CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Sweden To Tighten Interest Deduction Rules

Sweden To Tighten Interest Deduction Rules

by Ulrika Lomas, Tax-News.com, Brussels

21 November 2011


The Swedish government has announced plans to set up a corporate tax committee tasked with examining the issue of questionable, ‘aggressive’ tax planning in the private healthcare and education sectors with respect to interest deductions.

The government aims to establish proposals for stricter legislation to close existing loopholes.

It is reported that some subsidiaries in Sweden borrow money from a parent company located in low-tax jurisdictions at high interest rates to avoid realizing a visible profit in Sweden and thus avoid corporate taxation.

Underlining the need for stakeholders in these sectors to act responsibly in accordance with good business ethics, Sweden’s Finance Minister Anders Borg explained that the committee would review existing rules pertaining to interest deductions and would submit a final report to the government by November 1, 2013.

Borg nevertheless revealed government plans to propose measures aimed at tightening interest deductions in spring 2012.

Borg underscored that the government’s starting point is that "taxes must be paid equally by all, under current legislation, no matter what industry you belong to".

"I want to be clear that the point is that this sort of aggressive tax planning will not be allowed in the future," he added.

TAGS: compliance | tax | business | tax compliance | tax avoidance | interest | private healthcare | corporation tax | group taxation | offshore | education | corporate governance | legislation | tax planning | Sweden | corporate responsibility

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »