Page:United States Statutes at Large Volume 52.djvu/1527

 52 STAT.] SWEDEN-DOUBLE INCOME TAX-MAR. 31, 1938 This exemption may be terminated at any time by either Govern- ment on six months' notice given to the other Government. Accept, Sir, the renewed assurances of my highest consideration. CORDELL HULL The Honorable W. BOSTR6M, Minister of Sweden. The Swedish Minister (Bostrom) to the Secretary of State (Hull) LEGATION OF SWEDEN Washington, D. C., March 31, 1938. SIR: In order to insure that-Swedish shipping will continue to enjoy the benefits of tax exemption which have been in effect in the United States of America pursuant to the exchange of notes commencing with the Swedish Legation's notes of January 27, 1922, and February 24, 1922,' I have the honour to inform you that, on condition of reciprocity, corporations, including maritime shipping companies, organized in the United States of America, the vessels of which, documented under the laws of the United States, call at Swedish ports either to load or to unload cargo, or to embark or to land passengers, shall be exempted by the Government of Sweden from the payment of taxes on income or profits derived exclusively from the operation of such vessels. In consequence thereof, the Royal Ordinance of September 28, 1928, concerning Income and Property Taxation, and The Swedish Communal Taxation Law of the same date shall in no case be applied to American shipping corporations, including maritime shipping com- panies, organized in the United States of America. This exemption shall apply even though an American corporation or company has an agency or a branch office in Sweden, provided that the activities of the agency or branch office be limited to the direct operation of vessels. By "maritime shipping companies", shall be understood companies which are managed by an "owner" of vessels, the term "owner" including charterers. Income or profits derived from the operation of vessels shall also include income or profits derived from the sale in Sweden of steamship tickets issued by an American corporation or company. The same exemption from taxation shall, on condition of reciprocity, likewise be enjoyed by citizens of the United States of America, not residents in Sweden, for income which consists exclusively of earnings derived from the operation of a vessel, or vessels, documented under the laws of the United States of America. ' Notes not printed. 1491

�