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Sweden and Taiwan DTAs updated

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HMRC has published updated versions of the UK’s DTAs with Sweden and Taiwan. The key change for both agreements is the addition of a principal purpose test which replaces previous separate anti-avoidance provisions.

The updated version of the UK’s 2015 Double Taxation Convention with Sweden, takes in amendments made by the 2021 Protocol to the Convention (set out in the Schedule to SI 2021/633). Those amendments include the removal of a number of anti-abuse paragraphs relating to dividends, interest and royalties which were replaced by a new Article 27A introducing the new principal purpose test for the prevention of treaty abuse. Revisions are also made to Article 23 (mutual agreement procedure) to enable mutual agreements to be implemented where they otherwise would be restricted by time limits in domestic law.

The updated version of the UK’s 2002 Double Taxation Agreement with Taiwan also consolidates amendments made by the 2021 Protocol (set out in the Schedule to SI 2021/1447). Key changes include the following:

  • Article 4 (residence) is updated to facilitate resolution of disputes over individuals’ residence status by way of mutual agreement.
  • Article 25 (mutual agreement procedure) is revised to deal with domestic time limits.
  • Various separate anti-abuse rules are replaced by a new principal purpose test (new Article 27).


Issue: 1572
Categories: News