A non-resident natural person who is taxed under SINK (i.e. with a valid SINK decision from the tax administration) should not file a tax return. In addition to the Swedish national regulations that provide for relief from international double taxation, Sweden has concluded double taxation treaties with more than 60 countries/jurisdictions in order to avoid double taxation and allow cooperation between Sweden and other tax authorities in the application of their respective tax laws. The tax deal with Greece is one of Sweden`s oldest agreements. In 2020, Greece introduced special tax rules. It states that several types of tax-exempt income in Sweden under the agreement, e.B capital gains and pensions, can be taxed in Greece at a rate of only 7% in certain circumstances. The agreement is also outdated and several parts of the agreement have significant shortcomings. The agreement must therefore be terminated in order to be reviewed in its entirety. As a general rule, private living expenses are not deductible. For earned income, taxable items include travel expenses between home and office, provided that these expenses exceed SEK 11,000 and that certain criteria are met. Increased living expenses during business travel and temporary assignments may be tax deductible under certain restrictions. Compulsory social security contributions for foreign workers within the EU are also deductible. A separate agreement called a totalization agreement prevents U.S.
expats in Sweden from paying social security taxes to the U.S. and Swedish governments. Expatriates` contributions made during their stay in Sweden can be credited to both schemes. The country they pay depends on how long they will live in Sweden. The Tax Convention: Foreign Tax Credits, which entered into force on December 20, 2015, can be used to avoid double taxation. The U.S.-Sweden tax treaty also allows the Swedish government to share The Swedish tax information of U.S. expats with the IRS, as well as their Swedish bank and investment account data and balances. * The DTA covers personal income tax only.** The DTA with the former Republic of Yugoslavia applies. If a natural person is taxable on income from work in Sweden, the employer has a source and declaration obligation. The U.S.-Sweden tax treaty covers double taxation in income tax, corporate tax, and capital gains tax, but a clause in Article 1, Section 4, known as the savings clause, states that «the United States may tax its citizens as if the Convention had not entered into force.» This means that U.S.
expats still have to report U.S. taxes on their global income. The Reichstag voted in favour of the government`s proposal to end swedish tax treaties with Portugal and Greece. In the case of Portugal, the reason for the termination of the agreement is that the country has not yet introduced the amended provisions agreed by the two countries. In the case of Greece, the reason for the termination of the agreement is to combat tax evasion and the fact that other parts of the agreement are imperfect. All information contained in this publication is summarized by KPMG Sweden AB, the Swedish member company affiliated with KPMG International Cooperative («KPMG International»), a Swiss company, based on the Aliens Ordinance 2006:97 5 § (Utlänningsförordning 2006:97), Swedish code SFS 2011:705 (Svensk Författningssamling 2011.705), website of the Swedish Government Office; foreign citizens who need a visa to enter Sweden and the website of the Swedish Pension Agency (Pensionsmyndigheten). In addition, under the 183-day rule of the Swedish Special Income Tax for Non-Residents Act (SINK), a non-resident natural person is not subject to Swedish income tax, provided that the person`s remuneration is paid by a non-Swedish employer without a permanent establishment (PE) in Sweden and that the stay in Sweden does not exceed 183 days in a 12-month period. However, if there is an economic employer in Sweden, this rule does not apply and the person is taxable on income from work. .