|
SCHEDULE 1
|
|
|
CONVENTION BETWEEN CANADA AND SWEDEN FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RE SPECT TO TAXES ON INCOME |
|
|
The Government of Canada and the Government of Sweden,
desiring to conclude a Convention for the avoidance of
double taxation and the prevention of fiscal evasion with
respect to taxes on income, have agreed as follows:
|
|
|
ARTICLE 1 |
|
|
Persons Covered |
|
|
This Convention shall apply to persons who are residents of
one or both of the Contracting States.
|
|
|
ARTICLE 2 |
|
|
Taxes Covered |
|
|
1. The existing taxes to which the Convention shall apply are:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2. The Convention shall apply also to any identical or similar
taxes which are imposed after the date of signature of the
Convention in addition to, or in place of, the taxes referred to in
paragraph 1. The competent authorities of the Contracting States
shall notify each other of substantial changes which have been
made in their respective taxation laws.
|
|
|
ARTICLE 3 |
|
|
General Definitions |
|
|
1. For the purposes of this Convention, unless the context
otherwise requires:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2. As regards the application of the Convention at any time by
a Contracting State, any term not defined therein shall, unless the
context otherwise requires, have the meaning that it has at that
time under the law of that State for the purposes of the taxes to
which the Convention applies.
|
|
|
ARTICLE 4 |
|
|
Resident |
|
|
1. For the purposes of this Convention, the term ``resident of
a Contracting State'' means:
|
|
|
|
|
|
|
|
|
2. Where by reason of the provisions of paragraph 1 an
individual is a resident of both Contracting States, then his status
shall be determined as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3. Where by reason of the provisions of paragraph 1 a person
other than an individual is a resident of both Contracting States,
the competent authorities of the Contracting States shall
endeavour to settle the question by mutual agreement. In the
absence of such agreement, such person shall be deemed not to
be a resident of either Contracting State for the purposes of
Articles 6 to 21 inclusive and Article 23.
|
|
|
ARTICLE 5 |
|
|
Permanent Establishment |
|
|
1. For the purposes of this Convention, the term ``permanent
establishment'' means a fixed place of business through which
the business of an enterprise is wholly or partly carried on.
|
|
|
2. The term ``permanent establishment'' includes especially:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3. A building site or construction or installation project
constitutes a permanent establishment only if it lasts for more
than twelve months.
|
|
|
4. Notwithstanding the preceding provisions of this Article,
the term ``permanent establishment'' shall be deemed not to
include:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5. Notwithstanding the provisions of paragraphs 1 and 2,
where a person - other than an agent of an independent status
to whom paragraph 6 applies - is acting on behalf of an
enterprise and has, and habitually exercises, in a Contracting
State an authority to conclude contracts in the name of the
enterprise, that enterprise shall be deemed to have a permanent
establishment in that State in respect of any activities which that
person undertakes for the enterprise unless the activities of such
person are limited to those mentioned in paragraph 4 which, if
exercised through a fixed place of business, would not make this
fixed place of business a permanent establishment under the
provisions of that paragraph.
|
|
|
6. An enterprise of a Contracting State shall not be deemed to
have a permanent establishment in the other Contracting State
merely because it carries on business in that other State through
a broker, general commission agent or any other agent of an
independent status, provided that such persons are acting in the
ordinary course of their business.
|
|
|
7. The fact that a company which is a resident of a Contracting
State controls or is controlled by a company which is a resident
of the other Contracting State, or which carries on business in that
other State (whether through a permanent establishment or
otherwise), shall not of itself constitute either company a
permanent establishment of the other.
|
|
|
ARTICLE 6 |
|
|
Income from Immovable Property |
|
|
1. Income derived by a resident of a Contracting State from
immovable property (including income from agriculture or
forestry) situated in the other Contracting State may be taxed in
that other State.
|
|
|
2. The term ``immovable property'' shall have the meaning
which it has under the law of the Contracting State in which the
property in question is situated. The term shall in any case include
property accessory to immovable property, livestock and
equipment used in agriculture and forestry, rights to which the
provisions of general law respecting landed property apply,
buildings, usufruct of immovable property and rights to variable
or fixed payments as consideration for the working of, or the
right to work, mineral deposits, sources and other natural
resources; ships and aircraft shall not be regarded as immovable
property.
|
|
|
3. The provisions of paragraph 1 shall apply to income derived
from the direct use, letting, or use in any other form of immovable
property and to income from the alienation of such property.
|
|
|
4. The provisions of paragraphs 1 and 3 shall also apply to the
income from immovable property of an enterprise and to income
from immovable property used for the performance of
independent personal services.
|
|
|
ARTICLE 7 |
|
|
Business Profits |
|
|
1. The profits of an enterprise of a Contracting State shall be
taxable only in that State unless the enterprise carries on business
in the other Contracting State through a permanent establishment
situated therein. If the enterprise carries on or has carried on
business as aforesaid, the profits of the enterprise may be taxed
in the other State but only so much of them as is attributable to
that permanent establishment.
|
|
|
2. Subject to the provisions of paragraph 3, where an
enterprise of a Contracting State carries on business in the other
Contracting State through a permanent establishment situated
therein, there shall in each Contracting State be attributed to that
permanent establishment the profits which it might be expected
to make if it were a distinct and separate enterprise engaged in the
same or similar activities under the same or similar conditions
and dealing wholly independently with the enterprise of which
it is a permanent establishment.
|
|
|
3. In the determination of the profits of a permanent
establishment, there shall be allowed those deductible expenses
which are incurred for the purposes of the permanent
establishment including executive and general administrative
expenses, whether incurred in the State in which the permanent
establishment is situated or elsewhere.
|
|
|
4. No profits shall be attributed to a permanent establishment
by reason of the mere purchase by that permanent establishment
of goods or merchandise for the enterprise.
|
|
|
5. For the purposes of the preceding paragraphs, the profits to
be attributed to the permanent establishment shall be determined
by the same method year by year unless there is good and
sufficient reason to the contrary.
|
|
|
6. Where profits include items of income which are dealt with
separately in other Articles of this Convention, then the
provisions of those Articles shall not be affected by the
provisions of this Article.
|
|
|
ARTICLE 8 |
|
|
Shipping and Air Transport |
|
|
1. Profits derived by an enterprise of a Contracting State from
the operation of ships or aircraft in international traffic shall be
taxable only in that State.
|
|
|
2. Notwithstanding the provisions of paragraph 1 and of
Article 7, where there is a substantial operation of a ship or
aircraft during a taxation year by an enterprise of a Contracting
State between places within the other Contracting State, that
other State may tax the profits from such operation.
|
|
|
3. With respect to profits derived by the air transport
consortium Scandinavian Airlines System (SAS) the provisions
of paragraph 1 shall apply, but only to such part of the profits as
corresponds to the participation held in that consortium by AB
Aerotransport (ABA), the Swedish partner of Scandinavian
Airlines System (SAS).
|
|
|
4. The provisions of paragraphs 1, 2 and 3 shall also apply to
profits referred to in those paragraphs derived by an enterprise of
a Contracting State from its participation in a pool, a joint
business or an international operating agency.
|
|
|
5. For the purposes of this Article,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ARTICLE 9 |
|
|
Associated Enterprises |
|
|
1. Where
|
|
|
|
|
|
|
|
|
and in either case conditions are made or imposed between the
two enterprises in their commercial or financial relations which
differ from those which would be made between independent
enterprises, then any income which would, but for those
conditions, have accrued to one of the enterprises, but, by reason
of those conditions, have not so accrued, may be included in the
income of that enterprise and taxed accordingly.
|
|
|
2. Where a Contracting State includes in the income of an
enterprise of that State - and taxes accordingly - income on
which an enterprise of the other Contracting State has been
charged to tax in that other State and the income so included is
income which would have accrued to the enterprise of the
first-mentioned State if the conditions made between the two
enterprises had been those which would have been made
between independent enterprises, then that other State shall make
an appropriate adjustment to the amount of tax charged therein
on that income. In determining such adjustment, due regard shall
be had to the other provisions of this Convention and the
competent authorities of the Contracting States shall if necessary
consult each other. The provisions of this paragraph shall not
apply after the expiry of the time limits provided in the national
laws of the State requested to make the adjustment.
|
|
|
ARTICLE 10 |
|
|
Dividends |
|
|
1. Dividends paid by a company which is a resident of a
Contracting State to a resident of the other Contracting State may
be taxed in that other State.
|
|
|
2. However, such dividends may also be taxed in the
Contracting State of which the company paying the dividends is
a resident and according to the laws of that State, but if the
beneficial owner of the dividends is a resident of the other
Contracting State, the tax so charged shall not exceed:
|
|
|
|
|
|
|
|
|
|
|
|
The provisions of this paragraph shall not affect the taxation of
the company in respect of the profits out of which the dividends
are paid.
|
|
|
3. The term ``dividends'' as used in this Article means income
from shares, mining shares, founders' shares or other rights, not
being debt-claims, participating in profits, as well as income
which is subjected to the same taxation treatment as income from
shares by the laws of the State of which the company making the
distribution is a resident.
|
|
|
4. The provisions of paragraph 2 shall not apply if the
beneficial owner of the dividends, being a resident of a
Contracting State, carries on business in the other Contracting
State of which the company paying the dividends is a resident,
through a permanent establishment situated therein, or performs
in that other State independent personal services from a fixed
base situated therein, and the holding in respect of which the
dividends are paid is effectively connected with such permanent
establishment or fixed base. In such case the provisions of Article
7 or Article 14, as the case may be, shall apply.
|
|
|
5. Where a company which is a resident of a Contracting State
derives profits or income from the other Contracting State, that
other State may not impose any tax on the dividends paid by the
company, except insofar as such dividends are paid to a resident
of that other State or insofar as the holding in respect of which the
dividends are paid is effectively connected with a permanent
establishment or a fixed base situated in that other State, nor
subject the company's undistributed profits to a tax on
undistributed profits, even if the dividends paid or the
undistributed profits consist wholly or partly of profits or income
arising in such other State.
|
|
|
6. Nothing in this Convention shall be construed as preventing
a Contracting State from imposing on the earnings of a company
attributable to permanent establishments in that State, a tax in
addition to the tax which would be chargeable on the earnings of
a company which is a resident of that State, provided that the rate
of such additional tax so imposed shall not exceed 5 per cent of
the amount of such earnings which have not been subjected to
such additional tax in previous taxation years. For the purpose of
this provision, the term ``earnings'' means the profits attributable
to such permanent establishments in that State (including gains
from the alienation of property forming part of the business
property, referred to in paragraph 2 of Article 13, of such
permanent establishments) in accordance with Article 7 in a year
and previous years after deducting therefrom:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7. The provisions of paragraph 6 shall also apply with respect
to earnings derived from the alienation of immovable property in
a Contracting State by a company carrying on a trade in
immovable property, whether or not it has a permanent
establishment in that State, but only insofar as these earnings may
be taxed in that State under the provisions of Article 6 or
paragraph 1 of Article 13.
|
|
|
8. Notwithstanding the provisions of paragraph 2, dividends
arising in a Contracting State and paid to an organisation that was
constituted and is operated in the other Contracting State
exclusively to administer or provide benefits under one or more
pension, retirement or other employee benefits plans shall be
exempt from tax in the first-mentioned State provided that:
|
|
|
|
|
|
|
|
|
|
|
|
9. For the purposes of paragraph 8, the term ``approved stock
exchange'' means:
|
|
|
|
|
|
|
|
|
|
|
|
ARTICLE 11 |
|
|
Interest |
|
|
1. Interest arising in a Contracting State and paid to a resident
of the other Contracting State may be taxed in that other State.
|
|
|
2. However, such interest may also be taxed in the Contracting
State in which it arises and according to the laws of that State, but
if the beneficial owner of the interest is a resident of the other
Contracting State, the tax so charged shall not exceed 10 per cent
of the gross amount of the interest.
|
|
|
3. Notwithstanding the provisions of paragraph 2, interest
arising in a Contracting State and paid to a resident of the other
Contracting Sate who is the beneficial owner thereof shall be
taxable only in that other State to the extent that such interest:
|
|
|
|
|
|
|
|
|
|
|
|
4. Notwithstanding the provisions of paragraph 2:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5. The term ``interest'' as used in this Article means income
from debt-claims of every kind, whether or not secured by
mortgage, and in particular, income from government securities
and income from bonds or debentures, including premiums and
prizes attaching to such securities, bonds or debentures, as well
as income which is subjected to the same taxation treatment as
income from money lent by the laws of the State in which the
income arises. However, the term ``interest'' does not include
income dealt with in Article 8 or Article 10.
|
|
|
6. The provisions of paragraph 2 shall not apply if the
beneficial owner of the interest, being a resident of a Contracting
State, carries on business in the other Contracting State in which
the interest arises through a permanent establishment situated
therein, or performs in that other State independent personal
services from a fixed base situated therein, and the debt-claim in
respect of which the interest is paid is effectively connected with
such permanent establishment or fixed base. In such case the
provisions of Article 7 or Article 14, as the case may be, shall
apply.
|
|
|
7. Interest shall be deemed to arise in a Contracting State when
the payer is a resident of that State. Where, however, the person
paying the interest, whether he is a resident of a Contracting State
or not, has in a Contracting State a permanent establishment or
a fixed base in connection with which the indebtedness on which
the interest is paid was incurred, and such interest is borne by
such permanent establishment or fixed base, then such interest
shall be deemed to arise in the State in which the permanent
establishment or fixed base is situated.
|
|
|
8. Where, by reason of a special relationship between the
payer and the beneficial owner or between both of them and some
other person, the amount of the interest, having regard to the
debt-claim for which it is paid, exceeds the amount which would
have been agreed upon by the payer and the beneficial owner in
the absence of such relationship, the provisions of this Article
shall apply only to the last-mentioned amount. In such case, the
excess part of the payments shall remain taxable according to the
laws of each Contracting State, due regard being had to the other
provisions of this Convention.
|
|
|
ARTICLE 12 |
|
|
Royalties |
|
|
1. Royalties arising in a Contracting State and paid to a
resident of the other Contracting State may be taxed in that other
State.
|
|
|
2. However, such royalties may also be taxed in the
Contracting State in which they arise and according to the laws
of that State, but if the beneficial owner of the royalties is a
resident of the other Contracting State, the tax so charged shall
not exceed 10 per cent of the gross amount of the royalties.
|
|
|
3. Notwithstanding the provisions of paragraph 2,
|
|
|
|
|
|
|
|
|
arising in a Contracting State and paid to a resident of the other
Contracting State who is the beneficial owner thereof shall be
taxable only in that other State.
|
|
|
4. The term ``royalties'' as used in this Article means payments
of any kind received as a consideration for the use of, or the right
to use, any copyright, patent, trade mark, design or model, plan,
secret formula or process or other intangible property, or for the
use of, or the right to use, industrial, commercial or scientific
equipment, or for information concerning industrial, commercial
or scientific experience, and includes payments of any kind in
respect of motion picture films and works on film, videotape or
other means of reproduction for use in connection with
television.
|
|
|
5. The provisions of paragraphs 2 and 3 shall not apply if the
beneficial owner of the royalties, being a resident of a
Contracting State, carries on business in the other Contracting
State in which the royalties arise through a permanent
establishment situated therein, or performs in that other State
independent personal services from a fixed base situated therein,
and the right or property in respect of which the royalties are paid
is effectively connected with such permanent establishment or
fixed base. In such case the provisions of Article 7 or Article 14,
as the case may be, shall apply.
|
|
|
6. Royalties shall be deemed to arise in a Contracting State
when the payer is a resident of that State. Where, however, the
person paying the royalties, whether he is a resident of a
Contracting State or not, has in a Contracting State a permanent
establishment or a fixed base in connection with which the
obligation to pay the royalties was incurred, and such royalties
are borne by such permanent establishment or fixed base, then
such royalties shall be deemed to arise in the State in which the
permanent establishment or fixed base is situated.
|
|
|
7. Where, by reason of a special relationship between the
payer and the beneficial owner or between both of them and some
other person, the amount of the royalties, having regard to the
use, right or information for which they are paid, exceeds the
amount which would have been agreed upon by the payer and the
beneficial owner in the absence of such relationship, the
provisions of this Article shall apply only to the last-mentioned
amount. In such case, the excess part of the payments shall
remain taxable according to the laws of each Contracting State,
due regard being had to the other provisions of this Convention.
|
|
|
ARTICLE 13 |
|
|
Capital Gains |
|
|
1. Gains derived by a resident of a Contracting State from the
alienation of immovable property referred to in Article 6 and
situated in the other Contracting State may be taxed in that other
State.
|
|
|
2. Gains from the alienation of movable property forming part
of the business property of a permanent establishment which an
enterprise of a Contracting State has in the other Contracting
State or of movable property pertaining to a fixed base available
to a resident of a Contracting State in the other Contracting State
for the purpose of performing independent personal services,
including such gains from the alienation of such a permanent
establishment (alone or with the whole enterprise) or of such a
fixed base may be taxed in that other State.
|
|
|
3. Gains from the alienation of ships or aircraft operated in
international traffic by an enterprise of a Contracting State, or
movable property pertaining to the operation of such ships or
aircraft, shall be taxable only in that State.
|
|
|
4. Gains derived by a resident of a Contracting State from the
alienation of:
|
|
|
|
|
|
|
|
|
may be taxed in that other State. For the purposes of this
paragraph, the term ``immovable property'' includes the shares
of a company referred to in subparagraph (a) or an interest in a
partnership, trust or estate referred to in subparagraph (b) but
does not include any property, other than rental property, in
which the business of the company, partnership, trust or estate is
carried on.
|
|
|
5. Gains from the alienation of any property, other than that
referred to in paragraphs 1, 2, 3 and 4, shall be taxable only in the
Contracting State of which the alienator is a resident.
|
|
|
6. The provisions of paragraph 5 shall not affect the right of a
Contracting State to levy, according to its law, a tax on gains from
the alienation of any property derived by an individual who is a
resident of the other Contracting State and has been a resident of
the first-mentioned State at any time during the six years
immediately preceding the alienation of the property.
|
|
|
ARTICLE 14 |
|
|
Independent Personal Services |
|
|
1. Income derived by an individual who is a resident of a
Contracting State in respect of professional services or other
activities of an independent character shall be taxable only in that
State unless he has a fixed base regularly available to him in the
other Contracting State for the purpose of performing his
activities. If he has or had such a fixed base, the income may be
taxed in the other State but only so much of it as is attributable to
that fixed base.
|
|
|
2. The term ``professional services'' includes especially
independent scientific, literary, artistic, educational or teaching
activities as well as the independent activities of physicians,
lawyers, engineers, architects, dentists and accountants.
|
|
|
ARTICLE 15 |
|
|
Dependent Personal Services |
|
|
1. Subject to the provisions of Articles 16, 18 and 19, salaries,
wages and other remuneration derived by a resident of a
Contracting State in respect of an employment shall be taxable
only in that State unless the employment is exercised in the other
Contracting State. If the employment is so exercised, such
remuneration as is derived therefrom may be taxed in that other
State.
|
|
|
2. Notwithstanding the provisions of paragraph 1,
remuneration derived by a resident of a Contracting State in
respect of an employment exercised in the other Contracting
State shall be taxable only in the first-mentioned State if:
|
|
|
|
|
|
|
|
|
|
|
|
3. Notwithstanding the preceding provisions of this Article,
remuneration in respect of an employment exercised aboard a
ship or aircraft operated in international traffic by an enterprise
of a Contracting State, may be taxed in that State. Where a
resident of Sweden derives remuneration in respect of an
employment exercised aboard an aircraft operated in
international traffic by the air transport consortium Scandinavian
Airlines System (SAS), such remuneration shall be taxable only
in Sweden.
|
|
|
ARTICLE 16 |
|
|
Directors' Fees |
|
|
Directors' fees and other similar payments derived by a
resident of a Contracting State in his capacity as a member of the
board of directors or a similar organ of a company which is a
resident of the other Contracting State, may be taxed in that other
State.
|
|
|
ARTICLE 17 |
|
|
Artistes and Sportsmen |
|
|
1. Notwithstanding the provisions of Articles 7, 14 and 15,
income derived by a resident of a Contracting State as an
entertainer, such as a theatre, motion picture, radio or television
artiste, or a musician, or as a sportsman, from his personal
activities as such exercised in the other Contracting State, may be
taxed in that other State.
|
|
|
2. Where income in respect of personal activities exercised by
an entertainer or a sportsman in his capacity as such accrues not
to the entertainer or sportsman himself but to another person, that
income may, notwithstanding the provisions of Articles 7, 14 and
15, be taxed in the Contracting State in which the activities of the
entertainer or sportsman are exercised.
|
|
|
3. The provisions of paragraph 2 shall not apply if it is
established that neither the entertainer or the sportsman nor
persons related thereto, participate directly or indirectly in the
control or in the profits of the person referred to in that paragraph.
|
|
|
ARTICLE 18 |
|
|
Pensions and Annuities |
|
|
1. Pensions, including disbursements under the social security
legislation, and annuities arising in a Contracting State and paid
to a resident of the other Contracting State may be taxed in the
State in which they arise.
|
|
|
2. Pensions, including disbursements under the social security
legislation, and annuities shall be deemed to arise in a
Contracting State when the payer is a resident of that State.
|
|
|
3. Notwithstanding anything in this Convention:
|
|
|
|
|
|
|
|
|
ARTICLE 19 |
|
|
Government Service |
|
|
1. (a) Salaries, wages and similar remuneration, other than a
pension, paid by a Contracting State or a political subdivision or
a local authority thereof to an individual in respect of services
rendered to that State or subdivision or authority shall be taxable
only in that State.
|
|
|
|
|
|
|
|
|
|
|
|
2. The provisions of paragraph 1 shall not apply to salaries,
wages and similar remuneration in respect of services rendered
in connection with a business carried on by a Contracting State
or a political subdivision or a local authority thereof.
|
|
|
ARTICLE 20 |
|
|
Students |
|
|
Payments which a student, apprentice or business trainee who
is, or was immediately before visiting a Contracting State, a
resident of the other Contracting State and who is present in the
first-mentioned State solely for the purpose of his education or
training receives for the purpose of his maintenance, education
or training shall not be taxed in that State, provided that such
payments arise from sources outside that State.
|
|
|
ARTICLE 21 |
|
|
Other Income |
|
|
1. Subject to the provisions of paragraph 2, items of income
of a resident of a Contracting State, wherever arising, not dealt
with in the foregoing Articles of this Convention shall be taxable
only in that State.
|
|
|
2. However, if such income is derived by a resident of a
Contracting State from sources in the other Contracting State,
such income may also be taxed in the State in which it arises, and
according to the law of that State. Where such income is income
from an estate or a trust which is a resident of Canada, other than
a trust to which contributions were deductible, the tax so charged
in Canada shall, provided that the income is taxable in Sweden,
not exceed 15 per cent of the gross amount of the income.
|
|
|
3. The provisions of paragraph 1 shall not apply to income,
other than income from immovable property, as defined in
paragraph 2 of Article 6, if the recipient of such income, being a
resident of a Contracting State, carries on business in the other
Contracting State through a permanent establishment situated
therein, or performs in that other State independent personal
services from a fixed base situated therein, and the right or
property in respect of which the income is paid is effectively
connected with such permanent establishment or fixed base. In
such case the provisions of Article 7 or Article 14, as the case may
be, shall apply.
|
|
|
ARTICLE 22 |
|
|
Elimination of Double Taxation |
|
|
1. In the case of Canada, double taxation shall be avoided as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
2. In the case of Sweden, double taxation shall be avoided as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
3. For the purposes of this Article, profits, income or gains of
a resident of a Contracting State which may be taxed in the other
Contracting State in accordance with this Convention shall be
deemed to arise from sources in that other State.
|
|
|
ARTICLE 23 |
|
|
Non-Discrimination |
|
|
1. Nationals of a Contracting State shall not be subjected in the
other Contracting State to any taxation or any requirement
connected therewith which is other or more burdensome than the
taxation and connected requirements to which nationals of that
other State in the same circumstances are or may be subjected.
This provision shall, notwithstanding the provisions of Article 1,
also apply to individuals who are not residents of one or both of
the Contracting States.
|
|
|
2. The taxation on a permanent establishment which an
enterprise of a Contracting State has in the other Contracting
State shall not be less favourably levied in that other State than
the taxation levied on enterprises of that other State carrying on
the same activities.
|
|
|
3. Nothing in this Article shall be construed as obliging a
Contracting State to grant to residents of the other Contracting
State any personal allowances, reliefs and reductions for taxation
purposes on account of civil status or family responsibilities
which it grants to its own residents.
|
|
|
4. Except where the provisions of paragraph 1 of Article 9,
paragraph 8 of Article 11, or paragraph 7 of Article 12 apply,
interest, royalties and other disbursements paid by an enterprise
of a Contracting State to a resident of the other Contracting State
shall, for the purposes of determining the taxable profits of such
enterprise, be deductible under the same conditions as if they had
been paid to a resident of the first-mentioned State.
|
|
|
5. The provisions of paragraph 4 shall not affect the operation
of any provision of the taxation laws of a Contracting State:
|
|
|
|
|
|
|
|
|
6. 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 be
subjected in the first-mentioned State to any taxation or any
requirement connected therewith which is other or more
burdensome than the taxation and connected requirements to
which other similar enterprises of the first-mentioned State, the
capital of which is wholly or partly owned or controlled, directly
or indirectly, by one or more residents of a third State, are or may
be subjected.
|
|
|
7. In this Article, the term ``taxation'' means taxes which are
the subject of this Convention.
|
|
|
ARTICLE 24 |
|
|
Mutual Agreement Procedure |
|
|
1. Where a person considers that the actions of one or both of
the Contracting States result or will result for him in taxation not
in accordance with the provisions of this Convention, he may,
irrespective of the remedies provided by the domestic law of
those States, address to the competent authority of the
Contracting State of which he is a resident an application in
writing stating the grounds for claiming the revision of such
taxation.
|
|
|
2. The competent authority referred to in paragraph 1 shall
endeavour, if the objection appears to it to be justified and if it is
not itself able to arrive at a satisfactory solution, to resolve the
case by mutual agreement with the competent authority of the
other Contracting State, with a view to the avoidance of taxation
not in accordance with the Convention.
|
|
|
3. The competent authorities of the Contracting States shall
endeavour to resolve by mutual agreement any difficulties or
doubts arising as to the interpretation or application of the
Convention.
|
|
|
4. The competent authorities of the Contracting States may
consult together for the elimination of double taxation in cases
not provided for in the Convention and may communicate with
each other directly for the purpose of applying the Convention.
|
|
|
ARTICLE 25 |
|
|
Exchange of Information |
|
|
1. The competent authorities of the Contracting States shall
exchange such information as is relevant for carrying out the
provisions of this Convention or of the domestic laws of the
Contracting States concerning taxes covered by the Convention
insofar as the taxation thereunder is not contrary to the
Convention. The exchange of information is not restricted by
Article 1. Any information received by a Contracting State shall
be treated as secret in the same manner as information obtained
under the domestic laws of that State and shall be disclosed only
to persons or authorities (including courts and administrative
bodies) involved in the assessment or collection of, the
enforcement in respect of, or the determination of appeals in
relation to, the taxes covered by the Convention. Such persons or
authorities shall use the information only for such purposes.
They may disclose the information in public court proceedings
or in judicial decisions.
|
|
|
2. In no case shall the provisions of paragraph 1 be construed
so as to impose on a Contracting State the obligation:
|
|
|
|
|
|
|
|
|
|
|
|
3. If information is requested by a Contracting State in
accordance with this Article, the other Contracting State shall
endeavour to obtain the information to which the request relates
in the same way as if its own taxation was involved
notwithstanding the fact that the other State does not, at that time,
need such information. If specifically requested by the
competent authority of a Contracting State, the competent
authority of the other Contracting State shall endeavour to
provide information under this Article in the form requested,
such as depositions of witnesses and copies of unedited original
documents (including books, papers, statements, records,
accounts or writings), to the same extent such depositions and
documents can be obtained under the laws and administrative
practices of that other State with respect to its own taxes.
|
|
|
4. For the purposes of this Article, the Convention shall,
notwithstanding the provisions of Article 2, apply to:
|
|
|
|
|
|
|
|
|
ARTICLE 26 |
|
|
Diplomatic Agents and Consular Officers |
|
|
1. Nothing in this Convention shall affect the fiscal privileges
of diplomatic agents or consular officers under the general rules
of international law or under the provisions of special
agreements.
|
|
|
2. Notwithstanding Article 4, an individual who is a member
of a diplomatic mission, consular post or permanent mission of
a Contracting State which is situated in the other Contracting
State or in a third State shall be deemed for the purposes of the
Convention to be a resident of the sending State if he is liable in
the sending State to the same obligations in relation to tax on his
total income as are residents of that sending State.
|
|
|
3. The Convention shall not apply to international
organizations, to organs or officials thereof and to persons who
are members of a diplomatic mission, consular post or permanent
mission of a third State or group of States, being present in a
Contracting State and who are not liable in either Contracting
State to the same obligations in relation to tax on their total
income as are residents thereof.
|
|
|
ARTICLE 27 |
|
|
Miscellaneous Rules |
|
|
1. The provisions of this Convention shall not be construed to
restrict in any manner any exemption, allowance, credit or other
deduction accorded:
|
|
|
|
|
|
|
|
|
2. Nothing in the Convention shall be construed as preventing
a Contracting State from imposing a tax on amounts included in
the income of a resident of that State with respect to a partnership,
trust, or controlled foreign affiliate, in which he has an interest.
|
|
|
3. Contributions in a year in respect of services rendered in that
year paid by, or on behalf of, an individual who is a resident of
a Contracting State to a pension plan that is recognized for tax
purposes in the other Contracting State shall, during a period not
exceeding in the aggregate 60 months, be treated in the same way
for tax purposes in the first-mentioned State as a contribution
paid to a pension plan that is recognized for tax purposes in that
first-mentioned State, provided that:
|
|
|
|
|
|
|
|
|
For the purposes of this paragraph, ``pension plan'' includes a
pension plan created under the social security system in a
Contracting State.
|
|
|
4. For the purposes of paragraph 3 of Article XXII
(Consultation) of the General Agreement on Trade in Services,
the Contracting States agree that, notwithstanding that
paragraph, any dispute between them as to whether a measure
falls within the scope of this Convention may be brought before
the Council for Trade in Services, as provided by that paragraph,
only with the consent of both Contracting States. Any doubt as
to the interpretation of this paragraph shall be resolved under
paragraph 3 of Article 24 or, failing agreement under that
procedure, pursuant to any other procedure agreed to by both
Contracting States.
|
|
|
ARTICLE 28 |
|
|
Entry into Force |
|
|
1. This Convention shall be ratified and the instruments of
ratification shall be exchanged at Ottawa as soon as possible.
|
|
|
2. The Convention shall enter into force upon the exchange of
instruments of ratification and its provisions shall have effect:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3. The provisions of the Convention of 14th October, 1983
between Canada and Sweden for the Avoidance of Double
Taxation and the Prevention of Fiscal Evasion with respect to
Taxes on Income and on Capital shall cease to have effect:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4. The Agreement dated 21st November, 1929, between
Canada and Sweden providing for the reciprocal exemption
from income tax on earnings derived from the operation of ships
is terminated on the date on which this Convention enters into
force.
|
|
|
ARTICLE 29 |
|
|
Termination |
|
|
This Convention shall continue in effect indefinitely but either
Contracting State may, on or before June 30 of any calendar year
after the year of the exchange of instruments of ratification, give
written notice of termination to the other Contracting State and
in such event, the Convention shall cease to have effect:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IN WITNESS WHEREOF the undersigned, duly authorized
to that effect, have signed this Convention.
|
|
|
DONE in duplicate at Stockholm, this 27th day of August
1996 in the English, French and Swedish languages, each
version being equally authentic.
|
|
|
FOR THE GOVERNMENT FOR THE
GOVERNMENT OF CANADA: OF SWEDEN:
|
|
|
Lloyd Axworthy Lena Hjelm-Wallén
|
|