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 obligation to pay the royalties was incurred, and such royalties are borne by the permanent establishment, then such royalties shall be deemed to arise in the Contracting State in which the permanent establishment is situated.
\n
5.The provisions of paragraphs 1 and 2 shall not apply if the recipient of the royalties, being a resident of a Contracting State, has in the other Contracting State in which the royal- ties arise, a permanent establishment with which the right or property giving rise to the royalty is effectively connected.
\n
In such a case, the provisions of Article 7 shall apply.
\n
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 relationship, the provisions of this Article shall apply only to the last-mentioned amount.
\n
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.
\n
Article 13Capital gains
\n
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 the immovable property is situated.
\n
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 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.
\n
3.Gains from the alienation of any property or right other than those mentioned in paragraphs 1 and 2 may be taxed in both Contracting States.
\n
Article 14Independent personal services
\n
1.Income derived by a resident of a Contracting State in respect of professional services or other independent activities of a similar nature shall be taxable only in that State, unless the payment of such services and activities is borne by a permanent establishment situated in the other Contracting State or a company resident therein. In such a case, the income may be taxed in that other State.
\n
2.The term \"professional services\" includes, especially, independent scientific, technical, literary, artistic, educational or teaching activities as well as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants.
\n
Article 15Dependent personal services
\n
1.Subject to the provisions of Articles 16, 18, 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.
\n
2.Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if:
\n
a)the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in the fiscal year concerned, and
\n
b)the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State, and
\n
c)the remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other State.
\n
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.
\n
Article 16Directors' fees
\n
Directors' fees and similar payments derived by a resident of a Contracting State in his capacity as a member of the board of directors or of a \"Conselho Fiscal\" of a company which is a resident of the other Contracting State may be taxed in that other State.
\n
Article 17Artistes and athletes
\n
1.Notwithstanding any other provisions of this Convention, income derived by public 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.
\n
2.Where the services mentioned in paragraph 1 of this Article are provided in a Contracting State by an enterprise of the other Contracting State, then the income derived from providing those services by such an enterprise may, notwith- standing any other provision of this Convention, be taxed in the first-mentioned Contracting State.
\n
Article 18Pensions and annuities
\n
1.Subject to the provisions of paragraphs 1 and 3 of Article 19, pensions and other similar remuneration not exceeding an amount equivalent to US $ 4,000 in a calendar year, and annuities paid to a resident of a Contracting State shall be taxable only in that State.
\n
The amount of pension which exceeds the above-mentioned limit may be taxed in both Contracting States.
\n
2.As used in this Article:
\n
a)the term \"pensions and other similar remuneration\" means periodic payments made after retirement in consideration of past employment or by way of compensation for injuries received, in connection with past employment;
\n
b)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 adequate and full consideration in money or money's worth (other than services rendered).
\n
Article 19Governmental payments
\n
1.Remuneration, including pensions, paid by, or out of funds created by, a Contracting State, a political subdivision or a local authority thereof to any individual in respect of services rendered to that State, to a political subdivision or a local authority thereof in the discharge of functions of a governmental or other public nature may be taxed in that State. Such remuneration shall, however, be taxable only in that State if the recipient is a national of that State.
\n
2.The provisions of Articles 15, 16 and 18 shall apply to remuneration or pensions in respect of services rendered in connection with any trade or business carried on by one of the Contracting States, a political subdivision or a local au- thority thereof.
\n
3.Pensions paid out under the Social Security Scheme of a Contracting State may be taxed in that State.
\n
Article 20Teachers and researchers
\n
An individual who is, or was immediately before visiting a Contracting State, a resident of the other Contracting State and who, at the invitation of the first-mentioned Contracting State or a university, college, school, museum or other cultural institution in that first-mentioned Contracting State or under an official programme of cultural exchange, is present in that State for a period not exceeding two years solely for the purpose of teaching, giving lectures or carry- ing out research at such institution shall be exempt from tax in that State on his remuneration for such activity, provided he is subject to tax thereon in the other Contracting State.
\n
Article 21Students
\n
1.An individual who is, or was immediately before visiting a Contracting State, a resident of the other Contracting State and who is present in the first-mentioned Contracting State solely:
\n
a)as a student at a university, college or school in that first-mentioned Contracting State,
\n
b)as a trainee, or
\n
c)as the recipient of a grant, allowance or award for the primary purpose of study or research from a religious, charitable, scientific or educational organization, shall be exempt from tax in that first-mentioned Contracting State in respect of remittances from abroad for the purposes of his maintenance, education or training.
\n
2.A student or trainee who is, or was immediately before visiting a Contracting State, a resident of the other Contracting State and who is present in the first-mentioned Contracting State solely, for the purposes of his education or training shall be exempt from tax in that first-mentioned Contracting State for a period not exceeding three consecutive fiscal years in respect of remuneration from employment in that State, provided that the remuneration does not exceed in the fiscal year an amount corresponding to US $ 2,000.
\n
Article 22Income not expressly mentioned
\n
Items of income of a resident of a Contracting State which are not expressly mentioned in the foregoing Articles of this Convention may be taxed in both Contracting States.
\n
Article 23Elimination of double taxation
\n
1.In the case of Brazil, double taxation shall be avoided as follows:
\n
a)Where a resident of Brazil derives income which, in accordance with the provisions of this Convention, may be taxed in Sweden, Brazil shall allow, according to the provisions of its law regarding the elimination of double taxation (which shall not affect the general principle hereof), as a deduction from the tax on the income of that resident, an amount equal to the income tax paid in Sweden.
\n
Such deduction, however, shall not exceed that part of the income tax, as computed before the deduction is given, which is attributable to the income which may be taxed in Sweden.
\n
b)Where in accordance with any provision of the Convention income derived by a resident of Brazil is exempt from tax in Brazil, Brazil may nevertheless, in calculating the amount of tax on the remaining income of such resident, take into account the exempted income.
\n
2.In the case of Sweden, double taxation shall be avoided as follows:
\n
a)Where a resident of Sweden derives income which under the laws of Brazil and in accordance with the provisions of this Convention may be taxed in Brazil, Sweden shall allow - subject to the provisions of the laws of Sweden 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 Brazilian tax paid in respect of such income.
\n
b)Where a resident of Sweden derives income which, in accor- dance with the provisions of this Convention, shall be taxable only in Brazil, Sweden may, when determining the graduated rate of Swedish tax, take into account the income which shall be taxable only in Brazil.
\n
c)Notwithstanding the provisions of sub-paragraph a) of this paragraph, dividends paid by a company which is a resident of Brazil to a company which is a resident of Sweden shall be exempt from Swedish tax according to the provisions of Swedish law governing the exemption of tax on dividends paid to Swedish companies by companies abroad.
\n
Article 24Non-discrimination
\n
1.The nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which nationals of that other State in the same circumstances are or may be subjected.
\n
2.The term \"nationals\" means:
\n
a)all individuals possessing the nationality of a Contracting State;
\n
b)all legal persons, partnerships and associations deriving their status as such from the law in force in a Contracting State.
\n
3.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.
\n
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.
\n
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.
\n
5.In this Article the term \"taxation\" means taxes of every kind and description.
\n
Article 25Mutual agreement procedure
\n
1.Where a person considers that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with the provisions of this Convention, he may, irrespective of the remedies provided by the domestic law of those States, present his case to the competent authority of either Contracting State. 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.
\n
2.The competent authority shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation which is not in accordance with the Convention. Any agreement reached shall be implemented notwithstanding any time limits in the domestic law of the Contracting States.
\n
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.
\n
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.
\n
Article 26Exchange of information
\n
1.The competent authorities of the Contracting States shall exchange such information as is foreseeably relevant for carrying out the provisions of this Convention or to the administration or enforcement of the domestic laws concerning taxes of every kind and description imposed on behalf of the Contracting States, or of their political subdivisions or local authorities, insofar as the taxation thereunder is not contrary to the Convention. The exchange of information is not restricted by Articles 1 and 2.
\n
2.Any information received under paragraph 1 by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the assess- ment or collection of, the enforcement or prosecution in respect of, the determination of appeals in relation to the taxes referred to in paragraph 1, or the oversight of the above. Such persons or authorities shall use the information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions.
\n
Notwithstanding the foregoing, information received by a Con- tracting State may be used for other purposes when such infor- mation may be used for such other purposes under the laws of both States and the competent authority of the supplying State authorises such use.
\n
3.In no case shall the provisions of paragraphs 1 and 2 be construed so as to impose on a Contracting State the obligation:
\n
a)to carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State;
\n
b)to supply information which is not obtainable under the laws or in the normal course of the administration of that or of the other Contracting State;
\n
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 (ordre public).
\n
4.If information is requested by a Contracting State in accordance with this Article, the other Contracting State shall use its information gathering measures to obtain the requested information, even though that other State may not need such information for its own tax purposes. The obligation contained in the preceding sentence is subject to the limitations of paragraph 3 but in no case shall such limitations be construed to permit a Contracting State to decline to supply information solely because it has no do- mestic interest in such information.
\n
5.In no case shall the provisions of paragraph 3 be construed to permit a Contracting State to decline to supply information solely because the information is held by a bank, other financial institution, nominee or person acting in an agency or a fiduciary capacity or because it relates to ownership interests in a person.
\n
Article 26A
\n
Entitlement to benefits 1. Except as otherwise provided in this Article, a resident of a Contracting State shall not be entitled to a benefit that would otherwise be accorded by this Convention (other than a benefit under paragraph 3 of Article 4 or Article 25) unless such resident is a \"qualified person\", as defined in paragraph 2, at the time that the benefit would be accorded.
\n
2.A resident of a Contracting State shall be a qualified person at a time when a benefit would otherwise be accorded by the Convention if, at that time, the resident is:
\n
a)an individual;
\n
b)that Contracting State, or a political subdivision or local authority thereof, or an agency or instrumentality of that State, political subdivision or local authority;
\n
c)a company or other entity, if the principal class of its shares is regularly traded on one or more recognised stock exchanges;
\n
d)a person, other than an individual, that is a non-profit organisation agreed upon by the competent authorities;
\n
e)a person other than an individual if, at that time and on at least half of the days of a twelve-month period that includes that time, persons who are residents of that Contracting State and that are entitled to benefits of this Convention under sub-paragraphs a) to d) own, directly or indirectly, at least 50 per cent of the shares of the person.
\n
3.a) A resident of a Contracting State shall be entitled to benefits under this Convention with respect to an item of income derived from the other Contracting State, regardless of whether the resident is a qualified person, if the resident is engaged in the active conduct of a business in the first- mentioned State and the income derived from the other State emanates from, or is incidental to, that business. For purposes of this Article, the term \"active conduct of a business\" shall not include the following activities or any combination thereof: (i) operating as a holding company; (ii) providing overall supervision or administration of a group of companies; (iii) providing group financing (including cash pooling); or (iv) making or managing investments, unless these activities are carried on by a bank, insurance enterprise or registered securities dealer in the ordinary course of its business as such.
\n
b)If a resident of a Contracting State derives an item of income from a business activity conducted by that resident in the other Contracting State, or derives an item of income arising in the other State from a connected person, the conditions described in sub-paragraph a) shall be considered to be satisfied with respect to such item only if the business activity carried on by the resident in the first-mentioned State to which the item is related is substantial in relation to the same or complementary business activity carried on by the resident or such connected person in the other Contracting State. Whether a business activity is substantial for the purposes of this paragraph shall be determined based on all the facts and circumstances.
\n
c)For purposes of applying this paragraph, activities conducted by connected persons with respect to a resident of a Contracting State shall be deemed to be conducted by such resident.
\n
4.A resident of a Contracting State that is not a qualified person shall nevertheless be entitled to a benefit that would otherwise be accorded by this Convention with respect to an item of income if, at the time when the benefit otherwise would be accorded and on at least half of the days of any twelve-month period that includes that time, persons that are equivalent beneficiaries own, directly or indirectly, at least 75 per cent of the shares of the resident.
\n
5.If a resident of a Contracting State is neither a qualified person pursuant to the provisions of paragraph 2, nor entitled to benefits under paragraph 3 or 4, the competent authority of the Contracting State in which benefits are denied under the previous provisions of this Article may, nevertheless, grant the benefits of this Convention, or benefits with respect to a specific item of income, taking into account the object and purpose of this Convention, but only if such resident demonstrates to the satisfaction of such competent authority that neither its establishment, acquisition or maintenance, nor the conduct of its operations, had as one of its principal purposes the obtaining of benefits under this Convention. The competent authority of the Contracting State to which a request has been made, under this paragraph, by a resident of the other State, shall consult with the competent authority of that other State before either granting or denying the request.
\n
6.For the purposes of this and the previous paragraphs of this Article:
\n
a)the term \"recognised stock exchange\" means: (i) the BM&F Bovespa (\"B3\") and any other stock exchange sub- ject to regulation by the Securities and Exchange Commission of Brazil (\"Comissão de Valores Mobiliários - CVM\") or its successor; (ii) the OMX NASDAQ Stockholm Stock Exchange (Stockholms- börsen), the Nordic Growth Market (NGM), and any other stock exchange subject to regulation by the Swedish Financial Supervisory Authority; (iii) any stock exchange of a member state of the European Union or of Norway, Iceland, Liechtenstein, or Switzerland subject to regulation by a Financial Supervisory Authority in the respective relevant state; (iv) the stock exchanges of Hong Kong, New York, Seoul, Shanghai, Singapore, Sydney, Toronto, and the NASDAQ System; and (v) any other stock exchange which the competent authorities of the Contracting States agree to recognize for the purposes of this Article;
\n
b)with respect to entities that are not companies, the term \"shares\" means interests that are comparable to shares;
\n
c)the term \"principal class of shares\" means the class or classes of shares of a company or entity which represents the majority of the aggregate vote and value of the company or entity;
\n
d)two persons shall be \"connected persons\" if one owns, directly or indirectly, at least 50 per cent of the beneficial interest in the other (or, in the case of a company, at least 50 per cent of the aggregate vote and value of the company's shares) or another person owns, directly or indirectly, at least 50 per cent of the beneficial interest (or, in the case of a company, at least 50 per cent of the aggregate vote and value of the company's shares) in each person. In any case, a person shall be connected to another if, based on all the relevant facts and circumstances, one has control of the other or both are under the control of the same person or persons;
\n
e)the term \"equivalent beneficiary\" means any person who would be entitled to benefits with respect to an item of income accorded by a Contracting State under the domestic law of that Contracting State, this Convention or any other international agreement which are equivalent to, or more favourable than, benefits to be accorded to that item of income under this Convention. For the purposes of determining whether a person is an equivalent beneficiary with respect to dividends received by a company, the person shall be deemed to be a company and to hold the same capital of the company paying the dividends as such capital the company claiming the benefit with respect to the dividends holds.
\n
7.a) Where: (i) an enterprise of a Contracting State derives income from the other Contracting State and the first-mentioned State treats such income as attributable to a permanent estab- lishment of the enterprise situated in a third jurisdiction, and (ii) the profits attributable to that permanent establishment are exempt from tax in the first-mentioned State, the benefits of this Convention shall not apply to any item of income on which the tax in the third jurisdiction is less than 60 per cent of the tax that would be imposed in the first- mentioned State on that item of income if that permanent establishment were situated in the first-mentioned State. In such a case, any income to which the provisions of this paragraph apply shall remain taxable according to the domestic law of the other State, notwithstanding any other provisions of the Convention.
\n
b)The preceding provisions of this paragraph shall not apply if the income derived from the other State emanates from, or is incidental to, the active conduct of a business carried on through the permanent establishment (other than the business of making, managing or simply holding investments for the enterprise's own account, unless these activities are banking, insurance or securities activities carried on by a bank, insurance enterprise or registered securities dealer, respectively).
\n
c)If benefits under this Convention are denied pursuant to the preceding provisions of this paragraph with respect to an item of income derived by a resident of a Contracting State, the competent authority of the other Contracting State may, nevertheless, grant these benefits with respect to that item of income if, in response to a request by such resident, such competent authority determines that granting such benefits is justified in light of the reasons such resident did not satisfy the requirements of this paragraph (such as the existence of losses). The competent authority of the Contracting State to which a request has been made under the preceding sentence shall consult with the competent authority of the other Contracting State before either granting or denying the request.
\n
8.Notwithstanding any other provisions of this Convention, where
\n
a)a company that is a resident of a Contracting State derives its income primarily from other States (i) from activities such as banking, shipping, financing or insurance or; (ii) 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 primarily in other States; and
\n
b)such income would, under the laws of that State, bear a tax lower than 60 per cent of the tax that is borne by 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, any provisions of this Convention conferring an exemption or a reduction of tax shall not apply to the income of such company and to the dividends paid by such company.
\n
9.Notwithstanding the other provisions of this Convention, a benefit under this Convention shall not be granted in respect of an item of income if it is reasonable to conclude, having regard to all relevant facts and circumstances, that obtaining that benefit was one of the principal purposes of any arrange- ment or transaction that resulted directly or indirectly in that benefit, unless it is established that granting that benefit in these circumstances would be in accordance with the object and purpose of the relevant provisions of this Convention.
\n
Article 27Diplomatic and consular officials
\n
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.
\n
Article 28Entry into force
\n
1.This Convention shall be ratified and the instruments of ratification shall be exchanged at Stockholm as soon as possible.
\n
2.This Convention shall enter into force upon the exchange of instruments of ratification and its provisions shall have effect:
\n
I - as respects taxes withheld at source to amounts paid or remitted on or after January 1 of the calendar year immediately following the year in which the Convention enters into force;
\n
II - as respects other taxes on income, to income derived on or after January 1 of the calendar year immediately following the year in which the Convention enters into force.
\n
3.The Agreement between Sweden and Brazil for the avoidance of double taxation with respect to taxes on income and capital, signed at Rio de Janeiro on 17th September 1965, shall cease to have effect as regards taxes withheld at source and other taxes on income, from the date on which the present Convention becomes effective in accordance with paragraph 2 of this Article. With respect to the Swedish capital tax, the Agreement shall be applied for the last time in respect of capital owned at the expiration of the year in which the present Convention enters into force.
\n
Article 29Termination
\n
This Convention shall remain in force indefinitely, but either Contracting State may, on or before 30th June in any calendar year beginning after the expiration of a period of three years from the date of the entry into force, give to the other Contracting State, through diplomatic channels, written notice of termination. In such case, the Convention shall cease to have effect:
\n
I - as respects taxes withheld at source, to amounts paid or remitted after the expiration of the calendar year in which the notice of termination is given;
\n
II - as respects other taxes on income, to income derived after the expiration of the calendar year in which the notice of termination is given.
\n
In witness whereof the undersigned being duly authorized thereto have signed this Convention and have affixed thereto their seals.
\n
Done at Brasília this 25th day of April 1975, in duplicate in the Swedish, the Portuguese and the English languages, all three texts being equally authentic. In case of any divergence of interpretation the English text shall prevail.
\n
For the Government of the Kingdom of Sweden:
\n
Bengt Odevall For the Government of the Federative Republic of Brazil:
\n
A. F. Azaredo da Silveira Protocol The Government of the Kingdom of Sweden and the Government of the Federative Republic of Brazil have agreed at the signing of the Protocol amending the Convention between Sweden and Brazil for the avoidance of double taxation with respect to taxes on income signed in Brasília on 25 April 1975 upon the following provisions which shall form an integral part of the Convention.
\n
1.Ad Article 2 It is understood that in the case of Brazil the social contribution on the net profits (\"Contribuição Social sobre o Lucro Líquido - CSLL\", in Portuguese) created by Law 7,689 of 15 December 1988 is included in the taxes referred to in Article 2, paragraph 1, sub-paragraph (b).
\n
2.Ad Articles 10, 11 and 12 It is agreed that if any Agreement, Convention or Protocol between Brazil and a member state of the Organisation for Economic Cooperation and Development (OECD), excluding any state in Latin America, signed after 19th March 2019, provides that Brazil shall exempt from tax dividends, interest or royalties arising in Brazil, or limit the tax charged in Brazil on such dividends, interest or royalties to a rate lower than any of those provided for in sub-paragraph a) of paragraph 2 of Article 10, paragraph 2 of Article 11 or paragraph 2 of Article 12 of the Convention, such exemption or lower rate shall automatically apply to dividends, interest or royalties arising in Brazil and beneficially owned by a resident of Sweden and to dividends, interest or royalties arising in Sweden and beneficially owned by a resident of Brazil, under the same conditions as if such exemption or lower rate had been specified in those paragraphs and for as long as such rates are applicable in any other such Agreement, Convention or Protocol. This shall apply regardless of whether such exemption or lower rate applies generally or in respect of specific categories of dividends, interest or royalties, including through providing for a more limited scope of the definitions of such incomes.
\n
3.Ad Article 10 It is understood that the provisions of paragraph 5 of Article 10 are not in conflict with the provisions of paragraph 3 of Article 24.
\n
4.Ad Article 11 It is understood that, in respect of paragraph 4 of Article 11, interest paid as \"interest on the company's equity\" (\"juros sobre o capital próprio\" in Portuguese) in accordance with Brazilian tax law is also considered interest for the purposes of paragraph 4 of Article 11.
\n
5.Ad Article 12 It is understood that the provisions of paragraph 3 of Article 12 shall also apply to payments of any kind received as consideration for the rendering of technical services and technical assistance.
\n
6.Ad Article 23 In case Sweden considers introducing legislation that results in Sweden imposing corporate income tax, at the level of a Swedish company, on profits of an affiliated Brazilian company from industrial production which benefited from Brazilian incentives designed to promote regional economic development in Brazil for the Northern and Northeast regions, approved by the Brazilian Agency for the Development of the Northeast (\"Superintendência de Desenvolvimento do Nordeste - SUDENE\") or Agency for the Development of the Amazon (\"Superintendência de Desenvolvimento da Amazônia - SUDAM\"), the competent authorities of the Contracting States shall enter into discussions on how to preserve the effects of such incentives.
\n
7.Ad Article 24
\n
a)It is understood that the provisions of the Brazilian tax law that do not allow that royalties as defined in paragraph 3 of Article 12, paid by a permanent establishment situated in Brazil to a resident of Sweden that carries on business in Brazil through such a permanent establishment, be deductible at the moment of the determination of the taxable income of the above referred permanent establishment, are not in conflict with the provisions of paragraph 3 of Article 24.
\n
b)It is understood that the provisions of the Convention shall not prevent a Contracting State from applying the provisions of its domestic legislation aimed at countering tax evasion and avoidance.
\n
8.Ad Article 26 It is understood that, in the case of Brazil, the taxes referred to in paragraph 1 of Article 26 mean federal taxes only.
\n
9.Ad Article 26-A It is understood that if at any time the United Kingdom leaves the European Union, the London Stock Exchange shall remain a \"recognised stock exchange\" for the purposes of sub-paragraph
\n
c)of paragraph 2 of Article 26-A.