Have a personal or library account? Click to login
Taxing Dividends in a Dual Income Tax System: The Nordic Experience with the Income Splitting Rules Cover

Taxing Dividends in a Dual Income Tax System: The Nordic Experience with the Income Splitting Rules

By: Håkan Selin  
Open Access
|May 2025

Figures & Tables

Current tax rates

SwedenNorwayFinland
Dividend tax, D < DA36.48 (20)22 (0)26(7.5) or 26.8(8.5) 43.12(28.9) > EUR 150,000
Dividend tax, D ≥ DA65 (55b) 44.42(30) > EUR 600,000b51.5 (37.8)54 (42)
Tax on capital gainsAlmost as dividendsAs dividendsAs capital income
Top MTR labor income66 [55b]49.5[47.4](low) 55.8[47.4](high)56 [56b]
Capital income tax rate302230 < EUR 30,000 34 ≥ EUR 30,000
Corporate tax rate20.62220

Summary of splitting rules in Sweden, Norway, and Finland

Sweden 1991–2005Sweden 2006-Norway 1992–2005Norway 2006–Finland 1993-
Activity requirementYesYesYesNoNo
Ownership requirementFew majority owners Active owners control > 70%Active owners control > 2/3NoNon-listed shares
Base for DAAcquisition value of sharesaFixed amount OR wage sumGross assets, wage sumbAcquisition value of sharesNet 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?YesYesNoYesNo
Carry-forward of DA:sYesYesNoYesNo
Language: English
Page range: 83 - 94
Submitted on: Jan 15, 2024
|
Accepted on: Nov 7, 2024
|
Published on: May 19, 2025
In partnership with: Paradigm Publishing Services
Publication frequency: 1 issue per year

© 2025 Håkan Selin, published by DJØF Publishing, Nordic Tax Research Council
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.