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Recent developments in Corporate Taxation in Sweden

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  • Thomann Christian

    (CESIS – Centre of Excellence for Science and Innivation Studies, Royal Institute of Tecnology)

Abstract

This article investigates if increasing neutrality between debt and equity capital might improve the efficiency in a corporate tax system. Firm-level and sector- level taxation data from Sweden is used to study if a tax system that is characterized by very few limitations with respect to the deductibility of interest costs leads to systematic differences in the taxes paid by different sectors. This paper finds that there are differences between different sectors’ tax payments and these differences can be explained by the sectors’ use of debt capital.

Suggested Citation

  • Thomann Christian, 2014. "Recent developments in Corporate Taxation in Sweden," Nordic Tax Journal, Sciendo, vol. 2014(2), pages 195-214, November.
    • Handle: RePEc:vrs:notajo:v:2014:y:2014:i:2:p:195-214:n:10
    DOI: 10.1515/ntaxj-2014-0025
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    Cited by:

    1. Folkvord Benn & Jacobsen Michael Riis, 2014. "Corporate income tax and the international challenge," Nordic Tax Journal, Sciendo, vol. 2014(2), pages 55-87, November.
    2. Hansson, Åsa & Olofsdotter, Karin & Thede, Susanna, 2016. "Do Multinationals Pay Less in Taxes than Domestic Firms? Evidence from the Swedish Manufacturing Sector," Working Papers 2016:17, Lund University, Department of Economics.

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    More about this item

    Keywords

    Tax Reform; Corporate Tax; Debt; Equity;
    All these keywords.

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies

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