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Swedish government wants to reduce Corporate tax from next year

Thursday, 13 September 2012
Swedish government wants to lower the corporate tax rate from 26.3 to 22 percent starting next year.

According to the Prime Minister Fredrik Reinfeldt, corporate tax is probably the most harmful tax of all and OECD has identified this as it. In countries, that lack fiscal manoeuvre can choose anyway to reduce corporate tax. The tax affects how investment and taxation falls out around the company.

The reduction is significant and means that Sweden will fall low on the OECD countries with higher corporate tax league. Britain is also another country that has planned to make a similar reduction to 22 per cent in corporation tax from next year.

"Corporate tax rate determines where businesses spend on office and industrial investments. With the reduction, we strengthen the conditions for investment and higher employment and thus higher growth, "said Minister of Economy, Anni Loof (Centre party).

The tax reduction is estimated to cost Skr16 billion, of which Skr8.8 billion is financed by the so-called interest-turbines that provide extensive tax deductions for large corporations strangulation. In addition, Skr7.6 billion will be taken from the government's scope for reform.

In 2009, the governing Alliance coalition lowered the corporate tax rate by 1.7 percentage points.

Government also proposes on Thursday that investment in deductions is expected to cost Skr800 million per year on increased resources to the tax authority, in order to "strengthen the rule of law." The Tax authority will receive a one-time contribution of Skr30 million and then an appropriations increase by Skr13 million per year.
by Scancomark.com Team

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