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.

This Taxflash is intended to provide customers with general information gathered from different sources that are generally believed to be reliable. Clearstream Banking S.A. does not guarantee the accuracy or completeness of the information and does not undertake to keep it up to date. Use of the information made available in this Taxflash is at the customer’s own risk and Clearstream Banking S.A., its subsidiaries and affiliates expressly disclaim any liability for any errors or omissions reflected herein. The information in this Taxflash does not constitute legal or tax advice.