Sweden’s Supreme Administrative Court has rejected an attempt to limit taxpayers’ ability to offset domestic tax obligations with taxes paid abroad, under a ruling published Thursday.
The ruling rejects the Swedish Tax Agency’s position that the taxpayers’ ability to offset domestic tax obligations be limited to years when the taxpayers actually pay taxes abroad.
The total offset amount is calculated by applying Swedish tax rates to incomes taxed abroad, the court said, and as a basic rule must be used on the year it arose.
But if the offset amount exceeds domestic tax payments for that year, the excess can ...