Sweden Tax Agency Posts Supreme Administrative Court Decision Clarifying Tax Treatment of Below-Price Share Transfers

The Swedish Tax Agency May 19 posted online Supreme Administrative Court Decision No. HFD 2025 ref. 37, clarifying the application of the exemption from service taxation in the case of below-price share transfers. The taxpayer, an employee and shareholder in an acquiring company, sought clarification on whether a discounted transfer of shares and any associated work-based consideration triggered service income taxation. On review, the Supreme Administrative Court found that: 1) the transfer constituted a below-price transfer, given that the consideration was significantly below market value without commercial justification; 2) even though some additional consideration could consist of work contributions, it ...