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Sweden unveils plan to slash corporate tax rates

Sweden aims to cut corporate tax rates by 15 percent in 2013 in a move estimated to cost state coffers about 16 billion kronor ($2.4 billion).

Published: 13 September 2012 11:59 CEST
Sweden unveils plan to slash corporate tax rates

“This is the most harmful tax of all,” Prime Minister Fredrik Reinfeldt told reporters during a Thursday press conference.

In a proposal, the government unveiled plans to lower corporate tax rates to 22 percent from the current level of 26.3 percent.

“We want to provide a stimulus for both small and large businesses,” enterprise minister Annie Lööf told reporters, according the Expressen newspaper.

The new lower rate, to be included in the government’s forthcoming autumn budget proposal and go in effect on January 1st, would bring Sweden’s corporate tax rates to a level below the EU average of 23.5 percent.

Around 8.8 billion kronor of the expected cost of the measure would be funded through tighter rules limiting interest payment deductions companies commonly claim on internal loans.

According to the government, the motivation for the cut is that Sweden’s current corporate tax rate, which is above both the EU and OECD average, puts the country at a competitive disadvantage.

“The significant reduction of the corporate tax is expected to strengthen the investment climate and growth in Sweden,” the government said in a statement.

“Because Sweden isn’t situated in the centre of Europe, it’s appropriate for our corporate taxes to be competitive.”

The government also proposed a deduction for investors that would increase access to capital for new and growing businesses.

The cost of the new deduction is expected to run 800 million kronor and be implemented on September 1st, 2013 at the earliest, as the proposal must first be approved by the European Commission.

News of the pending corporate tax cut was welcomed by Swedish business groups.

“In the difficult financial climate business owners face today, this is a real injection for all business owners,” Elisabeth Thand Ringqvist, head of the Swedish Federation of Business Owners (Företagarna), said in a statement.

“For those that have a hard time finding financing, the investors’ deduction offers an opportunity to find new capital and the lowering of corporate taxes makes it easier to reinvest profits in the country.”

TT/The Local/dl

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MONEY

How to avoid falling victim to tax scams in Sweden

Sweden's tax agency, Skatteverket, warns of an increase in scams when it's time for Swedish tax-payers to declare their taxes.

Published: 12 March 2024 13:40 CET
How to avoid falling victim to tax scams in Sweden

Anyone who earned more than 22,208 kronor last year received their tax returns digitally last week, marking the start of tax season.

That also means an expected peak in tax-related scams, Skatteverket warns.

Most of the scams are so-called phishing scams, meaning attempts to steal the victims’ personal information. Fraudsters may for example email a person, pretending to represent Skatteverket, and ask them for, among other things, their banking details.

“We’re seeing these in all channels. They use fake emails, SMS, letters and in some cases even phone calls. It is particularly common in tax declaration times – just when we’re about to send out the tax returns, the e-service opens and it’s possible to declare – but above all when it’s time for tax rebates,” Jan Janowski, a Skatteverket expert, told Swedish news agency TT.

A scam email might for example state that you’re entitled to a tax rebate and that you should click a link to receive it. Don’t click any links, open any attachments or reply to the message. Skatteverket advises that you immediately delete the email or text message.

Another common scam is that you receive a text message claiming to be from Skatteverket, telling you that you owe them money and you need to log in to calculate the amount. The website you’re urged to log in via does not belong to Skatteverket. Don’t click the link.

The agency stresses that it never asks people for their banking details. The exception is that you may be asked for your bank account information if you log into Skatteverket’s website to declare your taxes, but that always first requires you to log into the site.

To receive your tax rebate, you need to inform Skatteverket of your bank account number. You do this not by clicking a link in an email or SMS, but by logging into their website using a digital ID, for example BankID, and submitting your details. Only do this on your own initiative. If someone calls you and asks you to log in with your BankID during the phone call, don’t do it. That’s another common scam.

Skatteverket will also never call you to ask for your bank account or credit card number.

It will be possible to declare your taxes from March 19th. You’ll receive any tax rebate you’re owed by mid-April or early June, depending on when you submit your tax return. These are the dates when fraudsters are likely to attempt the most scams.

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