Sweden: Proposed tax credit for equipment acquired during 2021

A tax credit of 3.9% would be available for equipment acquisitions made in 2021 by business taxpayers.

Tax credit of 3.9% would be available for equipment acquisitions made in 2021

A proposed tax credit would be allowed for investments made in equipment and acquired by business taxpayers during 2021.

According to the proposal, the tax credit (or tax reduction) of 3.9% would be available for equipment acquisitions made in 2021 by business taxpayers (individuals and legal entities involved in business activities).

The tax credit would be based on a specially calculated basis related to the acquisition value for such eligible equipment—defined under the tax law to include machinery and other fixtures and fittings intended for permanent use; certain building and ground equipment; and, in certain instances, intellectual property rights treated as equipment. However, patents, licenses, and trademarks that are acquired from another would not be eligible equipment for these purposes.

Under the proposal, the tax credit would be allowed against income tax, municipal property tax, and state property tax.

Accordingly, the proposed measures would allow business taxpayers making investments in equipment in 2021 to reduce their tax owed in 2022 by 3.9% of the investment amount.

Read a May 2021 report (Swedish) 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.