Sweden MOF Issues Memorandum on Proposed Withholding Tax Exemption for Dividend Payments to Foreign States

The Swedish Ministry of Finance June 9 issued Memorandum No. Fi2025/01319, on proposed amendments to exempt foreign states from withholding tax on specified dividends, subject to conditions. The proposed amendments include measures to: 1) exempt foreign states and foreign equivalents of Swedish regions, municipalities, or associations of municipalities, from withholding tax on dividends paid by Swedish limited liability companies, European companies domiciled in Sweden, mutual funds, and special funds; 2) require that a foreign state be located in the European Economic Area (EEA), or have entered into a DTA or other agreement with Sweden allowing for the exchange of tax ...