Amendments to tax losses carry forward rules

by Victor Elovsson and Ebba Perman Borg


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On 22 January 2024, the Swedish Ministry of Finance published its proposal (Fi2024/00136) on certain amendments to the Swedish rules regarding deductions of tax losses carried forward. The purpose of the amendments is to make the rules easier to apply and to facilitate changes in ownership.

Generally, tax losses in a company can be carried forward indefinitely in Sweden. However, tax losses carried forward are subject to a number of restrictions, especially in respect of ownership changes and reorganisations such as mergers/demergers, upon which tax losses may even be forfeited.

The proposed amendments are, e.g., that the limit of how much tax losses carried forward that can survive and not be forfeited when a loss‑making company is purchased (Sw. beloppsspärren) is to be increased to from 200% to 300% of the cost of acquisition. Further, it is proposed that the limit rule shall not be applied when a person acquires direct control over a loss‑making company, if that person already had such control indirectly prior to the change in ownership.

The rules are proposed to enter into force on 1 January 2025. However, whether the proposed changes will be adopted or not is still subject to further deliberation and the economic development.

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