Albania, Argentina, Australia, Austria, Bangladesh, Barbados, Belgium, Belarus, Bolivia, Bosnia and Herzegovina, Botswana, Brazil, Bulgaria, Canada, Chile, China, Croatia, Cyprus, Czech Republic, Denmark, Egypt, Estonia, Faeroe Islands, Finland, France, Gambia, Germany, Greece, Hungary, Iceland, India, Indonesia, Ireland, Israel, Italy, Jamaica, Japan, Kazakhstan, Kenya, Korea, Latvia, Lithuania, Luxembourg, Macedonia, Malaysia, Malta, Mauritius, Mexico, Montenegro, Namibia, Netherlands, New Zealand, Norway, Pakistan, Philippines, Poland, Portugal, Romania, Russia, Serbia, Singapore, Slovakia, Slovenia, South Africa, Spain, Sri Lanka, Switzerland, Taiwan, Tanzania, Thailand, Trinidad and Tobago, Tunisia, Turkey, Ukraine, United Kingdom, United States, Venezuela, Vietnam, Zambia, Zimbabwe are the countries and jurisdictions which concluded treaties of double taxation avoidance with Sweden all over the years.
Sweden is trying to expand this network every year so as a result many draft agreements are in pending.
A double tax treaty is mainly regulating the rules of avoidance of the double taxation of income and capital. A company’s income and capital is taxed only in the residence country of the shareholders or only in Sweden (in this case, the tax it’s afterwards returned based on the non resident’s request). For beneficiating of lower taxes or exemptions of it, the requester must provide a certificate of tax residency from the competent foreign country.
Also, the withholding tax on dividends, interests and royalties is smaller than for the Swedish residents if the foreign country has signed a double tax treaty with Sweden.
The double tax treaties are concluded especially because the Swedish government is interested in attracting foreign capital and by the necessity of avoiding the tax frauds.
The double tax treaties are also stipulating the obligation of providing information regarding the taxpayers. Sweden is exchanging lists with taxpayers with the treaty countries every year in order to avoid the tax frauds.
Also, protocols of exchange of information are signed with offshore jurisdictions with the same purpose of avoiding the tax frauds.
The most common used model for elaborating these treaties is the model offered by the Organization for Economic Cooperation and Development.