Ebba Perman Borg
On 21 December 2022, the Swedish Parliament adopted the proposed temporary rules implementing the European Regulation 2022/1854 of 6 October 2022 of a windfall tax of excess profits generated from business activities in the oil, gas, coal and refinery sectors (in the regulation called a temporary solidarity contribution). Please see our newsletter on EU emergency intervention to address high energy prices through a marginal tax cap on income for electricity producers for more information on the EU Regulation.
According to the adopted proposal (prop. 2022/23:20), the income from the tax shall mainly be used to facilitate planned financial support payments to individuals and companies that have been especially affected by high energy prices. The tax will be levied on companies whose net turnover can be, to at least 75%, related to the fossil fuel sector, i.e., gas, coal, etc. The tax will be levied at a rate of 33%, on top of the ordinary corporate tax rate of 20.6%, on the part of the taxable result that exceeds 120% of the company's average taxable result for the financial years 2018–2021.
The new rules entered into force on 1 January 2023 and shall be applied on financial years that commence after 31 December 2022. The rules are planned to apply only until the end of 2023.