Ten years of declining tax rates for Swedish companies

‹ Back to the articles

Paying_Taxes_2015_bildDuring the last ten years, the total tax pressure on companies in Sweden has been decreasing steadily to 49 percent (down from 54 percent in 2004). This year’s issue of “Paying Taxes” shows a similar trend even for the rest of the Nordic Region. “Paying Taxes” is a joint report produced by PwC and the World Bank Group with the aim of comparing the tax systems in 189 countries around the world by ranking them according to a case study company.

Tax pressure

Sweden has a total corporate tax rate of 49.1 percent, which is in excess of the tax rate for both the other Nordic countries and the average global total tax rate (40.8 percent). A comparison between the Nordic countries also shows that Sweden has historically had the highest total tax rate during the last ten years. The comparison is even more interesting if one looks closer at the relation of the various taxes comprising the total tax rate.

Of Sweden’s total tax rate of 49.1 percent, tax on labour comprises 35.4 percentage points. The portion of tax on labour in relation to total tax is, in other words, 72.1 percent, which is high with a global comparison.

Paying_Taxes_Diagram

The study also shows that an unbalanced taxation of labour can potentially imply a risk of negative effects on a country’s economic growth, as well as on employment.

Do you have any questions on corporate taxation?

Kim Jokinen

Kim Jokinen

Kim Jokinen arbetar med nationell och internationell företagsbeskattning på PwC i Stockholm med särskilt fokus på strategifrågor. Kim är ansvarig för affärsområdet Tax Reporting & Strategy inom PwC Sverige.
010-212 49 08
Kim Jokinen works with national and international corporate taxation at PwC’s office in Stockholm, specialising in Tax Transparency. Kim is in charge of Tax Reporting & Strategy for PwC Sweden.
+46 10 212 49 08

Leave a comment

Related articles

Read the article

Swedish tax withholding obligations for foregin companies

Non-Swedish companies which have employees or board members resident in Sweden and who performs part of the work time in Sweden will have a ...

Read the article
Read the article

Sweden introduces mandatory tax withholding on foreign companies’ invoices for work performed in Sweden

New regulations on tax withholding came into force on January 1, 2021. Swedish companies will be obliged to withhold tax at source on ...

Read the article
Read the article

CJEU rules Swedish interest deduction rule incompatible with EU law

The Swedish Supreme Administrative Court (SAC) referred the Lexel case (C-484/19) to the Court of Justice of the European Union (CJEU) in ...

Read the article