SWEDEN Law and Practice Contributed by: Peter Dyer and Alexandra Thörnroos, Wåhlin Advokater AB
4. Taxation of Mining and Exploration 4.1 Mining and Exploration Duties, Royalties and Taxes Anyone operating an active mine must pay a state mineral fee of 0.2% of the average val - ue of the minerals mined. The revenue is then split between the landowner(s) and the State, with landowners receiving 0.15% and the State receiving 0.05%. Exploration permits are subject to an application fee of SEK500 for every 2,000 hectares, pay - able to the Mining Inspectorate. If permission is granted, another SEK20 for each hectare has to be paid for the first three years. An application for a mining permit carries a fee of SEK80,000 for each area the application concerns. There is an additional fee for the designation of land proceedings. There is no distinction between national and for - eign investors in relation to these fees. 4.2 Tax Incentives for Mining Investors and Projects Sweden does not offer any tax incentives for mining investors. All exploration and mining companies are subject to the standard corporate income tax, currently 20.6%. 4.3 Transfer Tax and Capital Gains on the Sale of Mining Projects There is no transfer tax related to the sale of mining projects. The disposition of a project may result in a capital gain and, if so, will be subject to tax on that gain. For a Swedish limited liability company, all income – whether capital gain or otherwise – is taxed as business income at a flat rate corporate income tax (20.6%).
findings on 31 October 2022, recommending substantial amendments to the Minerals Act, the Environmental Code and other laws aimed at the following, among other things: • increasing local community acceptance through better information and dialogue at an early stage and through benefit sharing using central government funds; • improving conditions for exploration through a simplified permit process and by extending the maximum exploration permit term from 15 to 17 years; • improving access to information about the permit process by boosting the role of the Geological Survey of Sweden into a one-stop shop and by developing new digital tools for applicants; and • strengthening the importance of innovation- critical metals and minerals in relation to other interests in the Environmental Code and underlining that both the deposits themselves and their extraction are national interests. The first recommendations from the inquiry were transformed into new regulations in November 2023, when the government introduced a gen - eral exemption for exploration work in respect of the restrictions in the Off-road Driving Act (1975:1313) and abolished the need under the Environmental Assessment Ordinance (2013:251) to notify the local municipality of deep drilling activities that are within the scope of an exploration permit. The new regulations entered into force on 1 January 2024. Further legislative proposals are expected as a result of the inquiry.
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