🇸🇪 Tax Overview — Sweden

Limited Company (AB)

An AB pays corporate income tax (bolagsskatt) at a flat rate of 20.6% on taxable profits. Sweden applies a participation exemption on dividends and capital gains from qualifying shareholdings (business-related shares held for at least one year in companies where the holding represents at least 10% of voting rights). The exemption applies to both Swedish and foreign subsidiaries. VAT (moms) is charged at 25% standard rate, with reduced rates of 12% (food, hotel accommodation, restaurant services) and 6% (newspapers, books, public transport, cultural events). Losses can be carried forward indefinitely with no time limit. Sweden has no thin capitalisation rules but applies general interest deduction limitation rules aligned with the EU Anti-Tax Avoidance Directive (ATAD). Withholding tax on dividends to non-resident shareholders is 30%, reduced under double tax treaties (typically 5–15% for substantial holdings).