AGREEMENT BETWEEN THE TAIPEI MISSION IN SWEDEN AND THE SWEDISH
TRADE COUNCIL FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PRE-
VENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME

In order to maintain and promote bilateral economic and commerc-
ial relations, the Taipei Mission in Sweden and the Swedish Tra-
de Council have agreed to work towards achieving the avoidance
of double taxation and the prevention of fiscal evasion with re-
spect to taxes on income.

In this respect the Taipei Mission in Sweden and the Swedish Tr-
ade Council have agreed on the usefulness to set up certain rul-
es concerning taxes with a view to avoiding double taxation and
preventing fiscal evasion with respect to taxes on income.

The Taipei Mission in Sweden and the Swedish Trade Council, bei-
ng most desirous of implementing this Agreement subject to their
legal requirements in the respective territories, will work tow-
ards achieving the rules to be applied,
Have agreed as follows:

Article 1 Personal scope
This Agreement shall apply to persons who are residen-
ts of one or both of the territories.

Article 2 Taxes covered
1.The existing taxes to which this Agreement shall ap-
ply are:
(a) In the territory in which the taxation laws admin-
istered by the National Tax Board (Riksskatteverk-
et) are applied:
(i) the national income tax (den statliga inkomstsk-
atten);
(ii) the withholding tax on dividends (kupongskatten
);
(iii) the income tax on non-residents (den sarskilda
inkomstskatten for utomlands bosatta);
(iv) the income tax on non-resident artistes and at-
hletes (den sarskilda inkomstskatten for utoml-
ands bosatta artister m.fl.); and
(v) the municipal income tax (den kommunala inkomst-
skatten);
(b) in the territory in which the taxation laws admin-
istered by the taxation authorities in Taipei are
applied:
the profit seeking enterprise income tax and the
individual consolidated income tax.
2.The Agreement shall apply also to any identical or
substantially similar taxes which are imposed after
the date of signature of the Agreement in addition
to, or in place of, the existing taxes. The compete-
nt authorities of the territories shall notify each
other of any significant changes which have been ma-
de in their respective taxation laws.

Article 3 General definitions
1.For the purposes of this Agreement, unless the cont-
ext otherwise requires:
(a) the term "territory" means the territory referred
to in subparagraph l(a) or l(b) of Article 2, as
the context requires;
(b) the term "person" includes an individual, a compa-
ny and any other body of persons;
(c) the term "company" means any body corporate or any
entity that is treated as a body corporate for tax
purposes;
(d) the terms "enterprise of a territory" and "enterp-
rise of the other territory" mean respectively an
enterprise carried on by a resident of a territory
and an enterprise carried on by a resident of the
other territory;
(e) the term "international traffic" means any transp-
ort by a ship or aircraft operated by an enterpri-
se of a territory, except when the ship or aircra-
ft is operated solely between places in the other
territory;
(f) the term "competent authority" means:
(i) in the territory in which the taxation laws adm-
inistered by the taxation authorities in Taipei
are applied, the Director-General of the Depart-
ment of Taxation or an authorized representative
of the Director-General;
(ii) in the territory in which the taxation laws ad-
ministered by the National Tax Board (Riksskat-
teverket) are applied, the National Tax Board (
Riksskatteverket) or the authority which is de-
signated as a competent authority for the purp-
oses of this Agreement.
2.As regards the application of the Agreement at any
time by a territory, any term not defined therein
shall, unless the context otherwise requires, have
the meaning that it has at that time under the law
of that territory for the purposes of the taxes to
which the Agreement applies, any meaning under the
applicable tax laws of that territory prevailing ov-
er a meaning given to the term under other laws of
that territory.

Article 4 Resident
1.For the purposes of this Agreement, the term "resid-
ent of a territory" means any person who, under the
laws of that territory, is liable to tax therein by
reason of his domicile, residence, place of managem-
ent or any other criterion of a similar nature. How-
ever, in the case of a partnership or estate the te-
rm applies only to the extent that the income deriv-
ed by such partnership or estate is subject to tax
in that territory as the income of a resident, eith-
er in its hands or in the hands of its partners or
beneficiaries.
2.A person is not a resident of a territory for the
purposes of this Agreement if the person is liable
to tax in that territory in respect only of income
from sources in that territory, provided that this
paragraph shall not apply to individuals who are re-
sidents of the territory referred to in sub-paragra-
ph 1(b) of Article 2, as long as resident individua-
ls are taxed only in respect of income from sources
in that territory.
3.Where by reason of the provisions of paragraph 1 an
individual is a resident of both territories, then
his status shall be determined as follows:
(a) he shall be deemed to be a resident only of the
territory in which he has a permanent home availa-
ble to him; if he has a permanent home available
to him in both territories, he shall be deemed to
be a resident only of the territory with which his
personal and economic relations are closer (centre
of vital interests);
(b) if the territory in which he has his centre of vi-
tal interests cannot be determined, or if he has
not a permanent home available to him in either
territory, he shall be deemed to be a resident on-
ly of the territory in which he has an habitual
abode;
(c) if he has an habitual abode in both territories or
in neither of them, the competent authorities of
the territories shall endeavour to settle the que-
stion by mutual agreement.
4.Where by reason of the provisions of paragraph 1 a
person other than an individual is a resident of bo-
th territories, then it shall be deemed to be a res-
ident only of the territory in which its place of
incorporation is situated.

Article 5 Permanent establishment
1.For the purposes of this Agreement, the term " perm-
anent establishment" means a fixed place of business
through which the business of an enterprise is whol-
ly or partly carried on.
2.The term "permanent establishment" includes especia-
lly:
(a) a place of management;
(b) a branch;
(c) an office;
(d) a factory;
(e) a workshop;
(f) a mine, an oil or gas well, a quarry or any other
place of extraction of natural resources; and
(g) the furnishing of services, including consultancy
services, in a territory by an enterprise of the
other territory through employees or other person-
nel engaged by the enterprise for such purpose,
but only where those activities (for the same or a
connected project) within the first-mentioned ter-
ritory continue for a period or periods aggregati-
ng more than 120 days within any twelve-month per-
iod.
3.A building site or a construction, assembly or inst-
allation project or supervisory activities in conne-
ction therewith constitutes a permanent establishme-
nt only if such site, project or activities continue
for a period of more than nine months.
4.Notwithstanding the preceding provisions of this Ar-
ticle, 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 merchand-
ise 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 sole-
ly for the purpose of purchasing goods or merchan-
dise or of collecting information, for the enterp-
rise;
(e) the maintenance of a fixed place of business sole-
ly for the purpose of carrying on, for the enterp-
rise, any other activity of a preparatory or auxi-
liary character, such as advertising or scientific
research;
(f) the maintenance of a fixed place of business sole-
ly for any combination of activities mentioned in
sub-paragraphs (a) to (e), provided that the over-
all activity of the fixed place of business resul-
ting from this combination is of a preparatory or
auxiliary character.
5.Notwithstanding the provisions of paragraphs 1 and 2
, where a person - other than an agent of an indepe-
ndent status to whom paragraph 6 applies - is acting
on behalf of an enterprise and has, and habitually
exercises, in a territory an authority to conclude
contracts in the name of the enterprise, that enter-
prise shall be deemed to have a permanent establish-
ment in that territory in respect of any activities
which that person undertakes for the enterprise, un-
less the activities of such person are limited to
those mentioned in paragraph 4 which, if exercised
through a fixed place of business, would not make
this fixed place of business a permanent establishm-
ent under the provisions of that paragraph.
6.An enterprise of a territory shall not be deemed to
have a permanent establishment in the other territo-
ry merely because it carries on business in that ot-
her territory through a broker, general commission
agent or any other agent of an independent status,
provided that such persons are acting in the ordina-
ry course of their business.
7.The fact that a company which is a resident of a te-
rritory controls or is controlled by a company which
is a resident of the other territory, or which carr-
ies on business in that other territory (whether th-
rough 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 derived by a resident of a territory from im-
movable property (including income from agriculture
or forestry) situated in the other territory may be
taxed in that other territory.
2.The term "immovable property" shall have the meaning
which it has under the law of the territory in which
the property in question is situated. The term shall
in any case include property accessory to immovable
property, livestock and equipment used in agricultu-
re and forestry, rights to which the provisions of
general law respecting landed property apply, build-
ings, 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 pro-
perty.
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 app-
ly to the income from immovable property of an ente-
rprise and to the income from immovable property us-
ed for the performance of independent personal serv-
ices.

Article 7 Business profits
1.The profits of an enterprise of a territory shall be
taxable only in that territory unless the enterprise
carries on business in the other territory through a
permanent establishment situated therein. If the en-
terprise carries on business as aforesaid, the prof-
its of the enterprise may be taxed in the other ter-
ritory but only so much of them as is attributable
to that permanent establishment.
2.Subject to the provisions of paragraph 3, where an
enterprise of a territory carries on business in the
other territory through a permanent establishment
situated therein, there shall in each territory be
attributed to that permanent establishment the prof-
its 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 con-
ditions and dealing wholly independently with the
enterprise of which it is a permanent establishment.
3.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
business of the permanent establishment, including
executive and general administrative expenses so in-
curred, whether in the territory in which the perma-
nent establishment is situated or elsewhere.
4.No profits shall be attributed to a permanent estab-
lishment by reason of the mere purchase by that per-
manent establishment of goods or merchandise for the
enterprise.
5.For the purposes of the preceding paragraphs, the
profits to be attributed to the permanent establish-
ment shall be determined by the same method year by
year unless there is good and sufficient reason to
the contrary.
6.Where profits include items of income which are dea-
lt with separately in other Articles of this Agreem-
ent, then the provisions of those Articles shall not
be affected by the provisions of this Article.

Article 8 Shipping and air transport
1.Profits of an enterprise of a territory from the op-
eration of ships or aircraft in international traff-
ic shall be taxable only in that territory.
2.For the purpose of this Article, profits from the
operation of ships or aircraft in international tra-
ffic shall include:
a.profits from the use, maintenance or rental of co-
ntainers and related equipment;
b.profits from the rental of ships or aircraft on a
full time, voyage or bare boat basis;
if such use, maintenance or rental is incidental to
the operation of ships or aircraft in international
traffic.
3.The provisions of paragraph 1 shall also apply to
profits from the participation in a pool, a joint
business or an international operating agency.
4.Whenever companies have agreed to carry on an air
transportation business together in the form of a
consortium, the provisions of paragraphs 1, 2 and 3
shall apply only to such part of the profits of the
consortium as relates to the participation held in
that consortium by a company that is a resident of a
territory.

Article 9 Associated enterprises
1.Where:
(a) an enterprise of a territory participates directly
or indirectly in the management, control or capit-
al of an enterprise of the other territory, or
(b) the same persons participate directly or indirect-
ly in the management, control or capital of an en-
terprise of a territory and an enterprise of the
other territory,
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 rea-
son of those conditions, have not so accrued, may be
included in the profits of that enterprise and taxed
accordingly.
2.Where a territory includes in the profits of an ent-
erprise of that territory - and taxes accordingly -
profits on which an enterprise of the other territo-
ry has been charged to tax in that other territory
and the profits so included are profits which would
have accrued to the enterprise of the first-mention-
ed territory if the conditions made between the two
enterprises had been those which would have been ma-
de between independent enterprises, then that other
territory shall make an appropriate adjustment to
the amount of the tax charged therein on those prof-
its. In determining such adjustment, due regard sha-
ll be had to the other provisions of this Agreement
and the competent authorities of the territories sh-
all if necessary consult each other.

Article 10 Dividends
1.Dividends paid by a company which is a resident of
a territory to a resident of the other territory
may be taxed in that other territory.
2.However, such dividends may also be taxed in the
territory of which the company paying the dividends
is a resident and according to the laws of that te-
rritory, but if the beneficial owner of the divide-
nds is a resident of the other territory, the tax
so charged shall not exceed 10 per cent of the gro-
ss amount of the dividends. The competent authorit-
ies of the territories may by mutual agreement set-
tle 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 which is subjected to
the same taxation treatment as income from shares
by the laws of the territory of which the company
making the distribution is a resident.
4.The provisions of paragraphs 1 and 2 shall not app-
ly if the beneficial owner of the dividends, being
a resident of a territory, carries on business in
the other territory of which the company paying the
dividends is a resident, through a permanent estab-
lishment situated therein, or performs in that oth-
er territory independent personal services from a
fixed base situated therein, and the holding in re-
spect of which the dividends are paid is effective-
ly connected with such permanent establishment or
fixed base. In such case the provisions of Article
7 or Article 14, as the case may be, shall apply.
5.Where a company which is a resident of a territory
derives profits or income from the other territory,
that other territory may not impose any tax on the
dividends paid by the company, except insofar as
such dividends are paid to a resident of that other
territory or insofar as the holding in respect of
which the dividends are paid is effectively connec-
ted with a permanent establishment or a fixed base
situated in that other territory, nor subject the
company's undistributed profits to a tax on the co-
mpany's undistributed profits, even if the dividen-
ds paid or the undistributed profits consist wholly
or partly of profits or income arising in such oth-
er territory.

Article 11 Interest
1.Interest arising in a territory and paid to a resi-
dent of the other territory may be taxed in that
other territory.
2.However, such interest may also be taxed in the te-
rritory in which it arises and according to the la-
ws of that territory, but if the beneficial owner
of the interest is a resident of the other territo-
ry, the tax so charged shall not exceed 10 per cent
of the gross amount of the interest. The competent
authorities of the territories may by mutual agree-
ment settle the mode of application of this limita-
tion.
3.The term "interest" as used in this Article means
income from debt-claims of every kind, whether or
not secured by mortgage and whether or not carrying
a right to participate in the debtor's profits, and
in particular, income from government securities
and income from bonds or debentures, including pre-
miums and prizes attaching to such securities, bon-
ds or debentures. Penalty charges for late payment
shall not be regarded as interest for the purpose
of this Article.
4.Notwithstanding the provisions of paragraph 2, any
such interest as is mentioned in paragraph 1 shall
be taxable only in the territory of which the reci-
pient is a resident if such recipient is the benef-
icial owner of the interest and if one of the foll-
owing requirements is fulfilled:
a) the interest is paid in respect of a loan granted
or guaranteed by:
i) in the case of the territory referred to in sub-
paragraph 1 (a) of Article 2, Swedfund Internat-
ional AB or the Swedish Export Credit Corporati-
on (SEK) or an organization which has replaced
any of these organizations,
ii) in the case of the territory referred to in sub
-paragraph 1 (b) of Article 2, such agencies
and instrumentalities of that territory as may
be agreed from time to time between the compet-
ent authorities,
b) he interest is paid in respect of a bond, debentu-
re or other similar obligation of a public entity
of a territory, or of a subdivision or a local au-
thority thereof,
c) the interest is paid to a public entity of the ot-
her territory or a subdivision or a local authori-
ty thereof, a central bank of that other territory
or to any instrumentality (including a financial
institution) controlled by that entity or subdivi-
sion or local authority thereof, or
d) the interest is paid between banks.
5.The provisions of paragraphs 1 and 2 shall not app-
ly if the beneficial owner of the interest, being a
resident of a territory, carries on business in the
other territory in which the interest arises, thro-
ugh a permanent establishment situated therein, or
performs in that other territory independent perso-
nal services from a fixed base situated therein,
and the debt-claim in respect of which the interest
is paid is effectively connected with such permane-
nt establishment or fixed base. In such case the
provisions of Article 7 or Article 14, as the case
may be, shall apply.
6.Interest shall be deemed to arise in a territory
when the payer is a resident of that territory. Wh-
ere, however, the person paying the interest, whet-
her he is a resident of a territory or not, has in
a territory a permanent establishment or a fixed
base in connection with which the indebtedness on
which the interest is paid was incurred, and such
interest is borne by such permanent establishment
or fixed base, then such interest shall be deemed
to arise in the territory in which the permanent
establishment or fixed base is situated.
7.Where, by reason of a special relationship between
the payer and the beneficial owner or between both
of them and some other person, the amount of the
interest, having regard to the debt-claim for which
it is paid, exceeds the amount which would have be-
en agreed upon by the payer and the beneficial own-
er in the absence of such relationship, the provis-
ions of this Article shall apply only to the last-
mentioned amount. In such case, the excess part of
the payments shall remain taxable according to the
laws of each territory, due regard being had to the
other provisions of this Agreement.

Article 12 Royalties
1.Royalties arising in a territory and paid to a res-
ident of the other territory may be taxed in that
other territory.
2.However, such royalties may also be taxed in the
territory in which they arise and according to the
laws of that territory, but if the beneficial owner
of the royalties is a resident of the other territ-
ory, the tax so charged shall not exceed 10 per ce-
nt of the gross amount of the royalties. The compe-
tent authorities of the territories may 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 and films or tapes for radio or
television broadcasting, any patent, trade mark,
design or model, plan, secret formula or process,
or for information concerning industrial, commerci-
al or scientific experience.
4.The provisions of paragraphs 1 and 2 shall not app-
ly if the beneficial owner of the royalties, being
a resident of a territory, carries on business in
the other territory in which the royalties arise,
through a permanent establishment situated therein,
or performs in that other territory independent pe-
rsonal 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
case the provisions of Article 7 or Article 14, as
the case may be, shall apply.
5.Royalties shall be deemed to arise in a territory
when the payer is a resident of that territory. Wh-
ere, however, the person paying the royalties, whe-
ther he is a resident of a territory or not, has in
a territory a permanent establishment or a fixed
base in connection with which the obligation to pay
the royalties was incurred, and such royalties are
borne by such permanent establishment or fixed base
, then such royalties shall be deemed to arise in
the territory in which the permanent establishment
or fixed base is situated.
6.Where, by reason of a special relationship between
the payer and the beneficial owner or between both
of them and some other person, the amount of the
royalties, having regard to the use, right or info-
rmation for which they are paid, exceeds the amount
which would have been agreed upon by the payer and
the beneficial owner in the absence of such relati-
onship, the provisions of this Article shall apply
only to the last-mentioned amount. In such case,
the excess part of the payments shall remain taxab-
le according to the laws of each territory, due re-
gard being had to the other provisions of this Agr-
eement.

Article 13 Capital gains
1.Gains derived by a resident of a territory from the
alienation of immovable property referred to in Ar-
ticle 6 and situated in the other territory, or fr-
om the alienation of shares in a company the assets
of which consist principally of such property, may
be taxed in that other territory.
2.Gains from alienation of movable property forming
part of the business property of a permanent estab-
lishment which an enterprise of a territory has in
the other territory or of movable property pertain-
ing to a fixed base available to a resident of a
territory in the other territory for the purpose of
performing independent personal services, including
such gains from the alienation of such a permanent
establishment (alone or with the whole enterprise)
or of such fixed base, may be taxed in that other
territory.
3.Gains derived by a resident of a territory from the
alienation of ships or aircraft operated in intern-
ational traffic or movable property pertaining to
the operation of such ships or aircraft, shall be
taxable only in that territory. Whenever companies
have agreed to carry on an air transportation busi-
ness together in the form of an consortium, the pr-
ovisions of this paragraph shall apply only to such
part of the gains of the consortium as relates to
the participation held in that consortium by a com-
pany that is a resident of a territory.
4.Gains from the alienation of any property other th-
an that referred to in paragraphs 1, 2 and 3 shall
be taxable only in the territory of which the alie-
nator is a resident.
5.Notwithstanding the provisions of paragraph 4, gai-
ns from the alienation of shares or other corporate
rights in a company resident in a territory, and
gains from the alienation of any other securities
which are subjected in that territory to the same
taxation treatment as gains from the alienation of
such shares or other corporate rights, derived by
an individual who has been a resident of that terr-
itory and who has become a resident of the other
territory, may be taxed in the first-mentioned ter-
ritory if the alienation of the shares, other corp-
orate rights or securities occurs at any time duri-
ng the ten years next following the date on which
the individual has ceased to be a resident of the
first-mentioned territory.

Article 14 Independent personal services
1.Income derived by an individual who is a resident
of a territory in respect of professional services
or other activities of an independent character sh-
all be taxable only in that territory unless he has
a fixed base regularly available to him in the oth-
er territory for the purpose of performing his act-
ivities. If he has such a fixed base, the income
may be taxed in the other territory but only so mu-
ch thereof as is attributable to that fixed base.
2.The term "professional services" includes especial-
ly independent scientific, literary, artistic, edu-
cational or teaching activities as well as the ind-
ependent activities of physicians, lawyers, engine-
ers, architects, dentists and accountants.

Article 15 Dependent personal services
1.Subject to the provisions of Articles 16, 18 and 19
, salaries, wages and other similar remuneration
derived by a resident of a territory in respect of
an employment shall be taxable only in that territ-
ory unless the employment is exercised in the other
territory. If the employment is so exercised, such
remuneration as is derived therefrom may be taxed
in that other territory.
2.Notwithstanding the provisions of paragraph 1, rem-
uneration derived by a resident of a territory in
respect of an employment exercised in the other te-
rritory shall be taxable only in the first-mention-
ed territory if:
(a) the recipient is present in the other territory
for a period or periods not exceeding in the agg-
regate 183 days in any twelve-month period comme-
ncing or ending in the fiscal year concerned; and
(b) the remuneration is paid by, or on behalf of, an
employer who is not a resident of the other terr-
itory; and
(c) the remuneration is not borne by a permanent est-
ablishment or a fixed base which the employer has
in the other territory.
3.Notwithstanding the preceding provisions of this A-
rticle, remuneration derived in respect of an empl-
oyment exercised aboard a ship or aircraft operated
in international traffic by an enterprise of a ter-
ritory may be taxed in that territory. Where a res-
ident of a territory derives remuneration in respe-
ct of an employment exercised aboard an aircraft
operated in international traffic by an air transp-
ort consortium of which a company which is a resid-
ent of that territory is a partner, such remunerat-
ion shall be taxable only in that territory.

Article 16 Directors' fees
Directors' fees and other similar payments derived by
a resident of a territory in his capacity as a member
of the board of directors of a company which is a re-
sident of the other territory may be taxed in that
other territory.

Article 17 Artistes and sportsmen
1.Notwithstanding the provisions of Articles 14 and 1
5, income derived by a resident of a territory as
an artiste, such as a theatre, motion picture, rad-
io or television artiste, or a musician, or as a
sportsman, from his personal activities as such ex-
ercised in the other territory, may be taxed in th-
at other territory.
2.Where income in respect of personal activities exe-
rcised by an artiste or a sportsman in his capacity
as such accrues not to the artiste or sportsman hi-
mself but to another person, that income may, notw-
ithstanding the provisions of Articles 7, 14 and 15
, be taxed in the territory in which the activities
of the artiste or sportsman are exercised.

Article 18 Pensions, annuities and similar payments
1.Pensions and other similar remuneration, disbursem-
ents under the Social Security legislation and ann-
uities arising in a territory and paid to a reside-
nt of the other territory may be taxed in the first
-mentioned territory.
2.The term "annuity" means a stated sum payable peri-
odically at stated times during life or during a
specified or ascertainable period of time under an
obligation to make the payments in return for adeq-
uate and full consideration in money or money's wo-
rth.

Article 19 Public service
1.Salaries, wages and other similar remuneration, ot-
her than a pension, paid by an authority administe-
ring a territory or a subdivision of that territory
or a local authority of that territory, to an indi-
vidual in respect of services rendered to that aut-
hority, subdivision or local authority shall be ta-
xable only in that territory. However, such salari-
es, wages, and other similar remuneration shall be
taxable only in the other territory if the services
are rendered in that other territory and the recip-
ient is a resident of that other territory who:
(i) is a national of that territory; or
(ii) did not become a resident of that territory sol-
ely for the purpose of rendering the services.
2.The provisions of Article 15, 16 and 17 shall apply
to salaries, wages and other similar remuneration
in respect of services rendered in connection with
any trade or business carried on by an authority
administering a territory or a subdivision or a lo-
cal authority thereof.

Article 20 Students
Payments which a student or business apprentice who
is or was immediately before visiting a territory a
resident of the other territory and who is present in
the first-mentioned territory solely for the purpose
of his education or training receives for the purpose
of his maintenance, education or training shall not
be taxed in that territory, provided that such payme-
nts arise from sources outside that territory.

Article 21 Other income
1.Items of income of a resident of a territory, wher-
ever arising, not dealt with in the foregoing Arti-
cles of this Agreement shall be taxable only in th-
at territory.
2.The provisions of paragraph 1 shall not apply to
income, other than income from immovable property
as defined in paragraph 2 of Article 6, if the rec-
ipient of such income, being a resident of a terri-
tory, carries on business in the other territory
through a permanent establishment situated therein,
or performs in that other territory independent pe-
rsonal services from a fixed base situated therein,
and the right or property in respect of which the
income is paid is effectively connected with such
permanent establishment or fixed base. In such case
the provisions of Article 7 or Article 14, as the
case may be, shall apply.

Article 22 Methods of elimination of double taxation
Subject to the provisions of the law of a territory
from time to time in force relating to the allowance
of a credit against tax payable in that territory of
tax paid outside that territory (which shall not aff-
ect the general principle of this Article), tax paid
under the law of the other territory and in accordan-
ce with this Agreement, whether directly or by deduc-
tion, in respect of income derived by a person who is
a resident of the first-mentioned territory from sou-
rces in the other territory shall be allowed as a cr-
edit against tax payable in the first-mentioned terr-
itory in respect of that income. The amount of the
credit, however, shall not exceed the amount of the
tax in the first-mentioned territory on that income
computed in accordance with its taxation laws and re-
gulations.

Article 23 Non-discrimination
1.Nationals of a territory shall not be subjected in
the other territory to any taxation or any require-
ment connected therewith, which is other or more
burdensome than the taxation and connected require-
ments to which nationals of that other territory in
the same circumstances, in particular with respect
to residence, are or may be subjected.
2.The taxation on a permanent establishment which an
enterprise of a territory has in the other territo-
ry shall not be less favorably levied in that other
territory than the taxation levied on enterprises
of that other territory carrying on the same activ-
ities. This provision shall not be construed as ob-
liging a territory to grant to residents of the ot-
her territory any personal allowances, reliefs or
reductions for taxation purposes on account of civ-
il status or family responsibilities which it gran-
ts to its own residents.
3.Except where the provisions of paragraph 1 of Arti-
cle 9, paragraph 7 of Article 11, or paragraph 6 of
Article 12, apply, interest, royalties and other
disbursements paid by an enterprise of a territory
to a resident of the other territory shall, for the
purpose of determining the taxable profits of such
enterprise, be deductible under the same conditions
as if they had been paid to a resident of the first
-mentioned territory.
4.Enterprises of a territory, the capital of which is
wholly or partly owned or controlled, directly or
indirectly, by one or more residents of the other
territory, shall not be subject in the first-menti-
oned territory to any taxation or any requirement
connected therewith which is other or more burdens-
ome than the taxation and connected requirements to
which other similar enterprises of the first-menti-
oned territory are or may be subjected.
5.The provisions of this Article shall, notwithstand-
ing the provisions of Article 2, apply to taxes of
every kind and description.

Article 24 Mutual agreement procedure
1.Where a person considers that the actions of one or
both of the territories result or will result for
him in taxation not in accordance with the provisi-
ons of this Agreement, he may, irrespective of the
remedies provided by the domestic law of those ter-
ritories, present his case to the competent author-
ity of the territory of which he is a resident. The
case must be presented within three years from the
first notification of the action resulting in taxa-
tion not in accordance with the provisions of the
Agreement.
2.The competent authority shall endeavor, if the obj-
ection appears to it to be justified and if it is
not itself able to arrive at a satisfactory soluti-
on, to resolve the case by mutual agreement with
the competent authority of the other territory, wi-
th a view to the avoidance of taxation which is not
in accordance with the Agreement. Any agreement re-
ached shall be implemented notwithstanding any time
limits in the domestic law of the territories.
3.The competent authorities of the territories shall
endeavor to resolve by mutual agreement any diffic-
ulties or doubts arising as to the interpretation
or application of the Agreement. They may also con-
sult together for the elimination of double taxati-
on in cases not provided for in the Agreement.
4.The competent authorities of the territories may
communicate with each other directly for the purpo-
se of reaching an agreement in the sense of the pr-
eceding paragraphs.

Article 25 Exchange of information
1.The competent authorities of the territories shall
exchange such information as is necessary for carr-
ying out the provisions of this Agreement or of the
domestic laws of the territories concerning taxes
covered by the Agreement, insofar as the taxation
thereunder is not contrary to the Agreement. The
exchange of information is not restricted by Artic-
le 1. Any information received by the competent au-
thority of a territory shall be treated as secret
in the same manner as information obtained under
the domestic laws of that territory and shall be
disclosed only to persons or authorities (including
courts and administrative bodies) concerned with
the assessment or collection of, the enforcement or
prosecution in respect of, or the determination of
appeals in relation to, the taxes covered by the
Agreement. Such persons or authorities shall use
the information only for such purposes. They may
disclose the information in public court proceedin-
gs or in judicial decisions.
2.In no case shall the provisions of paragraph 1 be
construed so as to impose on a territory the oblig-
ation:
(a) to carry out administrative measures at variance-
with the laws and administrative practice of that
or of the other territory;
(b) to supply information which is not obtainable un-
der the laws or in the normal course of the admi-
nistration of that or of the other territory;
(c) to supply information which would disclose any
trade, business, industrial, commercial or profe-
ssional secret or trade process, or information,
the disclosure of which would be contrary to pu-
blic policy.

Article 26 Limitation on benefits
Notwithstanding any other provisions of this Agreeme-
nt, where
(a) a company that is a resident of a territory deri-
ves its income primarily from outside that terri-
tory
(i) from activities such as banking, shipping, fin-
ancing or insurance or
(ii) from being the headquarters, co-ordination ce-
ntre or similar entity providing administrati-
ve services or other support to a group of co-
mpanies which carry on business primarily out-
side the first-mentioned territory; and
(b) except for the application of the method of elim-
ination of double taxation normally applied by
that territory, such income would bear a signifi-
cantly lower tax under the laws of that territory
than income from similar activities carried out
within that territory or from being the headquar-
ters, co-ordination centre or similar entity pro-
viding administrative services or other support
to a group of companies which carry on business
in that territory, as the case may be, any provi-
sions of this Agreement conferring an exemption
or a reduction of tax shall not apply to the inc-
ome of such company and to the dividends paid by
such company.

Article 27 Entry into force
This Agreement shall enter into force on the date on
which the Swedish Trade Council and the Taipei Missi-
on in Sweden notify each other in writing that the
last of such things has been done as is necessary to
give this Agreement effect in the domestic law of the
respective territories. This Agreement shall apply in
both territories, in respect of:
(a) withholding tax on income derived by a non-resid-
ent, in relation to income derived on or after
the first day of January of the year next follow-
ing the entry into force of this Agreement;
(b) other taxes, in relation to tax years beginning
on or after the first day of January in the cale-
ndar year next following that in which the Agree-
ment enters into force.

Article 28 Termination
This Agreement shall continue in force indefinitely,
but the Taipei Mission in Sweden and the Swedish Tra-
de Council may give a written notice of termination
to the other on or before 30 June in any calendar ye-
ar and, in that event, the Agreement shall cease to
be applied in both territories:
(a) in respect of withholding tax on income derived
by a non-resident, in relation to income derived
on or after the first day of January of the year
next following that in which the notice of termi-
nation is given;
(b) in respect of other taxes, in relation to tax ye-
ars beginning on or after the first day of Janua-
ry in the calendar year next following that in
which the notice of termination is given.

IN WITNESS WHEREOF the undersigned, being duly authorised, have
signed this Agreement.

DONE in duplicate at Stockholm on this 8th day of June 2001 in
the English language.

FOR THE TAIPEI FOR THE SWEDISH
MISSION IN SWEDEN TRADE COUNCIL
───────────── ──────────────
James C. Y. Chu Ulf Dinkelspeil
Representative President



ANNEX
The Taipei Mission in Sweden and the Swedish Trade Council,
Having regard to the Agreement concerning the avoidance of doub-
le taxation and the prevention of fiscal evasion with respect to
taxes on income signed today at Stockholm (in this Annex called
"the Agreement")

Have agreed as follows:
Visa fees, passport fees, legalization fees (of documents) and
interests received by the Taipei Mission in Sweden and the Swed-
ish Trade Council in Taipei or their successors carrying on act-
ivities promoting trade, investment and cultural exchange betwe-
en the territories, shall be taxable only in the territory on
whose behalf the activities are carried on.

In respect of Article 10
If in the relation between the territory referred to in sub-par-
agraph 1 (b) of Article 2 and a third territory, being a member
of the European Union, the first-mentioned territory would exem-
pt dividends from tax or reduce the rate of tax on dividends be-
low 10 per cent, such exemption or reduced rate shall automatic-
ally apply as if it had been specified in the Agreement. This
provision shall, however, only apply to dividends where the ben-
eficial owner is a company (other than a partnership) which hol-
ds at least 10 per cent of the voting power of the company payi-
ng the dividends.

In respect of Article 11
It is understood that an instrumentality (including a financial
institution) is controlled by an entity or subdivision or local
authority thereof if that entity or subdivision or local author-
ity thereof holds at least 50 per cent of the capital of that
instrumentality.

In respect of Article 12
If in the relation between the territory referred to in sub-par-
agraph 1 (b) of Article 2 and a third territory, being a member
of the European Union, the first-mentioned territory would exem-
pt royalties from tax or reduce the rate of tax on royalties be-
low 10 per cent, such exemption or reduced rate shall automatic-
ally apply as if it had been specified in the Agreement.

In respect of Article 19
Salaries, wages and other similar remuneration, other than a pe-
nsion, paid by the Taipei Mission in Sweden and the Swedish Tra-
de Council in Taipei for services rendered to that Mission or
Council shall be deemed to be paid by and rendered to an author-
ity administering a territory.

This Annex shall form an integral part of the Agreement.

IN WITNESS WHEREOF the undersigned, being duly authorized, have
signed this Annex.

DONE in duplicate at Stockholm on this 8th day of June 2001 in
the English language.

FOR THE TAIPEI FOR THE SWEDISH
MISSION IN SWEDEN TRADE COUNCIL
──────────── ────────────
James C. Y. Chu Ulf Dinkelspeil
Representative President