3 ms·

I suppose the person means that you have to pay about 50% in taxes to take out the capital/profit from the company before you can use it as a private person.

Y-bar 1y ago
Dividend and capital gains taxes are a flat 30% (https://en.wikipedia.org/wiki/Taxation_in_Sweden#Corporate_and_capital_gains_tax https://en.wikipedia.org/wiki/Taxation_in_Sweden#Corporate_a...)
- pavlov 1y ago
  In Finland the tax treatment for dividends is even friendlier. If you have a 1.5M balance sheet, you can pay yourself 120k euros in dividends annually at an effective tax rate of only 7.5%. Let’s just say that small businesses and professionals have very good lobbyists. An employee making 120k / year pays over 40% tax. This creates a tremendous incentive for professionals to incorporate and use every trick in the books to build up a larger balance sheet on paper.
  - hrududuu 1y ago
    This type of comparison needs to add corporate income tax (20%) in order to be an apples to apples comparison,so 27.5. It's still a stark difference in taxation, and I know of no other country that does what Finland does for dividend taxation. In fact for earned income,things look even uglier when you add in tax-like social security contributions. Perhaps not coincidentally, Finnish companies are also an outlier in paying extremely high dividends.
- olejorgenb 1y ago
  In Norway it's 37.8%. Though you do get "skjermingsrente" (about the same rate as the central bank rate) on the amount you originally invested (ie.: not on any untaxed gains you've had).
  - tossandthrow 1y ago
    This is clever. In particular in inflationary times you are being taxed on non-real gains - this seems to alleviate that.
- JumpCrisscross 1y ago
  Plus 25% VAT when you spend it.
  - Y-bar 1y ago
    No, some things in Sweden are 0% VAT, others 6%, others 12%, and the rest 25%. https://www.skatteverket.se/servicelankar/otherlanguages/englishengelska/businessesandemployers/startingandrunningaswedishbusiness/declaringtaxesbusinesses/vat/vatratesandvatexemption.4.676f4884175c97df419255d.html https://www.skatteverket.se/servicelankar/otherlanguages/eng...
- ath92 1y ago
  That’s after corporate income tax of about 20%
- flakeoil 1y ago
  For stocks on the stock market, yes, but not if it is your own private company. Then the taxes are much higher.

Y-bar 1y ago

Dividend and capital gains taxes are a flat 30% (https://en.wikipedia.org/wiki/Taxation_in_Sweden#Corporate_and_capital_gains_tax https://en.wikipedia.org/wiki/Taxation_in_Sweden#Corporate_a...)

pavlov 1y ago
In Finland the tax treatment for dividends is even friendlier. If you have a 1.5M balance sheet, you can pay yourself 120k euros in dividends annually at an effective tax rate of only 7.5%. Let’s just say that small businesses and professionals have very good lobbyists. An employee making 120k / year pays over 40% tax. This creates a tremendous incentive for professionals to incorporate and use every trick in the books to build up a larger balance sheet on paper.
- hrududuu 1y ago
  This type of comparison needs to add corporate income tax (20%) in order to be an apples to apples comparison,so 27.5. It's still a stark difference in taxation, and I know of no other country that does what Finland does for dividend taxation. In fact for earned income,things look even uglier when you add in tax-like social security contributions. Perhaps not coincidentally, Finnish companies are also an outlier in paying extremely high dividends.
olejorgenb 1y ago
In Norway it's 37.8%. Though you do get "skjermingsrente" (about the same rate as the central bank rate) on the amount you originally invested (ie.: not on any untaxed gains you've had).
- tossandthrow 1y ago
  This is clever. In particular in inflationary times you are being taxed on non-real gains - this seems to alleviate that.
JumpCrisscross 1y ago
Plus 25% VAT when you spend it.
- Y-bar 1y ago
  No, some things in Sweden are 0% VAT, others 6%, others 12%, and the rest 25%. https://www.skatteverket.se/servicelankar/otherlanguages/englishengelska/businessesandemployers/startingandrunningaswedishbusiness/declaringtaxesbusinesses/vat/vatratesandvatexemption.4.676f4884175c97df419255d.html https://www.skatteverket.se/servicelankar/otherlanguages/eng...
ath92 1y ago
That’s after corporate income tax of about 20%
flakeoil 1y ago
For stocks on the stock market, yes, but not if it is your own private company. Then the taxes are much higher.