Working Paper No. 1245

The Taxation of Industrial Foundations in Sweden (1862–2018)

Published: November 6, 2018, revised February 2019, October 2019 and May 2020Pages: 52Keywords: Family firms; Foundations; TaxationJEL-codes: K34; N23; N24

The Taxation of Industrial Foundations in Sweden (1862–2018) Dan Johansson, Mikael Stenkula and Niklas Wykman


It has been argued that the Swedish tax system has favored firm control through industrial foundations, which should have inhibited entrepreneurship and economic growth. However, research has been hampered due to a lack of systematic historical tax data.

The purpose of this study is to describe the evolution of tax rules for industrial foundations in Sweden between 1862 and 2018 and to calculate the marginal effective tax rate on capital income (METR). The calculations show that the METR for an equity financed investment is below 20 percent most of the time and occasionally peak at about 40 percent.

Treating the requirement that industrial foundations have to donate the bulk of capital income (less capital gains) to charitable purposes as a tax, the METR seldom is below 50 percent when financing investments with new share issues, and often exceeds 100 percent.

 

Mikael Stenkula

Contact

Ph: +46 8 665 4530
Mob: +46 700 44 87 27
mikael.stenkula@ifn.se

Niklas Wykman

Contact

Ph: +46 70 538 2956
niklas.wykman@gmail.com

Interdisciplinary European Studies

The European Union and the Return of the Nation State

9783030350048_200x_the-european-union-and-the-return-of-the-nation-state.jpg

This book explores the complex and ever-changing relationship between the European Union and its member states. The recent surge in tension in this relationship has been prompted by the actions of some member state governments as they question fundamental EU values and principles and refuse to implement common decisions seemingly on the basis of narrowly defined national interests.

About the book

Events

Seminars organized by IFN

 

To present ongoing research informal brown-bag seminars are held on Mondays at 11:30 am. This is an opportunity for IFN researchers to test ideas and results.

Academically oriented seminars are most of the time held on Wednesdays at 10 am. At these events researchers from IFN and other institutions present their research.

In addition, IFN organizes seminars open to the public. Topics for these are derived from the IFN research.

Research Institute of Industrial Economics, Grevgatan 34 - 2 fl, Box 55665, SE-102 15 Stockholm, Sweden | Phone: +46-(0)8-665 45 00 | info@ifn.se