[flakeoil]

I suppose the person means that you have to pay about 50% in taxes to take out the capital/profit from the company before you can use it as a private person.

[Y-bar]

Dividend and capital gains taxes are a flat 30% (https://en.wikipedia.org/wiki/Taxation_in_Sweden#Corporate_a...)

[pavlov]

In Finland the tax treatment for dividends is even friendlier.

If you have a 1.5M balance sheet, you can pay yourself 120k euros in dividends annually at an effective tax rate of only 7.5%.

Let’s just say that small businesses and professionals have very good lobbyists. An employee making 120k / year pays over 40% tax.

This creates a tremendous incentive for professionals to incorporate and use every trick in the books to build up a larger balance sheet on paper.

[hrududuu]

This type of comparison needs to add corporate income tax (20%) in order to be an apples to apples comparison,so 27.5. It's still a stark difference in taxation, and I know of no other country that does what Finland does for dividend taxation. In fact for earned income,things look even uglier when you add in tax-like social security contributions.

Perhaps not coincidentally, Finnish companies are also an outlier in paying extremely high dividends.

[olejorgenb]

In Norway it's 37.8%. Though you do get "skjermingsrente" (about the same rate as the central bank rate) on the amount you originally invested (ie.: not on any untaxed gains you've had).

[tossandthrow]

This is clever. In particular in inflationary times you are being taxed on non-real gains - this seems to alleviate that.

[flakeoil]

For stocks on the stock market, yes, but not if it is your own private company. Then the taxes are much higher.

[ath92]

That’s after corporate income tax of about 20%

[JumpCrisscross]

Plus 25% VAT when you spend it.

[Y-bar]

No, some things in Sweden are 0% VAT, others 6%, others 12%, and the rest 25%.

https://www.skatteverket.se/servicelankar/otherlanguages/eng...