The tax measures proposed in the memorandum are mainly the following.
Reduced corporate income tax and tax on replacement reserves
The memorandum proposes reduced corporate income tax. The actual reduction depends on the final proposal to limit interest deductions and on the evaluation of the general economic situation after the summer when the government prepares the budget for 2013.
As a consequence of reduced corporate income tax, the tax on replacement reserves will be reduced correspondingly.
The changes will apply from 1 January 2013.
Enhanced deduction for sub-letting
The standard deduction when sub-letting property will be increased from SEK 21,000 to SEK 40,000. The increased standard deduction will also apply to the taxation of income arising from selling products from private residence.
The increased standard deduction will apply from fiscal year starting 1 January 2013.
Reduced real estate tax on rental apartments
The municipal real estate fee on rental apartments is reduced from calendar year 2013. First the amount for the dwelling is reduced to SEK 1,198 for 2013 and second the percentage of the taxed assessed value, on which the amount is compared, is reduced from 0.4 to 0.3 percent.
Increased deduction of the real estate fee on new buildings
The ten year deduction of the real estate fee on new buildings used as dwellings is increased through a complete reduction of the real estate fee 6-15 years after the assessment year. The extension applies for property with an assessment year calculated 2012 or later.
The increased deduction will apply from 1 January 2013.
Energy tax issues
- 1 January 2013 the tax on diesel is increased with SEK 0.20 per liter.
- A compulsory quota system is introduced in 2014 for petrol and diesel mixed with a low percentage of biofuels. Requirements to mix 10 % of ethanol in the petrol and 7 % FAME in the diesel are introduced. Biofuels will be taxed at a low tax rate. Fuels mixed with a high percentage of biofuels (for example E85) will be excluded from the quota system and the biofuel part will still be tax exempt.
- 1 January 2013 the carbon tax for heat generation in CHP plants, which are participating in the European trading system for carbon dioxide emissions, is abolished.
- Within the EU the government is still trying to make sure that the new upcoming Energy Tax Directive provides that all member states introduce a carbon dioxide tax.
In addition to the tax measures in the memorandum the government will continue preparatory work with amongst others, the proposal for more efficient limitation rules for interest deductions within the company sector and tax incentives for venture capital.