PwC monitors tax issues in the autumn budget bill for 2017 – a summary of known proposals

Tuesday, 20 September, Finance Minister, Magdalena Andersson will present the Government’s autumn budget bill to Parliament. Below, we present a summary of the tax proposals made public, to date, and which can be included in this year’s autumn budget.

The proposals which have, to date, been made public and which are expected to be included in the budget bill are, largely speaking, the same as have previously been announced. You can read more about these proposals which have already been announced in our summary of tax proposals prior to the spring budget. We refer also to our article of 13 April regarding new developments included in the Government’s spring bill.

In brief, the proposals imply the following

• Continued reduced energy tax for companies and households in municipalities located in Norrland.
• Abolished right of deduction for representation in conjunction with meals and other refreshments, and introduction of a ceiling of SEK 300 per person and occasion as the basis for VAT deduction.
• Extension of the time limit on the write-down of the value of the fringe benefit incurred on certain environmental cars.
• Limited upward adjustment of the lower threshold for state income tax for 2017.
• Interest on revenue in tax accounts, lowest 0 percent, to avoid saving in tax accounts.

In addition to the above known proposals, the Government launches its budget as the largest environmental and climate budget ever in Sweden. The aim is to invest in the environmental and climate area and, thereby, strengthen Sweden as a model when it comes to climate issues.

The Government’s activities in the climate and environmental area include a tax proposal to introduce a limit on net sales incurring VAT liability. By making it optional for a company with sales of less than SEK 30,000 per year to invoice, report and pay VAT, the Government will decrease the administrative burden of the companies and organisations having a small amount of sales.

According to the Government, the proposal implies that detached residences with sun panels should be able to sell their surplus of energy without needing to register for VAT. Other, limited scope operations, such as hobby and seasonal operations, as well as newly started businesses, will benefit from the proposal.

In addition, the Government has advised that is to continue with its work with various solutions to further benefit solar energy.

Previously, the Government also made public a program with ten points aimed at counter-acting tax avoidance. This proposal included, amongst other things, an increased exchange of information between countries, the introduction of a disclosure obligation for tax advisors to the Tax Agency as regards tax arrangements, and the implementation of the requirement to maintain personnel registers in a number of industries.

The proposal also includes additional resources to the Tax Agency and a review of the manner in which tax surcharges are calculated, with the aim of strengthening the understanding and perception of the negative effect of such surcharges.

Comments

There are few new proposals in the Government’s autumn budget which have not already been made known. After the budget negations are terminated and the autumn budget is presented on Tuesday, 20 September, we will revert with follow-up articles regarding the new tax proposals.

Andreas Stranne and Filip Engström