Background & Purpose

International tax rules need regular updates to prevent companies and individuals from exploiting loopholes to avoid paying taxes across borders. To address this, Sweden and France are updating their bilateral tax agreement.

Proposals & Debate

The proposal involves introducing international minimum standards developed by the OECD and G20 to stop profit shifting and tax base erosion. These new rules will become a formal part of the tax treaty between Sweden and France.

The Decision

The Swedish parliament approved the changes to the tax treaty, aligning both nations with international guidelines against tax avoidance.

Does this affect you?

  • Cross-border workers: Affected by clearer rules on how income is taxed between Sweden and France.
  • International companies: Must follow stricter international standards designed to prevent profit shifting between the two countries.

In Practice

  • International standards from the OECD and G20 are integrated into the Swedish-French tax agreement.
  • Rules against tax evasion and double taxation are strengthened.
  • The government decides the exact date when the new tax rules enter into force.