background image
Germany - Sweden Tax Treaty (1992) — Orbitax Tax Hub
CHAPTER I - GENERAL PROVISIONS
CHAPTER II - TAXATION OF INCOME AN...
CHAPTER III - TAXATION OF ESTATES,...
CHAPTER IV - ASSISTANCE IN TAX MAT...
CHAPTER V - PROTECTION OF THE TAXP...
CHAPTER VI - SPECIAL PROVISIONS
CHAPTER VII - FINAL PROVISIONS
Note: This Treaty may be impacted by the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI). MLI impact on Tax Treaties is available with the Orbitax International Tax Research & Compliance Expert.

ARTICLE 26

Avoidance of Double Taxation in the State of Residence

(1) If the deceased, donor or transferee was a resident of the Federal Republic of Germany, double taxation in the Federal Republic of Germany shall be avoided as follows:

  • (a) Where the deceased at the time of his death or the donor at the time of the gift was resident in the Federal Republic of Germany, the Federal Republic of Germany shall credit, in accordance with the provisions of German law concerning the crediting of foreign tax, to its tax, the tax paid in Sweden for the property taxable in Sweden under Article 24, paragraphs (1) and (2).
  • (b) Where, at the time of the death of the deceased or of the gift, a transferee was resident in the Federal Republic of Germany, the Federal Republic of Germany may tax that person's acquisition according to the provisions of German law. It shall, however, credit the tax paid in Sweden for all property that is not taxable under Article 24, paragraphs (1) and (2) in the Federal Republic of Germany, in accordance with the provisions of German law concerning the crediting of foreign tax against its tax.

The amount to be credited shall, however, not exceed that part of German taxes imposed before the credit which is attributed to the property for which the credit is to be accorded.

(2) If the deceased or the donor was resident in Sweden, double taxation in Sweden shall be avoided as follows:

  • (a) If the deceased at the time of his death the donor at the time of the gift was domiciled in Sweden, Sweden shall allow as a deduction from the tax determined in accordance with its law an amount corresponding to the taxes paid in the Federal Republic of Germany for property that is taxable in the Federal Republic of Germany under Article 24, paragraphs (1) and (2).
  • (b) Where, at the time of the death of the deceased or of the gift, a transferee was resident in Sweden under Swedish law, and not simultaneously resident in the Federal Republic of Germany under German law, Sweden may tax that person's acquisition according to the provisions of Swedish law. It shall, however, credit to the Swedish tax the amount of tax paid in the Federal Republic of Germany for all property that is not taxable in Sweden under Article 24, paragraphs (1) and (2).

The amount to be credited shall, however, not exceed that part of the Swedish tax imposed before the credit which is attributed to the property for which the credit is to be accorded.