Sweden Tax Law Board Clarifies on Gift Transfers of Foreign Entity Shares

The Swedish Tax Law Board Nov. 11 issued Advance Notice No. 26-21/D, clarifying the taxation of a gift transfer of shares in a foreign entity. A taxpayer sought clarification on the taxation of profits earned before and after the gift transfer. The tax board clarified that: 1) the transfer is taxable abroad after the transfer takes place; 2) profits earned before the transfer are taxable to the transferor for the duration the shares were held; and 3) withholding tax is not applicable on the gift transfer of shares in a foreign entity. [Sweden, Tax Law Board, 11/11/21]

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