Sweden Publishes a Clarification on their Non-resident Taxation Policy

Tax Information Exchange

As of 8 April 2018, a clarification has been made from the Swedish Tax Agency. Under the Law on Special Income Tax on Non-Residents (SINK), Sweden grants a 25% employment tax exemption to qualifying foreign key staff members temporarily employed in Sweden. This only applies to non-residents outside the EEA or Switzerland that have obtained a work permit and will only receive a SINK decision when the applicant is authorized to work in Sweden. It should be noted that this requirement does not affect the requirements for obtaining a pension-based income (PGI) decision.

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