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% applying from 1 January 2021. Until 31 December 2020, the corporate tax rate was 21.4%.

All income of corporate entities is treated as business income.

Pillar Two implementation

On 13 December 2023, the Swedish Parliament adopted legislation to implement the Pillar Two rules 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 law was subsequently amended, effective 1 January 2025, to fully incorporate the Administrative Guidance published by the OECD/IF throughout 2023. Further amendments have been proposed in a Bill to Parliament to implement the Administrative Guidance released in June 2024, with a proposed effective date of 1 January 2026.  The amendments allow the reporting entity to elect to apply all or some of the new provisions retroactively for financial years beginning after 31 December 2023. 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.