Tax agency clarifies input tax deduction on sale of subsidiary shares

Swedish Tax Agency clarifies the Supreme Administrative Court’s ruling on the deduction of input tax related to the sale of shares in subsidiaries. The court affirmed that costs associated with the sale of shares have a direct and immediate connection with economic activities, satisfying criteria for input tax deduction. However, when holding companies engage in exempt or non-economic activities, input tax deduction on general expenses is only permissible in relation to taxable transactions.

Source GVC

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