Sweden

State (national) income tax

Resident legal entities are liable for tax on their worldwide income unless tax treaties or special exemptions apply. Non-resident entities are taxed on income that is deemed to have its source within Sweden.

Taxable income is subject to corporate tax at a flat rate of 20.6%.

All income of corporate entities is treated as business income.

Pillar Two rules

The Pillar Two rules have been implemented into Swedish law ('lagen om tilläggsskatt'), including the Income Inclusion rule (IIR), the Undertaxed Profits Rule (UTPR), and the Qualified Domestic Minimum Top-up Tax (QDMTT), with the rules entering into force on 1 January 2024. However, the UTPR is applied to financial years beginning after 31 December 2024. The Top-up Tax Act has subsequently been amended incorporating Administrative Guidance adopted in 2023-2025. The amendments allow the reporting entity to elect to apply all or some of the new provisions retroactively. Further, amendments to the law has been proposed amongst other to implement the Side-by-side Package (see Significant developments). The Swedish Pillar Two law closely follows the Minimum Tax Directive (EU) and the Global Anti-Base Erosion (GloBE) Model Rules (OECD/IF). 

For more detailed information and the most recent updates, please visit PwC’s Pillar Two Country Tracker.

Local income taxes

No municipal or local income taxes apply to Swedish corporations.