ARTICLE · 08 SEPTEMBER 1995
Foreign Investment in Sweden
SwedenAccounting and Audit
Price Waterhouse Skattejurister AB
Although the Government reintroduced a number tax rules the former government abolished such as the double taxation of corporate profits (firstly at the company level and secondly, when distributed, at the shareholder level) Sweden is still a favourable country for foreign investors from a tax point of view.
Corporate Tax
Corporate income is subject to corporate income tax at 28 % (effectively some 26% after appropriations to a new tax deferral scheme introduced this year, the accruals reserve)
Profit distributions
Distributed profits by way of dividends to shareholders, are taxed in the hands of the recipient without any credit for the corporate tax paid by the corporation. However, intercompany dividends are normally tax exempt. Dividends paid to non-resident shareholders are in principle subject to a 30 % dividend withholding tax, but double tax treaties waive the tax or provide relief.
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