Swedish Parliament Passes Foreign State Dividend Tax Exemption

Sweden’s parliament approved Wednesday a bill exempting foreign states and their regional or municipal authorities from withholding tax on dividends from Swedish companies and funds.

The exemption, effective July 1, will also apply to dividends received from European companies with registered offices in Sweden.

To qualify, the recipient must be established in the European Economic Area or in a state that has a tax-information exchange agreement with Sweden.

• The bill follows rulings by the European Court of Justice and Sweden’s Supreme Administrative Court rejecting Sweden’s taxation of dividends to non‑resident public‑law pension funds while exempting equivalent payments ...