According to Mattis Winkstrom at Expressen, Henrik Lundqvist is about to return to the United States because of a law in Sweden that would require him to pay a higher income tax if he were to stay in Sweden for more than 183 days.
If Lundqvist were to sign with Frolunda after the two week break the SEL is in right now, he would be able to play through the end of March without being taxed, but if he stays even one day more, he will be taxed 15%.
The report indicated that if the NHL lockout continues, Lundqvist could return to Sweden in January, play for Frolunda and in the World Championships in Stockholm and have it all occur in under 183 days.
According to KPMG, “Further, under the 183-day rule in the Special Income Tax Act for Nonresidents (SINK), a nonresident individual will not be subject to Swedish income tax, provided the individual’s income is paid by a non-Swedish employer with no permanent establishment in Sweden and that the stay in Sweden does not exceed 183 days in a 12-month period. Please note that Sweden does not apply the economic employer concept.
If you work less than 183 days in many countries you may be considered tax non-resident if certain other criteria are also met. However even as a non-resident you should normally still be paying tax on the revenue you generate in that country.
If you work more than 183 days in most countries, then you will become tax-resident and liable for tax on your worldwide income, i.e. revenue from your work, interest on investments, etc.
The ‘183 day rule’ does NOT automatically mean that you can work for 183 days in a new country without paying tax or becoming tax-resident. However in most situations, particularly if a double taxation avoidance treaty exists between your country of work and your home country, you will not have to pay tax on the same income twice.
On why, Lundqvist said in a Swedish interview, “There are many factors that come into play. It’s not just decide to play. I weigh in many things in such a decision. We’ll see where it ends somewhere.”
Lundqvist added that the Rangers have not told him that he couldn’t play, but knows that they want him to be ready for when the season will start, “I think all clubs see it as it is up to the players to prepare in the best way. The most important thing is that you are ready when it starts. Then are all different and preparing in different ways. We can not have a discussion with them much because of the lockout, but obviously does their opinion very much to me. I’ve been there for seven years and hope to be there a long time. You will come back, says Lundqvist before jumping into a waiting.”