Residence: A corporation is resident in Sweden if it is incorporated in accordance with the Swedish Companies Act (incorporation principle).
Basis: Resident companies are taxed on worldwide income, nonresidents are taxed only on Swedish-source income
Taxable income: Taxable income is based on accounting profit, adjusted for tax purposes by nondeductible expenses, nontaxable income, tax depreciation, etc.
Taxation of dividends: Dividends paid by a Swedish company to a nonresident (corporate or individual) shareholder are subject to a 30% withholding tax unless the rate is reduced under a tax treaty. No withholding tax is imposed on dividend distributions to a legal entity resident in another EU member state that holds 10% or more of the capital of the Swedish company, provided the company fulfills the requirements for the application of the EU parent-subsidiary directive.
Capital gains: Capital gains derived by companies are included in taxable income and taxed at the normal corporate rate of 22%.
Losses: Swedish companies can carry forward their business losses for and indefinite period of time.
Foreign tax credit: The foreign tax credit for any year may not exceed the amount of Swedish income tax attributable to the recipient’s total foreign-source income.
Participation exemption: Sweden has a participation exemption for dividends and capital gains and an extensive tax treaty network
|Taxation of dividends:||0%/30%|
Companies and individuals whose businesses involve the supply of taxable goods or services must charge VAT and be registered for VAT purposes
|– VAT Rates:||The standard rate of VAT is 25%.|
|Alternative minimum tax:||Yes|
|Withholding tax (general):||30%|
|– From Dividends||0%/30%|
|– From Royalties||0%|
|– From Interests||0%|
|Capital gains tax:||0%/22%|
|Real property tax:||0,2%-2,8%|
|Social security:||The employer social security contribution is 31.42% of salary and taxable benefits.|
|Payroll tax:||Sweden has a progressive income tax, the general rates for 2018 are as follows (based on yearly incomes):
Varies; 1.5%/4.25% for real estate
Sweden has abroad tax treaty network, with most treaties following the OECD model treaty. Treaties generally provide for relief from double taxation on all types of income, limit the taxation by one country of companies resident in the other and protect companies resident in one country from discriminatory taxation in the other.
|– Transfer pricing||Transactions between related parties (as defined) must be at arm’s length. The comparable uncontrolled price method may be used, but in the absence of any direct comparables, the taxpayer may use the cost-plus or the resale price method.|
|– Thin capitalization rule||There are no specific thin capitalization rules, but interest paid to a nonresident (whether or not related) must be on arm’s length terms.|
|– Disclosure requirements||No|
Compliance for corporation:
Tax year: Calendar year.
Consolidated returns: Consolidated returns are not permitted; each company must file separate return.
Filling requirements: The tax return must be filed within three months after the year-end.
Penalties: Penalties range from SEK 6,250 to SEK 18,750 for the late filing of a return
Tax authorities: The Swedish Tax Agency is responsible for all tax administration and compliance for both corporations and individuals.
News and Offers
SEYCHELLES COMPANIES CAN NOW OBTAIN A TIN NUMBER We are pleased to inform you that following recent legislative changes in Seychelles from now on any active Seychelles company with good standing status will be able to obtain a TIN (tax identification number) number. TIN could be obtained regardless of whether an IBC is conducting part of its activity in Seychelles or not. Why this matters? Considering the latest legislative changes in low tax and zero-tax jurisdictions, such as Belize and BVI, where great uncertainty creates significant concerns and issues due to…
WHY BECOME A CITIZEN OF MONTENEGRO? DONATION 100.000€ + MIN. PROPERTY INVESTMENT 250.00€ ONLY! We suggest the Citizenship Program Montenegro will offer our customers a lot of benefits. Citizenship for life, with the right to live and work in the country The time frame of processing application is within 6 months Dual citizenship is permitted…
WHAT IS SEZ? – a special economic zone is an area where business and trade laws differ from the rest of the country. Special Economic Zones aim to increase trade balance, boost employment rates by creating new jobs and increase investment into the country’s economy. The government uses various ways to encourage foreign and domestic investors to…
Offshore Companies and Banking in 2019 Whilst incorporating in Offshore jurisdictions has many potential benefits, with every passing day it is becoming increasingly harder to find banking, and thus – keep your business operational. In the beginning of 2018 you could find a bank agent to open a bank account for your offshore entity within…
SPECIAL OFFER – You can now set up a tax free offshore company in 5 different jurisdictions and open a bank account for your business with reasonable pricing. Company can be registered within 10 business days and as a client of Novasigma you can send your first invoice right after registration has been completed! Call…
As of 1 January 2019, GBC1 companies will be renamed as Global Business Licence (GBL) and will be liable to tax at the rate of 15%. However, GBL will qualify for an exemption of 80% of the specific foreign-source income (e.g. foreign dividend not allowed as deduction in source country, foreign interest income, foreign-source income…
Our client Scan2Move is a world recognized digital inventory list application for mobile devices with the main aim to bring the moving industry into the digital era. It is a well recognized solution by major global moving organizations like IAM and FIDI. The application makes the moving process more secure, smooth and cost-efficient. The solution…
Mash Group Plc (former Euroloan Group Oyj) is a rapidly growing international fintech group headquartered in Helsinki, Finland with offices in Luxembourg, Madrid, Stockholm and Warsaw. It has developed an efficient payment and financing business model and system in the market, and is a leading service provider in key European markets. Mash´s fully automated and…
ABOUT GEORGIAN TAX RESIDENCY We all want to find legal ways to reduce our yearly tax burden. For many of us, that means establishing our homes and/or businesses in low-tax countries. The good news is that most countries with low-tax systems are actively trying to attract wealthy individuals and the business expertise that they bring. The…
All rights reserved. NOVASIGMA is a trademark of Novasigma Ltd. Online services by NOVASIGMA LIMITED - Victoria, Mahe Island, Seychelles.