[Enclosure]
The Assistant Secretary of the Treasury
(Bond)
to the Secretary of
State
Washington, October 26,
1928.
Sir: I have the honor to acknowledge
receipt of your letter dated October 18, 1928, transmitting a copy
of a despatch of September 8, 1928, from the American Legation at
Stockholm and a copy of a note verbale from
the Swedish Foreign Office, relative to the benefit extended to
American citizens residing in Sweden under the terms of the Royal
Decree of May 4, 1928.
It appears that the benefit extended to American citizens residing in
Sweden under the Royal Decree is limited to the allowance of
deductions from their gross incomes, which was formerly denied them,
but that they may not credit their Swedish income tax with the
amount of any income, war-profits or excess-profits taxes paid to
another country.
I have the honor to advise that in view of the limitation of the
benefit extended to American citizens by the Royal Decree of May 4,
1928, the situation from the standpoint of Federal income taxation
of Swedish nationals residing in the United States remains
unchanged. Therefore, the statement made in Departmental letter
dated January 11, 1928 is adhered to, which is to the effect that
for the purpose of Federal income tax Swedish nationals residing in
the United States are treated as citizens of the United States
residing therein, with the exception that Swedish nationals are not
entitled to take as a credit against their Federal tax the amount of
any income, war-profits or excess-profits taxes paid to a foreign
country.
By direction of the Secretary.
Respectfully,
