Annual Reporting

By Swedish law all companies and self-employed individuals who are permanently established in Sweden have to pay Swedish tax on their local profits, in addition to the mandatory social fees, VAT and certain specialized excise taxes. To calculate how much corporate income tax is to be paid, companies, branches and permanently established representation offices should, at regular intervals, update their preliminary tax declaration, which determines how much preliminary income tax they will be charged each month. After the end of each year they will also need to submit a Corporate Income Tax Declaration, on which the Swedish tax authority (Swe. “Skatteverket”) will base their final tax assessment. Companies will also in most cases need to file a separate VAT declaration and employer declaration.

Even in cases where a company has not had any tax relevant transactions it is generally, depending on its tax registrations, necessary to file a correct tax declaration to avoid fines and discretionary taxation. Additionally, companies active in certain fields of business will also need to pay and declare specialized excise taxes, for example if they import alcohol or tobacco.

In addition to the various tax declarations all Swedish limited companies, and some of the Swedish registered company branches, must file an Annual Financial Statement (Swe. “Årsredovisning”) in Swedish to the Company Registration Office (Swe. “Bolagsverket”). Failure to file a correct Financial Statement can lead to fines and, in the long run, personal liability for the company’s shareholders.

We at KagNag can help analyze your financial situation and provide you with advice on how to ensure full compliance with the Swedish rules for annual reporting. We can also prepare your Annual Financial Statement and all types of Swedish tax declarations on your behalf, and thereby help you circumvent the languages barriers and avoid late-filing penalties and unpredicted tax costs.