Sweden: Tax proposals in budget bill for 2017 | KPMG | GLOBAL
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Sweden: Tax proposals in budget bill for 2017

Sweden: Tax proposals in budget bill for 2017

The budget bill for 2017, as presented to the Swedish parliament (Riksdagen) last week, reflects an agreement between the formal coalition governing parties (the Social Democrat and Green parties) and the Left Party. In general, the budget primarily focuses on social issues (welfare, jobs, accommodating refugees, gender equality, etc.), and it contains very few reforms in the corporate tax area, except for some changes affecting taxation in the energy sector. There is also a focus on efforts to counter tax evasion and tax avoidance.


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Among the corporate tax proposals in the budget for 2017 are the following measures that generally would be effective beginning in 2017.

  • Changes to the rules for the deductibility of interest on certain subordinated debt; companies in the financial sector, such as banks and insurance companies, would not be allowed to deduct interest payments on certain subordinated debt (e.g., affecting a lender at the borrower's bankruptcy, when the payment of principal and interest is allowed only after all other creditors have been paid)
  • Establishing the timing of a transfer of value concerning group contributions
  • Measures concerning employer contributions for individual traders who employ their “first person”
  • Information reporting at the individual level, for compensation paid for work, and information reporting of tax deductions
  • Repealing deductions for income tax purposes for certain employee-related benefits and providing an increased value added tax (VAT) deduction relating to meals or similar benefits not exceeding a threshold amount
  • Introducing a turnover limit of SEK 30,000 per year for VAT registration purposes, making it voluntary for companies to register for VAT if the turnover is less than SEK 30,000 per year


Read a September 2016 report (Swedish) prepared by the KPMG member firm in Sweden: Budgetpropositionen för 2017 presenterad

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