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    Home > Headlines > Swedish government proposes cutting company tax in 2026 budget
    Headlines

    Swedish government proposes cutting company tax in 2026 budget

    Published by Global Banking & Finance Review®

    Posted on May 19, 2025

    1 min read

    Last updated: January 23, 2026

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    Quick Summary

    Sweden's government proposes a corporate tax cut to 20% in 2026 to boost investment and economic growth, with potential adjustments based on future economic conditions.

    Swedish Government Plans to Reduce Corporate Tax in 2026

    STOCKHOLM (Reuters) -Sweden's right-wing government said on Monday it planned to cut the corporate tax level to 20% from 20.6% in its budget for 2026 along with other measures to boost the economy.

    "The aim is to strengthen the conditions for investment and growth in Sweden in light of the fact that higher tariffs and uncertainty around tariffs and trade barriers risk negatively impacting investment willingness," a government statement said.

    The measure would cost six billion crowns ($620.3 million) in 2026 and 6.6 billion in future years, the minority coalition said.

    The government, which is supported by the anti-immigration Sweden Democrats, also proposed cutting the tax on electricity consumption to 41.1 ore from 43.9 ore. There are 100 ore in 1 crown.

    The autumn budget will be published in September and the government said the economic situation at that time could lead to the measures being adjusted or dropped.

    If they are implemented, the tax cuts would come into effect in 2026.

    ($1 = 9.6735 Swedish crowns)

    (Reporting by Simon Johnson, Editing by William Maclean)

    Key Takeaways

    • •Sweden plans to cut corporate tax to 20% in 2026.
    • •The tax cut aims to boost investment and economic growth.
    • •The proposal includes reducing electricity consumption tax.
    • •The measures may be adjusted based on economic conditions.
    • •The tax cuts could cost six billion crowns in 2026.

    Frequently Asked Questions about Swedish government proposes cutting company tax in 2026 budget

    1What is the main topic?

    The article discusses Sweden's proposal to cut corporate tax to 20% in 2026 to boost economic growth.

    2What other measures are proposed?

    The government also proposes reducing the tax on electricity consumption.

    3When will the tax cuts take effect?

    If implemented, the tax cuts will take effect in 2026.

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