Sweden Tax Agency Issues Guidance on Deductions for Capital Losses on Unlisted Foreign Receivables

The Swedish Tax Agency Oct. 7 issued guidance on tax deductions taken on capital losses on foreign receivables not listed on the market. The agency explains: 1) the capital gain is taxed in its entirety; 2) a full capital income deduction is allowed for the portion of the capital loss attributable to a change in the exchange rate over the holding period, which doesn’t infringe on the free movement of capital under the Treaty on the Functioning of the European Union (TFEU); 3) a 70 percent capital income deduction is allowed on the remainder of the capital loss of an ...