prop · GM0312 · 1999-01-01 00:00:00 — The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties, being a resident of a , on business in the other in which the royalties arise, through a per- manent situated therein, or performs in that other State independent personal servi- ces 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 establish- ment or fixed base. In such cases the provisions of Article 7 or Article 14, as the case may be, shall apply. Royalties shall be deemed to arise in a when the payer is that State itself, a poli- tical subdivision, a local authority or a resident of that State. Where, however, the person paying the royalties, whether he is a resident of a or not, has in a a permanent or a fixed base in connection with which the liability to pay the royalties was incurred, and such royalties are borne by such permanent or fixed base, then such royalties shall be deemed to arise in the State in which the permanent or fixed base is situated. 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 royal- ties, 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 , due regard being had to the other provisions of this Convention. Gains derived by a resident of a from the alienation of immovable property, referred to in Article 6 and situated in the other , or from alienation of shares in a com- pany the assets of which consist principally of such property, may be taxed in that other State. Gains from the alienation of movable property forming part of the business property of a perma- nent which an enterprise of a has in the other or of movable property pertaining to a fixed base available to a resi- dent of a in the other for the purpose of performing inde- pendent personal services, in- cluding such gains from the alienation of such a permanent (alone or with the whole enterprise) or of such fixed base, may be taxed in that other State. Gains of an enterprise of a from the alie- nation of ships or aircraft operated in international traffic or movable property pertaining to the opera- tion of such ships or aircraft shall be taxable only in that . With respect to gains derived by the air transport consortium (), the provisions of this paragraph shall apply only to such portion of the gains as corresponds to the participation held in that consortium by , the Swedish partner of Scandi- navian (). Gains from the alienation of any property other than that referred to in paragraphs 1, 2 and 3 shall be taxable only in the Con- tracting State of which the alie- nator is a resident. Notwithstanding the provi- sions of paragraph 4, gains from the alienation of shares or other corporate rights derived by an individual who has been a resident of a and who has become a resident of the other , may be taxed in the first-mentioned State if the alienation of the shares or other corporate rights occur at any time during the ten years next following the date on which the individual has ceased to be a resident of the first-mentioned State. Income derived by an indi- vidual who is a resident of a Con- tracting State in respect of pro- fessional or other similar services of an independent character shall be taxable only in that State except in the following circumstances, when such income may also be taxed in the other Contracting State: a) if he has a fixed base regular- ly available to him in the other for the purpose of performing his activities; in that case, only so much of the income as is attributable to that fixed base may be taxed in that other State; or b) if his stay in the other Con- tracting State is for a period or periods amounting to or exceeding in the aggregate 183 days in any 12-month period commencing or ending in the calendar year concerned; in that case, only so much of the income as is derived from his activities performed in that other State may be taxed in that other State. The term professional servi- ces includes especially inde- pendent scientific, literary, artistic, educational or teaching activities as well as the independent activi- ties of physicians, dentists, law- yers, engineers, architects and accountants. Subject to the provisions of Articles 16, 18, 19 and 20, salaries, wages and other similar remuneration derived by a resident of a in respect of an employment shall be taxable only in that State unless the employment is exercised in the other . If the employment is so exercised, such remuneration as is derived there- from may be taxed in that other State. Notwithstanding the provi- sions of paragraph 1, remuneration derived by a resident of a Con- tracting State in respect of an employment exercised in the other be taxable only in the first-mentioned State if all the following conditions are met: a) the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in any 12-month period com- mencing or ending in the calendar year concerned; b) the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State; and c) the remuneration is not borne by a permanent or a fixed base which the employer has in the other State. Notwithstanding the pre- ceding provisions of this Article, remuneration derived in respect of an employment exercised aboard a ship or aircraft operated in inter- national traffic by an enterprise of a may be taxed in that State. Where a resident of derives remuneration in respect of an employment exer- cised aboard an aircraft operated in international traffic by the air transport consortium (), such remuneration shall be taxable only in . Directors fees and other similar payments derived by a resident of a in his capacity as a member of the board of directors or any similar organ of a company which is a resident of the other may be taxed in that other State. Notwithstanding the provi- sions of Articles 14 and 15, income derived by a resident of a 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 , may be taxed in that other State. 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 provi- sions of Articles 7, 14 and 15, be taxed in the in which the activities of the enter- tainer or sportsman are exercised. Pensions, annuities and similar payments Pensions and other similar re- muneration, disbursements under the legislation and annuities arising in a and paid to a resident of the other may be taxed in the first-mentioned Con- tracting State. The term annuity means a stated sum payable periodically at stated times during life or during a specified or ascertainable period of time under an obligation to make the payments in return for ade- quate and full consideration in money or money s worth. 1. a) Remuneration, other than a pension, paid by a or a political subdivision or a local authority thereof to an indi- vidual in respect of services rendered to that State or subdivi- sion or authority shall be taxable only in that State. b) However, such remuneration shall be taxable only in the other if the services are rendered in that State and the individual is a resident of that State who: (i) is a national of that State; or (ii) did not become a resident of that State solely for the purpose of rendering the services. The provisions of Articles 15 and 16 shall apply to remuneration in respect of services rendered in connection with a business carried on by a or a poli- tical subdivision or a local authori- ty thereof. Where a student or business apprentice who is or was im- mediately before visiting a Con- tracting State a resident of the other and who is present in the first-mentioned State solely for the purpose of his edu- cation or training, any payments received 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. In respect of grants, scholar- ships and remuneration from employment not covered by para- graph 1, a student or business apprentice described in paragraph 1 shall, in addition, be entitled during such education or training to the same exemptions, reliefs or reductions in respect of taxes available to students or business apprentices who are residents of the State which he is visiting, provided that such student or business apprentice is present in that State for a period exceeding twelve consecutive months. Items of income of a resident of a , wherever arising, not dealt with in the fore- going Articles of this Convention shall be taxable only in that State. The provisions of paragraph 1 shall not apply to income, other than income from immovable pro- perty as defined in paragraph 2 of Article 6, if the recipient of such income, being a resident of a Con- tracting State, on business in the other through a permanent situated therein, or performs in that other State independent per- sonal 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 or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply. Notwithstanding the provi- sions of paragraphs 1 and 2, items of income of a resident of a Con- tracting State not dealt with in the foregoing Articles of this Con- vention and arising in the other may also be taxed in that other State. 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. Capital represented by mov- able property forming part of the business property of a permanent 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 perso- nal services, may be taxed in that other State. Capital owned by an enter- prise of a and represented by ships and aircraft operated in international traffic, and by movable property per- taining to the operation of such ships and aircraft, shall be taxable only in that State. With respect to capital owned by the air transport consortium () this provision shall apply only to such part of the capital as corresponds to the participation held in that consortium by , the Swedish partner of SAS. Elimination of double taxation Double taxation shall be elimi- nated as follows: In the case of : a) Where a resident of derives income or owns capital which, in accordance with the provisions of this Convention may be taxed in , allow as a deduction from Alba- nian tax on the income of that resident an amount equal to the income tax paid in , and as a deduction from Albanian tax on the capital of that resident, an amount equal to the capital tax paid in . Such deduction shall not, how- ever, exceed that part of the Albanian tax as computed before the deduction is given, which is attributable, as the case may be, to the income or the capital which may be taxed in . b) Where in accordance with any provision of the Convention income derived or capital owned by a resident of is exempt from tax in , may nevertheless, in calculating the amount of tax on the remaining income or capital of such resident, take into account the exempted income or capital. In the case of : 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 law 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 Albanian tax paid in respect of such income. b) Where a resident of derives income which under the laws of and in accordance with the provisions of this Convention, shall be taxable only in , may, when determining 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 resident of be exempt from Swedish tax according to the provisions of Swedish law governing the exemption of tax on dividends paid to Swedish companies by subsidiaries abroad. d) For the purpose of sub-para- graph a) of this paragraph, the term Albanian tax paid shall be deemed to include the tax of which would have been paid but for any time-limited exemption or reduction of tax granted under incentive provisions contained in the laws of designed to promote economic development to the extent that such exemption or reduction is granted for profits from pro- duction, industrial or manu- facturing activities, as well as from agriculture, forestry, fishing and tourism (including restaurants and hotels), provided that the activities have been carried out within . For the purposes of sub- paragraph c) of this paragraph a tax of 15 per cent calculated on a Swedish tax base shall be con- sidered to have been paid for such activities, under those conditions mentioned in the previous sen- tence. e) The provisions of sub-para- graph d) shall apply for the first ten years during which this Con- vention is effective. This period may be extended by mutual agree- ment between the competent authorities. f) Where a resident of owns capital which, under the laws of and in accordance with the provisions of this Convention, may be taxed in , allow as a deduction from the tax on such capital an amount equal to the capital tax paid in in respect of such capital. Such deduction shall not, however, exceed that part of the Swedish capital tax as computed before the deduction is given, which is attributable to the capital which may be taxed in . Nationals of a not be subjected in the other to any taxation or any requirement con- nected therewith, which is other or more burdensome than the taxation and connected require- ments to which nationals of that other State in the same circum- stances are or may be subjected. This provision shall, notwith- standing the provisions of Article 1, also apply to persons who are not residents of one or both of the Contracting States. 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 con- strued as obliging a to grant to residents of the other any per- sonal allowances, reliefs and reductions for taxation purposes on account of civil status or family responsibilities which it grants to its own residents. Except where the provisions of paragraph 1 of Article 9, para- graph 6 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 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. 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 subjected in the first-mentioned State to any taxation or any requirement connected therewith which is other or more burden- some than the taxation and con- nected requirements to which other similar enterprises of the first-mentioned State are or may be subjected. The provisions of this Article shall, notwithstanding the provi- sions of Article 2, apply to taxes of every kind and description. How- ever, this paragraph does not apply to fees and other similar payments. 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 pro- vided by the domestic law of those States, present his case to the competent authority of the Con- tracting State of which he is a resident or, if his case comes under paragraph 1 of Article 24, to that of the Contracting States of which he is a national. The case must be presented within three years from the first notification of the action resulting in taxation not in accordance with the provisions of the Convention. 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 competent authority of the other , with a view to the avoidance of taxation which is not in accordance with the Con- vention. agreement reached shall be implemented notwith- standing any time limits in the domestic law of the Contracting States. The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the inter- pretation or application of the Convention. They may also con- sult together for the elimination of double taxation in cases not pro- vided for in the Convention. 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 pre- ceding paragraphs. The competent authorities of the Contracting States shall ex- change such information as is necessary for carrying out the provisions of this Convention or of the domestic laws of the Con- tracting 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. in- formation received by a Con- tracting State shall 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) involved in 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 pur- poses. They may disclose the in- formation in public court pro- ceedings or in judicial decisions. 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 admi- nistration of that or of the other Contracting State; c) to supply information which would disclose any trade, business, industrial, commercial or pro- fessional secret or trade process, or information, the disclosure of which would be contrary to public policy (ordre public). Diplomatic agents and consular officers Nothing in this Convention shall affect the fiscal privileges of diplomatic agents and consular officers under the general rules of international law or under the provisions of special agreements. Notwithstanding any provisions of this Convention, where: a) a company that is a resident of a derives its income primarily from other States: (i) from activities such as banking, , financ- ing or insurance or (ii) from being the head- quarters, co-ordination centre or similar entity providing administrative services or other support to a group of companies which carry on business primarily in other States; and b) except for the application of the method of elimination of double taxation normally applied by that State, such income would bear a significantly lower tax under the laws of that State than income from similar activities carried out within that State or from being the headquarters, co- ordination centre or similar entity providing administrative services or other support to a group of companies which carry on business in that State, as the case may be, the provisions of this Convention conferring an exemption or re- duction of tax shall not apply to the income of such company and to the dividends paid by such company. This Convention shall be rati- fied in both Contracting States, and the instruments of ratification shall be exchanged at as soon as possible. The Convention shall enter into force upon the exchange of instruments of ratification and its provisions shall have effect in respect of income derived or of capital owned on or after the first day of January of the calendar year following that of the entry into force of the Convention. This Convention shall remain in force until terminated by a . Either Con- tracting State may terminate the Convention by giving written notice of termination, through diplomatic channels, at least six months before the end of any calendar year. In such event, the Convention shall cease to have effect in respect of income derived or on capital owned on or after the first day of January of the calendar year next following that in which the notice of termination is given. IN WITNESS WHEREOF, the undersigned, being duly authori- zed thereto, have signed this Con- vention. Done in duplicate at this 26 day of , 1998 in the English language. For the Government of the Kingdom of For the Government of the Republic of AVTAL MELLAN REGERING OCH REPUBLIKEN REGERING FÖR UNDVIKANDE AV DUBBELBESKATTNING OCH FÖRHINDRANDE AV SKATTEFLYKT BETRÄFFANDE SKATTER PÅ INKOMST OCH PÅ FÖRMÖGENHET och Republiken som, i syfte att ytterligare utveckla och främja sina ekono- miska relationer, önskar ingå ett avtal för undvikande av dubbel- beskattning och förhindrande av skatteflykt beträffande skatter på inkomst och på förmögenhet, har kommit överens om följande: Personer på vilka avtalet tillämpas Detta avtal tillämpas på personer som har hemvist i en avtalsslu- tande stat eller i båda avtalsslu- tande staterna. Skatter som omfattas av avtalet De utgående skatter på vilka detta avtal tilläm- pas är: a) i : 1) skatten på juridiska perso- ners vinst, 2) skatten på mindre affärs- verksamheter, 3) inkomstskatten för fysiska personer, och 4) skatten på förmögenhet, (i det följande benämnda albansk skatt ), b) i : 1) den statliga inkomst- skatten, kupongskatten däri inbegripen, 2) den särskilda inkomst- skatten för utomlands bo- satta, 3) den särskilda inkomst- skatten för utomlands bo- satta artister m.fl., 4) den kommunala inkomst- skatten, och 5) den statliga förmögenhets- skatten, (i det följande benämnda svensk skatt ). Avtalet tillämpas även på skatter av samma eller i huvudsak likartat slag, som efter underteck- nandet av avtalet påförs vid sidan av eller i stället för de skatter som anges i punkt 1. De behöriga myndigheterna i de avtalsslutande staterna skall meddela varandra de väsentliga ändringar som vidtagits i respektive skattelagstiftning.