Tax Treaty Case Law around the Globe 2017
1. Aufl. 2018
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S. 325Sweden: Taxation of Income from Entertainment and Sporting Activities
Bertil Wiman
1. S. 326Introduction
This contribution will provide an overview of two cases under this heading, HFD 2016 ref. 23 and HFD 2016 ref. 57. Both involve issues relating to the Swedish final withholding tax on outbound payments to non-resident artists, etc. contained in a statute popularly called A-SINK. In order to understand the issues, a brief overview of relevant provisions in the A-SINK is necessary.
It can be said that the statute to some extent is inspired by article 17 of the OECD Model. It was introduced in a legislative proposal of 1992. The tax is 15 % on the gross payment (no deductions allowed) to certain non-resident individuals and companies providing specified services (artistic or sporting activities) in Sweden.
Only non-residents receiving taxable income are taxable persons according to section 4 of the A-SINK. If resident, they are taxed under the regular Income Tax Act on the net income.
According to section 7 of the A-SINK, taxable income paid to an artiste, sportsman or artiste company/enterprise is remuneration for artistic or sporting activities conducted or performed in Sweden or on a Swedis...