Sweden
A. Progress in the implementation of the minimum standard
Sweden has 81 tax agreements in force as reported in its response to the Peer Review questionnaire, including the multilateral Nordic Convention concluded with Denmark, the Faroe Islands, Finland, Iceland and Norway (the “Nordic Convention”).1 Three of those agreements, including the Nordic Convention, comply with the minimum standard.
Sweden signed the MLI in 2017 and deposited its instrument of ratification on 22 June 2018. The MLI entered into force for Sweden on 1 October 2018. The agreements modified by the MLI come into compliance with the minimum standard once the provisions of the MLI take effect.
Sweden reserved the right to delay the entry into effect of the provisions of the MLI until Sweden has completed its internal procedures for this purpose with respect to each of its listed agreements.2 Sweden has not yet notified that it completed its internal procedures for the entry into effect of the MLI with respect to any of its agreements.
Sweden has not listed its agreements with Australia, Austria, Bosnia-Herzegovina, Brazil, Croatia, France, Germany, Montenegro, Namibia, Portugal, Serbia, Singapore, Slovenia, and Spain under the MLI. These agreements will therefore not, at this stage, be modified by the MLI. Australia, Bosnia-Herzegovina, Croatia, France, Portugal, Serbia and Singapore have listed their agreements with Sweden under the MLI.
Sweden has signed a bilateral complying instrument with respect to its agreements with Brazil, Portugal, Slovenia and the United Kingdom.
Sweden indicated in its response to the Peer Review questionnaire that steps have been taken (other than under the MLI) to implement the minimum standard in its agreements with Austria, France, Germany, Namibia, Singapore and Spain.
Sweden indicated in its response to the Peer Review questionnaire that the agreements with Australia, Bosnia-Herzegovina, Croatia, Kosovo*, Montenegro and Serbia do not give rise to material treaty-shopping concerns for Sweden.
Sweden is implementing the minimum standard through the inclusion of the preamble statement and the PPT.3
B. Conclusion
Australia, Bosnia-Herzegovina, Croatia, France, Serbia and Singapore have listed their agreements with Sweden under the MLI, which amount to requests to implement the minimum standard.
It is recommended that Sweden completes the steps to have the MLI take effect with respect to its agreements listed under the MLI as those agreements will only be modified by the MLI (and come into compliance with the minimum standard) once the provisions of the MLI take effect.
It is also recommended that Sweden formulates a plan for the implementation of the minimum standard in its agreements for which no steps have yet been taken and that were concluded with members of the BEPS Inclusive Framework (Australia, Bosnia-Herzegovina, Croatia, and Serbia).
← 1. See the Multilateral convention concluded by Denmark, Finland, the Faroe Islands, Iceland, Norway and Sweden: for the avoidance of double taxation with respect to taxes on income and on capital (1996, 1997, 2008 and 2018). In total, Sweden identified 85 "agreements" in its List of Tax agreements: 80 bilateral agreements and the Nordic Convention concluded with five treaty partners.
← 2. The reservation was made under Article 35(7)(a) of the MLI.
← 3. For its agreements listed under the MLI, Sweden is implementing the preamble statement (Article 6 of the MLI) and the PPT (Article 7 of the MLI).