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.