Sweden: Draft act on withholding tax launched for public consultation
On 29 April 2020, the Swedish Ministry of Finance circulated, for public consultation, a new draft act on withholding tax.
The draft act is open for comments until 14 August 2020 and includes the following changes:
- The withholding tax responsibility on Swedish dividends received by non-residents is transferred from the CSD and to the issuer;
- The implementation of authorised intermediaries. Such status will allow domestic and foreign entities to assume tax withholding, reporting and payment responsibilities, instead of the issuer;
- The requirement of providing beneficial owner information, prior payment date, in order to benefit from relief at source on dividend distributions;
- The introduction of aprovision on “special tax liability” in order to reduce the risk of tax avoidance by using so-called cum-cum arrangements;
- Withholding tax on dividends shall be covered by the provisions of the act on tax evasion.
The current maximum tax rate is proposed to remain unchanged at 30%.
If the proposal is approved, it will enter into force on 1 January 2022 for the articles on authorised intermediaries, and on 1 July 2022 for the remaining provisions.
We continue to monitor the Swedish market as more information becomes available.
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