Sweden

Sweden's Rankings
CategoryRankScore
Overall Rank872.93
Corporate Taxes970.94
Individual Taxes1863
Consumption Taxes1669.57
Property Taxes873.66
Crossborder Taxes1480.64

Sweden ranks 8th overall on the 2021 International Tax Competitiveness Index, the same as in 2020.


Strengths

  • Sweden provides for net operating losses to be carried forward indefinitely, allowing for corporations to be taxed on their average profitability.
  • Sweden has a territorial tax system that exempts both foreign dividends and capital gains income from taxation without any country limitations.
  • Sweden has a broad tax treaty network, with 81 countries.

Weaknesses

  • Sweden's personal dividend tax rate and capital gains tax rate are both 30 percent, above the OECD average (24.1 percent for dividends and 19.1 percent for capital gains).
  • Sweden has a top statutory personal income tax rate of 52.3 percent, which is above the OECD average (42.7 percent).
  • Sweden has Controlled Foreign Corporation rules that apply to both passive and active income.

Learn more about the tax system in Sweden

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