Sweden Advice

Requirements in Sweden

The firts thing you need to do – Apply for taxation, Company taxes (F-Tax) For employee (A-Tax or SINK).

Registration for company: F-Tax, VAT & Employer

F-Tax

All entrepreneurs who conduct business must by law have an F- tax license. The F- tax number will be your base and ticket to start doing business in Sweden. The F-tax can be complemented with VAT and Employment registration.

VAT

As a foreign entrepreneur operating in Sweden you mostly need to be registered for VAT with the Swedish Tax Agency. It’s not always easy to keep track of things in this regard. Your VAT registration is linked to your F-tax.

Employment Registration

If you have employees who work in Sweden your company also needs to be registered as an employer.The employee needs to be registered for taxation too, either A-Tax or SINK, please see below.

Sole traders & legal persons

Permanent establishment or not?

In Sweden a company has either a permanent establishment or not. A company is equated with a domestic company if it has a permanent establishment. “Company” also refers to sole traders and legal persons. Having a permanent establishment normally incurs higher social security contributions, payroll tax, and the obligation to pay income tax.

Registration for taxation – Employee

SINK

If you live in another country and work in Sweden for less than 6- month you can apply for SINK tax.

Since 1st of January 2021 it is obligated to apply for taxation in case you work in Sweden 15 consecutive days or more than 45- days over a year.

A-Taxation

When staying for at least six months, you are considered as resident in Sweden for tax purposes and are liable for taxation in Sweden on all your income. You must also submit a Swedish income tax return.

Coordination number

If you apply for A- taxation and plan to work longer in Sweden than 6- months you will receive a co- number.

Notify Posted Worker – Swedish Work Environment Authority

Posting to Sweden means that:

A service is some kind of work- A limited periode means that there must be a start and an end date for when the services are to be performed.

A recipient of services can be a company, organization or a private individual in Sweden who receives a service against compensation.

It is also posted when an employer abroad hires out workers directly to a recipient of services in Sweden or through another company which in its turn sends the worker to the recipient of services.

There are three main posting situations: The workers will perform a service for a recipient in Sweden and:

Registration

Employer

As employer you are responsible to register your employees from day one If you do not report the posting or contact person in due time, you may have to pay a sanction fee of SEK 20 000 (2 000 €) per posted worker.

As an employer you should:

Declaration services

Accounting

As an entrepreneur in Sweden you must continuously book all events at the latest at a certain time. We administrate all tasks in your financial function. We have long experience of working with companies all over the world, authorized consultants and have broad expertise. Leave your financial tasks to our experts, in compliance with Swedish law and regulations.

Declaration & Taxation

A financial statement is a compilation of a company’s accounting at a specific time which you as an entrepreneur are obligated to do. We help you with your declarations in compliance with Swedish regulations.

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