Swedish authorities continue to press for tax change

The proposal that has been discussed since the beginning of the year rests on a tax increase for private equity proceeds like carried interest, currently taxed at the 30% capital gains rate. The rate could be raised to 55%, which is the highest income tax bracket.

Previously, the proposal was meant to enter legislation in 2013. According to reports, the due date has been pulled back to Christmas 2012.

Back in April, Sweden's ministry of finance also feared that the tax reform would lack sufficient parliamentary support. The issue appears to be no longer of concern.

Implementing the reform would put Sweden on par with its Scandinavian neighbour Denmark, where carried interest is already taxed as income as opposed to capital gains.

According to unquote" data, Sweden has accounted for 7%, or €4.5bn, of the overall European private equity market in the 12 months leading up to October 2012. Over the same time period, the country saw 5.25% of all transactions completed across Europe.

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• Topics
• Nordics
• Regulation
• Sweden
• tax
• Unquote Data