prop · GL0330 · 1998-01-01 00:00:00 — (1) Capital represented by im- movable property referred to in Article 6, owned by a resident of a and situated in the other , may be taxed in that other State. (2) Capital represented by movable property forming part of the business property of a per- manent which an enterprise of a has in the other or by movable property pertaining to a fixed base available to a resident of a in the other for the purpose of performing independent personal services, may be taxed in that other State. (3) Capital represented by ships and aircraft operated in internatio- nal traffic by an enterprise of a and by movable property pertaining to the operation of such ships and aircraft, shall be taxable only in that State. With respect to capital owned by the Swedish, Danish and Norwe- gian air transport consortium Scan- dinavian () the provisions of this Article shall apply only to such part of the capital as relates to the participation held in that consortium by , the Swedish partner of SAS. Elimination of double taxation (1) The laws in force in either of the will continue to govern the taxation of income in the respective Contracting States except where provisions to the con- trary are made in this Convention. (2) In the case of , double taxation shall be avoided as follows: (a) Where a resident of derives income which, in accord- ance with the provisions of this Convention, may be taxed in , allow as a de- duction from the tax on the income of that resident an amount equal to the income tax paid in whether directly or by way of deduction at source. Such amount shall not however exceed that part of the income tax, as computed before the deduction is given, which is attributable to the income which may be taxed in . (b) Where a resident of derives income which, in accord- ance with the provisions of this Convention, shall be taxable only in , may, when deter- mining the graduated rate of Indian tax, take into account the income which shall be taxable only in . (c) Where a resident of owns assets which, in accordance with the provisions of this Convention, may be taxed in , allow as a deduction from tax on such assets an amount equal to the tax on net wealth paid in in respect of such assets. Such deduction shall not, however, exceed that part of the Indian tax on net wealth as computed before the deduction is given which is appropriate to the assets which may be taxed in . (3) In the case of , double taxation shall be avoided as follows: (a) Where a resident of derives income which under the laws of and in accordance with the provisions of this Con- vention may be taxed in , allow subject to the provisions of the laws of concerning credit for foreign tax (as it may be amended from time to time without changing the general principle hereof) as a deduction from the tax on such income, an amount equal to the Indian tax paid in respect of such income. (b) Where a resident of derives income which, in accord- ance with the provisions of this Convention, shall be taxable only in , may, when determi- ning the graduated rate of Swedish tax, take into account the income which shall be taxable only in . (c) Notwithstanding the provi- sions of sub-paragraph (a) of this paragraph, dividends paid by a company which is a resident of to a company which is a resi- dent of be exempt from Swedish tax according to the provisions of Swedish law govern- ing the exemption of tax on divi- dends paid to Swedish companies by subsidiaries abroad. (d) For the purposes of sub-para- graph (a) of this paragraph the term "Indian tax paid" shall be deemed to include the Indian tax which would have been paid but for any exemption or reduction of tax granted under incentive provisions contained in the Indian law designed to promote economic development to the extent that such exemption or reduction is granted for profits from industrial or manu- facturing activities or from agri- culture, fishing or tourism (in- cluding restaurants and hotels) provided that the activities have been carried out within . For the purpose of sub-paragraph (c) of this paragraph a tax of 15 per cent calculated on a Swedish tax base shall be considered to have been paid for such activities under those conditions mentioned in the pre- vious sentence. The competent authorities may agree to extend the application of this provision also to other activi- ties. (e) The provisions of paragraph (d) shall apply only for the first ten years during which this Convention is effective. This period may be extended by a mutual agreement between the competent authorities. (f) Where a resident of owns assets which, in accordance with the provisions of this Con- vention, may be taxed in , allow as a deduction from tax on such assets an amount equal to the tax on net wealth paid in in respect of such assets. Such deduction shall not, however, exceed that part of the Swedish tax on net wealth as computed before the deduction is given which is appropriate to the assets which may be taxed in . (1) Nationals of a not be subjected in the other to any taxation or any requirement connected therewith, which is other or more burdensome than the taxation and connected require- ments 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 persons who are not residents of one or both of the Contracting States. (2) The taxation on a permanent which an enterprise of a has in the other not be less favourably levied in that other State than the taxation levied on enterprises of that other State carrying on the same activities. This provision shall not be construed as obliging a to grant to residents of the other any per- sonal allowances, reliefs or re- ductions for taxation purposes on account of civil status or family responsibilities which it grants to its own residents. Further this provision shall not be construed as preventing a from charging the profits of a permanent which a company of the other has in the first-mentioned State at a rate of tax which is higher than that imposed on the profits of a similar company of the first-mentioned , nor as being in conflict with the provisions of paragraph 3 of Article 7 of this Convention. (3) Except where the provisions of Article 9, paragraph (7) of Article 11, or paragraph (6) of Article 12, apply, interest, royalties and other disbursements paid by an enterprise of a to a resident of the other , for the purpose 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. Similarly, any debts of an enterprise of a Con- tracting State to a resident of the other , for the purpose of determining the taxable capital of such enterprise, be deductible under the same conditions as if they had been contracted to a resident of the first- mentioned State. (4) Enterprises of a , the capital of which is or partly owned or controlled, directly or indirectly, by one or more residents of the other , shall not be subject in the first-mentioned State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected require- ments to which other similar enterprises of the first-mentioned State are or may be subjected. (5) The provisions of this Article shall, notwithstanding the provi- sions of Article 2, apply to taxes of every kind and description. (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, irres- pective of the remedies provided by the domestic law of those States, present his case to the competent authority of the of which he is a resident or, if his case comes under paragraph (1) of Article 25, to that of the of which he is a national. The case must be pre- sented within three years from the first notification of the action resulting in taxation not in accordance with the provisions of the Convention. (2) The competent authority 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 com- petent authority of the other , with a view to the avoidance of taxation which is not in accordance with the Convention. agreement reach- ed shall be implemented notwith- standing any time limits in the domestic law of the Contracting States. (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. They may also consult together for the elimination of double taxation in cases not provided for in the Convention. (4) The competent authorities of the Contracting States may com- municate with each other directly for the purpose of reaching an agreement in the sense of the preceding paragraphs. When it seems advisable in order to reach agreement to have an oral exchange of opinions, such exchange may take place through a Commission consisting of representatives of the competent authorities of the Contracting States. (1) The competent authorities of the Contracting States shall ex- change such information (including documents), as is necessary for carrying out the provisions of this Convention or of the domestic laws of the Contracting States con- cerning taxes covered by the Convention, insofar as the taxation thereunder is not contrary to the Convention, in particular for the prevention of fraud or evasion of such taxes. The exchange of information is not restricted by Article 1. information received by a be treated as secret in the same as information obtained under the domestic laws of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the assessment or collection of, the enforcement or prosecution 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 the obligation: (a) to carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State; (b) to supply information which is not obtainable under the laws or in the normal course of the administration of that or of the other Contracting State; (c) to supply information which would disclose any trade, business, industrial, commercial or professio- nal secret or trade process, or in- formation, the disclosure of which would be contrary to public policy (ordre public). (1) The Contracting States under- take to lend assistance to each other in the collection of taxes to which this Convention relates, together with interest, costs, and civil penal- ties relating to such taxes, referred to in this Article as a "revenue claim". (2) Request for assistance by the competent authority of a Con- tracting State in the collection of a revenue claim shall include a certi- fication by such authority that, under the laws of that State, the revenue claim has been finally determined. For the purposes of this Article, a revenue claim is finally determined when a has the right under its internal law to collect the revenue claim and the taxpayer has no further rights to restrain collection. (3) Amount collected by the competent authority of a Con- tracting State pursuant to this Article shall be forwarded to the competent authority of the other . However, the first-mentioned be entitled to reimbursement of costs, if any, incurred in the course of rendering such assistance to the extent mutually agreed between the competent authorities of the two States. (4) Nothing in this Article shall be construed as imposing on either the obligation to carry out administrative measures of a different nature from those used in the collection of its own taxes or those which would be contrary to its public policy. Members of diplomatic missions and consular posts Nothing in this Convention shall affect the fiscal privileges of members of diplomatic missions and consular posts under the general rules of international law or under the provisions of special agreements. (1) The Contracting States shall notify each other in writing, through diplomatic channels, the completion of the procedures required by the respective laws for the entry into force of this Convention. (2) This Convention shall enter into force thirty days after the receipt of the latter of the notifications referred to in para- graph (1) of this Article. (3) The provisions of this Con- vention shall have effect: (a) in , (i) in respect of income arising in any fiscal year beginning on or after the first day of April next following the calendar year in which the Convention enters into force; (ii) in respect of capital which is held on the last day of any fiscal year beginning on or after the first day of April following the calendar year in which this Convention enters into force; (b) in , (i) in respect of taxes on income, on income derived on or after the first day of next following that of the entry into force of the Conven- tion; (ii) in respect of tax on net wealth, for tax which is assessed on or after the second calendar year following that in which the Convention enters into force. (4) The Convention of 7 1988 between the Government of the Republic of and the Government of the Kingdom of for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital with Protocol shall terminate upon the coming into force of this Convention and accompanying Protocol. The pro- visions of the said 1988 Convention with Protocol shall cease to have effect from the date on which the corresponding provisions of this Convention and accompanying Protocol shall, for the first time, have effect according to the provisions of paragraph (2) of this Article. This Convention shall remain in force until terminated by a Con- tracting State. Either may terminate the Conven- tion, through diplomatic channels, by giving written notice of termi- nation at least six months before the end of any calendar year. In such case, the Convention shall cease to have effect: (a) in , (i) in respect of income arising in any fiscal year beginning on or after the first day of April following the calendar year in which the notice of termination is given; (ii) in respect of capital which is held on the last day of any fiscal year beginning on or after the first day of April following the calendar year in which the notice of termi- nation is given; (b) in , (i) in respect of taxes on income, on income derived on or after the first day of next following the end of the six months period; (ii) in respect of tax on net wealth, for tax which is assessed in or after the second calendar year following the end of the six months period. In witness whereof the under- signed being duly authorized there- to have signed this Convention. Done in duplicate at , this 24th day of 1997, in the Swedish, Hindi and English langua- ges, all three texts being equally authentic. In case of divergence between the texts the English text shall be the operative one. For the Government of the Kingdom om For the Government of the Republic of At the signing of the Convention between the Government of the Kingdom of and the Government of the Republic of for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital, the undersigned have agreed that the following shall form an integral part of the Convention: With reference to Article 2: The fees paid under the Legislation and according to the provisions of the Act (1990:659) on Special salary tax on earned income and the Act (1991:687) on Special salary tax on pension costs are not included in this Convention. With reference to Article 7: In respect of paragraphs (1) and (2) of Article 7, where an enterprise of one of the Contracting States sells goods or merchandise or on business in the other through a permanent situated therein, the profits of that permanent not be determined on the basis of the total amount received by the enterprise, but shall be determined only on the basis of the remuneration which is attributable to the actual activity of the permanent for such sales or business. Especially, in the case of contracts for the survey, supply, installation or construction of industrial, commercial or scientific equipment or premises, or of public works, when the enter- prise has a permanent establish- ment, the profits of such permanent not be deter- mined on the basis of the total amount of the contract, but shall be determined only on the basis of that part of the contract which is effectively carried out by the permanent in the where the perma- nent is situated. With reference to Articles 10, 11 and 12: In respect of Articles 10 (Divi- dends), 11 (Interest) and 12 (Royal- ties and fees for technical services), if under any Convention, Agree- ment or Protocol between and a third State which is a member of the , limits its taxation at source on dividends, interest, royalties or fees for technical services to a rate lower or a scope more restricted than the rate or scope provided for in this Con- vention on the said items of income, the same rate or scope as provided for in that Convention, Agreement or Protocol on the said items of income shall also apply under this Convention. With reference to Article 25: The taxation in of per- manent of Swedish companies, shall in no case differ more from the taxation of similar Indian companies than is provided by the Indian law on the date of signature of this Convention. In witness whereof the under- signed being duly authorized there- to have signed this Protocol. Done in duplicate at , this 24th day of 1997, in the Swedish, Hindi and English langua- ges, all three texts being equally authentic. In case of divergence between the texts the English text shall be the operative one. For the Government of the Kingdom of For the Government of the Republic of 3 Ärendet och dess beredning undertecknades nu gällande dubbelbeskattningsavtal och ett därtill hörande protokoll mellan och beträffande skatter på inkomst och förmögenhet. Avtalet godkändes av (prop. 1988/89:49, 1988/89:SkU7, rskr. 1988/89:47) och tillämpades . Förhandlingar om ett nytt avtal skedde i . Ett avtalsutkast paraferades . Utkastet var upprättat på engelska. En svensk text och en text på hindi har därefter upprättats. Den engelska och den svenska texten har remitterats till Kammarrätten i och . Remissinstanserna har uttryckt önske- mål om att vissa avtalsbestämmelser närmare förklaras i propositionen. Avtalet undertecknades i . Ett förslag till lag om dubbelbeskattningsavtal mellan och har upprättats inom . Lagrådet Såsom framgår av 2 § i den föreslagna lagen skall avtalets beskattnings- regler tillämpas endast i den mån de medför inskränkning av den skattskyldighet i som annars skulle föreligga. Regeringen anser på grund härav och på grund av förslagets beskaffenhet att Lagrådets hörande skulle sakna betydelse. Lagrådets yttrande har därför inte inhämtats. 4 Lagförslaget Lagförslaget består dels av paragraferna 1 3, dels av en bilaga som innehåller den överenskomna avtalstexten på svenska och engelska språken. Avtalet består förutom av dessa två texter också av en text på hindi. Endast den svenska och engelska texten har bilagts lagförslaget. Den på hindi avfattade texten finns tillgänglig på . I förslaget till lag föreskrivs att avtalet skall gälla som lag här i landet (1 §). Vidare regleras där frågan om hur avtalets beskattningsregler skall tillämpas i förhållande till annan skattelag (2 §). Bestämmelsen innebär att beskattning inte kan ske på grund av avtalets regler. Endast om det i annan skattelag såsom kommunalskattelagen (1928:370), KL, lagen (1947:576) om statlig inkomstskatt, , etc. föreskrivits en skattskyldig- het kan beskattning komma i fråga. I fråga om inkomst som skall undantas från svensk skatt har enligt en progressionsregel i avtalet (art. 24 punkt 3 b) rätt att höja skatteuttaget på den skattskyldiges övriga inkomster. Av flera skäl, bl.a. förenkling av regelsystemet och för att minska arbetsbördan för skatte- myndigheterna, avstår emellertid regelmässigt från att utnyttja denna möjlighet. Ytterligare ett skäl är att det bortfall av skatt som blir följden av en utebliven progressionsuppräkning är försumbar ur statsfinansiell synpunkt. Dessa skäl motiverar ett avstående av pro- gressionsuppräkningen även i förhållande till . I 3 § föreskrivs därför att inkomst som enligt avtalet är undantagen från beskattning i inte skall tas med vid taxeringen, dvs. någon progressions- uppräkning skall inte ske. Enligt art. 30 i avtalet skall de avtalsslutande staterna underrätta varandra när de konstitutionella åtgärder vidtagits som krävs för att avtalet skall träda i kraft. Avtalet träder i kraft efter den dag då den sista underrättelsen tagits emot. Det är således inte möjligt att nu avgöra avtalet kommer att träda i kraft. I lagförslaget har därför föreslagits att lagen träder i kraft den dag regeringen be- stämmer. 5 Översiktligt om inkomstskattesystemet i 5.1 Bolagsbeskattningen 5.1.1 Allmänt Bolag som är hemmahörande ( resident ) i beskattas där för i princip all inkomst oavsett varifrån den härrör. Den ordinarie bolags- skattesatsen är . För filialer till bolag som inte är hemmahörande i ( non-resident ) är den ordinarie skattesatsen på inkomst på inkomst som härrör från . 5.1.2 Utdelning, ränta och royalty På ränte- och royaltybetalningar samt för ersättningar för tekniska tjänster som betalas till bolag som inte är hemmahörande i utgår källskatt . 5.1.3 Förluster Avdrag för förlust medges i allmänhet mot vinster som följer närmast efter förluståret ( carrry-forward ). 5.1.4 Investeringsfrämjande åtgärder I likhet med många andra länder har en lagstiftning som syftar till att främja investeringar. Genom denna lagstiftning ges vissa typer av verksamhet särskilt förmånlig behandling i skattehänseende. Bestäm- melserna gäller bl.a. viss typ av jordbruks- och byggnadsverksamhet, ex- port-, gruv- och varvsindustri m.m. Förmånerna ges i form av reduktion av eller i vissa fall total befrielse, , från inkomstskatt. 5.2 Fysiska personer För beskattningen av fysiska personer i är bosättningsbegreppet av stor betydelse. Man skiljer mellan ordinarily resident och resident . Fysiska personer som är ordinarily resident i är liksom där hemmahörande bolag skattskyldiga i för all inkomst oavsett varifrån den härrör. Fysiska personer som endast är resident i beskattas däremot inte för inkomst som förvärvats i utlandet under förutsättning att inkomsten inte överförs till samt att inkomsten heller inte härrör från verksamhet som kontrolleras från eller yrkesverksamhet som bedrivs därifrån. Fysisk person anses i regel bosatt (resident) i , om han vistats där minst närmast före inkomståret. Detta gäller också i fråga om fysisk person som vistats i minst närmast före inkomståret och har vistats där under tidsperiod eller tidsperioder som sammanlagt uppgår närmast . För att en fysisk person skall anses vara ordinarily resident krävs förutom det ovan angivna även att personen varit bosatt i under nio av de tio åren närmast före inkomståret eller har vistats i minst närmast . Inkomster av olika slag beräknas utom i vissa fall var för sig. Skatten beräknas därefter på den skattskyldiges sammanlagda inkomst. Förlust hänförlig till får i viss utsträckning dras av från rörelsevinst.