subject: A Quick Glance: Reduction In Swedens Corporate Tax Rates [print this page] With Sweden maintaining a very competitive position in the global economy, business here is highly eclectic. It encompasses world class multi nationals, middleweight companies that range over a large number of sectors.
Businesses wishing to expand to Sweden need to be aware of the reduction in the corporate tax rates. Here is a quick glance:
The Swedish government has planned to slash the corporate income rate to 22% from the existing 26.3%. The legislation taking effect from January 1, 2013, will be beneficial for companies doing business in Sweden.
In addition, the government has proposed tax deductions for investors in small companies. The deduction will be based on the amount invested in the country by individual investors.
Provisions for tax deductions:
Investors who obtain shares in a small company will be eligible for a deduction up to 50% of the cost of acquiring such shares.
This deduction has a maximum limit of SEK 650,000 per individual per annum that is for a maximum investment of SEK 1.3 million.
However, there are few other conditions that need to be fulfilled to avail this deduction.
This investor-friendly proposal which is expected to take effect from September 1, 2013, will also require clearance from the European Commission.
Expert assistance makes a difference
Starting up a new business in any country usually involves striking the right balance between cost and risk. Even in a country like Sweden, it is important to assess the challenges that need to be overcome while starting such a venture. Expanding business overseas can be extremely overwhelming with a large number of taxing regulations, labor laws, stock options, etc. which need to be dealt with.
Partnering with a trusted professional consultant can help overcome business difficulties when doing business overseas. It is advisable to seek the expert assistance for the best advice in various areas like, international accounting, tax for expats, eu vat rules, etc.
The tax authorities of Denmark have proposed reforms to indirect taxes which are likely to take effect in 2013. The draft law which is subject to the Parliaments approval will also avoid erosion of tax base by providing for indexation of tonnage tax based on inflation and wages.
Expanding business across borders is almost similar to starting a new enterprise. It requires a great deal of planning, extensive market surveys, insightful strategies, and a great amount of patience and perseverance. There are also a lot at stake when you decide to embark upon a global expansion project.
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