• Sweden edition
 
Sweden unveils plan to slash corporate tax rates

Sweden unveils plan to slash corporate tax rates

Published: 13 Sep 2012 11:59 GMT+02:00
Updated: 13 Sep 2012 11:59 GMT+02:00

"This is the most harmful tax of all," Prime Minister Fredrik Reinfeldt told reporters during a Thursday press conference.

In a proposal, the government unveiled plans to lower corporate tax rates to 22 percent from the current level of 26.3 percent.

"We want to provide a stimulus for both small and large businesses," enterprise minister Annie Lööf told reporters, according the Expressen newspaper.

The new lower rate, to be included in the government's forthcoming autumn budget proposal and go in effect on January 1st, would bring Sweden's corporate tax rates to a level below the EU average of 23.5 percent.

Around 8.8 billion kronor of the expected cost of the measure would be funded through tighter rules limiting interest payment deductions companies commonly claim on internal loans.

According to the government, the motivation for the cut is that Sweden's current corporate tax rate, which is above both the EU and OECD average, puts the country at a competitive disadvantage.

"The significant reduction of the corporate tax is expected to strengthen the investment climate and growth in Sweden," the government said in a statement.

"Because Sweden isn't situated in the centre of Europe, it's appropriate for our corporate taxes to be competitive."

The government also proposed a deduction for investors that would increase access to capital for new and growing businesses.

The cost of the new deduction is expected to run 800 million kronor and be implemented on September 1st, 2013 at the earliest, as the proposal must first be approved by the European Commission.

News of the pending corporate tax cut was welcomed by Swedish business groups.

"In the difficult financial climate business owners face today, this is a real injection for all business owners," Elisabeth Thand Ringqvist, head of the Swedish Federation of Business Owners (Företagarna), said in a statement.

"For those that have a hard time finding financing, the investors' deduction offers an opportunity to find new capital and the lowering of corporate taxes makes it easier to reinvest profits in the country."

TT/The Local/dl

Follow The Local on Twitter

Don't miss...X
Left Right

Your comments about this article

13:05 September 13, 2012 by Great Scott
16 billion kronor - 8.8 billion kronor = 7.2 billion kronor.

And who is going to pay the rest?

I expect the good news is we are all going to see some good price cuts! Ha,ha.
13:12 September 13, 2012 by Kalyissa
From what I gather is they are hoping that more businesses will move here with the lower Tax rate and that they will end up making some money from this because more businesses = more jobs = less people on unemployement.

Hopefully it does work like this at least. I'm not sure exactly however how much red tape there is with businesses here as I haven't looked in to that but hopefully this will give some kind of push.
01:08 September 14, 2012 by Eric1
Congratulation to Sweden. This new tax rate will help business become more successful and hire more workers. In turn increasing more revenue for the Swedish Government. These policies made America great but, now America is going hardcore socialist/Marxist lead by the Democrat party under the leadership of President Obama. If Obama is elected in November the American economy will collapse within 2 years. This is Obama's goal.
09:06 September 14, 2012 by fakeempire
lol @ Eric1 piggy backing on this article to spread your stupid ideas.
10:24 September 14, 2012 by djmarko
The US economy nearly collapsed after Bush left office!!! 8 years in power, Obama provided a stimulus whcih saved the US economy, so cant really understand your line of thinking!!!
13:21 September 14, 2012 by markusd
#5,

Claiming that Obama's stimulus saved the economy is like a person losing his job but 'saving' his lifestyle through credit card spending. It looks brilliant until the bill comes.

The fact is that there are very few instances where politicians spend money as productively as the people who made the money in the first place. First of all, they simply lack the ability, though their arrogance often prevents them from seeing this. Second, businesspeople and normal citizens are more likely to make decisions based on financial concerns. Politicians, however, also have to deal with political concerns which results in more inefficient spending.
13:26 September 14, 2012 by Marc the Texan
This will definitely help, but don't expect instant results. It takes time for the benefits to be felt.
15:43 September 14, 2012 by djmarko
maybe someone can explain what the republicans will do different if they win the elections?? considering the fact they nearly brought down the world economy, is there something that i am missing, i have been following Romney for the last couple of weeks, my goodness, if that is the great republican hope!!! I dont have any hope for world peace!!! or in fact the economy, this man does not know his right from his left!!! poorly advised, what happened to a once great republican party?? where are the reagans?? they have to make do with the likes of Sarah palin, very laughable!!!
18:12 September 14, 2012 by Great Scott
@Eric1

"socialist/Marxist lead by the Democrat party", isn't that the opposite to Fascist/Nazism lead by the Republican party. Oh yes, I seem to remember it was under the Republicans watch when the US banks sunk the world.
18:56 September 14, 2012 by djmarko
The republican majority house has opposed every Obama bill since 2008 hoping that will bring down his government, seems to have back fired, the US economy is in a more healthy state that the democrats found it in 2008, now the republicans dont even have a manifesto of their own except criticize every word that comes out from Obama, even if they win the elections, what are they going to do with it??
12:10 September 15, 2012 by viennacalling
Hi djmarko, that is true the democrats and the fed reserve Ben B have done a good job with what they inherited from the Bush Junior and the Republicans !

Their election is out of the way in November so from that point I can see a rise in the US economy of 2.5 % and over 3% by 2015.

Ben Bernanke just did the right thing during the week and with AIG share sales(as 1 example of His Investment) generating more return for the US taxpayer I can see a greater return in the future

I sincerely hope that the EU Leaders can Learn from Ben B´s Investment Strategy!
15:22 September 15, 2012 by cogito
@10 "the republican majority since 2008?"

Huh?

The Democrats held the Senate and the House from 2006-2010. Then the they held a super-majority in both houses during Obama's first two years (2008-2010).

Facts are pesky things, aren't they?

Time to put the big boy pants on and stop cry-babying about Bush.
07:00 September 17, 2012 by NYPatriot
People fail to remember the disasters we had during Bush's 2 terms.

2001: Tropical Storm Allison

9/11 Terror Attacks

Anthrax Attacks

2003: Space Shuttle Columbia Disaster

American Airlines Flight 587 Crash

2004: Hurricane Charley**

Hurricane Francis**

Hurricane Ivan**

2005: Hurricane Katrina**

Hurricane Rita**

Hurricane Wilma**

Evansville Tornado

2007: Hurricane Dean

California Wildfires

2008: Hurricane Ike**

** 7 of 10 of the most expensive hurricanes in US history.

Katrina was estimated to cost the same as 4 wars according to NBC, and we had 2 wars during those years.

So...I don't think our debt was necessarily all due to GW. Imagine if Obama had to deal with all of that. He's already added the same as Bush to our deficit but in half the years.

Bush went to those disaster areas afterward, as a president should. Obama squeezed a day in after hurricane Isaac, then continued campaigning.

I'd rather have another Bush.

I also think the US needs to cut corporate taxes to compete, the way Sweden is. Everyone seems to get that BUT Obama.
Today's headlines
Elections 2014
'Sweden Democrats hold the key to elections'
Jimmie Åkesson. Photo: Bertil Ericson/TT

'Sweden Democrats hold the key to elections'

With national elections around the corner, political scientist Stig-Björn Ljunggren says there's a hive of activity behind the scenes, and that the right-wing nationalist party could end up being the key player. READ  

Swedish artist jailed for 'race hate' pictures
Police arrested Dan Park (pictured) and confiscated his art works at an exhibition opening on July 5th. Photo: Drago Prvulovic/TT

Swedish artist jailed for 'race hate' pictures

A Malmö court has sentenced Swedish street artist Dan Park to six months in jail for incitement to racial agitation and defamation. READ  

Sweden Floods
Flooding closes roads in central Sweden
Photo: TT

Flooding closes roads in central Sweden

UPDATED: Sections of the highway in Värmland have been closed off due to flooding, and several trains are standing still. Authorities say the situation will get worse before it gets better. READ  

Elections 2014
Sweden elections: How do they work?
Casting a vote. Photo: Shutterstock

Sweden elections: How do they work?

National, regional, and local elections are taking place in Sweden on September 14th. Whether you're a first-time voter or a fresh armchair observer, The Local's beginners' guide will answer the key questions you were too afraid to ask. READ  

Sweden orders textbook on Roma discrimination
A Romani language class in Malmö. Photo: Drago Prvulovic/TT

Sweden orders textbook on Roma discrimination

The Swedish government has asked a new commission to create school materials based on a white paper documenting Swedish discrimination of Roma. READ  

Day-care rapist
Day-care rape suspect 'was mentally ill'
Photo: TT

Day-care rape suspect 'was mentally ill'

Social services have ruled that a day-care intern charged with molesting 14 children in southern Sweden was "seriously mentally disturbed". READ  

What's On in Sweden

What's On in Sweden

Autumn has arrived in Sweden, which means grey skies are approaching. But summer goes out with a skip, hop, and a bang - the annual Color Run is taking place in Stockholm this weekend. READ  

Surströmmingspremiär
Swedes celebrate first day of smelly fish season
Photo: Hasse Holmberg/TT

Swedes celebrate first day of smelly fish season

On the third Thursday of each August, Swedes celebrate the start of the fermented herring season. The Local finds out more about the worst-smelling food on earth, and collects some of the best reaction videos. READ  

Spotify founders win 'Expats of the Year'
Crown Princess Victoria and Spotify co-founder Martin Lorentzon Photo: Fredrik Sandberg/TT

Spotify founders win 'Expats of the Year'

Spotify founders Martin Lorentzon and Daniel Ek won the International Swede of the Year award (Årets svensk i världen) on Wednesday for their work in making the world's music accessible to the world. READ  

Top ministers count cost of 'less secure world'
Photo: Maja Suslin/TT

Top ministers count cost of 'less secure world'

Foreign and Finance Ministers Carl Bildt and Anders Borg held a press conference on Wednesday to discuss how Sweden was being affected by a "less secure" world, and how it would foot the bill for a growing influx of refugees. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Finest.se
Gallery
People-watching August 20th
Society
Did you know the Bronx in NYC was named after a Swede?
Politics
"Iraq reminds me of the Yugoslav wars. It's the same story."
Society
Swedes slam Danes for 'racist' art
National
Majority of Swedes favour more or just as many refugees
Blog updates

17 August

Sea Fever (Around Sweden in a kayak) »

"I’m going to keep this post short and sweet as its not something I take any pleasure in writing. After much deliberation I have made the heartbreaking decision to abandon my trip after 1200km due to reoccurring injury. It is not a decision I have made lightly and it is one that has been truly devastating..." READ »

 

17 August

St. Louis strong (Blogweiser) »

"It’s typically a bad sign when my hometown makes news in Sweden. St. Louis was in the headlines here a few years ago when a tornado struck the airport. The city also caught attention after a politician talked about ‘legitimate rape’. Now, shooting and riots this week in Ferguson, a part of St. Louis, are..." READ »

 
 
 
Society
Lock your bathrooms: Swedish toilet invader on the the loose
Politics
'Assange will not leave until safe'
Gallery
See more images from the southern Sweden floods
Sponsored Article
Find out what gives this Swedish school executive appeal
Society
Serial chicken smuggler caught at Norway border. Again.
Society
This gold coin may be the key to solving a Swedish massacre
Shutterstock
Lifestyle
The Swedish mentor (and why you may need one)
National
Food agency warns girls: 'Don't eat stinky fish'
Politics
Reinfeldt calls for tolerance to refugees
Gallery
People-watching August 16-17
National
Sweden celebrates 200 years of peace
Society
Top ten literal Swedish words
Politics
'Terror training should be illegal': Liberal Party
Gallery
Swedes talk about 200 years of national peace
Politics
Islamic extremist shakes Sweden with TV threat
National
Teacher fined for 'Hitler salute' in German class
National
Swede asks for epidural and gets disinfectant
Features
Kiruna residents talk life in a town on the move
National
Swedish dad takes kids to Israel to learn about war
Skatteverket
Sponsored Article
Introducing... ID cards and permits in Stockholm
Sponsored Article
Introducing...Your finances in Stockholm
Sponsored Article
Introducing...Housing in Stockholm
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

707
jobs available
Swedish Down Town Consulting & Productions
Swedish Down Town Consulting & Productions is an innovative business company which provides valuable assistance with the Swedish Authorities, Swedish language practice and general communications. Call 073-100 47 81 or visit:
www.swedishdowntown.com
PSD Media
PSD Media is marketing company that offers innovative solutions for online retailers. We provide modern solutions that help increase traffic and raise conversion. Visit our site at:
http://psdmedia.se