prop · GM03135 · 1999-01-01 00:00:00 — Where, however, the person pay- ing the interest, whether he is a resident of a or not, has in a a permanent 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 perma- nent or fixed base, then such interest shall be deemed to arise in the in which the permanent establish- ment 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 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 , due regard being had to the other provisions of this Convention. Royalties arising in a Con- tracting State and paid to a resi- dent of the other may be taxed in that other Con- tracting State. 2.7 However, such royalties may also be taxed in the in which they arise, and according to the laws of that , but if the bene- ficial owner of the royalties is a resident of the other , the tax so charged shall not exceed 10 per cent of the gross amount of the royalties. The term royalties as used in this Article means payments of any kind received as a considera- tion for the use of, or the right to use, any copyright of literary, artistic or scientific work including cinematograph films and films or tapes for radio or television broad- casting, any patent, trade mark, design or model, plan, secret formula or process, or for the use of, or the right to use, industrial, commercial or scientific equip- ment, or for information con- cerning industrial, commercial or scientific experience, as well as receipts from a bare boat charter of ships or aircraft. 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 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 or fixed base. In such case, 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 itself, a local authority or a resident of that . 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 estab- lishment or fixed base, then such royalties shall be deemed to arise in the 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 may be taxed in that other . Gains from the alienation of any property, other than immovable property, forming part of the business property of a permanent which an enterprise of a has in the other or of any property, other than immovable property, pertaining to a fixed base available to a resident of a in the other for the purpose of performing independent perso- nal services, including such gains from the alienation of such a permanent (alone or together with the whole enterprise) or of such a fixed base, may be taxed in that other . Gains derived by a resident of a from the alie- nation of ships or aircraft operated in international traffic and any property, other than immovable property, pertaining to the opera- tion of such ships or aircraft shall be taxable only in that . Income derived by a resident of a in respect of professional services or other acti- vities of an independent character shall be taxable only in that unless he has a fixed base regularly available to him in the other for the purpose of performing his activities. If he has such a fixed base, the income may be taxed in that other but only so much of it as is attri- butable to that fixed base. The term professional servi- ces includes especially inde- pendent scientific, literary, artistic, educational or teaching activities as well as the independent acti- vities of physicians, lawyers, engineers, architects, dentists and accountants. Subject to the provisions of Articles 16 and 18, salaries, wages and other similar remune- ration, other than a pension, derived by a resident of a Con- tracting State in respect of an employment shall be taxable only in that 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 . 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 Con- tracting State if: (a) the recipient is present in that other for a period or periods not exceeding in the aggregate 183 days in the calendar year concerned; and (b) the remuneration is paid by, or on behalf of, an employer who is not a resident of that other Contracting State; and (c) the remuneration is not borne by a permanent or a fixed base which the employer has in that other . Notwithstanding the provi- sions of the preceding paragraphs of this Article, remuneration de- rived in respect of an employment exercised aboard a ship or aircraft operated in international traffic by an enterprise of a may be taxed in that Con- tracting State. Directors fees and other similar payments derived by a resident of a in his capacity as a member of the board of directors of a company which is a resident of the other may be taxed in that other . 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, and a musician, or as an athlete, from his personal activities as such exer- cised in the other , may be taxed in that other . Such income shall, however, be exempt from tax of that other Con- tracting State if such activities are exercised by an individual, being a resident of the first-mentioned , pursuant to a special programme for cultural exchange agreed upon between the Governments of the two Con- tracting States. Where income derived in respect of personal activities exer- cised by an entertainer or an athlete in his capacity as such accrues not to the entertainer or athlete himself but to another person, that income may, notwith- standing the provisions of Articles 7, 14 and 15, be taxed in the in which the activities of the entertainer or athlete are exercised. Such income shall, however, be exempt from tax in that Con- tracting State if such income is derived from the activities exer- cised by an individual, being a resident of the other , pursuant to a special pro- gramme for cultural exchange agreed upon between the Govern- ments of the two Contracting States and accrues to another per- son who is a resident of that other . (a) Remuneration, other than a pension, paid by a or a local authority thereof to an individual in respect of services rendered to that or local authority thereof, in the discharge of functions of a govern- mental nature, shall be taxable only in that . (b) However, such remuneration shall be taxable only in the other if the services are rendered in that other Con- tracting State and the individual is a resident of that other who: (i) is a national of that other Contracting State; or (ii) did not become a resident of that other solely for the purpose of performing the services. (a) pension paid by, or out of funds to which con- tributions are made by, a Con- tracting State or a local authority thereof to an individual in respect of services rendered to that Con- tracting State or local authority thereof shall be taxable only in that . (b) However, such pension shall be taxable only in the other Con- tracting State if the individual is a resident of, and a national of, that other . The provisions of Articles 15, 16, 17 and 21 shall apply to remuneration and pensions in respect of services rendered in connection with a business carried on by a or a local authority thereof. Payments which a student or business apprentice who is or was immediately before visiting a Con- tracting State a resident of the other and who is present in the first-mentioned Con- tracting State solely for the pur- pose of his education or training receives for the purpose of his maintenance, education or training shall be exempt from tax in the first-mentioned , provided that such payments are made to him from outside that first-mentioned . Where under the provisions of this Convention a resident of is entitled to exemption from, or reduction of, Swedish tax, similar exemption or reduction shall be applied to the undivided estate of a deceased person insofar as one or more of the beneficiaries is a resident of . Swedish tax on the undivided estate of a deceased person shall, insofar as the income accrues to a beneficiary who is a resident of , be allowed as a credit against Japanese tax payable in respect of that income, in accordance with the provisions of paragraph 1 of Article 22. 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 Con- tracting 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 in- dependent 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 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 the preceding paragraphs of this Article, items of income of a resident of a not dealt with in the foregoing Articles of this Convention and arising in the other may be taxed in that other . Elimination of double taxation Subject to the laws of regarding the allowance as a credit against Japanese tax of tax payable in any country other than : (a) Where a resident of derives income from which may be taxed in in accordance with the provisions of this Convention, the amount of Swedish tax payable in respect of that income shall be allowed as a credit against the Japanese tax imposed on that resident. The amount of credit, however, shall not exceed that part of the Japanese tax which is appropriate to that income. (b) Where the income derived from is a dividend paid by a company which is a resident of to a company which is a resident of and which owns not less than 25 per cent either of the voting shares of the company paying the dividend, or of the total shares issued by that company, the credit shall take into account the Swedish tax payable by the company paying the dividend in respect of its income. 2.8 (a) Subject to the provisions of sub-paragraph (b) of this para- graph and of paragraph 3 of Article 10, where a resident of derives income which may be taxed in in accordance with the provisions of this Convention, allow as a deduction from Swedish tax on the income of that resident an amount equal to the tax paid in . Such deduction shall not, however, exceed that part of the Swedish tax as computed before the deduction is given, which is appropriate to the income which may be taxed in . (b) Where a resident of derives income which shall be taxable only in in accordance with the provisions of Article 18, may, when determining the graduated rate of the Swedish tax, take into account the income which shall be taxable only 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 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. The taxation on a permanent or a fixed base which a person being a resident of a has in the other not be less favourably levied in that other than the taxation levied on persons being residents of that other 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 Article 9, paragraph 6 of Article 11, or paragraph 6 of Article 12, apply, interest, royalties and other disbursements paid by an enter- prise 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 . Enterprises of a , the capital of which is or partly owned or con- trolled, directly or indirectly, by one or more residents of the other , shall not be subjected in the first-mentioned 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 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. 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 laws of those Contracting 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 23, to that of the Con- tracting State 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 this 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 com- petent authority of the other , with a view to the avoidance of taxation not in accordance with the provisions of this Convention. agreement reached shall be implemented notwithstanding any time limits in the domestic laws of the Con- tracting 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 this Convention. They may also con- sult together for the elimination of double taxation in cases not pro- vided for in this 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 of this Article. 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 this Convention insofar as the taxation thereunder is not contrary to this 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 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 this Convention. Such persons or authorities shall use the infor- mation only for such purposes. They may disclose the information in public court proceedings 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 the 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; or (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. Each of the Contracting States shall endeavour to collect such taxes imposed by the other as will ensure that any exemption or reduced rate of tax granted under this Conven- tion by that other not be enjoyed by persons not entitled to such benefits. The making such collections shall be responsible to the other for the sums thus collected. In no case shall the provisions of paragraph 1 be construed so as to impose upon either of the Contracting States endeavouring to collect the taxes the obligation to carry out administrative measures at variance with the laws and administrative practice of that or which would be contrary to the public policy (ordre public) of that . Diplomatic agents and consular officers 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. This Convention shall be rati- fied and the instruments of ratification shall be exchanged at as soon as possible. This Convention shall enter into force on the thirtieth day after the date of the exchange of instru- ments of ratification and shall have effect: (a) in : as regards income for any taxable year beginning on or after the first day of January of the calendar year next following that in which this Convention enters into force; and (b) in : as regards income derived on or after the first day of January of the calendar year next following that in which this Convention enters into force. The Convention between and for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income signed at on , 1956, modified and supplemented by the Protocol signed at on , 1964, shall terminate and cease to have effect in respect of income to which this Convention applies under the provisions of paragraph 2. This Convention shall continue in effect indefinitely but either may, on or before the thirtieth day of of any calendar year beginning after the expiration of a period of five years from the date of its entry into force, give to the other Con- tracting State, through the diplo- matic channel, written notice of termination and, in such event, this Convention shall cease to have effect: (a) in : as regards income for any taxable year beginning on or after the first day of January of the calendar year next following that in which the notice of termination is given; and (b) in : as regards income derived 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, duly authorized thereto by their respective Govern- ments, have signed this Con- vention. DONE in Duplicate at on 21 January 1983 in the English language. For the Government of : For the Government of : Avtal mellan och för att undvika dubbelbeskattning och förhindra skatteflykt beträffande skatter på inkomst och , som önskar ingå ett nytt avtal för att undvika dubbel- beskattning och förhindra skatte- flykt beträffande skatter på in- komst, har kommit överens om följande:1 Personer på vilka avtalet tillämpas2 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 skatter som omfattas av detta avtal är: a) I : 1) inkomstskatten; 2) bolagsskatten; och 3) de lokala skatterna på invånarna; (i det följande benämnd japansk skatt ); b)3 I : 1) den statliga inkomst- skatten, kupongskatten däri inbegripen; 2) den särskilda inkomst- skatten för utomlands bosatta; 3) den särskilda inkomst- skatten för utomlands bosatta artister m.fl.; 4) den kommunala inkomst- skatten; och 5) expansionsmedelsskatten; (i det följande benämnd svensk skatt ). Detta avtal tillämpas även på skatter av samma eller i huvudsak likartat slag oavsett om de är statliga eller lokala som efter undertecknandet av detta avtal påförs vid sidan av eller i stället för de skatter som avses i punkt 1. De behöriga myndigheterna i de avtalsslutande staterna skall med- dela varandra väsentliga ändringar som gjorts i respektive skatte- lagstiftning inom rimlig tid efter sådana ändringar.