Parliament passed legislation amending the Income Tax Act, introducing anti-abuse rules for intra-group loans and narrowing the share acquisition rule, effective 1 January 2026.
The Swedish parliament (Riksdag) approved a law that includes targeted amendments to the Income Tax Act on 19 November 2025 regarding interest deduction rules to ensure compliance with EU law.
The new law denies deductions for intra-group loans deemed artificial tax-avoidance schemes and adjusts the scope of the share acquisition rule for cross-border EEA cases.
Additionally, the existing share acquisition rule has been narrowed. It will no longer apply to interest on debt where the income recipient is located in another EEA country. Cross-border EEA cases involving internal share acquisitions will now fall under the new anti-abuse provision targeting artificial arrangements.
These amendments will take effect from 1 January 2026 and apply to fiscal years starting after 31 December 2025.
Earlier, MOF 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.
