The tax authorities issued circular SE-03/PJ.03/2008 on 22 August 2008 on their interpretation of the phrase "beneficial ownership" for tax treaty purposes. The issuance of this circular revokes circular SE-04/PJ.34/2005 on the same matter.
Both circulars provide that the "beneficial owner" is the real owner of income in the form of dividend, interest and/or royalty income, with full rights to directly enjoy the benefits of the income. In addition, a non-residen…