Sweden Tax Agency Clarifies SINK Taxation, Deduction Rules for Business Trips Regarding Foreign Branch Employees

The Swedish Tax Agency Dec. 18 issued Position Statement No. 8-409943-2025, clarifying taxation under the special income tax for nonresidents (SINK) and tax deduction rules for the nonresident employees of Swedish companies with foreign branches. The statement clarifies that: 1) a Swedish company and its foreign branch are considered a single legal entity for tax purposes; 2) nonresident employees on short business trips to Sweden are taxed under SINK for work done in Sweden; 3) the 183-day SINK exemption doesn’t apply if the employer is Swedish; 4) the Swedish company must deduct tax under SINK if a special income tax ...