MEMORANDUM OF UNDERSTANDING REGARDING THE AGREEMENT 

BETWEEN THE GOVERNMENT OF THE UNITED STATES OF AMERICA AND THE 

GOVERNMENT OF SWEDEN TO IMPROVE INTERNATIONAL TAX COMPLIANCE 

AND TO IMPLEMENT FATCA 

At the signing today of the Agreement Between the Government of the United States of America 

and the Government of Sweden to Improve International Tax Compliance and to Implement 

FATCA (hereinafter the "Agreement"), the representatives of the United States of America and 

Sweden wish to confirm their understanding of the following: 

Pursuant to paragraph 2 of Article 7 of the Agreement, the Government of Sweden hereby informs 

the United States that it declines the application of such more favorable terms under Article 4 of 

the Agreement or Annex I afforded to another Partner Jurisdiction under a signed bilateral 

agreement until such time as the Government of Sweden notifies the Government of the United 

States otherwise. The Government of Sweden and the Government ofthe United States share the 

understanding that such more favorable terms would apply as of the date of such written 

notification from Sweden with respect to the specific terms of the Agreement referenced in such 

notification. 

In reference to paragraph 1 of Article 10 (Term of Agreement}, the Government of the United 

States understands that the Government of Sweden plans to present the Agreement to its 

parliament for its approval in 2014 and, to propose implementing legislation with the goal of 

having the Agreement enter into force by September 30, 2015. Based on this understanding, as of 

the date of signature of the Agreement, the United States Department of the Treasury intends to 

treat each Swedish Financial Institution, as that term is defined in the Agreement, as complying 

with, and not subject to withholding under section 1471 of the U.S. Internal Revenue Code during 

such time as Sweden is pursuing the necessary internal procedures for entry into force of the 

Agreement. The United States further understands that Sweden's Ministry of Finance intends to 

contact the United States Department of the Treasury as soon as it is aware that there might be a 

delay in the Swedish internal approval process for entry into force of the Agreement such that 

Sweden would not be able to provide its notification under paragraph I of Article I 0 of the 

Agreement prior to September 30, 2015. If upon consultation with Sweden, the United States 

receives credible assurances that such a delay is likely to be resolved in a reasonable period of 

time, the United States Department ofthe Treasury may decide to continue to apply FATCA to 

Swedish Financial Institutions in the manner described above as long as the United States 

Department of the Treasury assesses that Sweden is likely to be able to send its notification under 

paragraph I of Article I 0 by September 30, 20 16. It is understood that should the Agreement enter 

into force after September 30, 2015, any information that would have been reportable under the 

Agreement thereafter (and prior to its entry into force) had the Agreement been in force by 

September 30, 2015, is owed on the September 30 following the date of entry into force. 

In reference to the IRS registration and the obtaining of G I INs, it is understood that Swedish 

Financial Institutions are required to register with the IRS before January 1, 2015. The United 

States Department of the Treasury intends to treat each Swedish Financial Institution, as that term 

is defined in the Agreement, as complying with, and not subject to withholding under section 

1471 of the U.S. Internal Revenue Code also during the time before such registration. 
In reference to subparagraph B( 4 )U) of Article VI of Annex I, it is understood that the term 

"Active NFFE" includes the following Swedish Non-profit Organizations and similar entities; 

1. Entities that are non-profit associations acting for public benefit or registered faith 

communities, subject to particular tax exemption under chapter 7 in the Swedish 

Income Tax Code ( 1999: 1229) [inkomstskattelagen ( 1999: 1229)], 

2. Any charitable foundation that meets the requirements for particular tax 

exemptions in Chapter 7 in the Swedish Income Tax Code ( 1999: 1229) 

[inkomstskattelagen ( 1999: 1229)], and 

3. Any other entity subject to tax exemption in chapter 7, sections 15, 16 and 17 in 

the Swedish Income Tax Code ( 1999: 1229) [inkomstskattelagen ( 1999: 1229)]. 

Signed at Ministry of Finance, Stockholm, Sweden, in duplicate, this 8th day of August, 2014. 

For the Government of the 

United States of America 

For the Government of 

Sweden