Sweden

Corporate - Branch income

Last reviewed - 06 July 2020

Branch income (i.e. PE income) is taxed at the corporate tax rate of 21.4% (see State [national] income tax in the Taxes on corporate income section), and general corporate tax rules apply for branch offices in Sweden. No withholding tax (WHT) is levied on the outbound repatriation of taxed profits.

The receipt of Swedish-source royalties or fees for use of tangible or intangible assets by a foreign resident is also (subject to treaty restrictions) regarded as a special form of PE income.