A separate agreement, referred to as a totalization agreement, prevents American expatriates in Sweden from paying social security contributions to both the US and Swedish governments. Contributions made by expatriates during their stay in Sweden can be credited to both schemes. The country they pay depends on the length of their life in Sweden. In addition to the treaties highlighted, Sweden has concluded tax information exchange agreements and partial tax treaties. Since 1 April 2017, when the Tax Information Exchange Agreement (TIEA) with the United Arab Emirates came into force, Sweden has entered into information exchange agreements with all tax areas around the world. It should also be noted that the amendments to the EU Directive on Administrative Cooperation in the Tax Area have been transposed into Swedish legislation effective 1 January 2017. In accordance with the amendment to the “mother daughter” directive (general anti-avoidance rule of the EU [GAAR]), a slight change in the Swedish law wht (for dividends from exposure) was made to the structures put in place to obtain a whT exemption through the application of bait agreements. This anti-avoidance provision has been in place for a long time under current Swedish legislation, but from 1 January 2016 it is clear that this provision can also apply in cases under the parent-subsidiary directive. When a person has been considered a resident and leaves Sweden, they will continue to be treated taxly (up to 5 years) as a resident if links still exist in Sweden, such as a home or family.
So it`s important to know if you live, as only Swedish residents are taxed on global income in Sweden. IRS Individual Taxpayer Identification Number (ITIN) Request Important Information: The IRS implements substantial changes to the ITIN program under the PATH Act 2015. The new law means that any ITIN that is not used at least once in a federal tax return in the last three years will no longer be valid as of January 1, 2017 to be used in a return, unless the taxpayer renews the ITIN. In addition, all ITIN issued before 2013 expires this year and taxpayers must renew them. The first ITIN before 2013 are those with average numbers of 78 and 79 (example: 9XX-78-XXXX). The extension period for these ITIN began on 1 October 2016. In August, the IRS began sending letters to this group of taxpayers informing them of the need to renew their ITIN to file a tax return and explain the renewal steps. The IRS will announce the timing and renewal of ITIN, which will not have average figures of 78 and 79 in the future. In Sweden, there are other forms of taxation that residents should be aware of. VAT is levied on all goods and services in Sweden, including goods and services available in the EU. The standard rate for Swedish VAT is 25%, with the rate reduced to 12% for food and certain tourism industries and 6% for newspapers and passenger transport. Please note that the purpose of this page is to order U.S.
taxpayers in Sweden to use appropriate resources to help them meet their tax obligations. For tax requests, please contact the Internal Revenue Service or a tax specialist. There is no IRS office at the U.S. Embassy in Stockholm, so unfortunately we can`t help with tax matters. These dual requirements have many U.S. emigrants living in Sweden filing two tax returns and also put them at risk of double taxation. For more details on the impact of a move abroad on your foreign tax return, consult our U.S. tax professionals living abroad. In Sweden, there is no tax on wealth, estates or estates.