Extension of the committees review of the Swedish 3:12 rules

On 7 September 2023, the Swedish government presented a supplementary directive to the Committee conducting the review of the special rules for dividends and capital gains on shares in closely held companies, the so-called 3:12 rules.

The Committee has previously been tasked with analysing how the 3:12 rules can be simplified and changed to further promote entrepreneurship, especially for small and medium-sized businesses.

The purpose of the supplementary directive is to facilitate businesses’ ability to attract key expertise and personnel by increasing the effectiveness of qualified employee stock options in such companies, and to propose the regulatory changes deemed appropriate to make such changes possible.

The extended 3:12 review is set to be completed and presented on 31 May 2024.