Sweden: Foreign investment funds not liable to pay Swedish dividend withholding tax
Reference
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The Swedish Administrative Court of Appeal has ruled that foreign investment funds established on contractual grounds are to be considered not liable to pay Swedish withholding tax on dividends.
This decision applies only to investment funds established on contractual grounds, such as FCPs or common contractual funds.
The Swedish government has already, from this year, abolished dividend withholding tax for foreign investment funds qualifying as “fund-undertakings” (UCITS and other investment funds equivalent to Swedish investment funds).
Not all information is currently available and the Swedish Tax Agency is yet to provide clear guidelines. We will advise in due course of any relief and/or reclaim procedures that become available for customers with regard to these funds.