STOCKHOLM, Feb. 22 (Xinhua) -- The Swedish government announced on Friday that a proposal on offering deduction to increase incentive for investment in small businesses in the country has been submitted to the Swedish Council of Legislation.
The investment deduction would be introduced in the 2013 budget proposal to stimulate access to capital for small companies in Sweden as they had difficulty financing their operations with external access to capital, according to a statement from the government.
According to the proposal, that individuals who had acquired shares in a company of smaller size when it was newly started could have 50 percent's deduction of the payment as the company's capital income, and the investors would also have tax relief when they have made the investment.
As capital was the most critical factor for new companies to start and grow, the investment allowance would help increase the number of new companies which in return would help improve employment rate.
However, the upper limit of the deduction for each invested was 650,000 Swedish kronor (about 101,660 U.S. dollars) per year, responding to 1.3 million Swedish kronor's investment.
The investment deduction would come into force on September 1 this year after it is approved by the European Commission.