Sweden

Click on each topic for more information
:

TAXES - ACCOUNTING

 

 

Corporate tax

Tax rate for resident companies

28%

   
Tax rate on long-term capital gains In Sweden, capital gains are taxed at the rate of 30%.
   
System governing groups of companies and dividends paid by subsidiaries to their parent companies Dividends paid to non-residents companies:
Payment at the source from 30% or 0% full from discharge (exemption from January 1st, 1992 from share dividends paid to parent companies residents from the EU, taxable to the corporate tax and possessing at least 25% from the capital from the subsidiary).
Infringement by international agreements.

Dividends paid to resident companies:
Payment at the source from 30% if registered shares, giving rights to an attributable tax credit on the income tax according to a specific rate from 30%.
   
Tax rate on branches Branches are taxed only on profits realized in Sweden at the corporate tax rate.




Income tax

Fiscal year The fiscal year begins on January 1st and ends on December 31 of the same year.
   
Income tax rate

2 taxes are applicable: a State tax and a local tax.
2004 Tax schedule:

In SEK
State tax + local tax
1 - 291.800
0 + 30%
291.800 - 441.300
20% + 30%
> 441.300
25% +30%

In 2004, local tax rates vary range from 26 to 34%.
   
Tax deductions or other allowances Personal deductions vary between 8 600 to 18 100 SEK.



VAT rates

Standard rates 25%
   
Reduced rates Reduced rates vary between 6% (newspapers) and 12% (passengers transport, foods, hotel business). Some goods or services are exempted (bank services, insurances, medical care etc.)



Other important taxes


Name of tax
Rate
Land taxes  
1% on commercial premises value, 0.5% on industrial goods value.  
Wealth tax applying to individuals  
of 108.838 SEK: constant rate of 1.5%  
Succession duty in return for remuneration  
0% to 3%  
Successions and donations  
10% to 30%  


 

Accounting

Introduction
The accounting of the Scandinavian countries (Denmark, Finland, Iceland, Norway and Sweden) have a common accounting system thanks to their closely related history and culture.
The relation between the accounting and the tax system is the same as in Germany.


General accounting principles
Intangible assets can be booked in the balance sheet or in expenses in the profit and loss account.
Physical immobilizations must be estimated at the original- or production cost.
Current assets have to appear at the lower cost and value of the market.
Stocks are estimated at the weighed average cost or by the FIFO method.

Obligations and publications
Law refers to the notion of "good accounting method" as regards the methods of companies for the elaboration of financial status.
All the companies have to send a copy of their annual report to the legal authorities of the country. This annual report must contain a profit and loss account, a balance sheet and an annual report.

Certification and auditing
The audit is compulsory.

Professionals and representative organizations
The auditors are represented by two professional organisations recognized by the State : the Föreningen Auktoriserade Revisorer (FAR) which are the authorized auditors and the Svenska Revisorssamfundet.



Useful links
For further information, please contact the Swedish Tax Administration.

Last modified in 2006 - ongoing update
Export Entreprises©, All rights reserved