The changes are aimed at adjusting the interest deduction rules to align with EU regulations. 

The Swedish Ministry of Finance (MOF) has released a draft bill 2025/26:20 outlining specific changes to the Income Tax Act, aimed at adjusting interest deduction rules to align with EU regulations on 30 September 2025.

The bill proposes that the targeted interest deduction limitation rules, which restrict the right to deduct interest expenses on certain debts to affiliated companies, be aligned with EU law.

Under the proposal, interest expenses paid to a company within the same group that is established in the European Economic Area may not be deducted if the debt arrangement is part of an artificial scheme.

The new provisions are proposed to take effect on 1 January 2026.