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.

Related content

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

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Request for proposal

 

Submit

KPMG's new digital platform

KPMG's new digital platform