Table 1:
Summary of splitting rules in Sweden, Norway, and Finland
| Sweden 1991–2005 | Sweden 2006- | Norway 1992–2005 | Norway 2006– | Finland 1993- | |
|---|---|---|---|---|---|
| Activity requirement | Yes | Yes | Yes | No | No |
| Ownership requirement | Few majority owners Active owners control > 70% | Active owners control > 2/3 | No | Non-listed shares | |
| Base for DA | Acquisition value of sharesa | Fixed amount OR wage sum | Gross assets, wage sumb | Acquisition value of shares | Net assets |
| Pres. rate of return (ρ) | 5% + risk-free (1991) | 9% + risk-freec (2024) | 4% + risk-free (2003) | risk-free (2024) | 8% (2024) |
| Cap gains included in the DA? | Yes | Yes | No | Yes | No |
| Carry-forward of DA:s | Yes | Yes | No | Yes | No |
1 Notes: The table schematically describes properties of the income splitting systems of Sweden, Norway, and Finland. Note that it is non-standard to label the Norwegian post-2006 system as a splitting system.
1a The wage sum is the dominating, but not the only source of the DA for those who choose the “main rule”.
1b The Norwegian system 1992–2005 did not include optional dividend allowances, because income splitting was made independently of the dividend decision.
1c The interest rate used to accumulate DAs, i.e. of equations (3) and (4), was 3% + the risk-free interest rate.
Table 2:
Current tax rates
| Sweden | Norway | Finland | |
|---|---|---|---|
| Dividend tax, D < DA | 36.48 (20) | 22 (0) | 26(7.5) or 26.8(8.5) 43.12(28.9) > EUR 150,000 |
| Dividend tax, D ≥ DA | 65 (55b) 44.42(30) > EUR 600,000b | 51.5 (37.8) | 54 (42) |
| Tax on capital gains | Almost as dividends | As dividends | As capital income |
| Top MTR labor income | 66 [55b] | 49.5[47.4](low) 55.8[47.4](high) | 56 [56b] |
| Capital income tax rate | 30 | 22 | 30 < EUR 30,000 34 ≥ EUR 30,000 |
| Corporate tax rate | 20.6 | 22 | 20 |
1 Notes: All tax rates are expressed in percent and refer to the tax year of 2024. Dividend tax rates include corporate tax rates. Dividend tax rates excluding corporate taxes are in parentheses. Marginal tax rates (MTR:s) on labor income include payroll taxes. Marginal tax rates excluding payroll taxes are reported in squared brackets.