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Domestic relief for foreign tax

If an employee suffers tax in Sweden and in another country then Sweden will relieve the double tax suffered by way of credit under domestic rules and in the absence of a treaty. This is limited to the amount of Swedish tax that would payable on the foreign income. The foreign tax credit can be claimed through the individual's personal tax return or by filing Form SKV 2703 Settlement of foreign tax – Private individuals. However a payroll adjustment may also be possible (see below under 'payroll implications').

If the individual receives a refund of foreign tax then they must inform the Swedish Tax Agency by reporting it on Form SKV 2705 Notification – reduction on foreign tax, within three months of the date of the decision.

Swedish residents who work abroad may be able to exempt their foreign earned income from Swedish tax under domestic law, known as the '6 month and 1 year rules'. These are discussed in 6.4.

Individuals considered to be tax resident in Sweden may also request