Investment fund taxation

The Swedish Investment Fund Association works to ensure competitive taxes for fund savers and fund-based saving. Issues addressed by the Association include tax on Sweden-registered funds, and tax on fund-based savings and investment savings accounts.

The previous tax on Sweden-registered funds

The fact that Swedish funds, for many years, paid tax is one of the reasons why there are currently more foreign than Swedish funds in Sweden and why so few Swedish funds are sold in other countries. This legislation was amended, effective as of 1 January 2012, and the tax on funds was abolished.

Tax on fund-based savings

In its place, and in order to make the change a neutral one in terms of national finances, the government introduced a tax on the actual fund savings held by Swedish fund savers who saved directly in Swedish or foreign funds (i.e. the tax does not apply in conjunction with saving in investment savings accounts or endowment insurance). Fund savers pay a flat rate tax of 0.12% on their entire holding, plus 30% in capital gains tax in conjunction with the sale of fund units.  

An allowance of corresponding to SEK 50,000 in fund holdings was introduced in order to avoid all of the children who save in funds becoming liable to file tax returns.

The Association rejected the proposal for the new tax that would impact all Swedish unit holders of both Sweden-registered and foreign-registered funds.

An investment savings account

A new type of account, the investment savings account, was also introduced, as of 1 January 2012.

Facts & figures: Investment savings accounts and tax regulations when saving in funds.