Sweden Tax Court Issues Advance Notice on Partial Individual Income Tax Exemption for Foreign Experts

The Swedish Tax Court May 19 issued Advance Notice No. 96-24/D, clarifying the 25 percent individual income tax exemption for experts temporarily assigned to Sweden. The taxpayer, a foreign national, was hired out by his employer to a client and was granted the expert tax relief. The client elected to pay the taxpayer two months of salary instead of offering permanent employment after 24 months under the Temporary Agency Work Act. The employer invoiced the client for the payment, and made the payment to the taxpayer without applying the relief. The Tax Agency denied the relief on the payment. Upon ...