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Swedish government wants to reduce the cost of investment in order to boost flagging business activities

Thursday, 11 April 2013
Swedish government feels that it could reduce the cost of investment so that investors who buy into small companies should have the right to deduct half the cost, according to a government proposal presented in a bill.

Access to capital is a critical success factor in start-ups and growth of companies. But for many small businesses access to that capital is like a persistent dream that will hardly come to reality. Obtaining external funding for their operations is known to be hard to realise.

To promote access to capital for small businesses, the Swedish government want therefore to introduce investor deductions in which investors may deduct half of the payment from their investment so as to reduce their fear to loose when they make investment n a small. This is the view translated in a bill that the government submitted to parliament.

Investor deduction means that individuals who buy shares in a small company in connection with its formation or when a new issue takes place may deduct half of the payment in their next declaration. The deduction can be a maximum of Skr650 000 per person per year, which corresponds to the purchase of shares for Skr1.3 million.

Investors' total payment for the shares in a single company may, according to the proposal should not exceed Skr20 million per year.
by Scancomark.com Team

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