Sweden has concluded income tax treaties with approximately 70 countries. Most income tax treaties follow the Organization for Economic Co-operation and Development (OECD) model. Generally, the income tax treaties provide that a credit may be taken for foreign taxes paid to the extent of Swedish taxes on the same income. An income tax treaty may be invoked only to reduce, not to increase, the tax liability in Sweden.
If no income tax treaty is in effect, a Swedish company may claim a credit for levied withholding taxes and income taxes paid abroad against Swedish national and local income taxes.
See 'Withholding tax' for a table showing the treaty withholding rates under Sweden's income tax treaties with other nations.
The contents of this article are intended as a general guide to the subject matter. Specialist advice should be sought for your specific circumstances.
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