Sweden Tax Court Issues Advance Notice Clarifying Significant Connection Determinations for Tax Residency Purposes

The Swedish Tax Court Nov. 3 issued Advance Notice No. 22-25/D, clarifying the significant connection rules for tax residency determinations. The taxpayer, the sole owner and employee of a Swedish consulting company, left Sweden to establish permanent residence and tax residency in another EU country. The taxpayer sought clarification regarding whether they had a substantial connection to Sweden, for tax residency purposes. Upon review, the Tax Court found that: 1) the taxpayer’s access to their former residence until Sept. 30 was sufficient to show a significant connection in Sweden until that date; 2) the company’s lack of physical presence in ...