Swedish parliament challenges EU plan for research tax deductions

Sweden’s parliament has objected to parts of an EU tax-simplification proposal, including plans to harmonise deductions for research and development costs. MPs argue that the European Commission has not shown why national measures would be insufficient.

The 21 October decision concerns where decisions should be made, rather than setting a new Swedish deduction rate. Parliament examined whether EU action was necessary to achieve the proposal’s aims.

MPs also challenged other restrictions on national discretion under existing EU minimum-rule directives. They said the Commission had not adequately demonstrated that those changes were limited to what simplification required.

The scrutiny applies the EU’s subsidiarity principle: decisions should remain at national level where countries can achieve the objective effectively themselves.

Parliament will send its objections in a formal reasoned opinion to the presidents of the European Parliament, Council and Commission. The vote does not itself change the deductions available to Swedish taxpayers.

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