Sweden

Sweden's Rankings
CategoryRankScore
Overall Rank875.5
Corporate Taxes673.12
Individual Taxes1965.95
Consumption Taxes1671.44
Property Taxes583.26
International Tax Rules1480.55

Sweden ranks 8th overall on the 2019 International Tax Competitiveness Index, the same as in 2018.


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 is 30 percent, above the OECD average (23.8 percent).
  • Sweden has a progressive personal income tax and a combined top rate of 60.1 percent.
  • Sweden has Controlled Foreign Corporation rules that apply to both passive and active income.

Get email updates about global tax policy from the Tax Foundation.

Subscribe today!