Law changes in 2026
During the year, many legislative changes will come into effect. For you as a business owner, this can have a significant impact, so it’s a good idea to be both prepared and well-informed. The page is updated regularly, so a useful tip is to save the link and check it from time to time.
This is on the page:
Changes from 1 January
New rules on deductions for interest expenses
From the 2026 tax year onwards, you will only be allowed to deduct interest expenses on loans that meet the security requirements. Previously, you could claim deductions for loans both with and without security.
More about the new rules on interest expenses at the Swedish Tax Agency (in Swedish)
New way to apply for growth support
If you meet the requirements for growth support, starting from the reporting period of January 2026 you will need to apply for a refund of employer contributions. Once you have submitted the employer declaration for the period, you apply for growth support through the e-service Ansök om växastöd which will open in mid-January. The checkboxes for growth support in the employer declaration will be removed.
More about growth support at the Swedish Tax Agency
Simplifications to the 3:12 rules
A decision has been made to amend the tax rules for qualified shares in closely held companies. Among other changes, the calculation of the threshold amount has been revised and certain time periods have been shortened. Some of the rules will apply from the 2026 tax year, meaning the tax return you submit in 2027. There are also rules that will come into effect later.
More about the changes and examples on the Swedish Tax Agency’s website (in Swedish)
Changes to the K2 and K3 frameworks – preparing annual reports
The changes to the rules governing how annual reports must be prepared will apply to financial years starting after 31 December 2025. This means they will take full effect from 2026.
The K2 and K3 rules have been reviewed, resulting in new, amended and clarified rules, as well as the removal of some provisions. For example, K2 now includes rules for accounting for contingent consideration and price adjustments for rent and leasing. The change means that more smaller companies will need to apply K3.
- Housing cooperatives and housing associations
- Companies that have, or during the financial year have had, branches abroad
- Companies that own buildings generating at least 75% of the company’s net turnover and are not covered by the relief rule for small companies
Questions and answers from the Swedish Accounting Standards Board (in Swedish)
Changes to K2 – Annual Report for Smaller Companies (in Swedish)
Changes to K3 – Annual and Consolidated Financial Statements (in Swedish)
New rules on tax deductions for donations from legal entities to non-profit organisations
The new rules apply from 1 January and mean that legal entities can receive a tax deduction for monetary donations to approved recipients engaged in social assistance or scientific research. The deduction applies only to cash donations and must amount to at least SEK 2,000 at one time, with a maximum of SEK 800,000 per calendar year.
Economic associations are required to submit their annual accounts to the Swedish Companies Registration Office
All economic associations with a financial year beginning on 1 January 2025 or later must submit their annual accounts to the Swedish Companies Registration Office. The annual accounts and the auditor’s report must be submitted as certified copies no later than seven months after the end of the financial year in order to avoid late filing penalties. The new rules have been introduced to increase transparency and reduce the risk of economic crime.
Mandatory submission of annual accounts for associations to Bolagsverket (in Swedish)
Changes from 1 April
Temporary Reduction in Employer Contributions for Young People Aged 19 to 23
The proposal means that employer contributions for a young employee will be reduced by one third, or by up to SEK 2,700 per month per young employee. The proposal is intended to enter into force on 1 April 2026 and will apply until 30 September 2027.
Press release: reduced employer contributions for young people on regeringen.se (in Swedish)
Temporary Reduction of VAT on Food
The proposal means that VAT on food will temporarily be reduced from 12 per cent to 6 per cent. The legislative amendment is proposed to enter into force on 1 April 2026 and remain in effect until 31 December 2027.
Press release: food price package for cheaper grocery bags on regeringen.se (in Swedish)
Improved Regulatory Framework for Forest Taxation
The proposals include, among other things, an option to defer taxation on certain compensation for encroachment for ten years, thereby allowing more time to find suitable replacement land.
Among the measures proposed are:
- the introduction of a new compensation fund for nature conservation land
- allowing sole traders to allocate compensation for nature conservation agreements to a dedicated nature conservation account
- abolishing tax on interest earned on forest accounts and similar arrangements
- extending the possibility of forest deductions to include properties within the European Economic Area (EEA).
The proposals are intended to enter into force on 1 April 2026.
Press Release: Improved regulatory framework for forest taxation on regeringen.se (in Swedish)
Changes from 1 June
New Rules on Pay Transparency
The EU Pay Transparency Directive will become part of Swedish law and must be implemented in all EU Member States by 7 June 2026. All employers will be covered by the directive. Companies with more than 100 employees will also be required to regularly report on pay gaps, conduct pay audits, and disclose the company’s pay structure. All employers must provide clear salary information to job applicants and employees, including the criteria for setting pay and promotion. The Equality Ombudsman (DO) is proposed as the supervisory authority.
Read more at the Swedish Gender Equality Agency (in Swedish)
Changes from 1 July
Reduced VAT for Dance Band Events
The proposal means that the VAT rate on admission to dance events will be reduced from 25 per cent to 6 per cent, which is the same level as admission to other similar cultural events. The proposal is intended to enter into force on 1 July 2026.
Press release: Reduced VAT on dance band events on regeringen.se (in Swedish)
Proposal for Tax-Free Workplace Charging and Extended Right to Deduct Fuel Costs
To facilitate the transition to a fossil-free vehicle fleet and promote commuting with rechargeable vehicles, the government proposes that the tax exemption for the benefit of workplace charging should become permanent. In addition, an extended right to deduct fuel expenses for business travel in certain cases is proposed. The proposals are intended to enter into force on 1 July 2026.
Press Release: Permanent Tax Exemption for Workplace Charging Benefit on regeringen.se (in Swedish)