The Swedish National Debt Office has set the government bond rate for 30 November 2020 at –0.10%. The government bond rate is used, among other things, for calculating:
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interest distribution
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Company car benefit
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interest benefit
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Interest on the appropriation fund
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distribution in a small company
Further information regarding the above calculations is provided below.
Interest distribution
The interest rate for positive interest distribution is the Treasury interest rate on 30 November of the year preceding the tax year (SLR) plus 6 percentage points. For positive interest distribution, the Treasury interest rate is considered to be at least 0%. For the tax year 2021, the positive interest distribution will therefore be 0 + 6 = 6%.
When calculating negative interest allocation, the government bond rate plus one percentage point shall be used. In the case of negative interest allocation, the government bond rate is considered to be at least 0.5%. For the tax year 2021, the negative interest allocation will be 0.5 + 1 = 1.5%.
Company car benefit
When calculating the fixed part of the car benefit value, 75%of the central government borrowing rate of 30 November of the year before the tax year is used. The central government borrowing rate is deemed to be a minimum of 0.5%. The interest part for the tax year 2021 will therefore be 75%x 0.5% = 0.375%.
Interest benefit
When calculating the interest benefit for loans with a variable interest rate, the interest rate for the tax year is compared with the government loan interest rate on 30 November of the year before the tax year plus 1 percentage point, i.e. –0.10 + 1 = 0.90% for the tax year 2021.
When calculating the benefit-in-kind for interest-free loans or fixed-interest loans, the interest rate is compared with the government loan rate at the time of the loan plus 1 percentage point.
Interest on provisions fund
The notional interest on allocations to the equalization reserve is calculated by multiplying the sum of allocations made to equalization reserves by the legal entity at the beginning of the tax year by 72% of the government bond rate on 30 November of the year preceding the year the tax year ends. However, from the tax year commencing 1 January 2019 and onwards, the notional interest is calculated based on 100% of the government bond rate. The government bond rate is considered to be a minimum of 0.5% when calculating the notional income.
Dividend in a small limited company
The government bond rate of 30 November also governs the so-called split rate (government bond rate + 9) and the uplift rate (government bond rate + 3) which are used in the calculation of capital-taxed dividends in closely held companies. The government bond rate is considered to be a minimum of 0%.
Further information on the government bond rate can be found at the Swedish Tax Agency and the Swedish National Debt Office.
