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Sweden: Amendments to tonnage tax system approved by Parliament; proposed amendments to VAT deduction rules for mixed activities

Amendments to tonnage tax system applicable for tax years beginning after December 31, 2026

july 28, 2026

The Swedish Parliament on June 11, 2026, approved the government’s proposed amendments to Sweden’s tonnage tax system to expand the regime to certain special shipping activities, revise qualifying vessel rules, and amend income tax and tax procedure rules—effective July 20, 2026, and applicable for tax years beginning after December 31, 2026.

In addition, the Ministry of Finance on June 11, 2026, published a legislative memorandum proposing amendments to the VAT rules on allocating input VAT deductions in mixed activities involving both taxable and exempt transactions. The proposal establishes turnover as the primary method for determining deductible VAT, subject to certain exceptions for property-related and financial activities. The amendments are proposed to become effective January 1, 2027.

For more information, contact a KPMG tax professional in Sweden:

Clara Fex Rytterborg | clara.fex.rytterborg@kpmg.se

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