;



5) tax on personal income, acquired through copyright, patent or technical improvements;



6) tax on the return of property or right of property nature;



7) property tax;



8) tax on citizens ' total income;



9) tax on income acquired by resident abroad by investing in a domestic Association of associated labor for a so-called mixed companies;



10) the tax on income acquired by resident abroad through investment projects;



11) the tax on income acquired by resident abroad through transport of passengers and freight;



(in the following referred to as "Croatian tax").



4. This agreement shall also apply to taxes for the same or essentially similar kind, as after the signing of the agreement is applicable in addition to or in lieu of those taxes. The competent authorities of the Contracting States shall notify each other of the essential changes that have taken place in the respective tax laws.



Article 3 General definitions 1. In this agreement the following expressions have the following meanings: a) the terms "a Contracting State" and "the other Contracting State" refers to the Socialist Federal Republic of Yugoslavia or the Kingdom of Sweden, according to which the context requires.



(b)) the term "person" includes natural persons and any type of legal entity.



c) the term "company" refers to a group of associated labour and any other legal entity that is taxable and, as regards Sweden, though Swedish trading company.



(d)) the terms "enterprise of a Contracting State" and "enterprise of the other Contracting State" refers to as as the context requires, in the case of Yugoslavia, a Federation of associated labour and other self-governing organization or association, workers individually perform independent operations and businesses established outside the territory of Yugoslavia and carried on by a resident of Yugoslavia and, as regards Sweden, the business carried on by a resident of Sweden.



e) the term "competent authority" refers to: 1) in the case of Yugoslavia, the Federation's finance Secretariat or those authorized representative, 2) in the case of Sweden, the Minister for the budget or his authorized representative.



f) the term "national" refers to any natural person who has the nationality of a Contracting State.



g) the term "international traffic" refers to any transport by ships or aircraft, which is used by companies who have their place of effective management in a Contracting State, except when the shipment with the vessel or aircraft is solely between places in the other Contracting State.



2. Where a Contracting State applies this agreement be deemed to each expression, which is not defined therein, have the same meaning as the expression has, according to the national law relating to such taxes to which the agreement shall apply.



Article 4 resident 1. For the purposes of this agreement, the term "resident of a Contracting State" means any person who, under the law of that State, is liable to tax there on the basis of domicile, residence, place of management or any other similar circumstance.



2. where by reason of the provisions of paragraph 1 an individual is a resident of both Contracting States, establishes his residence according to the following rules: (a)) He is considered to be resident in the Contracting State in which he has a permanent home available to him. If he has such a home in both Contracting States, he shall be deemed to be a resident of the Contracting State with which his personal and economic relations are the strongest (Centre of life interests).



(b)) if it cannot be determined, in the Contracting State in which he has a Centre for life interests, or if he's not in either Contracting State has a permanent home available to him, he shall be deemed to be domiciled in the Contracting State in which he resides permanently.



(c)) if he resides permanently in both Contracting States or if he does not reside permanently in any of them, he shall be deemed to be domiciled in the Contracting State of which he is a national.



d) if he is a national of both Contracting States, or if he is not a national 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 concerned shall be deemed to be domiciled in the Contracting State in which it has its place of effective management.



Article 5 permanent establishment 1. For the purposes of this agreement, the term "permanent establishment" a permanent place of business equipment, where the company's activities entirely or partly exercised.



2. The term "permanent establishment" includes especially: (a)) place for management, b), c) branch offices, d) factory, e) workshop, f) a mine, Quarry or other place of extraction of natural resource, as well as g) site for construction, landscaping or installation work, which lasts more than twelve months.



3. The term "permanent establishment" is not considered to include: a) the use of devices, designed exclusively for storage, exhibition, or the disclosure of the company belonging to goods, (b) holding of a company belonging) inventories, intended solely for storage, exhibition, or disclosure, (c), the holding company of belonging a) inventories, intended exclusively for working or processing by other company, d) possession of permanent business device, designed exclusively for the purchase of goods or acquisition of information on behalf of the company , e) possession of permanent business device, designed exclusively for that on behalf of the company provide for advertising, notify the information, scientific research or similar activities, which are of a preparatory or auxiliary character.



4. the Person, who works in a Contracting State in the other Contracting State--other than an independent agent referred to in paragraph 5--be treated as a permanent establishment in that State, unless he holds and in this former State regularly use attorney to conclude contracts in the name and the business is not limited to the purchase of goods on behalf of the company.



5. Enterprises of a Contracting State are not considered to have a permanent establishment in the other Contracting State solely on the grounds that the company maintains business relationships in that other State through a broker, Commissioner, or other independent agent, provided that such person thereby exerts his usual business.




6. the fact that a company resident in a Contracting State controls or is controlled by a company resident in the other Contracting State, or a company carrying on business in that other State (whether through a permanent establishment or otherwise), shall not of itself be considered as either company a permanent establishment of the other company.



Article 6 Property 1. Income of property--including income from agriculture or forestry--may be taxed in the Contracting State where the property is located.



2. The expression "property" has the meaning the term has under the law of the State in which the property in question is situated. Ships, boats and aircraft are not considered property.



3. the provisions of paragraph 1 of this article shall apply to income, which is being acquired by immediately use, through rental or other use of the property.



4. the provisions of paragraphs 1 and 3 shall also apply to the income from immovable property belonging to the company and on income from immovable property used for the exercise of the profession.



Article 7 Movement 1. Income by business, acquired by the enterprises of a Contracting State, shall be taxable only in that State unless the enterprise carries on business in the other Contracting State through permanent establishment situated there. If the enterprise carries on business has just given way, the company's income is taxed in the other Contracting State but only so much 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,--except where the provisions of paragraph 3 shall give rise to another--in either Contracting State to the permanent establishment the income of the movement, which it can be assumed that the establishment would have acquired, it was an independent company, which operated out of the same or a similar nature under the same or similar conditions and independently completed the business with the undertaking to which the establishment belongs.



3. In determining income, as is attributable to that permanent establishment, shall be allowed a deduction for expenses incurred on behalf of the permanent establishment, including included costs for the management and General Administration, either the costs incurred in the Contracting State in which the permanent establishment is situated or elsewhere. However, the provisions of this paragraph shall not be entitled to a deduction for expenses is such that the deduction should not have been admitted if the permanent establishment were a stand-alone company.



4. the Income attributable to a permanent establishment shall be determined on the basis of the special report of the permanent establishment. If such a report is not sufficient to determine the permanent establishment shall be determined by income, such a distribution of the company's entire income of the various parts. The procedure shall, however, be such that the result is in compliance with the principles specified in this article. If considered necessary, the competent authorities of the Contracting States shall seek to agree on the method of allocating the company's income.



5. income is not considered to be attributable to a permanent establishment by reason only of the fact that the goods purchasing by the permanent establishment to the efforts on behalf of the company.



6. the provisions of this article shall apply to income acquired from Yugoslavia by resident of Sweden by his participation in a "mixed company (joint venture) along with a Yugoslav company.



7. Included in operating income income type, which is treated specially in other articles of this agreement, the provisions of those articles shall not be affected by the rules of the present article.



Article 8 the maritime and air transport 1. Income that are acquired through the exercise of maritime and air transport in international traffic shall be taxable only in the Contracting State in which the company has its place of effective management.



2. If the companies engaged in shipping in international traffic has its place of effective management, on board a vessel, is considered the lead part in the Contracting State in which the ship has its home port or, in the absence of such a port does not exist, in the Contracting State in which the ship's owner is a resident.



3. the provisions of paragraph 1 apply to income that is acquired by the air transport Consortium Scandinavian Airlines System (SAS) but only in respect of that part of 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 apply also with regard to the income gained through participation of firms in the Contracting States in a pool, a joint business or in an international operating agency.



Article 9 Companies with interests in the case of a) an enterprise of a Contracting State participates directly or indirectly in the management or monitoring of an enterprise of the other Contracting State or own part in this undertaking, or (b)) the same person participates directly or indirectly in the management or monitoring of an enterprise of a Contracting State as an enterprise of the other Contracting State, or owns part of both of these corporate capital , observed the following.



If between businesses in terms of trade or other economic relations agreed upon or prescribed conditions, which differ from those which would have been agreed between independent companies, receives all the income, that without such conditions would have been one company but because of the conditions in question did not come about this company, be included in that company's income and taxed accordingly.



Article 10 Dividends 1. Dividends from companies established in a Contracting State to a resident of the other Contracting State may be taxed in that other State.



2. Dividends may be taxed in the Contracting State in which the company paying the dividends is a resident, in accordance with the legislation of that State, but the tax must not exceed: (a)) 5 per cent of the gross amount of the dividends if the recipient is a company (other than a partnership) which direct command of at least 25% of the voting rights of the shares of the company paying the dividends b) 15 per cent of the gross amount of the dividends in all other cases.



The competent authorities of the Contracting States shall agree on arrangements for the implementation of this restriction.



This paragraph does not affect the company's taxation of profit of which the dividends are paid.



3. The term "dividends" is understood in this article income from shares or other rights, claims not included, with the right to share in profits and income of other interests in companies, which under the tax law of the State in which the distributing company is resident, is subject to the same tax rules as income from shares.



4. the provisions of paragraphs 1 and 2 shall not apply if the recipient of the dividends is a resident of a Contracting State has a permanent establishment in the other Contracting State, where the paying company, and the proportion due to which the dividend is paid owns truly connected with the permanent establishment. In such cases, apply the provisions of article 7.



5. If the company resident in a Contracting State receives income from the other Contracting State, that other State may not impose any tax on the dividends, as the company pays to the person who is not a resident of that other State, nor any tax on the company's undistributed profits, even if the dividends or undistributed profit consists wholly or partly of income arising in that other State.



Article 11 Interest 1. Interest, stemming from a Contracting State and paid to a resident of the other Contracting State, be taxable only in that other State.



2. The term "interest" for the purposes of this article, income from securities issued by the State, of the bonds or debentures, whether issued against the security of property or not, and whether they confer the right to share in profits or not. The term also refers to the income of any other kind of claim and any other income which under the tax laws of the Contracting State from which income is derived, is assimilated to income from strain.



3. the provisions of paragraph 1 shall not apply if the recipient of the interest is resident in a Contracting State and holds a permanent establishment in the other Contracting State from which the interest arises and the claim on the basis of which the interest is paid owns truly connected with the permanent establishment. In such cases, apply the provisions of article 7.



4. with regard to cases in which the special relationship between the payer and the recipient or between both of them and the other person gives rise to the amount of the interest paid, having regard to the debt, for which the rate of interest paid exceeds the amount which would have been agreed between the payer and the recipient of such services do not exist, the provisions of this article only to the latter amount. In such case, the excess amount is taxable according to the laws of each Contracting State in accordance with the other provisions of this agreement.



Article 12 Royalties 1. Royalty, as derived from a Contracting State and paid


to a resident of the other Contracting State, be taxable only in that other State.



2. The term "royalties" in this article, of course, any amount paid as compensation for the use of, or the right to use any copyright of literary, artistic or scientific works, cinematographic works, as well as films and tapes for television and radio herein involved, any patent, trade mark, design or model, plan, secret formula or secret manufacturing method, 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 experience.



3. the provisions of paragraph 1 shall not apply if the recipient of the royalties is a resident of a Contracting State and holds a permanent establishment in the other Contracting State of which the royalty is derived, and the right or property giving rise to the royalty owner truly connected with the permanent establishment. In such cases, apply the provisions of article 7.



4. In respect of such cases, in which a special relationship between the payer and the recipient or between both of them and the other person gives rise to the amount of the royalties paid, having regard to the use, right or information for which the royalty is paid, exceeds the amount which would have been agreed between the payer and the recipient of such services do not exist, the provisions of this article only to the latter amount. In such case, the excess amount is taxable according to the laws of each Contracting State in accordance with the other provisions of this agreement.



Article 13 capital gains 1. Profit through the sale of such property as referred to in article 6 paragraph 2, may be taxed in the Contracting State where the property is located.



2. Profits by transfers of movable property attributable to assets invested in a permanent establishment which an enterprise of a Contracting State has in the other Contracting State, or by movable property pertaining to a permanent arrangement for the exercise of the profession, which a resident of a Contracting State has in the other Contracting State, may be taxed in that other State. The corresponding profit through transfer of such a permanent establishment (alone or in conjunction with the sale of the entire company) or by such a permanent device.



3. Notwithstanding the provisions of paragraph 2 of this article shall be taxable profits by transfers of vessels or aircraft, which are used in international traffic, or movable property, which is attributable to the use of such ships or aircraft, only in the Contracting State in which the company has its place of effective management.



4. Profit by the assignment of other than in paragraphs 1, 2 and 3 of this article, the stated property shall be taxable only in the Contracting State of which the alienator is a resident.



Article 14 the Free profession 1. Income, as a resident of a Contracting State acquires through the exercise of profession or other comparable independent operations, shall be taxable only in that State.



2. Notwithstanding the provisions of paragraph 1 of this article, income, as a resident of a Contracting State acquires through the exercise of profession or other comparable independent activities in the other Contracting State, be taxed in that other Contracting State, if the person resides in that other Contracting State during the period or periods of time as a total exceeding 183 days in the calendar year in question , whether such person has a permanent device in that other Contracting State.



3. The expression "liberal profession" includes especially independent scientific, literary and artistic activities, educational and teaching activities as well as independent activities of physicians, lawyers, engineers, architects, dentists and accountants.



Article 15 Service 1. Where the provisions of articles 16, 18 and 19 of this agreement raises other, taxed wages and similar remuneration, as a resident of a Contracting State receives through employment, only in that State unless the work is performed in the other Contracting State. If the work is performed in that other State, receives compensation received for work are taxed there.



2. Notwithstanding the provisions of paragraph 1 of this article shall be taxable income, which are levied by the resident of a Contracting State in respect of work performed in the other Contracting State, only in the first-mentioned Contracting State, provided that: (a)) the recipient resides in the other Contracting State during the period, or time periods, which in total do not exceed 183 days in the calendar year in question and (b)) the compensation is paid by or on behalf of a person who is not a resident of the other State, and c the remuneration is not borne by) such as charge fixed establishment or permanent device, which the relevant person has in the other State.



3. a) Salary paid by a Contracting State, its political subdivisions or local authorities, to the natural person shall be taxable only in that State.



b However, such remuneration shall be taxable) only in the other Contracting State, if the beneficiary has carried out the work in that other State and is a resident of that State who: 1) is a national of that State or 2) not only received the resident to perform the work.



4. Pay as a natural person receives for work performed in connection with business carried on by a Contracting State, its political subdivisions or local authorities, subject to the provisions of paragraphs 1 and 2 of this article.



5. Pay as a natural person receives for work performed by Yugoslavia's United Financial Representation or Yugoslav tourist office shall be taxable only in Yugoslavia. The provisions of this paragraph shall not apply in respect of a Swedish citizen or person did not obtain residency in Sweden only to carry out the work.



6. Notwithstanding the preceding provisions of this article, remuneration for work carried out on board ships or aircraft in international traffic, be taxed in the Contracting State in which it has its place of effective management. If resident in Sweden receives remuneration for work, which is performed on board the aircraft used in international traffic by the air transport Consortium Scandinavian Airlines System (SAS), compensation is taxed only in Sweden.



Article 16-Compensation for work on the Board of Directors (directors ' fees) 1. Directors ' fees and similar payments, as a resident of Yugoslavia receives as a Board member in companies established in Sweden, may be taxed in Sweden.



2. Fees and other similar payments, as a resident of Sweden receives as a Board member of companies resident in Yugoslavia, may be taxed in Yugoslavia.



3. the provisions of paragraphs 1 and 2 shall not apply to remuneration that someone receives because of their usual activities in a company such as employee, Adviser, consultant, or the like. In such cases, apply the provisions of article 14 and article 15.



Article 17 artistes and sportsmen 1. Notwithstanding the provisions of articles 14 and 15, income, as a theatre or movie actor, radio or television artists, musicians, and similar professionals and athletes acquires through the activities they personally engaged in this capacity, be taxed in the Contracting State in which the activities are exercised.



2. In cases where the income through personal work as an artist or an athlete in that capacity perform belongs to someone other than the artist or sportsman himself, this income, notwithstanding the provisions of articles 7, 14 and 15, be taxed in the Contracting State of which the entertainer or sportsman is carrying out the work.



3. Notwithstanding the provisions of paragraphs 1 and 2 of this article shall be taxable income, as an artist or sportsman resident in one Contracting State as such, acquires through its personal business, only in that State, provided that the activities exercised in the other Contracting State within the framework of a program of cultural or sporting exchanges approved by both Contracting States.



Article 18 Pensions 1. Pensions and other similar remuneration shall be taxable only in the Contracting State in which the recipient of the pension or compensation is habitually resident.



2. Notwithstanding the provisions of paragraph 1 shall be taxable pension paid by a Contracting State, its political subdivisions or local authorities, to the natural person over budget or from special funds, only in this State, Such pension shall be taxable only in the other Contracting State if the recipient is a national of, is domiciled in this State.



3. Pension, as physical person received for work performed in connection with the movement undertaken by a Contracting State, its political subdivisions or local authorities, shall be taxable only in the Contracting State in which the person concerned is resident.



4. Notwithstanding the provisions of paragraphs 1 and 3 of this article, payments under the general social security legislation in a Contracting State may be taxed in that State.



Article 19 Students 1. Student or business or craft intern who is staying in a


Contracting State exclusively for their education or training and who has-or immediately before the stay in this State had the--resident in the other Contracting State, be taxed in the first-mentioned Contracting State for the amount that he receives for his living, teaching or training, on the amounts paid to him from sources outside that first-mentioned State.



2. students at a university or other educational institution in Yugoslavia, which under the temporary stay in Sweden holds employment in Sweden during a period of not more than 100 days in a calendar year for the purpose of obtaining practical experience related to their studies, are taxed in Sweden only for that part of the income from employment that exceeds 1 500 Swedish kronor per calendar month.

The exemption granted under this paragraph, however, with an aggregate amount of not more than 4 500 Swedish kronor. Amount under this paragraph is exempt from taxation include personal deduction for that calendar year.



3. students at a university or other educational institution in Sweden, that during a temporary stay in Yugoslavia holds employment in Yugoslavia during a period of not more than 100 days in a calendar year for the purpose of obtaining practical experience related to their studies, taxed in Yugoslavia only for the portion of income from employment for a calendar month exceeds the law guaranteed personal income. Amount under this paragraph is exempt from taxation include personal deduction for that calendar year.



4. students or business or craft intern who is staying in a Contracting State to obtain teaching or training and who has-or immediately before the stay in this State had the--resident in the other Contracting State, be taxed in the first State of income acquired through work in this former State compensation does not in any one tax year exceeds 5 000 Swedish kronor or the equivalent in Croatian currency.



Exemption under this paragraph are allowed only for the amount of time, as reasonably or normally required for the completion of studies or studies in question, but may in no case be for longer than three consecutive years. Amount for which an exemption granted under this paragraph includes the personal deduction for that calendar year.



5. the competent authorities of the Contracting States shall agree on the application of the provisions of paragraphs 2, 3 and 4. The competent authorities may also agree on such an amendment by which the mentioned amount is reasonable having regard to the change in currency, the amended legislation of a Contracting State or other similar circumstances.



Article 20 Other income acquired by the resident of a Contracting State and which are not dealt with in the foregoing articles of this agreement are subject to tax, regardless of where the income was derived, only in that State.



Article 21 the Fortune 1. Fortune consisting of such a property referred to in article 6 paragraph 2, may be taxed in the Contracting State where the property is located.



2. Assets consisting of moveable property, which is attributable to assets invested in a company's permanent establishment or of chattels, forming part of a permanent arrangement for the exercise of the profession, may be taxed in the Contracting State in which the permanent establishment or the permanent device is located.



3. Ships and aircraft used in international traffic and movable property, that is attributable to the use of such ships and aircraft, shall be taxable only in the Contracting State in which the company has its place of effective management.



4. All other types of assets held by a person resident in one Contracting State, be taxable only in that State.



Article 22 elimination of double taxation 1. If resident in Sweden receives income or owns capital, which in accordance with the provisions of this agreement may be taxed in Yugoslavia shall, unless the provisions of paragraph 4 shall give rise to another, Sweden (a)) by the appropriate person's income tax set off an amount equal to the income tax paid in Yugoslavia, b) from the appropriate person's property tax set off an amount equal to the capital tax paid in Yugoslavia.



2. Settlement amount shall not, however, exceed the amount of that part of the income tax and wealth tax, calculated without such a settlement, charged on the income and the wealth that may be taxed in Yugoslavia.



3. In cases where, under Yugoslav law, exemption or reduction granted in respect of the Yugoslav tax, which, according to article 7 of the agreement may be payable on income which is acquired by a Swedish company through permanent establishment or so-called mixed companies in Yugoslavia, shall for the purposes of paragraph 1 (a)) and paragraph 2 the clearing of Yugoslav tax from Swedish tax effected as if such exemption or reduction is not granted.



The provisions of this paragraph shall apply for the first ten years during which this agreement applies. The competent authorities shall consult each other in order to determine whether this period shall be extended.



4. where a resident of Sweden claiming income or owns capital which, in accordance with the provisions of this Agreement shall be taxable only in Yugoslavia, Sweden may allocate the income or wealth in the tax base but, from the tax on the income or assets offset the portion of income tax and wealth tax that is equal to the proportion of the tax on the income and wealth that the income received from Yugoslavia and the Fortune held there is of the whole income or wealth.



5. If a resident of Yugoslavia receives income or owns capital, which in accordance with the provisions of this agreement may be taxed in Sweden, Yugoslavia, unless the provisions of paragraph 6 shall give rise to another, some praise from such income or capital from tax. For the purposes of calculating tax on the remaining income or capital of that person, apply the rate of tax which would have been applicable if the income or assets in question are not excluded from taxation.



6. If a resident of Yugoslavia receives income, which in accordance with the provisions of article 10, may be taxed in Sweden, Yugoslavia from the tax payable on the income of that person set off 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 income received from Sweden.



Article 23 non-discrimination 1. Nationals of a Contracting State shall, whether domiciled in a Contracting State or not, not in the other Contracting State shall be subject to any taxation or any related tax demands that are of a different kind or more burdensome than the taxation or related tax requirements as nationals of that other State in the same relationship is or may be subject.



2. the taxation on a permanent establishment which businesses of a Contracting State has in the other Contracting State, that other State shall not be less advantageous than the taxation of undertakings in the other State, that carries on the same business.



This provision is not considered to result in the obligation of a Contracting State to grant to residents of the other Contracting State any personal allowances for tax purposes, tax exemptions or reductions on the basis of marital status or dependent on family, which allowed residents in the föstnämnda Contracting State.



3. Except in cases where article 9, article 11, paragraph 4, or article 12 paragraph 4 applies, the interest, royalty or other payment from a company of a Contracting State to a resident of the other Contracting State for the purpose of calculating the taxable profits of such enterprises to be deductible under the same conditions as the corresponding payment to a resident of the first State.



Similarly, debt, as a company of a Contracting State has to a resident of the other Contracting State for the purpose of calculating its taxable wealth to be deductible as if the debt arose in relation to a resident of the first State.



4. Enterprises of a Contracting State, whose capital 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-mentioned Contracting State shall be subject to any taxation or any related tax demands, that is other or more burdensome than the taxation and related tax requirements which other similar enterprises of that first-mentioned State are or may be subject.



5. In this article the term "taxation" refers to taxes of every kind and nature.



Article 24 mutual agreement Procedure at 1. If the resident of a Contracting State alleges that in a Contracting State, or in both States have taken measures


for him, causes or will cause a against this contract fighters taxation, he owns--without prejudice to his right to make use of the remedies in the domestic legal system of those States--make petition in the matter with the competent authority of the Contracting State in which he is domiciled.



2. If the competent authority finds the complaint justified but not itself can bring about a satisfactory resolution, the authority shall seek resolve the matter by mutual agreement with the competent authority of the other Contracting State for the purpose of avoiding a against this agreement opposing taxation.



3. the competent authorities of the Contracting States shall by mutual agreement determine search difficulties or doubts arising concerning the interpretation or application of this agreement. They can also consult with a view to eliminating double taxation in cases not covered by this agreement.



4. the competent authorities of the Contracting States may enter into direct relations with each other in order to reach agreement in the cases specified in the preceding paragraphs. If oral proceedings be deemed to facilitate an agreement, such consultations take place within the framework of a Commission consisting of representatives of the competent authorities of the Contracting States.



Article 25 exchange of information 1. The competent authorities of the Contracting States shall exchange such information as is necessary to implement this agreement and to implement the provisions of the Contracting States concerning taxes, referred to in this agreement, in so far as the taxation thereunder is in accordance with this agreement. Information exchanged shall be treated as secret and shall not be disclosed to other persons or authorities other than those dealing with taxation or collection of the taxes covered by this agreement.



2. paragraph 1 shall not be deemed to entail the obligation of a Contracting State (a)) to take administrative actions, which are contrary to legislation or administrative practices in force in that State or of the other Contracting State, b) to supply information which is not available under the laws or in the normal performance of their duties in this State or of the other Contracting State; (c)) to provide information , which would disclose any trade secret or secret nature of official or business used the procedures, or indications, whose surrender would be contrary to the General considerations of public policy.



Article 26 diplomatic and consular officers, this agreement does not affect the privileges in taxation, according to the General rules of international law or provisions of specific agreements apply diplomatic or consular officers.



Article 27 entry into force 1. This agreement shall be ratified and the instruments of ratification documents are exchanged in Belgrade as soon as possible.



2. this Agreement shall enter into force with the exchange of instruments of ratification and its provisions shall apply: (a)) in Sweden: in respect of income, acquired on 1 January of the calendar year immediately following that in which the Exchange takes place, or later, and fortune will be assessed other calendar year immediately following that in which the Exchange takes place, or later.



b) in Yugoslavia: in respect of income, acquired or wealth held in each calendar year after that in which the Exchange takes place.



Article 28 termination this Agreement shall remain in force indefinitely but each of the Contracting States to possess--by 30 June in any calendar year beginning after the expiration of a period of five years after the date of entry into force of the agreement--by diplomatic means in writing terminate the agreement of the other Contracting State. In the event of such termination, the agreement ceases to be in force: (a)) in Sweden: in respect of income which is acquired on 1 January of the calendar year immediately following that in which the notice is given or later and fortune are assessed other calendar year immediately following that in which the notice is given or later.



b) in Yugoslavia: in respect of taxes on income acquired or wealth held in any calendar year after that in which the notice is given.



In witness whereof the undersigned, being duly authorised, have signed this agreement.



Done at Stockholm on 18 June 1980 in two original copies in the English language.



For the Kingdom of Sweden Rolf Wirtén For the Socialist Federal Republic of Yugoslavia Ljubomir Drndic Annex 2 Protocol at the signing of the agreement between the Kingdom of Sweden and the Socialist Federal Republic of Yugoslavia for the avoidance of double taxation with respect to taxes on income and on capital the undersigned, being duly authorized, agreed on the following provisions which shall form an integral part of the agreement.



1. in article 7 the Contracting States undertake, subject to reciprocity, not to tax the gross revenues that are acquired in a Contracting State by a resident of the other Contracting State through passenger and freight transport, unless the income is attributable to a permanent establishment to which the person in question has in the first State.



2. in article 11 the tax rule in this article were drawn up in the light of the fact that neither of the Contracting States at the time of signing this agreement according to its legislation has the ability to charge tax on interest paid to non-resident persons. The parties agree to take up negotiations to amend articles 11 and 22, if such tax option is introduced in a Contracting State.



3. in article 25, paragraph 2 (c)) the phrase "secret of official nature" refers to the commercial, industrial or professional secret.



In witness whereof the undersigned, being duly authorised, have signed this Protocol.



Done at Stockholm on 18 June 1980 in two original copies in the English language.



For the Kingdom of Sweden Rolf Wirtén For the Socialist Federal Republic of Yugoslavia Ljubomir Drndic Annex 3 Instructions a. General information the question if and to what extent a person is liable to tax in Sweden is determined primarily by reference to the Swedish tax regulations.

If under these regulations, such liability may arise either because of the agreement. To the extent that the agreement involves restriction of the tax liability in Sweden laid down in the Swedish tax conditions, the contract shall, however, apply.



Even if, under the contract, the taxpayer's income or assets in whole or in part, shall be exempt from taxation in Sweden, the taxpayer shall provide all the information for the purposes of determining the basis of assessment to which he would otherwise have been obliged to leave.



If the taxpayer can show that the action taken by the tax authority or court resulted or will result in taxation contrary to the provisions of this agreement, he may, under art. 24 paragraph 1 do the production for rectification. Such a request shall be made to the Government and should be submitted as soon as possible after the taxpayer has obtained knowledge of the unlawful taxes.



Such a review of the application of the agreement referred to in the preceding subparagraph may be initiated by natural person, who has his permanent address or usually resides in Sweden, or a Swedish legal entity.



Most income beaten is especially treated in the agreement. Some special types of income--for example. some kind of periodic support--is not mentioned in the agreement. In such cases, apply the provisions of art. 20. Some kind of Fortune is especially treated in art. 21 points 1-3. Otherwise taxation according to art. 21 paragraph 4. CF. also art. 22. B. special instructions to the art. 1 and 4, the rules are generally applicable only to natural and legal persons domiciled in Sweden or Yugoslavia.



Whether the natural or legal person shall be deemed to be domiciled in either State is determined primarily by reference to the laws of that State. In art. 4 paragraphs 2 and 3 are governed cases of so-called double settlement, IE. cases where the taxpayer according to Swedish tax rules are considered resident in Sweden and according to Yugoslav regime is considered to be living in Yugoslavia. For the purposes of the agreement shall, in such cases, the taxpayer is considered to be a resident only of the Contracting State of which he is a resident under the said Treaty provisions.



Person, referred to in section 69 kommunalskatte Act (1928:370), section 17 of the Act (1947:576) for State income taxes and section 17 of the Act (1947:577) on State property tax, shall for the purposes of art. 4 paragraph 1 is considered resident in Sweden, in so far as the question is about the Swedish Mission or paid off Swedish consulates in Yugoslavia.



Person, referred to in section 70 subsection 1. kommunalskatte Act, section 18 1 mom. law on State income tax, and section 18 of the law on State property tax, shall for the purposes of art. 4 paragraph 1 is considered to be resident in Yugoslavia, in case of Yugoslav Mission or paid off Yugoslav consulates in Sweden.



to art. 2 the agreement relates to the taxes referred to in art. 2. Regarding other taxes but see art. 23 punk 5.




to art. 6 according to Swedish law taxed income derived from property in certain cases as income of the operating/jfr, among others. paragraph 27 of the kommunalskatte Act (1928:370)/. Income covered by art. 6 However, taxed in the State in which the property is situated.

This rule also applies in respect of royalty from the property or for the use of, or the right to use mine, Quarry or other natural resource.



Other royalty is taxed according to art. 12. to art. 7 income by operating, conducted from permanent establishment taxable in rule under art. 7. What is understood by the term "permanent establishment" set out in art. 5. If the natural or legal person resident in Sweden is conducting business from a permanent establishment in Yugoslavia, the income attributable to the permanent establishment taxable in Sweden but Yugoslav income tax deducted from the Swedish tax under art. 22 paragraph 1.

The same applies to the income acquired from Yugoslavia by resident of Sweden through participation in a "mixed company (joint venture) along with a Yugoslav company. In the case of proceedings before the deduction, please refer to the instruction point 2 of art. 22. income of movement, that natural or legal person resident in Yugoslavia conducts from a permanent establishment in Sweden, calculated in accordance with art. 7 paragraphs 2-5. The basis for income tax should be put first and foremost the specific records which may have been brought by the permanent establishment. Where necessary, this posting is adjusted so that the statement is made in accordance with paragraphs 2 and 3 the specified policy. Deductions allowed for so much of the head-office general expenses that may reasonably be considered to redemption on the permanent establishment.



If the income of sea and air transport in international traffic, there are special provisions in art. 8. to art. 8 income by shipping or air transport in international traffic shall be taxable according to art. 8 paragraph 1 only in the State where the company has its place of effective management.



to art. 9 Art. 9 contains a general rule about the translation of profits between kocernföretag. In Sweden, can recount at assessment be carried out in accordance with section 43 subsection 1. kommunalskatte Act (1928:370).



If such conversions are carried out between enterprises in Sweden and Yugoslavia, the County Board shall notify the Government and briefly describe what occurred.



to art. 10 1. What is understood by the term "dividend" set out in art. 10 point 3.



2. When a natural or legal person domiciled in Sweden receive dividends from companies established in Yugoslavia and the dividend is not attributable to the share, which is effectively connected with the permanent establishment as the number has in Yugoslavia, the Swedish tax calculated on the gross amount of the dividends without deduction of the Yugoslav tax. The deduction is allowed, however, as usual, for administrative expenses and interest on debt relating to the dividend. Swedish tax on the dividend reduction according to art. 22 paragraph 1 by the clearing of Yugoslav tax collected pursuant to art. 10 paragraph 2. The Yugoslav tax shall not exceed 15% or, in the cases referred to in art. 10 paragraph 2 (a)), 5% of the gross amount of the dividends. In the case of proceedings before the deduction, please refer to the instruction point 2 of art. 22.3. When a natural or legal person domiciled in Sweden receive dividends from companies established in Yugoslavia and the dividends are attributable to the share, which is effectively connected with the permanent establishment as the number has in Yugoslavia, applied art. 7. The dividends shall in this case be taxed in Sweden, but Yugoslav tax on dividends are deducted from the Swedish tax under art. 22 paragraph 1. In the case of proceedings before the deduction, please refer to the instruction point 2 of art. 22.4. When a limited liability company in Sweden is effecting dividend to natural or legal person resident in Yugoslavia and the dividend is not attributable to the proportion owning effectively connected with a permanent establishment as the number has in Sweden, the withholding tax out by 15%, or, in cases as referred to in art. 10 paragraph 2 (a)), 5% of the gross amount of the dividends. Dividends from the American Economic Association are taxed in this case under section 6, subsection 1. (a) or (c) Act (1947:576) for State income taxes, but the State income tax shall not exceed 15% or, in the cases referred to in art. 10 paragraph 2 (a)), 5% of the gross amount of the dividends. For taxation to the State income tax for dividends from the American Economic Association, the tax mentioned in the Declaration, make note of the data necessary for billing. Length of the authority responsible for taking note of set-off is made in tax.



Regarding the procedure for the reduction in the rate of Swedish tax on dividends applied in other specific provisions.



If the recipient of the dividend has a permanent establishment in Sweden and the dividends are attributable to the share, which is effectively connected with that permanent establishment, applied art. 7. In such a case does not apply the above rules on the limitation of the Swedish tax on dividends.



to art. 11 1. What is understood by the term "rate" specified in art. 11 paragraph 2.



2. interest paid from Yugoslavia to the natural or legal person resident in Sweden, is taxed here.



Interest is attributable to the debt, which is effectively connected with a permanent establishment, as the recipient of the interest is in Yugoslavia, may interest taxed in Yugoslavia. Yugoslav tax on the interest deducted in this case from the Swedish tax under art. 22 paragraph 1. In the case of proceedings before the deduction, please refer to the instruction point 2 of art. 22.3. Interest, payable from Sweden to the natural or legal person resident in Yugoslavia, according to the tax regulations are not taxed in Sweden. However, this applies only in respect of interest constitutes income from employment source of capital. Interest is attributable to the income of the operating/jfr paragraph 2 of section 28 of the Act to the kommunalskatte instructions (1928:370)/, Sweden taxed interest rate, provided that the interest is attributable to the debt, which is effectively connected with the permanent establishment as the recipient of the interest is in Sweden (art. 11 paragraph 3).



to art. 12 as regards the taxation of such royalty provided for in art. 12 paragraph 2, the following applies.



Royalty, payable from Yugoslavia to the natural or legal person resident in Sweden, is taxed here.



Is the royalty attributable to right or property, which is effectively connected with a permanent establishment of the recipient of the royalties are in Yugoslavia, the royalties taxed in Yugoslavia. Yugoslav royalty tax deducted in this case from the Swedish tax under art. 22 paragraph 1. In the case of proceedings before the deduction, please refer to the instruction point 2 of art. 22. Royalty, payable from Sweden to the natural or legal person resident in Yugoslavia, are taxed in Sweden only if the right or property giving rise to the royalties owns effectively connected with that permanent establishment of the recipient of the royalties in Sweden (article 12 paragraph 3). This is the case, is taxed under section 28 subsection royalties 1. third subparagraph and paragraph 3 of the instructions to 53 § kommunalskatte Act (1928:370) compared to 2 and 3 of the Act (1947:576) for State income tax.



to art. 13 Profit, that natural or legal person resident in Yugoslavia acquires through the sale of property in Sweden, taxed here (art.

13 paragraph 1). Further taxed in Sweden win through non-commercial disposal of movable property forming part of a permanent establishment which a resident of Yugoslavia has this (article 13 paragraph 2). The same applies in the case of movable property forming part of a permanent arrangement for the exercise of the profession which the recipient has in Sweden.



Capital gain, acquired by the natural or legal person resident in Sweden, is taxed here. According to art. 13 paragraph 1, Croatian tax is imposed on the capital gain, if the disposed property consists of property in Yugoslavia. The same applies under art. 13 paragraph 2 in the case of movable property that is included in the branch that the recipient has in Yugoslavia, or personal property that is included in the permanent arrangement for the exercise of the profession which the recipient has in Yugoslavia.



Swedish tax on the capital gain is reduced in accordance with article 22, paragraph 1 by the clearing of the Yugoslav tax in accordance with the provisions of art. 13 imposed the same profit. In the case of proceedings before the deduction, please refer to the instruction point 2 of art. 22. to art. 14 1. What is understood by "liberal profession" is exemplified in art. 14 paragraph 3.



2. income of the profession or another equivalent independent operations are taxable only in the State where the taxpayer is a resident. Exercised the activity for more than 183 days in the calendar year in question in the other State, the income be taxed in that other State.



If resident in Sweden receives income by profession or another equivalent independent operations in Yugoslavia during stay or stays there as a total exceeding 183 days in the calendar year, the income may be taxed in Sweden, but Yugoslav tax on the same income deducted from the Swedish tax under art. 22 paragraph 1. In the case of proceedings before the deduction, please refer to the instruction point 2 of art. 22.




With regard to the taxation of income obtained by athletes, actors, musicians and others. see the instructions to the art. 17. to art. 15 income from service, in accordance with art. 15 paragraph 1 of rule be taxed in the State in which the work is performed. Exception to this rule is provided for in art. 15, paragraphs 2 and 6, art. 16 and art. 19. with regard to the taxation of income acquired by actors, musicians and others. see the instructions to the art. 17. Salaries paid by any of the States, its political subdivisions or local authorities, subject to art. 15 paragraph 3 (a)) only in the State from which compensation is paid. The work has been performed in the other State by a resident of this State, however, the allowance is subject to tax under art. 15 paragraph 3 (b)) only in that State, if the recipient is a national of that State or did not obtain residency there only to carry out the work. Salary, which is paid for work performed in connection with business carried on by a Contracting State, its political subdivisions or local authorities, are taxed as income of the individual service (art. 15 para 4).



to art. 16 when the Swedish company paid directors ' fees to a resident of Yugoslavia, taxed compensation in Sweden, if it can be done under current tax rules. Have such compensation received by resident in Sweden from a company resident in Yugoslavia, the income is taxed in Sweden but Yugoslav income tax deducted from the Swedish tax under art. 22 paragraph 1. In the case of proceedings before the deduction, please refer to the instruction point 2 of art. 22. to art. 17 Income, as a theatre or movie actor, radio or television artists, musicians, and similar professionals and athletes acquires by their profession, be taxed in the State where the activity is exercised (art. 17 para 1). This applies regardless of whether the income is acquired in the exercise of a liberal profession, or because of employment. According to art. 17 paragraph 2, income generally taxable in the State in which the artist or idrotsmannen perform the work, even if the compensation is paid to another person (for example, an employer with whom the artist is employed) than the artist or sportsman himself.

The provisions of art. 17 paragraphs 1 and 2 shall not apply in the cases referred to in art. 17 paragraph 3. For Sweden's part be taken in application of art. 17 paragraphs 1 and 2, the provisions of paragraph 54 (c) kommunalskatte Act (1928:370) and section 7, first paragraph, (b) law (1947:576) for State income tax.



to art. 18 Pension because of individual service, and other similar remuneration shall be taxable only in the State of residence location (art. 18 para 1).



Pension, which is paid by the State, its political subdivisions or local authorities, subject to art. 18 paragraph 2 of rule only in this State, if the recipient of the pension is a national of the other State and habitually resident there, however, such pension shall be taxable only in that State. Further taxed pension, which is paid for work performed in connection with business carried out by a State, its political subdivisions or local authorities only in the State where the recipient is domiciled (article 18, paragraph 3).



Pensions and other payments according to the Swedish socialförsäkringslagtiftning to a resident of Yugoslavia, in accordance with art. 18 paragraph 4 be taxed here.



Resident of Sweden, who receives a payment under the Yugoslav social security legislation, are taxed in Sweden for such payments but Yugoslav income tax deducted from the Swedish tax on income under art. 22 paragraph 1. In the case of proceedings before the deduction, please refer to the instruction point 2 of art. 22. to art. 22 1. Income from Sweden taxed here in so far as the Swedish tax regulations give rise to it and restriction of the tax liability subject to the other articles. The same applies in the case of capital asset located in Sweden. If the income or wealth can be taxed even in Yugoslavia, relief at the Yugoslav tax under art. 22 points 5 and 6.



2. income from Yugoslavia, received by a resident of Sweden, be included for taxation in Sweden. Similarly carried the property access, which are located in Yugoslavia, for taxation to the Swedish wealth tax. Swedish tax on income or wealth is put down by offsetting under art. 22 paragraphs 1 and 2, unless the circumstances specified in the instruction point 3.



Swedish income tax is calculated on the gross amount of the income, without deduction of the Yugoslav tax covered by this agreement. Deductions are allowed in regular order for costs relating to income. From the thus calculated Swedish taxes deducted according to art. 22 paragraph 1 an amount equivalent to the Yugoslav tax relating to income.

As regards the size of the Yugoslav tax on dividends, please refer to the instruction point 2 of art. 10. Has the agreement been Yugoslavian tax on income from business conducted in Yugoslavia, observed that income calculated in accordance with art. 7. Have the exemption or reduction granted in respect of the Yugoslav tax under art. 7 hits on income which is acquired by a Swedish company through permanent establishment or so-called mixed companies in Yugoslavia, because of the provision in art. 22 paragraph 3 from the Swedish tax on such income deducted an amount equal to the tax that would have been deleted, if such exemption or reduction had not been granted.



The taxpayer should, in conjunction with their income tax return for the tax year for which income is occupied to taxation, provide evidence or other description of the Yugoslav tax charged on income or that would have been imposed on such exemptions or reductions referred to in the preceding paragraph had not been granted.



Settlement of the Yugoslavian income tax may be made with the equivalent of no more than the sum of the Swedish taxes charged on income. For the purpose of this rule is considered to be on income from Yugoslavia attribution so large a share of the whole of the State income tax as income--after deducting the costs--is of the taxpayer's total income by various acquisition sources. Municipal income tax is considered attribution of income from Yugoslavia to as large a share as income--after deducting the costs--is of the taxpayer's total income of different employment sources to be assessable to taxation in the same municipality as the income from Yugoslavia.



Settlement occurs primarily from the State income tax. Not propose this, set off the remainder from municipal income tax relating to income.



The tax Board shall in the Declaration note equivalent in Swedish Crowns by the Yugoslav tax on income and to specify that the deduction is to be made with this amount of tax, up to a maximum of the amount of the Swedish taxes on income. Length of the authority responsible for taking note of set-off is made in tax.



Example: a person domiciled in Sweden receives income of property in Yugoslavia with an amount of SEK 10,000. On income tax attribution with Yugoslavian adopted an amount of 1 500 SEK. Deductible expenses amounted to SEK 500. The taxpayer is assumed to further collect net income from other employment sources with an amount of SEK 90,000 and in determining the basis of assessment to state income tax benefit from the General deduction of SEK 10,000. It to state income tax taxed income is thus (9 500 + 90 000-10 000 =) 89 500 SEK. This declaration is recorded: "Deduction from income tax under the terms of the agreement with Yugoslavia, shall be 1 500 kroons, up to the sum of the municipal income tax, charged at SEK 9 500 99 500 9 500, and of all the State income tax. Settlement occurs primarily from the State income tax. "



The instructions in this paragraph if the deduction from Swedish income tax applies mutatis mutandis in respect of the settlement of the Yugoslav tax on wealth from Swedish wealth tax.



3. where a resident of Sweden in receipt of income which, in accordance with art. 8 section 1, art. 13 paragraph 3, art. 15 paragraphs 3 (a)) and 5 or art. 18 paragraph 2, shall be taxable only in Yugoslavia, be included income for taxation in Sweden. State and municipal income tax is calculated in the normal manner. They thus calculated income tax is reduced by an amount equal to the portion of personal income taxes as at a proportional calculation relating to the income referred to in this Agreement shall be taxable only in Yugoslavia. The same applies in the case of Fortune under art. 21 paragraph 3 shall be taxable only in Yugoslavia.



Example: a Yugoslav citizen resident in Sweden receiving a pension from the Yugoslav State with an amount after deduction of the expenses corresponding to 10 050 SEK. The taxpayer is assumed to receive in Sweden taxable net income and income from other employment sources with 50,000 crowns as well as enjoy the General deductions and allowance of SEK 4 500 SEK 7 500 respectively. Taxable income becomes State (10 050 + 50 000 to 4 500 =) 55 500 crowns and municipal (10 050 + 50 000-4 500-7 500 =) 48 000 kroons, then rounding occurred. The pension had not taken into account the taxable income would have been State (50 000 to 4 500 =) 45 500 crowns and municipal (50 000-4 500-7 500 =) 38 000 kroons. The State and


municipal income tax, estimated at 55 500 resp. 48 000 kroons, reduction of 55 500-45 500 resp. 48 000-38 000 55 500 48 000.



In cases that are now mentioned in the Declaration shall note texeringsnämnd the basis for the computation of income tax and wealth tax.

Length of the authority responsible for taking note of set-off is made in tax.



to art. 23 of the art. 23 paragraph 2 follows that companies in Yugoslavia must not be subject to property tax in Sweden. The rule means an exception to the rule in section 6, subsection 1. first subparagraph, (c) Act (1947:577) on State property tax.