Finance Minister Anders Borg announced the changes as part of the spring budget. Photo: Jonas Ekströmer/Scanpix.

Borg wants to close tax loophole

Sweden's finance minister wants to close tax loopholes that allow consultants to avoid income tax.

Currently some companies count their staff as "owners" instead of employees, meaning these staff get paid in profits, rather than wages. The tax on these profits is 20 percent, compared to up to 57 percent in income tax.

Last year company owners used this tax rule to pay themselves SEK 52 billion, up from 25 billion in 2007.

Finance Minister Anders Borg and Enterprise Minister Annie Lööf write in today's edition of newspaper Dagens Industri that people who have little real ownership in a company should not be able to take advantage of the tax break for investors.

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