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Sweden Updates Guidance on Activation of MFN Clauses Under Different Tax Treaties

22 July 2022

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Treaty Development

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Sweden-Argentina-Bolivia-Botswana-Chile-Estonia-Gambia-India-Latvia-Lithuania-Namibia-Switzerland-South Africa-Venezuela

The Swedish tax authority has published updated guidance regarding the activation of MFN clauses under different tax treaties. The relevant treaty partners and summaries of the MFN activation are provided as follows: Argentina The tax agreement with Argentina contains four most-favored-nation clauses (MFN clauses). The interest rate clause has been activated, which means that interest must be taxed at a lower percentage in the source state. Bolivia The tax agreement with Bolivia contains two most-favored-nation clauses (MFN clauses). The royalty clause has been activated, which means that certain types of royalties should not be taxed in the source state. Botswana...