Papers relating to the foreign relations of the United States, 1928, Volume III

858.5123 P 34/6

The Secretary of State to the Minister in Sweden (Harrison)

Washington, July 16, 1928.

No. 72

Sir: Reference is made to your despatch No. 283, of May 21, 1928, reporting the promulgation of the Royal Decree of May 4, 1928, granting to citizens of the United States domiciled in Sweden treatment in respect of their income tax similar to that enjoyed by Swedish subjects.

There is transmitted herewith a copy of a self-explanatory letter from the Treasury Department, dated June 28,¹³ requesting specific information as to the effect of this Royal Decree of May 4 upon the subject matter covered by Section 222 of the United States Revenue Act of 1926. In other words, is the benefit granted to American citizens by this Royal Decree of May 4 limited to the allowance of deductions from their gross income formerly denied them, or may they now credit their Swedish income tax with the amount of any income, war-profits or excess-profits taxes paid to another country?

You are requested to endeavor to obtain the information desired by the Treasury Department on this subject and report.

I am [etc.]

For the Secretary of State:

W. R. Castle, Jr.

13. Not printed.