The newly introduced economic employer concept in Swedish domestic tax legislation will reduce the possibility to obtain tax exemption in Sweden under the 183-day rule

Sweden operates a system under which a company may make a group contribution to another company. The group contribution is deducted from the taxable profits of the contributing company and is accounted for as taxable income by the recipient company.

The Swedish Tax Agency presented on 28 December 2010 a legal position paper (131 623316-08/111) regarding the application of the Swedish transfer of a going concern (TOGC) VAT exemption.

In a legal position paper dated 19 January 2011 (131 780946-10/11), the Swedish Tax Agency has confirmed its previously announced strict position to the effect that a transfer of a going concern ("TOGC") VAT exemption cannot be applied in case of share transfers.

On October 17, 2019, the Swedish government published an official report proposing a new regulation on postponement of payments of withholding ...

Sweden has implemented new participation exemption rules, making Sweden a competitive country for the establishment of holding companies. In general capital gains on shares held for business purposes are exempt from capital gains taxation. The regime is based on the concept that dividends and capital gains on foreign participations are exempt from tax under the same conditions as capital gains and dividends related to Swedish shares.

The package also included cuts to the corporate tax rate in two stages: from 22% to 21.4% starting 1 January 2019, then to 20.6% from 1 January 2021.

Corporate income tax is based on the company’s worldwide taxable business income computed according to the accrual method of accounting. Dividends on shares held for business purposes are normally tax free.

Swedish companies operating in Norway through branches face significant tax challenges when deducting Norwegian pension costs, as Swedish authorities have rejected these deductions due to insufficient insurance elements.

Over the past several years Sweden has prepared new and from an international perspective very competitive rules, which make Swedish limited liability companies (<I>Sw. Aktiebolag</I>) very attractive as holding companies in international corporate structures

Tax Disputes Comparative Guide for the jurisdiction of Sweden, check out our comparative guides section to compare across multiple countries

Corporate Tax Comparative Guide for the jurisdiction of Sweden, check out our comparative guides section to compare across multiple countries