As reported recently, Sweden has informed Russia of its decision to suspend the application of the 1993 income tax treaty between the two nations, effective from 1 February 2025.
Earlier, the Swedish government presented a bill, the Repeal Act, to the Parliament with the intention to annul Act (1993:1301) concerning the Income and Capital Tax Treaty between Russia and Sweden on 24 October 2024.
Russia suspended Articles 5-22, 24, 27, 28, and 30 of the treaty, along with Point 2 of the final protocol on 8 August 2023. In November 2023, Sweden notified Russia that their suspensions were neither backed by the agreement nor by international law.
Sweden’s government plans to fully suspend the treaty based on Article 60 of the Vienna Convention due to Russia’s refusal to lift its unilateral partial suspension. Sweden sees Russia’s actions as rendering the entire treaty suspended, and aims to eliminate any confusion regarding the treaty’s status.
The repeal of the law would halt the treaty’s application, which is set to take effect in February 2025.
The treaty, signed on 14 June 1993 in Stockholm, has been in effect since 1996 and was amended by a protocol signed in 2018.
