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
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