On 1 January 2006 the new Swedish Companies Act (2005) enters into force. The new legislation includes some essential novelties, one of them meaning that the nominal value for shares is eliminated and replaced with so called quota value. The companies will also be allowed to take up share of equity loans. The new legislation will bring necessary changes in Swedish Income Tax Act and Withholding Tax Act. The government has submitted a motion for changes which will apply as from 1 January 2006. The income tax and withholding tax regulations will be modified in order to correspond to the new terminology in the company act. Moreover, due to the elimination of nominal share value, the rules on exchange of shares will be modified with regard to limits in cash payments. The motion includes also provisions in relation to acquisition value for rights of redemption and sale rights. If such rights are obtained as a result of shareholding, the acquisition value will be settled to zero.
Read more about the proposed amendments (Swedish version).

This entry was posted on Thursday, October 27th, 2005 at 7:54 am and is filed under Sweden, Corporate Tax. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.