Sweden has a relatively high tax rate for corporations, but there are several types of taxation that companies need to be aware of. These include corporate income tax, VAT, import duties, and sales tax. The rates for each of these taxes can vary depending on the type of product or service and the amount of taxable income. Companies operating in Sweden should stay up to date with the latest tax rates and regulations to ensure compliance with the law.
Corporate Income Tax
Corporate income tax is the main type of taxation for companies in Sweden. As of January 1st, 2023, the corporate income tax rate is 21.4%. Companies are required to pay tax on their worldwide income if they are resident in Sweden. Non-resident companies are only required to pay tax on their income earned in Sweden.
The tax rate for corporate income tax is the same for all companies in Sweden, but there are tax brackets based on the amount of taxable income. The first SEK 200,000 of taxable income is taxed at a lower rate of 12.5%, while any taxable income above SEK 200,000 is taxed at the standard rate of 21.4%.
Sales tax is not a separate tax in Sweden. Instead, it is included in the VAT that is charged on goods and services. The VAT is added to the sales price of the product or service, and the customer pays the total amount including VAT.
Sweden is a member of the European Union (EU), and therefore, imports from other EU countries are not subject to import duties. However, imports from non-EU countries are subject to import duties, which are based on the value of the imported goods. The duty rate varies depending on the type of product imported, but the rates can range from 0% to over 100%.
Sweden does not have any export duties.
Legislation and Dates
The legislation governing corporate taxation in Sweden includes the Income Tax Act (1999:1229) and the Value Added Tax Act (1994:200), among others. These acts are periodically updated, and the latest version can be found on the website of the Swedish Parliament. The rates for corporate income tax, VAT, and import duties are subject to change on an annual basis, and the latest information can be found on the website of the Swedish Tax Agency.