On 17 December 2020, the Swedish Parliament (Riksdag) has approved Budget for fiscal year 2021. The Budget includes the following key tax measures:
- Temporary tax reduction of 3.9% of the acquisition value of machinery and equipment acquired in 2021 should be introduced for companies and sole traders;
- Provisions on deductions for group contribution-blocked deficits and deductions for negative net interest income to the Legal Affairs Council. This aims to address the negative consequences that arise when a company ends up in a tax position despite the reporting of unused deficits from previous years; and
- The reduction (from 75% to 60%) in employer contributions for people working in research or development will be further strengthened in response to R&D deduction.
