Sweden Tax Agency Issues Statement Clarifying Permanent Establishments Arising From Teleworking by Specified Employees

The Swedish Tax Agency May 13 issued Position Statement No. 8-155706-2026, clarifying permanent establishments (PEs) arising from teleworking by employees who solely or primarily carry out the company’s business. The clarification explains that: 1) when an individual is the sole person, or primary person, who conducts a company’s activities, the choice of workplace shouldn’t be tested against any commercial requirements; 2) for a PE to be found under the main rule, the work in Sweden must be carried out for at least 50 percent of the individual’s total working hours in a 12-month period, regardless of whether the work is ...