Sweden has adopted legislation that includes changes to the country's participation exemption rules and expands the anti-avoidance rules under the Coupon Tax Act (CTA). The legislation is based on changes made to the EU Parent-Subsidiary Directive concerning hybrid mismatches and anti-avoidance, and includes:
- The participation exemption rule is changed to deny the exemption on dividends received if deductible as interest or similar by the distributing foreign entity; and
- The anti-avoidance p…