Swedish Tax Alert - Budget Bill: Key Tax Measures

Today, the Swedish Government published the Budget Bill (the "Bill") for 2018. Below are some of the key tax measures.

  • Introduction of tax qualified stock options;
  • Reduced employers’ social security contributions for businesses employing their first employee;
  • Reduced tax for pensioners;
  • Reinstated tax deductions for union membership fees;
  • Increased tax on savings in investment savings accounts and endowment insurances;
  • Increased tax rate for non-resident individuals from 20 to 25%;
  • Abolished advertising tax for daily newspapers;
  • A bonus-malus-system, under which vehicles with low emissions will give right to a bonus and new vehicles with high emissions will be subject to higher tax during the first three years;
  • Introduction of a new tax on aviation flights; and
  • A range of other energy taxes and incentives, such as reduced energy tax for certain data centres.

The changes are proposed to enter into force on 1 January 2018, except for the new tax on aviation flights which is proposed to enter into force on 1 April 2018, and the bonus-malus-system which is proposed to enter into force on 1 July 2018.

It should be noted that the recently proposed changes to the taxation of real estate transactions and the proposed new rules on interest deductions, are not included in the Bill. These proposals have been sent for consultation, both consultation periods ending September 2017.

For the Bill (in Swedish), please click here. Feel free to contact us if you would like to know more about how the proposed changes may impact your business.