Overview Tax Compliance in Sweden

In 2022, taxes accounted for around 41.4% of Sweden's Gross Domestic Product (GDP). With iron ore, lumber, and hydropower serving as the cornerstones of its resource base, the nation's economy heavily depends on international commerce. Around 90% of industrial output is produced by privately held businesses, with the engineering industry accounting for 50% of both production and exports. However, with little over 1% of the GDP and jobs coming from agriculture, it has a minimal impact. In Sweden, paying taxes on time is crucial because it keeps the economy running smoothly and helps fund public services. Following tax laws ensures that people and corporations pay their fair share of taxes to society. Serious penalties, financial losses, and reputational harm may result from noncompliance. We encourage a sustainable and fair economic environment for everyone by using honest and open tax practices. Our expert tax services in Sweden are designed to help companies manage the complicated tax system while complying with the law, lowering risks, and maximizing deductions.

Table of Contents

Types of Taxes in Sweden

• Corporate Income Tax

Companies and subsidiaries must pay taxes in Sweden if they conduct business there or have a permanent location there. Typically, Swedish businesses must pay taxes on their worldwide income. The standard rate of corporate income tax in Sweden is 20.6%. Only the income generated in Sweden is to be considered for tax in case of non-residents of Sweden. All the companies have to follow this standard rate.

• Value Added Tax

Most products and services are subject to the regular VAT rate of 25%. In Sweden, the VAT system uses an input/output methodology, giving all VAT- registered businesses full credit. These companies must file VAT returns and make monthly or quarterly tax payments. Monthly filing of VAT returns becomes necessary whenever the expected turnover that is subject to VAT exceeds 40 million Swedish kronor.

• Stamp Duty

A 4.25% stamp duty is levied on real estate transfers made directly, and the taxable amount is calculated by comparing the purchase price to the real estate's prior-year tax assessment value to see which is greater.

• Excise Duty

The excise duty is imposed on three products in Sweden. All the excise duty rules are aligned with the EU rules. Excise is imposed on fuel and electricity, alcohol and tobacco. The tax rates can vary locally. Excise duty is also imposed on some electronics as well as home appliances.  

• Customs Tax

A number of variables, including the nation of origin of the commodity and any free trade agreements, affect the duty rate that will be charged. The Customs Union that upholds the Community Customs code includes Sweden as an EU member.

• Real Estate Tax

The real estate tax is to be paid by the property owner or the leaseholder. The real estate tax is different for industrial property and commercial property. The real estate tax is 1% for commercial properties and 0.5% for industrial properties.

Services offered by Enterslice

• Corporate Tax Advice: To ensure that our clients are conversant with and in compliance with tax rules, we provide various corporate tax advisory services. We respond to companies' questions about tax applicability, evaluate transactions to identify tax situations, and create tax-effective structures. Additionally, we locate chances for tax optimization and offer monthly updates. We also examine withholding tax in relation to global transactions.
• Corporate Tax Compliance: Starting with tax registration, Enterslice offers full services for corporation tax compliance. We take care of all required tax reporting requirements, calculate taxes owing, and create business tax returns. Our staff evaluates and helps respond to questions from tax authorities to ensure smooth compliance with tax legislation.
• Tax Compliance Advisory: We take a methodical strategy that aims to improve quality, create strategic value across organizations, lower costs, and lower risks. We support companies' compliance and planning processes by navigating regulatory changes, converting data into useful insights, and improving them. With the help of our multidisciplinary staff, cooperation between the tax, financial, and legal departments is made simple.
• Tax Policy Advisory: Given increased scrutiny and the requirement to defend tax positions, we help customers manage and resolve tax difficulties locally and across countries. Our experts design strategies to reduce prospective tax obligations while assuring adherence to changing tax regulations. We provide specialized solutions depending on our client's requirements and critical guidance on handling tax disputes.
• R&D Tax Assistance: Tax incentives are frequently provided for research and development (R&D) activities, especially in the constantly changing intellectual property (IP) rights field. In order to evaluate a company's eligibility for research and development super-deductions and to verify compliance with the rules, we work with them. With the help of our services, customers may maximize their R&D tax savings while also adhering to all regulatory requirements.
• Customs and Excise Advice: We offer consulting services for matters involving excise and customs, such as duty drawbacks, free zone enterprises, duty deferral and suspension plans, client risk assessments, and post-clearance audit management. We also guide supply chain management, market access policies, labelling requirements, applications for authorized economic operators, and the prevention and defence of dumping.
• Advice on VAT: We provide a range of value-added tax (VAT) consultancy services. To maintain compliance, we carry out VAT health checks. We also help with VAT returns and submissions and offer assistance during VAT audits or disputes. The preparation and filing of voluntary disclosures, requests for clarification, and requests for reconsideration to tax authorities are other services we assist with.
• Acquisitions and Mergers: Complex international transactions need professional counsel. We support customers through the M&A process while taking into account the tax ramifications in local jurisdictions. We may maximise tax outcomes by proactively addressing any tax problems and challenges while ensuring seamless transaction execution.

At Enterslice, we are committed to assisting clients in successfully fulfilling their tax-related duties. We can provide seamless and efficient tax management solutions because of our integrated services, industry expertise, and use of the most recent tools and technology.