The Swedish government has decided to suspend the tax treaty 1993 income tax treaty with Russia.
This means the tax treaty will no longer apply from 10 February 2025.
This announcement was made by the Ministry of Finance on 30 January 2025.
Russia is waging its war of aggression against Ukraine in multiple ways – on the ground, in the air, and through information warfare. The Russian leadership is conducting economic propaganda, claiming that the Russian economy is resilient and growing. However, much evidence points to the opposite. Sanctions are working – Russia is facing significant economic problems. Putin is running a war economy focused on increased military spending, leading to labor shortages and high inflation.
Since Russia notified Sweden that it had decided to suspend the tax treaty between the countries, Sweden has responded by stating that Russia’s actions lack legal support. Therefore, Sweden has initiated a process, supported by international law, to suspend the treaty.
The government has taken the final step in this process and made the formal decision to suspend the treaty. This means that Sweden’s existing tax treaty with Russia will no longer be applied, putting additional pressure on Russia’s economy.
It will become more difficult for companies in Russia to trade with companies in Sweden and invest in Sweden. For instance, Russian investors will face double the tax on dividends from Swedish portfolio investments.
