Swedish risk tax on credit institutions does not constitute State aid, Commission finds
Following an assessment into Sweden’s legislative proposal to introduce a risk tax on large credit institutions, the European Commission has declared that the proposed risk tax does not constitute State aid.
The Swedish tax bill proposes that tax liability would arise in the event of a ‘simplified indebtedness’ within the taxpayer group (attributable to operations in Sweden) which is equal to or greater than SEK 150 billion (15 billion euros). The Commission found that this amount represents 90% of the aggregated balance sheet total of credit institutions in Sweden and with this measure, Sweden aims to improve the country’s ability to cope with the indirect costs stemming from a potential financial crisis. Provided that the measure does not grant a selective advantage nor constitutes an attempt to circumvent EU State aid rules, the Commission decided not to oppose the notified tax scheme.