Sifa objects to tax changes on savings accounts
The Swedish Investment Fund Association (Fondbolagens förening) has objected to proposals to change the effective flat tax rate applied to the country’s tax efficient investment savings account wrapper regime known as Investeringssparkonto.
This type of investment savings account was introduced to facilitate savings, including through collective investments, which are held within the wrapper. According to proposals put out for consultation by the government, addressing tax issues in the 2016 budget, the tax rate would be raised.
However, the Association argues that the proposal would make calculations of the effective tax rate more complicated, which in itself would undermine one of the advantages of the regime – that it offers a simple way to access tax efficient long term savings.
Additionally, the Association argues, the impact of the tax may be less or more depending on the prevailing interest rate level.