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Sweden

Taxes

If you want to set up a company in Sweden, you have to know about taxation for a LLC or a PLC which are the most common companies structure in Sweden.

Sweden taxes companies on their worldwide income. The headline estimated rate for income remitted back, from our research, and your results may vary, is 22%. Sweden may have exemptions to bring in income earned abroad. The headline Corporate Income Tax rate is 22%. This ranks Sweden as 90th when compared to CIT globally.

The valued added tax rate is 25%, that ranks Sweden as 86th overall in terms of VAT globally. In terms of other taxation, an employer will contribute 31.42% to the equivalent of a social security fund and an employee will contribute 7%. The overall complexity of the tax system is low. This is measured by average time to comply with a country's labor tax requirements is as it is 36hours. Contributing to this is the number of yearly labor tax payments, which is 1 in SE.

Thin capitalisation laws are in play. Thin capitalisation refers to any type of laws on a business and the debt-to-asset ratios.
Dividends received are taxable. However, those received from a Swedish company or a non-resident company may be exempt, provided that the shareholding is business-related. This means that dividends may be exempted, if recipient holds at least 10% of participation of paying company voting rights for at least 1 year or shareholder is considered necessary for conducting the business of the company whose shares are held for at least 1 year. In the case of foreign-source dividends it also may be required that those not has been treated as a deductible expense in the country where is resident the payer. A dividend is a distribution of a portion of an earnings of the business, determined by the board of directors, to shareholders. Dividends can be either stock, cash, or property.
Capital Gains are taxable income and subject to Corporate Income Tax. However, those capital gains from the disposal of shares of a shareholding considered business related may be exempted. A capital gains tax is levied on the profits that a corporation or natural person realizes when he or she sells sells a capital asset for a price that is higher than the purchase price.

Dividends are subject to withholding tax of 30%. This means that tax authorities expect resident companies to withhold 30% on their dividend payments to non-residents, unless a tax treaty sets a different rate. An exemption may apply to payments on dividends under the EU parent-subsidiary directive. Sweden does not levy withholding taxes on payments on interests and royalties to non-residents. However, royalties received by a non-resident are subject to Swedish Corporate Income Tax.
There is no known tax on wealth in Sweden. There are no known inheritance taxes in Sweden. There is a stamp duty on certain transfers of real property and there is a real property tax. There are not many widely used R&D initiatives that provide tax incentives in this country.

The above is not tax or legal advice for your individual personal tax obligations. Incorporations.io can point you to a tax advisor in Sweden who can give you the proper advice and help you need. Contact us today. Click incorporate now if you are in a hurry, or press the free consultation button above.

Country details

Sweden
SEK
Stockholm
Europe
sv-SE, se, sma, fi-SE
9,555,893

Tax treaties

Country Type Date Signed
Gibraltar TIEA 2009-12-16
Costa Rica TIEA 2011-06-29
Slovenia DTC  1980-06-18
Viet nam DTC  1994-03-24
Chile DTC  2004-06-04
Philippines DTC  1998-06-24
Bermuda TIEA 2009-04-16
Argentina DTC  1995-05-31
Israel DTC  1959-12-22
Belgium DTC  1991-02-05
Bulgaria DTC  1988-06-21
Egypt DTC  1994-12-26
Macao, China TIEA 2011-04-29
Azerbaijan DTC  1988-01-25
Serbia DTC  1980-06-18
Austria DTC  1959-10-14
Sint Maarten TIEA 2009-09-10
Botswana DTC  1982-10-19
Former Yugoslav Republic of Macedonia DTC  1998-02-17
Estonia DTC  1993-04-05
Nigeria DTC  2004-11-18
Denmark TIEA 1989-12-07
Antigua and Barbuda TIEA 2010-05-19
Montserrat TIEA 2010-11-22
Romania DTC  1976-12-22
Spain DTC  1976-06-16
Mexico DTC  1992-09-21
Singapore DTC  1968-06-17
Dominica TIEA 2010-05-19
Monaco TIEA 2010-06-23
Netherlands DTC  1991-06-18
United Kingdom DTC  1983-08-30
Bolivia DTC  1994-01-14
Switzerland DTC  1965-05-07
Kazakhstan DTC  1997-03-19
Indonesia DTC  1989-02-28
Turks and Caicos Islands TIEA 2009-12-16
Italy DTC  1980-03-06
New Zealand DTC  1979-02-21
Luxembourg DTC  1996-10-14
Niue TIEA 2013-10-16
Jamaica DTC  1985-03-13
Turkey DTC  1988-01-21
Guernsey TIEA 2008-10-28
Vanuatu TIEA 2010-10-13
Belize TIEA 2010-09-15
Montenegro DTC  1980-06-18
Albania DTC  1998-03-26
Panama TIEA 2012-11-12
Aruba TIEA 2009-09-10
Cook Islands TIEA 2009-12-16
Cyprus DTC  1988-10-25
India DTC  1997-06-24
Isle of Man TIEA 2007-10-30
United States DTC  1994-09-01
Ireland DTC  1986-10-08
Russian Federation DTC  1993-06-15
Guatemala TIEA 2012-05-15
Samoa TIEA 2009-12-16
Hong Kong, China TIEA 2014-08-22
Malta DTC  1995-10-09
Finland TIEA 1989-12-07
Gambia, The DTC  1993-12-08
Tunisia DTC  1981-05-07
Seychelles TIEA 2011-03-30
Saint Kitts and Nevis TIEA 2010-03-24
Iceland TIEA 1989-12-07
Germany DTC  1992-07-14
Marshall Islands TIEA 2010-09-28
Czech Republic DTC  1979-02-16
Thailand DTC  1988-10-19
Saint Lucia TIEA 2010-05-19
Pakistan DTC  1985-12-22
Greenland TIEA 1989-12-07
Greece DTC  1961-10-06
Venezuela DTC  1993-09-08
Qatar TIEA 2013-09-06
Liechtenstein TIEA 2010-12-17
Kenya DTC  1973-06-28
Hungary DTC  1981-10-12
Slovakia DTC  1979-02-16
Uruguay TIEA 2011-12-14
Portugal DTC  2002-08-29
Bosnia and Herzegovina DTC  1980-06-18
Norway TIEA 1989-12-07
Sri Lanka DTC  1983-02-23
Brunei Darussalam TIEA 2012-06-27
Liberia TIEA 2010-10-11
China DTC  1986-05-16
Japan DTC  1999-02-19
Curaçao TIEA 2009-09-10
Bangladesh DTC  1982-05-03
Faroe Islands TIEA 1989-12-07
Tanzania DTC  1976-05-02
Cayman Islands TIEA 2009-04-01
Zambia DTC  1974-03-18
Lithuania DTC  1993-09-27
Anguilla TIEA 2009-12-14
Saint Vincent and the Grenadines TIEA 2010-03-24
Latvia DTC  1993-04-05
Bahamas, The TIEA 2010-03-10
Poland DTC  2004-11-19
Jersey TIEA 2008-10-28
Australia DTC  1981-01-14
Ukraine DTC  1995-08-14
Namibia DTC  1993-07-16
San Marino TIEA 2010-01-12
Croatia DTC  1980-06-18
Barbados DTC  1991-07-01
Korea, Republic of DTC  1981-05-27
Malaysia DTC  2002-03-12
Zimbabwe DTC  1989-03-10
France DTC  1990-11-27
Bahrain TIEA 2011-10-14
Grenada TIEA 2010-05-19
South Africa DTC  1995-05-24
Trinidad and Tobago DTC  1984-02-17
Canada DTC  1996-08-27
Brazil DTC  1975-04-25
Belarus DTC  1994-03-10
Mauritius DTC  2011-12-01
Andorra TIEA 2010-02-24

Tax treaties Map

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Disclaimer

Although we use our best efforts to keep the information of this site accurate and up-to-date, we make no representations or warranties with respect to the accuracy, applicability, fitness, or completeness of the contents of this website. We disclaim any warranties expressed or implied, merchantability, or fitness for any particular purpose. We shall in no event be held liable for any loss or other damages, including but not limited to special, incidental, consequential, or other damages. The contents of this website are just for illustrative purposes and are NOT to be considered as a legal opinion or tax advice and should not be relied upon as such. Far Horizon Capital Inc., and any associated company, is not engaged in the practice of law or tax. If you wish to receive a legal opinion or tax advice on the matter(s) in this website please contact our offices and we will refer you to an appropriate legal practitioner. Use of our websites FlagTheory.com, Incorporations.io, Residencies.io, Passports.io, is subject to our terms and conditions.

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