From 1 January 2021, several tax changes apply for the Swedish companies. Also, the support scheme has been extended for
the companies that suffer due to the negative effects of COVID-19.
Corporate Income Tax Rate Reduction
The new income tax rate in Sweden is 20,6% starting from 1 January 2021. In 2018, the Swedish Parliament agreed to reduce the corporate income tax rate step-by-step. Between 1 January 2019 to 31 December 2020, the income tax rate was 21,4%, and until 31 December 2018, the rate was 22%.
Changing the Data of the Preliminary Corporate Income Tax
The preliminary corporate income of 2021 will be paid to a company’s tax account from February 2021 to January 2022. The data for the current year’s preliminary corporate income tax had to be submitted by 30 November 2020. If the data has not been submitted, the Swedish Tax Agency will compose a payment schedule based on the declared data in 2019. This year’s data can be changed during the whole year on an ongoing basis.
Also, the changes in the prepaid corporate income tax for the previous economic year can be made six years after the end of the economic year. That enables to receive a return for overpaid income tax faster.
Increase in the ROT/RUT Tax Exemption Limit
From 1 January 2021, the ROT/RUT joint tax exemption has been increased from 50 000 SEK to 75 000 SEK for one person per year. The ROT tax exemption can be a maximum of 50 000 SEK from the full amount. That tax exemption can be used when a company provides services for private persons.
ROT tax exemption is meant to be applied when providing real estate renovation or repairment services to private persons. ROT tax exemption is for the companies that provide real estate renovation or repairment services to private persons.
FORA Insurance Documentation
All companies using FORA insurance must submit the final payroll statement for 2020 by 31 January 2021.
Also, businesses have to submit their current year’s predictable salary data and the data of the new employees.
The applicatons can be submitted electronically on Fora’s website.
COVID-19 Support for Businesses
The support is for the Swedish companies who have an F-tax registration. The companies whose turnover has been decreased between 30-50% compared to the same period in 2019 can apply for support through the Swedish Tax Agency. The COVID-19 support is not paid in monetary form but credited from a company’s tax account in the designated amount.
As of this date, the support period has been extended. So the applications can also be submitted for the periods between November 2020 to December 2020 and January 2021 to February 2021. You can apply for support by sending the application to the Swedish Tax Agency.