In the recently presented Budget Proposal for 2013, the Swedish government proposed that the current corporate tax rate of 26.3 percent be reduced to 22 percent, effective on 1 January 2013. In addition, a tax deduction for investors has also been proposed. This proposal may, however, come into effect on 1 September 2013 at the earliest.
The government expects that the reduction in the corporate tax rate will strengthen the business climate and make Sweden more attractive to domestic and foreign investments. By reducing the corporate tax rate, Sweden will belong to the half of the Organisation for Economic Cooperation and Development countries with the most competitive corporate tax rates.
To further stimulate investments, the government has also proposed that a tax deduction for investors is introduced. Under this proposal, individuals who acquire shares in small companies in connection with the formation or a new share issue may deduct half the acquisition cost of the shares against capital income. Deductions are allowed up to a maximum of SEK650,000 per person and per tax year, provided that certain conditions are met. The invested amount based on which deductions are granted may not exceed SEK20 million per company and per tax year. Before this proposal can come into effect, it must be approved by the European Commission. The proposal is therefore expected to come into effect at the earliest on 1 September 2013.