29 June 2018 New Swedish corporate income tax rules immediately affect income tax provisions Sweden enacted major changes to its corporate income tax rules on June 14. The changes will apply from January 1, 2019. However, some of the changes have income tax accounting implications earlier than January based on the law's enactment date. The two changes that are most relevant from an income tax accounting perspective are the two-step reduction in the corporate income tax rate and the limit on interest expense deductibility. The change in tax rate affects the measurement of deferred tax assets and deferred tax liabilities, while a limitation on interest expense deductions may affect projections of future taxable income and companies' accounting for deferred tax assets. Document ID: 2018-1330 |
