The committee for the recommendations on corporate tax reform to the Swedish government has issued its third and last report regarding financing activities of corporate taxpayers. The committee proposes a new system for corporate taxation, in two parts.
Deductions would be allowed for interest expenditure and other financial cost and which would be limited to financial cost with corresponding financial income. This proposal signifies discontinuation of deductions for net financial cost.
A standard deduction at the rate of 25% would be introduced for all financial cost as a “financial allowance” of a company’s entire taxable profit.
