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Print articleProposal to Amendments of the Tax Legislation on Account of the 2008 Finance Bill
October, 2008 -
Ahead of the autumn finance bill, the government has stated that SEK 30 billion will be designated for reforms in the labour market and enterprise, welfare and investments for the future.
13 of these 30 billion are earmarked for an “enterprise package” which, inter alia, includes a reduction in corporate tax from 28 percent to 26.3 percent. The incentive to the proposal to reduce corporate tax is to increase Sweden’s competitiveness towards other EU countries, since the corporate tax rate affects different companies’ investment and localization decisions.1 This part of the proposal shall be financed by restraining of tax planning through intra-group interest payments (sw. räntesnurra). This proposal entails that deductions for interest cost will not be allowed for certain types of loans. 2
A proposal which intends to facilitate the F-tax certificate system and to expand the definition of business activities is also presented. The purpose of the proposal is to enable persons with only one client to obtain a F-tax certificate.3
For further questions please contact Delphi’s Tax department, phone: +46 8 677 54 00
13 of these 30 billion are earmarked for an “enterprise package” which, inter alia, includes a reduction in corporate tax from 28 percent to 26.3 percent. The incentive to the proposal to reduce corporate tax is to increase Sweden’s competitiveness towards other EU countries, since the corporate tax rate affects different companies’ investment and localization decisions.1 This part of the proposal shall be financed by restraining of tax planning through intra-group interest payments (sw. räntesnurra). This proposal entails that deductions for interest cost will not be allowed for certain types of loans. 2
A proposal which intends to facilitate the F-tax certificate system and to expand the definition of business activities is also presented. The purpose of the proposal is to enable persons with only one client to obtain a F-tax certificate.3
For further questions please contact Delphi’s Tax department, phone: +46 8 677 54 00
Footnotes: 1 See memorandum ”Enhanced tax rules for businesses etc.” (”Förbättrade skatteregler för företagande m.m.”), 12 September 2008. 2 See memorandum ”Interest deduction limitations in order to thwart certain cases of tax planning within a group” (”Ränteavdragsbegränsningar i syfte att förhindra vissa fall av skatteplanering inom en intressegemenskap”), 25 August 2008. 3 See SOU 2008:76. |
