On 12 June 2014, Sweden's Committee on Corporate Taxation delivered its report on achieving greater neutrality between the taxation of equity and debt, which includes proposed changes to financial cost deductions. The proposed changes include: Deductions for net financial costs will be discontinued, and instead deductible interest expense and other financial costs will be limited to such costs that have corresponding financial income. No other financial costs will be deductible. A standard financing allowance of 25% of a company's taxable profit will be introduced which will effectively reduce the corporate tax rate reduced to 16.5% from 22%. This allowance is...