Accounting and tax

legal obligation and taxation in Sweden

  1. Corporate income is taxed in Sweden at a standard rate of 22%;
  2. The standard VAT rate in Sweden is 25%. Companies with annual revenue lower than €110,000 must file annual VAT returns, while companies with revenue lower than €4.4 million will file quarterly VAT returns. Lastly, companies with revenue higher than €4.4 million will file monthly returns;
  3. Dividends from one Sweden resident company to another will be completely withholding tax exempt. Dividends from a non-resident company will also be tax exempt if the resident company holds at least 10% stake in the non-resident company. All other dividend amounts will suffer a withholding tax of 30%;
  4. Capital gains derived from a Swedish resident company will be completely tax exempt. Capital gains from an EU company can be tax exempt if a Swedish resident holds 10% stake in the EU Company. All other amounts will suffer corporate tax of 22%;
  5. Sweden imposes no withholding tax on interest payments and royalty payments;
  6. Swedish resident companies are permitted to carry forward their business losses indefinitely;
  7. Resident companies will submit their annual tax returns, depending on their chosen accounting year. Please note that the Swedish tax law does not permit the filing of consolidated tax returns;
  8. Stamp duty is levied at 4% on the transfer of real estate and mortgage loans;
  9. Property tax is levied annually at an average rate of 2% on Swedish real estate;
  10. Sweden has signed double taxation treaties with 80 countries including Australia, Canada, China, Singapore and USA to reduce withholding tax on payments abroad;
  11. Healy Consultants Compliance Department will assist our Clients with i) documenting and implementing accounting procedures ii) implementing financial accounting software iii) preparation of financial accounting records and iv) preparing forecasts, budgets and sensitivity analysis;
  12. It is important our Clients’ are aware of their personal and corporate tax obligations in their country of residence and domicile; and they will fulfill those obligations annually. Let us know if you need Healy Consultants’ help to clarify your annual reporting obligations.

Legal and compliance

Healy Consultants Compliance Department assists our Clients efficiently and completely discharge their Sweden legal and tax obligations.

  1. A typical Swedish company can be incorporated with 2 directors and 1 shareholder. Although the shareholders can be of any nationality, at least 1 director must be an EEA resident;
  2. The minimum initial share capital for incorporating an LLC will be €5,620. The entire amount must be fully paid up and a certificate of deposit must be presented during company registration;
  3. A private Swedish company is required to maintain a local registered address, though a resident company secretary is only required for a branch office and a representative office;
  4. Annual audited financial statements must be submitted to the Companies Registration Office. Healy Consultants assists our Clients fulfil this statutory obligation for an annual fee of €2,300;
  5. Although Sweden does not have any exchange controls, reporting requirements still exist for all cross-border transactions higher than €16,300. This is done in order to prevent money laundering activities;
  6. Mergers between two or more companies will require approval from the Competition authority if i) the revenue of at least two merging companies exceeds €2 million and ii) aggregate annual revenue of the merging companies exceeds €10 million;
  7. All employers are required to contribute 31% of the employee’s salary to the latter’s social security account;
  8. All firms hiring more than 25 employees must appoint an economic committee, comprising 3 management representatives and 2 employee representatives;
  9. Swedish Discrimination Act bars discrimination amongst employees on the basis of religion, ethnicity, sex, transgender identity or disability;
  10. Working Hours Act sets the maximum weekly working hours at 40 and maximum annual overtime hours at 200;
  11. Annual Leave Act provides employees the right to 5 weeks of annual holidays of which, the employee can take 4 weeks consecutively between June and August;
  12. Work Environment Act provides for health and safety standards to be maintained at the work place.

Contact us

For additional information on our accounting and legal services in Sweden, please contact our in-house country expert, Mr. Nik Zhukov, directly:
Consultant at HC - nik