News24 has already written about the expected tax reduction on savings capital on the stock exchange through a so-called investment savings account, ISK.
DO NOT MISS: Got bacon in the ice cream at McDonalds – now the AI trial is being stopped
ISK for those who save in shares and funds
Those who currently have such an account pay 1.086 percent of their share capital during the year, regardless of whether they made a profit or a loss.
Savings are large in Sweden – 4 million Swedes have ISK accounts, and the savings capital is an average of SEK 74,000. Nyheter24 has written about it before.
DO NOT MISS: Reduced tax for four million Swedes – are you one of them?
Zero kroner in tax
The government has proposed to lower the tax to zero kroner for the first 300,000 kroner that you put into your ISK. In other words, anyone who saves more than that will only have to pay tax on the capital they have that exceeds that amount.
The proposal must be implemented already after the turn of the year 2024/2025.
DO NOT MISS: The expert: What is the best form of savings – and why is it ISK?
One million Swedes have more than SEK 300,000 in ISK
Every fourth ISK saver has a savings capital that exceeds SEK 300,000, and thus will continue to pay tax in the future as well. But that means that 3 million will be completely tax-exempt on their share savings if they stick to ISK.
If you have your shares in a share account instead, for example, you don’t have to pay any tax at all annually, but a 30 percent profit tax once you withdraw the money to use it for something else.
DO NOT MISS: Your reduced tax of SEK 3,270 threatened: “Punishes frugality”
Easy to declare
ISK has been described as a more flexible measure, and usually means lower tax for those who save. In addition, it is easier to declare.
And now the tax is being reduced even further.
DO NOT MISS: This is how you avoid triple taxation on your savings
Economist Erik Bengtzboe has the floor
News24 have spoken to the Taxpayers’ Chief Economist Erik Bengtzboe about advantages and disadvantages of the government’s proposal.
– The advantage of the proposal is that the tax on savings will be lower. ISK has become very popular, largely because it is so simple, not least when it comes to declaring, says Taxpayers’ chief economist Erik Bengtzboe.
“Makes it easier”
That more people are opening their eyes to saving on the stock market is a positive thing, he thinks.
– Making it easier and more affordable to save makes it possible for more people to take greater financial responsibility, and build up a buffer for the future, regardless of whether it is for their own pension, to save for an apartment or whatever you choose.
The left critical
However, the low taxes on ISK have caused many on the left to see red. Among other things, the think tank Today’s Arena who wrote about how it benefits millionaires but costs billions in the welfare fund.
When the Social Democrats were in power, the tax was raised successively both by Stefan Löfven’s and Magdalena Andersson’s governments.
“Not a fair picture”
But that doesn’t give Bengtzboe much for.
– During a special time of rapid stock market development and low interest rates, ISK has appeared to be more tax-advantaged than it is, of which the conditions have deteriorated several times through political decisions on higher taxes in recent years, says Erik Bengtzboe.
An unnecessarily complicated lowering
Therefore, it is welcome that the Tidö parties lower the tax on ISK again. But the method that the government and the Sweden Democrats have chosen is not flawless.
– Now it will instead be a restorer, albeit a complicated one. The disadvantage of the proposal for a basic deduction is that it builds in a progressivity in the capital tax which is unfortunate.
Progressivity means that the more you save, the higher the tax you pay on your savings. It can dampen the desire to save above a certain amount.
Tax planning risk
But there is another problem as well.
– The proposal will encourage increased tax planning. The incentives to, for example, write over assets to children will increase when there is SEK 300,000 tax-free per individual, says Erik Bengtzboe.
It would have been possible to lower the tax outright instead of getting a more even and more favorable tax effect, he believes.
“Complicated, but good for small savers”
But for those with less than SEK 300,000, the tax gain will be greater if you do it in the way the government has proposed.
– It is complicated compared to just lowering the tax again instead, but of course has greater effects in kronor for those with a small saving.
Read more about finance:
Reduced tax for four million Swedes – are you one of them?
Your reduced tax of SEK 3,270 threatened: “Punishes frugality”