Payroll News

Sweden Tax Agency Updates Guidance on the Tax Treatment of Foreign Pension Costs

Nov. 18, 2019, 9:48 PM

The Swedish Tax Agency Nov. 14 updated guidance on the taxation of foreign pension costs, to reflect a recent Supreme Administrative Court decision. A Swedish company deducted costs related to securing pension commitments to employees in a foreign branch using a trust, in accordance with the foreign country’s trust laws. The updated guidance explains that these costs can be deducted as pension costs because: 1) the pledges made by the company to the employees in the foreign branch meet the conditions required by law; and 2) the trust used by the company qualifies as a pension plan under Swedish law....

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