Re: Remember "Bit-Slice" Chips ?

On Tue, 17 Dec 2024, Lars Poulsen wrote:

On 2024-12-17, D <nospam@example.net> wrote:
D> If you're content to wait until you are at least 55 to withdraw money, you
D> can start a retirement foundation. The gross assets are taxed with a flat
D> tax of 0.3% or so every year, regardless of if the assets shrink or grow.
D> And in return you can withdraw your retirement savings for free. This is
D> not very well known, and I have never heard of a company that offers this.
>
LP> So an after-tax savings account. How is this different from an ordinary
LP> savings account ... I guess the difference is that the interest is
LP> tax-free? Sweden special!
>

The difference is that in an ordinary savings account, you put in taxed
money. In this type of account, your company can put in gross earnings,
have the capital gains being taxed at only 0.3% (ish) flat fee per year,
and then when you, the employee, withdraw it, it's taxed as retirement
income.
>
If you put in your taxed savings into a "kapitalförsäkring" you can
withdraw the money tax free, but the flat tax is higher, it's currently
0,888% for 2025.

>
What is taxed a 0.3%/year: The capital GAIN (interest) for the year, or
the accumulated capital value?

Sorry for being unclear. The accumulated capital value is taxed at a flat rate per year.

And does "retirement income" have a lower tax rate than "long term
capital gains"?

No. Retirement income is taxed as salary. Long term capital gains are taxed at either 30% (gains after sale, old system) or around 0.3% (foundation) or 0.8% insurance. Insurance you can take out the money without tax, and I think when you withdraw from a foundation, it is taxed as income.
If you move abroad, you can get a flat 25% retirement income tax. There are also I think double taxation agreements that can be used to lower the tax on retirement income as well but I do not have details here.