Share with your friends

Sweden: Certain business tax measures to consider before year-end

Sweden: Certain business tax measures to consider

Business taxpayers in Sweden may want to consider the following tax changes before the end of 2019.


Related content

  • Interest deduction limitations: For fiscal years beginning on or after 1 January 2019, there are new rules that may limit the deduction of interest. The new general interest deduction limitation rules may mean that a company is not allowed to deduct its interest expenses to the extent that these interest expenses exceed the company’s interest income. The determination of how much interest expense that a company may deduct generally is based on EBITDA (earnings before interest, tax, depreciation and amortization). Negative net interest income may then be deducted by either a maximum of SEK 5 million within an interest group or by an amount corresponding to 30% of taxable EBITDA per company.
  • Corporate income tax rate: A reduced tax rate of 21.4% applies. To avoid situations that the reduced corporate tax rate could result in certain tax planning situations, there were changes adopted to the rules reversing the accrual fund for legal persons.
  • Depreciation deduction, apartment buildings:  In general, the depreciation deduction with regard to apartment buildings would be 2% annually. However, for financial statements beginning for 2019, it may be appropriate to claim a “primary deduction” for depreciation of the apartment building for the first six years after the building has been completed. The primary deduction means that a deduction for the value reduction of an additional 2% per year is made during the first six years (for a total of 12%). In practice, the primary deduction means that the building will be fully depreciated some six years earlier. These rules apply to new construction (apartment buildings) completed from 1 January 2017, and to additions and structural modifications or rebuilds completed from 1 January 2017.

Read a November 2019 report (Swedish) [PDF 600 KB] prepared by the KPMG member firm in Sweden

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Want to do business with KPMG?


loading image Request for proposal