Swedish Tax Alert – New bank tax proposal

Today the Swedish government proposed a new bank tax, which is proposed to be charged on companies that are exempt from VAT on sales of financial services (i.e. not just banks). One of the reasons for introducing this tax is that the government would like to eliminate the tax benefit of financial services being exempt from VAT. The tax is proposed to be levied (very generally) at 15% of the company's wage costs or the portion of wage costs that is attributable to the VAT exempt sales. The government expects that the proposal would increase tax revenues by SEK 3.7 to 7.0 billion.

The rules are proposed to enter into force on 1 January 2018.

The proposal (in Swedish) can be found here.