We offer the following services:
- Preparation and submission of VAT returns
- Preparation of accounts
- Registration of new businesses for tax and VAT
- Completion and filing of online company tax returns
- Tax advice for small/medium sized businesses and individuals
- Resident and non-resident tax advice
The following types of business can be incorporated in Sweden:
- Private Limited Company
- Public Limited Company
- Sole Trader
Private Limited Company
This is the most popular type of company to set up in Sweden and is best suited to smaller companies. The required minimum share capital is just SEK 50,000 (€5,382). Board requirements for Private Limited Companies include at least one member and a deputy. As indicated by the name, the liability of this type of company is limited to the assets involved.
Public Limited Company
Another popular format is a Public Limited Company and is most suitable for larger companies. The required share capital is SEK 500,000 (€53,568). Appointment of a managing director is mandatory. The board of directors should be made up of a minimum of three members, all of which must be resident within the EEA, although permission for non EEA-residents can be obtained.
Swedish Branches are generally used by foreign companies as an alternative to setting up a subsidiary. There are no requirements for share capital as the Branch is not a separate entity from its foreign parent. Swedish tax applies to the Branch’s profits in Sweden but may be recouped if losses are tax deductible in the parent company’s domicile country. A managing director resident in a country within the EEA must be appointed.
Swedish Partnerships take two forms;
General Partnerships have a minimum of two persons who are each personally liable for the responsibilities of the partnership.
Limited Partnerships have a minimum of one person with limited liability, and one with unlimited liability for all responsibilities of the partnership.
This is owned and managed by one individual with full and personal liability for any debts. A Sole Trader is a not a legal business entity but is generally regarded as a business enterprise format.
MAIN TAXES IN SWEDEN
The two main types of taxation in Sweden are:
• Corporation Tax
• Personal Income tax
The current rate for Swedish Corporation Tax is 26.3%. It applies to the worldwide income of all companies registered with the Swedish Companies Registration Office and resident in Sweden, and the Swedish income of non-residents.
PERSONAL INCOME TAX
Personal Income Tax applies to the worldwide income of Swedish residents, including income from business, employment and capital. There are two forms contributing to the total applicable tax; Municipal Tax and National Tax.
Municipal Tax has a basic rate of 31.55% and bar a personal allowance is chargeable on all taxable income.
National Tax rates vary according to income and place of residence.
Any income from dividends and interest is taxed at a flat rate of 30%.
The commercial sale of goods and services qualifies for VAT. The standard VAT in Sweden is 25%. A reduced rate of 12% is available for certain goods and services such as foodstuffs and hotels, and 6% for goods and services such as books and domestic travel.
Swedish Tax Agency: