Förordning (1977:580) om dubbelbeskattningsavtal mellan Sverige och Tanzania

Förordning (1977:580) om dubbelbeskattningsavtal mellan Sverige och Tanzania SFS nr: 1977:580 Departement/myndighet: Finansdepartementet S3 Utfärdad: 1977-06-16 Omtryck: Ändrad: t.o.m. SFS 1987:983 Övrig text: I bilaga 1 saknas den svenska texten till artiklarna 16-30. Källa: Regeringskansliet / Lagrummet Det avtal för att undvika dubbelbeskattning beträffande skatter på inkomst och förmögenhet som Sverige och Tanzania ingick den 2 maj 1976 skall lända till efterrättelse för Sveriges del. Avtalets innehåll framgår av bilaga 1 till denna förordning. Vid tillämpning av avtalet skall iakttagas de anvisningar som är fogade till förordningen som bilaga 2. Bilaga 1 Convention between Sweden and Tanzania for the Avoidance of double Taxation with Respect to Taxes on Income and Capital The Government of the Kingdom of Sweden and the Government of the United Republic of Tanzania, desiring to conclude a Convention for the avoidance of double taxation with respect to taxes on income and cap ital, have agreed as follows: Article 1 Personal scope This Convention shall apply to persons who are residents of one or both of the Contracting States. Article 2 Taxes covered 1. This Convention shall apply to taxes on income and on capital imposed on behalf of each Contracting State or of its political subdivisions or local authorities, irrespective of the manner in which they ar levied. 2. There shall be regarded as taxes on income and on capital all taxes imposed on total income, on total capital, or on elements of income or of capital, including taxes on gains from the alienation of movable or immovable property, as well as taxes on capital appreciation. 3. The existing taxes to which the Convention shall apply are: a) In the case of Sweden: 1. the State income tax, including sailors' tax and coupon tax; 2. the tax on undistributed profits of companies and the tax on distribution in connection with reduction of share capital or the winding-up of a company; 3. the tax on public entertainers; 4. the communal income tax; and 5. the State capital tax; (hereinafter referred to as "Swedish tax"). b) In the case of Tanzania: the income tax and any other tax deemed to be an income tax under the Income Tax Act; (hereinafter referred to as "Tanzanian tax"). 4. The Convention shall also apply to any identical or substantially similar taxes which are imposed after the date of signature of this Convention in addition to, or in place of, the above-mentioned taxes. The competent authorities of the Contracting States shall notify to each other any substantial changes which have been made in their respective taxation laws. Article 3 General definitions 1. In this Convention, unless the context otherwise requires: a) the term "Sweden" means the Kingdom of Sweden and includes any area outside the territorial sea of Sweden within which under the laws of Sweden and in accordance with international law the rights of Sweden with respect to the exploration and exploitation of the natural resources on the sea-bed or in its sub-soil may be exercised; b) the term "Tanzania" means the United Republic of Tanzania, including any area outside the territorial waters of Tanzania which, in accordance with international law, has been or may be designated, under the laws of Tanzania concerning the Continental shelf, as an area over which Tanzania may exercise sovereign rights with respect to the exploration for and exploitation of natural resources; c) the terms "Contracting State" and the other Contracting State" mean Sweden or Tanzania, as the context requires; d) the term "person" comprises an individual, a company and any other body of persons; e) the term "company" means any body corporate or any entity which is treated as a body corporate for tax purposes; f) the terms "enterprise of a Contracting State" and "enterprise of the other Contracting State" mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State; g) the term "competent authority" means in the case of Sweden, the Minister of Finance or his authorized representative and in the case of Tanzania, the Minister for Finance or his authorized representative; h) the term "nationals" means: 1) all individuals possessing the nationality of a Contracting State; 2) all legal persons, partnerships and associations deriving their status as such from the law in force in a Contracting State; i) the term "international traffic" means any transport by a ship or aircraft operated by an enterprise which has its place of effec tive management in a Contracting State, except when the ship or aircraft is operated solely between places in the other Contract ing State. 2. As regards the application of the Convention by a Contracting State any term not otherwise defined shall, unless the context otherwise requires, have the meaning which it has under the laws of that Contracting State relating to the taxes which are the subject of the Convention. Article 4 Fiscal domicile 1. For the purposes of this Convention, the term "resident of a Contracting State" means any person who, under the law of that State, is liable to taxation therein by reason of his domicile, residence, place of management or any other criterion of a similar na ture. But this term does not include any person who is liable to tax in that Contracting State in respect only of income from sources therein or capital situated in that State. 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: a) He shall be deemed to be a resident of the Contracting State in which he has a permanent home available to him. If he has a permanent home available to him in both Contracting States, he shall be deemed to be a resident of the Contracting State with which his personal and economic relations are closest (centre of vital interests); b) if the Contracting State in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to him in either Contracting State, he shall be deemed to be a resident of the Contracting State in which he has an habitual abode; c) if he has an habitual abode in both Contracting States or in neither of them, he shall be deemed to be a resident of the Contracting State of which he is a national; d) if he is a national of both Contracting States or of neither of them, the competent authorities of the Contracting States shall sett le the question by mutual agreement. 3. Where by reason of the provisions of paragraph 1 a person other than an individual is a resident of both Contracting States, then it shall be deemed to be a resident of the Contracting State in which its place of effective management is situated. Article 5 Permanent establishment 1. For the purposes of this Convention, the term "permanent establishment" means a fixed place of business in which the business of the enterprise is wholly or partly carried on. 2. The term "permanent establishment" shall include especially: a) a place of management; b) a branch; c) an office; d) a factory; e) a workshop; f) a mine, oil well, quarry or other place of extraction of natural resources; g) a building site or construction or assembly project which exists for more than six months. 3. The term "permanent establishment" shall be deemed not to include: a) the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise; b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery; c) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise; d) the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise, or for collecting information, for the enterprise; e) the maintenance of a fixed place of business solely for the purpose of advertising, for the supply of information, for scientific re search or for similar activities which have a preparatory or auxiliary character, for the enterprise. 4. A person acting in a Contracting State on behalf of an enterprise of the other Contracting State-other than an agent of an independent status to whom paragraph 5 applies-shall be deemed to be a permanent establishment in the first-mentioned State if he has, and habitually exercises in that State, an authority to conclude contracts in the name of the enterprise, unless his activities are limited to the purchase of goods or merchandise for the enterprise. 5. 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, where such persons are acting in the ordinary course of their business. 6. 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 from immovable property including income from agriculture or forestry may be taxed in the Contracting State in which such property is situated. 2. a) Subject to the provisions of subparagraph b) the term "immovable property" shall be defined in accordance with the law of the Contracting State in which the property in question is situated; b) the term "immovable property" shall in any case include property accessory to immovable property, live-stock and equipment used in agriculture and forestry, rights to which the provisions of general law respecting landed property apply, 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, boats 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. 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 professional 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 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 4 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. If an enterprise of a Contracting State, which has a permanent establishment in the other Contracting State, sells goods or mer chandise otherwise than through the permanent establishment of the same or similar kind as those sold by the permanent establishment, or renders otherwise than through the permanent establishment services of the same or similar kind as those rendered by the permanent establishment the profits of such activities may be attributed to the permanent establishment unless the enterprise proves that such sales or services are not attributable to the activity of the permanent establishment. 4. In the determination of the profits of a permanent establishment, there shall be allowed as deductions expenses which are incurred for the purposes of the permanent establishment including executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere, but this does not include any expenses which under the law of that State would not be allowed to be deducted by an independent enterprise of that State. 5. Insofar as it has been customary in a Contracting State to determine the profits to be attributed to a permanent establishment on the basis of an apportionment of the total profits of the enterprise to its various parts, nothing in paragraph 2 shall preclude that Contracting State from determining the profits to be taxed by such an apportionment as may be customary; the method of apportionment adopted shall, however, be such that the result shall be in accordance with the principles embodied in this Article. 6. No profits shall be attributed to a permanent establishment by reason of the mere purchase by the permanent establishment of goods or merchandise for the enterprise. 7. 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. 8. 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 effected by the provisions of this Article. Article 8 Air transport and shipping 1. Profits derived by an enterprise of a Contracting State from the operation of aircraft in international traffic shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated. 2. Profits derived by an enterprise of a Contracting State from the operation of ships in international traffic may be taxed in both Contracting States according to the law of each Contracting State. 3. Where an enterprise of a Contracting State derives profits referred to in paragraph 2 from operations in the other Contracting State, then; a) such profits shall be deemed not to exceed an amount equal to 5 per cent of the gross amount derived by the enterprise from transporting passengers of freight embarked in that other State; b) the tax chargeable on such profits in that other State shall be reduced by 50 per cent. 4. The provisions of paragraph 1 shall also apply to profits derived from the participation in a pool, in a joint business or in an international operating agency. Article 9 Associated enterprises Where a) an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State, or b) the same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State, 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 profits 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 profits of that enterprise and taxed accordingly. 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 be taxed in the Contracting State of which the company paying the dividends is a resident, and according to the law of that State, but the tax so charged shall not exceed: a) 15 per cent of the gross amount of the dividends if the recipient is a company which owns at least 25 per cent of the voting shares of the company paying the dividends during the period of six months immediately preceding the date of payment of the dividends; b) 25 per cent of the gross amount of the dividends in all other cases. The competent authorities of the Contracting States shall by mutual agreement settle the mode of application of this limitation. 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 or other rights, not being debt-claims, participating in profits, as well as income from other corporate rights assimilated to income from shares by the taxation law of the State of which the company making the distribution is a resident. 4. Notwithstanding the provisions of paragraph 1, dividends paid by a company being a resident of Tanzania to a company which is a resident of Sweden shall be exempt from tax in Sweden to the extent that the dividends would have been exempt under Swedish law if both companies had been Swedish companies. This exemption shall not apply unless the profits out of which the dividends are paid have been subjected in Tanzania to the normal income tax which applies at the date of signature of this Convention or an income tax comparable thereto, or the principal part of the profits of the company paying the dividends arises, directly or indirectly, from business activities other than the management of securities and other similar property and such activities are carried on within Tanzania by the company paying the dividends or by a company in which it owns at least 25 per cent of the voting power. 5. The provisions of paragraphs 1 and 2 shall not apply if the recipient 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 professional 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 a case the provisions of Article 7 or Article 15, as the case may be, shall apply. 6. 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 or 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 that other State. The provisions of this paragraph shall not prevent that other State from taxing dividends paid to residents of that State or dividends relating to a holding which is effectively connected with a permanent establishment or fixed base maintained in that other State by a resident of the first-mentioned State. 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 be taxed in the Contracting State in which it arises, and according to the law of that State, but the tax so charged shall not exceed 15 per cent of the amount of the interest. The competent authorities of the Contracting States shall by mutual agreement settle the mode of application of this limitation. 3. The term "interest" as used in this Article means income from Government securities, bonds or debentures, whether or not secured by mortgage and whether or not carrying a right to participate in profits, and debt-claims of every kind as well as all other in come assimilated to income from money lent by the taxation law of the State in which the income arises. 4. The provisions of paragraphs 1 and 2 shall not apply if the recipient 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 professional 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 a case, the provisions of Article 7 or Article 15, as the case may be, shall apply. 5. Interest shall be deemed to arise in a Contracting State when the payer is that State itself, a political subdivision, a local authority or 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 in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment, then such interest shall be deemed to arise in the Contracting State in which the permanent establishment is situated. 6. Where, owing to a special relationship between the payer and the recipient or between both of them and some other person, the amount of the interest paid, 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 recipient in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In that case, the excess part of the payments shall remain taxable according to the law 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 be taxed in the Contracting State in which they arise, and according to the law of that State, but the tax so charged shall not exceed 20 per cent of the gross amount of the royalties. The competent authorities of the Contracting States shall by mutual agreement settle the mode of application of this limitation. 3. 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 of literary, artistic or scientific work including cinematograph films, 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 equipment, or for information concerning industrial, commercial or scientif ic experience. 4. The provisions of paragraphs 1 and 2 shall not apply if the recipient 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 professional 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 a case, the provisions of Article 7 or Article 15, as the case may be, shall apply. 5. Royalties shall be deemed to arise in a Contracting State when the payer is that Contracting State itself, a political subdivision, a local authority or 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 in connection with which the liability to pay the royalties was incurred, and such royalties are borne by such permanent establishment, then such royalties shall be deemed to arise in the Contracting State in which the permanent establishment is situated. 6. Where, owing to a special relationship between the payer and the recipient or between both of them and some other person, the amount of the royalties paid, 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 recipient in the absence of such relation ship, the provisions of this Article shall apply only to the last-mentioned amount. In that case, the excess part of the payments shall remain taxable according to the law of each Contracting State, due regard being had to the other provisions of this Convention. Article 13 Capital gains 1. Gains from the alienation of immovable property, as defined in paragraph 2 of Article 6, may be taxed in the Contracting State in which such property is situated. 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 professional services, including such gains from the alienation of such a permanent establishment (alone or together with the whole enterprise) or of such a fixed base, may be taxed in the other State. However, gains from the alienation of movable property of the kind referred to in paragraph 3 of Article 23 shall be taxable only in the Contracting State in which such movable property is taxable according to the said Article. 3. Gains from the alienation of any property other than those mentioned in paragraphs 1 and 2, shall be taxable only in the Contracting State of which the alienator is a resident. 4. The provisions of paragraph 3 shall not affect the right of a Contracting State to levy according to its own law a tax on capital 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 Contracting State at any time during the seven years immediately preceding the alienation of the property. Article 14 Management or professional fees 1. Management or professional fees arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. 2. Notwithstanding the provisions of paragraph 1 of Article 15 such management or professional fees may, however, be taxed in the Contracting State in which they arise, and according to the law of that State, but the tax so charged shall not exceed 20 per cent of the gross amount of the fees. 3. The term "management or professional fees" as used in this Article means payments of any kind to any person, other than to an employee of the person making the payments, in consideration for any services of a managerial, technical, professional or consultancy nature. 4. The provisions of paragraphs 1 and 2 shall not apply if the recipient of the management or professional fees, being a resident of a Contracting State, carries on business in the other Contracting State in which the fees arise, through a permanent establishment sit uated therein, or performs in that other State professional services from a fixed base situated therein, and the services giving rise to the fees are effectively connected with such permanent establishment or fixed base. In such a case, the provisions of Article 7 or Article 15, as the case may be, shall apply. 5. Management or professional fees shall be deemed to arise in a Contracting State when the payer is that Contracting State itself, a political subdivision, a local authority or a resident of that State. Where, however, the person paying the fees, whether he is a res ident of a Contracting State or not, has in a Contracting State a permanent establishment in connection with which the liability to pay the fees was incurred, and such fees are borne by such permanent establishment, then such fees shall be deemed to arise in the Contracting State in which the permanent establishment is situated. Article 15 Independent personal services 1. Subject to the provisions of Article 14, income derived by a resident of a Contracting State in respect of professional services or other independent activities of a similar 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 such a fixed base, the income may be taxed in the other Contracting 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 16 Dependent personal services 1. Subject to the provisions of Articles 17, 19, 20 and 21, salaries, wages, and other similar 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 par agraph 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-mention ed State if: a) the recipient is present in the other State 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 the other State; and c) the remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other State. 3. Notwithstanding the preceding provisions of this Article, remuneration in respect of an employment exercised aboard a ship or aircraft in international traffic, may be taxed in the Contracting State in which the place of effective management of the enterprise is situated. Article 17 Directors' fees Directors' fees and similar payments derived by a resident of a Contracting State in his capacity as a member of the board of directors of a company which is a resident of the other Contracting State may be taxed in that other State. Article 18 Artistes and athletes 1. Notwithstanding the provisions of Articles 15 and 16, income derived by entertainers, such as theatre, motion picture, radio or television artistes, and musicians, and by athletes, from their personal activities as such may be taxed in the Contracting State in which these activities are exercised. 2. Where income in respect of personal activities as such of an entertainer or athlete accrues not to that entertainer or athlete himself but to another person that income may, notwithstanding the provisions of Articles 7, 15 and 16 be taxed in the Contracting State in which the activities of the entertainer or athlete are exercised. 3. The provisions of paragraphs 1 and 2 shall not apply to services of entertainers and athletes, if their visit to a Contracting State is supported wholly or substantially from public funds of the other Contracting State. Article 19 Pensions and payments under public social security schemes 1. Subject to the provisions of paragraph 2 of Article 20, pensions and other similar remuneration paid to a resident of a Contracting State in consideration of past employment shall be taxable only in that State. 2. Notwithstanding the provisions of paragraph 1 payments made under the Public Social Security Scheme of a Contracting State may be taxed in that State. Article 20 Government service 1. a) Remuneration, other than a pension, paid by a Contracting State or a political subdivision or a local authority thereof to any individual in respect of services rendered to that State or subdivision or local authority thereof shall be taxable only in that State. b) However, such remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and the recipient is a resident of that other Contracting State who: (i) is a national of that State; or (ii) did not become a resident of that State solely for the purpose of performing the services; or (iii) is not subject to tax in respect of such remuneration in the Contracting State from which the remuneration is paid. 2. a) Any pension paid by, or out of funds created by, a Contracting State or a political subdivision or a local authority thereof to any individual in respect of services rendered to that State or subdivision or local authority thereof shall be taxable only in that State. b) However, such pensions shall be taxable only in the other Contracting State if the recipient is a national of and a resident of that State. 3. The provisions of Articles 16, 17 and 19 shall apply to remuneration and pensions in respect of services rendered in connection with any business carried on by a Contracting State or a political subdivision or a local authority thereof. Article 21 Students 1. A student or business apprentice who is present in a Contracting State for the purposes of this education or training and who is, or was immediately before his stay in that State, a resident of the other Contracting State, shall be exempt from tax in the first-mentioned Contracting State on: (i) payments made to him by persons residing outside that first- mentioned State for the purposes of this maintenance, education or training; and (ii) remuneration for personal services performed in that first-mentioned State provided the remuneration does not exceed 9500 Swedish Crowns or its equivalent in Tanzanias currency for any taxable year. 2. The benefits under sub-paragraph (ii) of paragraph 1 shall extend only for such period of time as may be reasonably or customarily required to complete the education or training undertaken but shall in no event exceed a period of three consecutive years. Article 22 Other income 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. Article 23 Capital 1. Capital represented by immovable property, as defined in paragraph 2 of Article 6, may be taxed in the Contracting State in which such property is situated. 2. Capital represented by movable property forming part of the business property of a permanent establishment of an enterprise, or by movable property pertaining to a fixed base used for the performance of professional services, may be taxed in the Contracting State in which the permanent establishment or fixed base is situated. 3. Ships and aircraft operated in international traffic and movable property pertaining to the operation of such ships and aircraft shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated. 4. All other elements of capital of a resident of a Contracting State shall be taxable only in that State. Article 24 Elimination of double taxation 1. Where a resident of Sweden derives income or owns capital which, in accordance with the provisions of this Convention, may be taxed in Tanzania, Sweden shall allow: a) as a deduction from the tax on the income of that person, an amount equal to the income tax paid in Tanzania; b) as a deduction from the tax on the capital of that person, an amount equal to the capital tax paid in Tanzania. 2. The deduction in either case shall not, however, exceed that part of the income tax or capital tax, respectively, as computed before the deduction is given, which is appropriate, as the case may be, to the income or the capital which may be taxed in Tanzania. 3. Subject to the provisions of the law of Tanzania regarding the allowance as a credit to a Tanzanian resident against Tanzanian tax of tax payable in a territory outside Tanzania, Swedish tax payable under the laws of Sweden and in accordance with this Convention, whether directly or by deduction, in respect of income from sources within Sweden shall be allowed as a credit against any Tanzanian tax payable in respect of that income. The credit shall not, however, exceed the Tanzanian tax, computed before allowing any such credit, which is appropriate to the income derived from Sweden. 4. Where a resident of a Contracting State derives income or owns capital which, in accordance with the provisions of this Convention, shall be taxable only in the other Contracting State, the first- mentioned State may include this income or capital in the tax base but shall allow as a deduction from the income tax or capital tax that part of the income tax or capital tax, respectively, which is appropriate, as the case may be, to the income derived from or capital owned in the other Contracting State. 5. For the purpose of paragraphs 1 (a) and 2 the term "tax paid in Tanzania" shall be deemed to include any amount which would have been payable as Tanzanian tax for any year but for: (i) any investment deduction granted under paragraph 24, 25 or 26 of the Second Schedule to the Income Tax Act; or (ii) any other provisions which may subsequently be enacted granting an exemption or reduction of tax which the competent authorities of the Contracting States agree to be for the purpose of economic development. 6. The provisions of paragraph 5 (i) shall apply for the first 10 years for which this Convention is effective but the competent authorities of the Contracting States may consult each other to determine whether this period shall be extended. Article 25 Non-discrimination 1. The nationals of a Contracting State whether or not they are residents of one of the Contracting States, 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. 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. This provision shall not 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, nor as conferring any exemption from tax in a Contracting State in respect of dividends or other payments paid to a company which is a resident of the other Contracting State. The provisions of the first sub-paragraph shall not prevent a Contracting State from imposing tax, according to the domestic leg islation of this State, on income received by a permanent establishment, if the permanent establishment belongs to a joint stock company or similar company resident in the other Contracting State. The taxation shall, however, correspond to the taxation applied with respect to joint stock companies or similar companies resident in the first-mentioned Contracting State on their undistributed profits. 3. 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 enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxable profits of such enterprise, be deductible under the same condition as if they had been paid to a resident of the first-mentioned State. Similarly, any debts of an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxable capital of such enterprise, be deductible as if they had been contracted to a resident of the first-mentioned State. 4. 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 Contracting 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 that first-mentioned State are or may be subjected. 5. In this Article the term "taxation" means taxes of every kind and description. Article 26 Mutual agreement procedure 1. Where a resident of a Contracting State considers that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with this Convention, he may, notwithstanding the remedies provided by the national laws of those States, present his case to the competent authority of the Contracting State of which he is a resident. This case must be presented within three years of the first notification of the action which gives rise to taxation not in accordance with 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 an ap propriate 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. Any agreement reached shall be implemented notwithstanding any time limits in the national laws 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 communicate 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. Article 27 Exchange of information 1. The competent authorities of the Contracting States shall exchange such information as is necessary for the carrying out of this Convention and of the domestic laws of the Contracting States concerning taxes covered by this Convention insofar as the taxation thereunder is in accordance with this Convention. Any information so exchanged shall be treated as secret and shall not be disclosed to any persons or authorities other than those concerned with the assessment or collection of the taxes which are the subject of the Convention. 2. In no case shall the provisions of paragraph 1 be construed so as to impose on one of the Contracting States the obligation: a) to carry out administrative measures at variance with the laws or the administrative practice of that or of the other Contracting State; b) to supply particulars which are 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 professional secret or trade process, or information, the disclosure of which would be contrary to public policy. Article 28 Diplomatic and consular officials Nothing in this Convention shall affect the fiscal privileges of diplomatic or consular officials under the general rules of international law or under the provisions of special agreements. Article 29 Entry into force 1. This Convention shall come into force on the date on which the last of all such things shall have been done in Tanzania and Sweden as are necessary to give the Convention the force of law in Tanzania and Sweden respectively. In the case of Sweden the Convention shall be ratified. 2. The Contracting States shall notify each other of the completion of the requirements mentioned in paragraph 1 of this Article. Such notifications shall be exchanged at Dar es Salaam as soon as possible. 3. This Convention shall enter into force upon the exchange of such notifications and shall have effect, in the case of income derived on or after 1st January next following the year in which the exchange of notifications takes place, and in the case of capital which is assessed in or after the second calendar year next following that in which the exchange of notifications takes place. 4. The arrangements for relief from double taxation in relation to income tax and taxes of similar character made between the Government of Sweden and the Government of the United Kingdom by a Convention dated the 30th day of March, 1949, and applied with certain modifications to Tanganyika and Zanzibar by an Exchange of Notes dated the 28th day of May, 1958, shall cease to have effect from the date on which the present Convention becomes effective. Article 30 Termination This Convention shall remain in force until denounced by one of the Contracting States. Either Contracting State may denounce the Convention, through diplomatic channels, by giving notice of termination at least six months before the end of any calendar year following after a period of 5 years from the date on which the Convention enters into force. In such event the Convention shall cease to have effect in the case of income derived on or after 1st January next following the year in which such notice is given and in the case of capital which is assessed in or after the second calendar year next following that in which such notice is given. In witness whereof the undersigned, duly authorized thereto, have signed this Convention. Done in duplicate at Stockholm this 2nd day of May, 1976, in the English language. For the Government of the Kingdom of Sweden: Sven Andersson For the Government of the United Republic of Tanzania: Amil Jamal Bilaga 1 (Översättning) Avtal mellan Sverige och Tanzania för undvikande av dubbelbeskattning beträffande skatter på inkomst och förmögenhet Konungariket Sveriges regering och Den Förenade Republiken Tanzanias regering har, föranledda av önskan att ingå ett avtal för undvikande av dubbelbeskattning beträffande skatter på inkomst och förmögenhet, överenskommit om följande bestämmelser: Artikel 1 Personer som omfattas av avtalet Detta avtal tillämpas på personer som har hemvist i en avtalsslutande stat eller i båda staterna. Artikel 2 Skatter som omfattas av avtalet 1. Detta avtal tillämpas på skatter på inkomst och förmögenhet, som uttages av envar av de avtalsslutande staterna, dess politiska underavdelningar eller lokala myndigheter, oberoende av sättet på vilket skatterna uttages. 2. Med skatter på inkomst och förmögenhet förstås alla skatter, som utgår på inkomst eller förmögenhet i dess helhet eller på delar av inkomst eller förmögenhet, däri inbegripna skatter på vinst genom överlåtelse av lös eller fast egendom samt skatter på värdestegring. 3. De för närvarande utgående skatter, på vilka avtalet tillämpas är: a) Beträffande Sverige: 1) Den statliga inkomstskatten, sjömansskatten och kupongskatten däri inbegripna; 2) ersättningsskatten och utskiftningsskatten; 3) bevillningsavgiften för vissa offentliga föreställningar; 4) den kommunala inkomstskatten; samt 5) den statliga förmögenhetsskatten; (i det följande benämnda "svensk skatt"). b) Beträffande Tanzania: Inkomstskatten och varje annan skatt som enligt inkomstskattelagen ("Income Tax Act") anses som en inkomstskatt (i det följande benämnda "tanzanisk skatt"). 4. Detta avtal tillämpas även på skatter av samma eller i huvudsak likartat slag, som efter undertecknandet av avtalet uttages vid sidan av eller i stället för de ovannämnda skatterna. De behöriga myndigheterna i de avtalsslutande staterna skall meddela varandra de väsentliga ändringar som skett i respektive skattelagstiftning. Artikel 3 Allmänna definitioner 1. Där icke sammanhanget föranleder annat, har i detta avtal följande uttryck nedan angiven betydelse: a) Uttrycket "Sverige" åsyftar Konungariket Sverige och inbegriper varje utanför Sveriges territorialvatten beläget område, inom vilket Sverige enligt svensk lag och i överensstämmelse med folkrättens allmänna regler äger utöva sina rättigheter med avseende på utforskandet och utnyttjandet av naturtillgångarna på havsbottnen eller i dennas underlag. b) Uttrycket "Tanzania" åsyftar Den Förenade Republiken Tanzania och inbegriper varje utanför Tanzanias territorialvatten beläget område som, i överensstämmelse med folkrättens allmänna regler, enligt Tanzanias lagstiftning om kontinentalsockeln angivits eller kan komma att anges såsom ett område inom vilket Tanzania äger utöva sina suveräna rättigheter med avseende på utforskandet och utnyttjandet av naturtillgångar. c) Uttrycken "en avtalsslutande stat" och "den andra avtalsslutande staten" åsyftar Sverige eller Tanzania, alltefter som sammanhanget kräver. d) Uttrycket "person" inbegriper en fysisk person, bolag och varje annan sammanslutning av personer. e) Uttrycket "bolag" åsyftar varje slag av juridisk person eller varje subjekt som i beskattningshänseende behandlas såsom juridisk person. f) Uttrycken "företag i en avtalsslutande stat" och "företag i den andra avtalsslutande staten" åsyftar ett företag som bedrives av person med hemvist i en avtalsslutande stat, respektive ett företag, som bedrives av person med hemvist i den andra avtalsslutande staten. g) Uttrycket "behörig myndighet" åsyftar, i Sverige, finansministern eller hans befullmäktigade ombud, och i Tanzania, finansministern eller hans befullmäktigade ombud. h) Uttrycket "medborgare" åsyftar: 1) fysisk person, som är medborgare i en avtalsslutande stat; 2) juridisk person och annan sammanslutning, som bildats enligt gällande lagstiftning i en avtalsslutande stat. i) Uttrycket "internationell trafik" åsyftar varje transport utförd av fartyg eller luftfartyg, som användes av företag som har sin verkliga ledning i en avtalsslutande stat, utom då transporten sker uteslutande mellan platser i den andra avtalsslutande staten. 2. Då en avtalsslutande stat tillämpar detta avtal anses, såvida icke sammanhanget föranleder annat, varje däri förekommande uttryck, vars innebörd icke angivits särskilt, ha den betydelse, som uttrycket har enligt den statens lagstiftning rörande sådana skatter, som omfattas av avtalet. Artikel 4 Skatterättsligt hemvist 1. Vid tillämpningen av detta avtal förstås med uttrycket "person med hemvist i en avtalsslutande stat" varje person, som enligt lagstiftningen i denna stat är skattskyldig där på grund av hemvist, bosättning, plats för företagsledning eller varje annan liknande omständighet. Uttrycket inbegriper dock icke en person som är skattskyldig i denna avtalsslutande stat endast för inkomst från källa i denna stat eller förmögenhet belägen där. 2. Då på grund av bestämmelserna i punkt 1 fysisk person har hemvist i båda avtalsslutande staterna, fastställes hans hemvist enligt följande regler: a) Han anses ha hemvist i den avtalsslutande stat där han har ett hem som stadigvarande står till hans förfogande. Om han har ett sådant hem i båda avtalsslutande staterna, anses han ha hemvist i den avtalsslutande stat, med vilken hans personliga och ekonomiska förbindelser är starkast (centrum för levnadsintressena). b) Om det icke kan avgöras i vilken avtalsslutande stat han har centrum för sina levnadsintressen eller om han icke i någondera avtalsslutande staten har ett hem som stadigvarande står till hans förfogande, anses han ha hemvist i den avtalsslutande stat, där han stadigvarande vistas. c) Om han stadigvarande vistas i båda avtalsslutande staterna eller om han icke vistas stadigvarande i någon av dem, anses han ha hemvist i den avtalsslutande stat där han är medborgare. d) Om han är medborgare i båda avtalsslutande staterna eller om han icke är medborgare i någon av dem, avgör de behöriga myndigheterna i de avtalsslutande staterna frågan genom överenskommelse. 3. Då på grund av bestämmelserna i punkt 1 person, som ej är fysisk person, har hemvist i båda avtalsslutande staterna, anses personen i fråga ha hemvist i den avtalsslutande stat där den har sin verkliga ledning. Artikel 5 Fast driftställe 1. Vid tillämpningen av detta avtal förstås med uttrycket "fast driftställe" en stadigvarande affärsanordning, där företagets verksamhet helt eller delvis utövas. 2. Uttrycket "fast driftställe" innefattar särskilt: a) plats för företagsledning, b) filial, c) kontor, d) fabrik, e) verkstad, f) gruva, oljekälla, stenbrott eller annan plats för utnyttjandet av naturtillgång, samt g) plats för byggnads-, anläggnings- eller installationsarbete som varar mer än sex månader. 3. Uttrycket "fast driftställe" anses icke innefatta: a) användningen av anordningar, avsedda uteslutande för lagring, utställning eller utlämnande av företaget tillhöriga varor, b) innehavet av ett företaget tillhörigt varulager, avsett uteslutande för lagring, utställning eller utlämnande, c) innehavet av ett företaget tillhörigt varulager, avsett uteslutande för bearbetning eller förädling genom annat företags försorg, d) innehavet av stadigvarande affärsanordning, avsedd uteslutande för inköp av varor eller införskaffande av upplysningar för företagets räkning, e) innehavet av stadigvarande affärsanordning, avsedd uteslutande för att för företagets räkning ombesörja reklam, meddela upplysningar, bedriva vetenskaplig forskning eller utöva liknande verksamhet, som är av förberedande eller biträdande art. 4. Person som är verksam i en avtalsslutande stat för företag i den andra avtalsslutande staten - härunder inbegripes icke sådan oberoende representant som avses i punkt 5 - behandlas såsom ett fast driftställe i den förstnämnda staten, om han innehar och i denna förstnämnda stat regelbundet använder en fullmakt att sluta avtal i företagets namn samt verksamheten icke begränsas till inköp av varor för företagets räkning. 5. Företag i en avtalsslutande stat anses icke ha haft driftställe i den andra avtalsslutande staten endast på den grund att företaget uppehåller affärsförbindelser i denna andra stat genom förmedling av mäklare, kommissionär eller annan oberoende representant, under förutsättning att sådan person därvid utövar sin vanliga affärsverksamhet. 6. Den omständigheten att ett bolag med hemvist i en avtalsslutande stat kontrollerar eller kontrolleras av ett bolag med hemvist i den andra avtalsslutande staten eller ett bolag som utövar affärsverksamhet i denna andra stat (antingen genom fast driftställe eller på annat sätt), medför icke i och för sig att någotdera bolaget betraktas såsom fast driftställe för det andra bolaget. Artikel 6 Fastighet 1. Inkomst av fastighet, däri inbegripet inkomst av lantbruk eller skogsbruk, får beskattas i den avtalsslutande stat, där fastigheten är belägen. 2.a) Där icke bestämmelserna i punkt b) föranleder annat, har uttrycket "fastighet" den betydelse som uttrycket har enligt gällande lagar i den stat, där fastigheten i fråga är belägen. b) Uttrycket inbegriper dock alltid egendom som utgör tillbehör till fastighet, levande och döda inventarier i lantbruk och skogsbruk, rättigheter på vilka föreskrifterna i allmän lag angående fastigheter är tillämpliga, nyttjanderätt till fastighet samt rätt till föränderliga eller fasta ersättningar för nyttjandet av eller rätten att nyttja gruva, källa eller annan naturtillgång. Fartyg, båtar och luftfartyg anses icke som fastighet. 3. Bestämmelserna i punkt 1 tillämpas på inkomst, som förvärvas genom omedelbart brukande, genom uthyrning eller genom annan användning av fastighet. 4. Bestämmelserna i punkterna 1 och 3 tillämpas även på inkomst av fastighet som tillhör företag och på inkomst av fastighet som användes vid utövande av fritt yrke. Artikel 7 Rörelse 1. Inkomst av rörelse, som förvärvas av företag i en avtalsslutande stat, beskattas endast i denna stat, såvida icke företaget bedriver rörelse i den andra avtalsslutande staten från där beläget fast driftställe. Om företaget bedriver rörelse på nyss angivet sätt, får företagets inkomst beskattas i den andra avtalsslutande staten men endast så stor del därav, som är hänförlig till det fasta driftstället. 2. Om företag i en avtalsslutande stat bedriver rörelse i den andra avtalsslutande staten från där beläget fast driftställe, skall, där icke bestämmelserna i punkt 4 föranleder annat, i vardera avtalsslutande staten till det fasta driftstället hänföras den inkomst av rörelse, som det kan antagas att driftstället skulle ha förvärvat, om det varit ett fristående företag, som bedrivit verksamhet av samma eller liknande slag under samma eller liknande villkor och självständigt avslutat affärer med det företag till vilket driftstället hör. 3. Om ett företag i en avtalsslutande stat har fast driftställe i den andra avtalsslutande staten och säljer varor, som är av samma eller liknande slag som de som säljes av det fasta driftstället eller tillhandahåller tjänster, som är av samma eller liknande slag som de som tillhandahålles av det fasta driftstället, kan inkomst av sådan verksamhet anses hänförlig till det fasta driftstället, såvida icke företaget visar att försäljningen eller tillhandahållandet av tjänsterna icke är hänförliga till den vid det fasta driftstället bedrivna verksamheten. 4. Vid bestämmandet av inkomst, som är hänförlig till det fasta driftstället, medges avdrag för kostnader som uppkommit för det fasta driftställets räkning - härunder inbegripna kostnader för företagets ledning och allmänna förvaltning - antingen kostnaderna uppkommit i den avtalsslutande stat, där det fasta driftstället är beläget, eller annorstädes. Dessa bestämmelser omfattar emellertid icke sådana kostnader som enligt lagen i sistnämnda stat icke hade varit avdragsgilla för ett fristående företag i den staten. 5. I den mån inkomst hänförlig till fast driftställe brukat bestämmas i en avtalsslutande stat på grundval av en fördelning av företagets hela inkomst på de olika delarna av företaget, skall bestämmelserna i punkt 2 icke hindra att i denna avtalsslutande stat den skattepliktiga inkomsten bestämmes genom ett sådant förfarande. Förfarandet skall dock vara sådant att resultatet står i överensstämmelse med de i denna artikel angivna principerna. 6. Inkomst anses icke hänförlig till fast driftställe endast av den anledningen att varor inköpes genom det fasta driftställets försorg för företagets räkning. 7. Vid tillämpningen av föregående punkter bestämmes inkomst som är hänförlig till det fasta driftstället genom samma förfarande år från år, såvida icke särskilda förhållanden föranleder annat. 8. Ingår i rörelseinkomsten inkomstslag, som behandlas särskilt i andra artiklar av detta avtal, beröres bestämmelserna i dessa artiklar icke av reglerna i förevarande artikel. Artikel 8 Luftfart och sjöfart 1. Inkomst som förvärvas av ett företag i en avtalsslutande stat genom utövande av luftfart i internationell trafik beskattas endast i den avtalsslutande stat där företaget har sin verkliga ledning. 2. Inkomst som förvärvas av ett företag i en avtalsslutande stat genom utövande av sjöfart i internationell trafik får beskattas i båda avtalsslutande staterna enligt vardera statens lagstiftning. 3. Om ett företag i en avtalsslutande stat förvärvar inkomst som avses i punkt 2 genom verksamhet i den andra avtalsslutande staten, gäller följande: a) Inkomsten skall anses icke överstiga ett belopp motsvarande 5 procent av företagets bruttointäkter genom befordran av passagerare eller gods som tagits ombord i denna andra stat; b) den skatt som uttages på inkomsten i denna andra stat skall nedsättas med 50 procent. 4. Bestämmelserna i punkt 1 tillämpas även beträffande inko …