CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. US Terminates Estate Tax Treaty With Sweden


US Terminates Estate Tax Treaty With Sweden

by Mike Godfrey, Tax-News.com, Washington

19 June 2007

The US Treasury Department has announced that on June 7, 2007 the United States delivered to the Government of Sweden a notice of termination of the tax treaty between the two countries with respect to estates, inheritances, and gifts.

In accordance with the provisions of the treaty, the notice of termination provides that the treaty will cease to have effect as of January 1, 2008. At the time the treaty was signed, Sweden maintained a tax on inheritances and gifts. Sweden has since abolished this tax, and as such, the treaty is no longer needed to prevent double taxation with respect to taxes on estates, inheritances and gifts.

The abolition of these taxes marks a major step down the road towards centre-right Prime Minister Fredrik Reinfeldt's goal of liberalizing Sweden's economy by reducing taxes and the welfare state.

The coalition has talked about cutting income, corporate and property taxes by about SKR60 billion. These cuts would be financed in part by paring down unemployment and sickness benefits. The coalition has also expressed its intention to make the labour force more flexible by allowing companies to hire and fire workers more easily, and by removing certain state benefits, which it argues act as a disincentive to work.

Reinfeldt has also pledged to axe Sweden's wealth tax. Sweden remains one of only four countries in the OECD that levy such a tax on wealth, and the government has blamed the existence of the levy for contributing to high levels of capital flight and low levels of investment and entrepreneurship.

.

 












Write a comment





Close

Password Reminder

Please enter your email address to receive a password reminder.

 

Today’s Top Headlines






Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Tax-News+ Updates

Receive FREE daily updates from Tax-News.com, straight to your inbox. Register Now!

For a tailored solution, choose to receive selected news updates for your preferred jurisdictions and topics, with our enhanced Tax-News+ subscriber service. Read more...

 

Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »

Network Blogs and Features