Skatteavtal

Skatteavtal, in English commonly referred to as a tax treaty or double taxation agreement, is a bilateral agreement between two countries designed to prevent double taxation and to facilitate cross-border economic activity. In Swedish contexts, the term skatteavtal is used to denote these accords that coordinate how income and gains are taxed across borders.

The agreement typically allocates taxing rights across different categories of income, including business profits, employment income, income from independent services, dividends, interest, royalties, and capital gains. It often uses methods to eliminate double taxation, such as the foreign tax credit or an exemption, and it includes tie-breaker rules to determine tax residency when an individual or entity is considered a resident of both countries.

Treaties also address anti-abuse measures and information exchange. They usually contain provisions for non-discrimination, mutual exchange of information between tax authorities, and cooperation in the collection of taxes. A mutual agreement procedure is provided to resolve disputes over interpretation and application of the treaty.

Legal frameworks and models commonly used for these agreements include the OECD Model Tax Convention and, in some cases, the United Nations Model Tax Convention. Tax treaties are bilateral and come into force after ratification by the involved states and may be amended over time to reflect changing economic conditions and tax policies.

In practice, tax treaties reduce tax uncertainty for individuals and businesses engaged in cross-border activity, facilitate cross-border employment and investment, and provide mechanisms to prevent treaty shopping. Benefits hinge on meeting treaty conditions and completing required documentation, while domestic tax laws remain applicable where not overridden by the treaty.