Factsheet for measure
SE-2020-1/561
–
Updated
– measures in Sweden
Tax cuts and deferrals for companies
Skatteavdrag och anstånd med skatteinbetalningar för företag
Background information
Many businesses are expected to struggle financially due to the current COVID-19 outbreak. To alleviate some of the pressure on companies, the government has temporarily changed the rules for tax allocation reserves, so that sole proprietors severely affected by the outbreak will receive tax cuts.
In addition, all companies will also be able to defer tax payments.
These measures are applicable retroactively from January 1 2020, and are regulated in the Tax Procedure Act (2011:1244) (Skatteförfarandelag (2011:1244)).
Content of measure
The new rules on tax allocation reserves mean that 100% of the taxable profits for 2019, up to SEK 1 million, can be set aside in the tax allocation reserve, which can then be set off against possible future losses. This means that many people can get back the preliminary tax they paid in 2019. This proposal concerns sole traders and natural persons who are partners in Swedish partnerships.
Additionally, all companies are now able to defer payments of employer contributions, preliminary tax on salary and value added tax, reported monthly or quarterly. The companies' deferral includes three months' tax payments and may be submitted for a maximum of 12 months.
The new rules are proposed to take effect on 7 April 2020 but can be applied retroactively from 1 January 2020, meaning that companies that have paid tax into their tax account in February and March can get the tax refunded from the Swedish Tax Agency.
Postponement will not be granted to companies that mismanage their finances or are otherwise dishonest. Deferral may not be granted to enterprises that have greater tax liabilities.
Updates
The following updates to this measure have been made after it came into effect.
|
11 January 2022
|
The Government plans to propose an extension of the temporary tax deferrals in order to support companies during the new wave of COVID-19.
The deferral of deductible preliminary tax and employer contributions can be granted for a maximum of nine months instead of the current seven. The eligibility period for VAT tax deferral will also increase.
|
|
26 April 2021
|
Deferral of taxes and employer contributions may be granted for a maximum of seven months. In addition, deferral can be applied for January 2021.
The Confederation of Swedish Enterprise (Svenskt Näringsliv) commented on the proposal to extend the coverage of this measure in March 2021. According to the Confederation, the extension is a welcomed measure but the extension is not wide enough. The deferral should include even March and April 2021.
|
Use of measure
As of 1 September 2021, the Swedish Tax Authority has granted tax deferrals for approximately 51,000 companies. The total sum is SEK 54,2 billion (around €5.4 billion).
Target groups
Actors and funding
|
Actors
|
Funding
|
National government
|
National funds
|
Social partners
Social partners' role in
designing the measure
and form of involvement:
|
Trade unions
|
Employers' organisations
|
|
Role
|
Informed
|
Informed
|
|
Form
|
Not applicable
|
Not applicable
|
Social partners' role in the
implementation, monitoring and assessment phase:
-
Unknown
-
Main level of involvement: Peak or cross-sectoral level
Involvement
No information available.
Views and reactions
No information available.
Sources
-
16 March 2020: Ministry of Finance (2020) Economic measures in response to COVID-19
(www.government.se)
-
16 March 2020: Likviditetsförstärkning via skattekontot
(www.regeringen.se)
-
03 March 2021: Remiss av promemoria Ytterligare utökning av möjligheterna till tillfälliga anstånd med inbetalning av skatt [Comment on the proposal Further extension of tax deferrals]
(www.svensktnaringsliv.se)
-
22 April 2021: Likviditetsförstärkning via skattekontot [Strenghtened liquidity through tax account]
(www.regeringen.se)
-
01 September 2021: Möjlighet till avbetalningsplan för företag som beviljats anstånd med skatt under krisen [Possibility for a payment plan for companies that have deferred taxes during the crisis]
(www.regeringen.se)
-
11 January 2022: Regeringen förlänger krisstöd till företag [Government extends crisis support for companies]
(www.regeringen.se)
