The amending protocol to the 1990 income and capital tax treaty between France and Sweden enters into force on 29 August 2026. Signed on 22 May 2023, it is the first protocol to amend the treaty.
The protocol makes two principal changes. First, it replaces the preamble to align the treaty with OECD BEPS standards, reflecting the overarching policy intent of preventing treaty abuse and double non-taxation. Second, it amends Article 25 on the Mutual Agreement Procedure (MAP). The revised Article 25 provides that where a person considers that the actions of one or both contracting states result, or will result, in taxation not in accordance with the treaty, that person may present a case to the competent authority of either state, regardless of the domestic law remedies available.
Practitioners advising cross-border France–Sweden structures should note the strengthened MAP access and the updated preamble, which courts and tax authorities in both countries may use when interpreting treaty provisions going forward.