On 25 January 2019, the Swedish Tax Agency released a Newsletter summarizing the latest Automatic Exchange of Information (“AEOI”) events in Sweden.
The newsletter, which is only available in Swedish language, focuses on Lex Asea dividends, which must be submitted on the basis of the Foreign Account Tax Compliance Act (“FATCA”) and the Common Reporting Standard (“CRS”).
Under Swedish Tax law, there are rules on subsidiary shares distributed as dividends to a shareholder. These rules are referred to as “Lex Asea” (Ch.42 para. 16 and 16 a Swedish Income Tax Act). The rules imply that there is no taxation on the dividend distributed. Instead, taxation occurs when the received shares are disposed of. Distributed shares can be of a Swedish or foreign subsidiary (other than in a tax haven).
Please note that the above information have been received through an email subscription. If you would like to receive the latest news regarding AEOI in Sweden, feel free to send a request to the following email address: email@example.com.