Swedish Corporate Tax Guide 2026 — Bolagsskatt

Overview — Bolagsskatt at 20.6%

Swedish corporate tax (bolagsskatt or statlig inkomstskatt för juridiska personer) is levied at a flat 20.6% on taxable income for limited companies (aktiebolag), economic associations (ekonomiska föreningar), and other legal entities. The rate has declined from 28% in 2009 to 20.6% from 2021 onward. Sweden's corporate tax rate is competitive by European standards (EU average ~21%). Taxable income starts from the profit shown in the annual report (årsredovisning), adjusted for tax-specific rules.

Taxable Income

Taxable income begins with the profit reported in the annual financial statements under Swedish GAAP (K3 or K2). The following principal adjustments are made:

• Non-deductible expenses: Fines, penalties, gifts (over SEK 1,800 per person per year), representation costs exceeding deductible limits (SEK 300 per person for meals, SEK 60 for simple breakfast), and certain write-downs.
• Tax-exempt income: Dividends from Swedish and certain EU subsidiaries (see exemption rules below), capital gains on business-held shares meeting the exemption criteria.
• Depreciation differences: Tax depreciation (Räkenskapsenlig avskrivning, 30% declining balance for machinery) may differ from book depreciation.
• Group contributions (koncernbidrag) are deductible for the payer and taxable for the recipient within a Swedish group.

Depreciation Rules

Swedish tax law provides two principal methods for depreciation of tangible assets:

• Räkenskapsenlig avskrivning (book-based depreciation): Depreciation follows the rates used in the annual accounts, typically 20% per year on a declining balance for machinery and equipment. Buildings are depreciated at 2–5% straight-line depending on type.
• 30% rule: Machinery and inventory can be depreciated at a maximum 30% declining balance for tax purposes if the company elects not to follow book depreciation. This offers flexibility in timing deductions.
• Direct write-off: Assets with an economic life of under 3 years or a value below SEK 5,000 can be expensed immediately.

Intangible assets (patents, trademarks, goodwill) are amortized over their useful life, generally 5–20 years straight-line for tax purposes.

Interest Deduction Limitations

Sweden has strict interest deduction limitation rules (begränsningsregler för ränteavdrag) designed to prevent tax avoidance through excessive debt financing. The key rules for 2026:

• General rule: Net interest expenses are deductible up to 30% of EBITDA (tax-adjusted). This is the standard limitation for most companies.
• Simplified rule: Interest expenses up to SEK 5 million per year are always deductible regardless of the EBITDA test.
• Thin capitalization: Specific anti-avoidance rules target interest payments to related parties when the debt-equity ratio exceeds 1:1 and the debt is used for certain intra-group acquisitions.
• Carry forward: Disallowed interest expenses can be carried forward indefinitely, subject to the same limitation in future years.

Group Contributions — Koncernbidrag

Sweden allows group contributions (koncernbidrag), which function similarly to tax consolidation. A Swedish parent company and its Swedish subsidiaries (directly owned >90%) can make deductible contributions to each other. The contribution is deductible for the paying company and taxable for the receiving company. Requirements:

• The parent must own more than 90% of shares in the subsidiary
• Ownership must have existed for the full financial year (or from formation)
• The contribution must be made in cash and actually paid within the tax return deadline
• Both companies must file their tax returns consistently

Koncernbidrag allows groups to offset profits and losses across group entities, achieving a result similar to tax consolidation. There is no formal group taxation regime — the contribution system achieves the same economic effect.

Dividend Exemption

Swedish companies benefit from a participation exemption for dividends received from subsidiaries. Dividends from Swedish subsidiaries are tax-exempt provided the parent owns at least 10% of the shares. Dividends from EU/EEA and treaty-country subsidiaries meeting the same 10% threshold are also exempt. Dividends from non-treaty countries may be subject to certain conditions. The exemption applies to both dividends and capital gains on qualifying shares (näringsbetingade andelar). Shares held as treasury stock or as current assets do not qualify.

Capital Gains on Shares — Förvaltningsaktier

Capital gains on business-held shares (näringsbetingade andelar) are tax-exempt, provided the shares meet the holding requirements (10% ownership or held as business purpose). Correspondingly, losses on such shares are non-deductible. For portfolio shares (not business-related), gains are fully taxable at 20.6% and losses deductible. This creates a strong incentive for Swedish holding companies to qualify for the participation exemption.

Thin Capitalization

Sweden does not have a general thin capitalization ratio in its tax code, but the interest deduction limitation rules (described above) coupled with specific anti-avoidance provisions effectively limit excessive debt. Payments to related parties in low-tax jurisdictions are subject to particularly close scrutiny. Transfer pricing documentation requirements (arm's length principle under Swedish law and the OECD Transfer Pricing Guidelines) apply to all cross-border transactions with related parties exceeding certain thresholds.

Filing — Inkomstdeklaration 2

Corporate tax returns (Inkomstdeklaration 2) must be filed electronically through Skatteverket's portal. The deadline is normally the last day of May following the financial year end. For a calendar-year company, the 2026 return is due 31 May 2027. Extensions are possible but limited. Preliminary tax (preliminärskatt) is paid monthly or quarterly based on estimated profits, with a final adjustment after the return is assessed.

Late filing results in a förseningsavgift (late fee) of SEK 6,250 for returns up to 6 months late and SEK 12,500 thereafter. Interest on underpaid preliminary tax is charged at approximately 2.5% per year. Tax returns must include audited financial statements (unless the company qualifies for audit exemption — smaller companies with under 3 employees, SEK 3 million in assets, SEK 3 million in revenue).

Free Year Rule for Start-Ups

New companies can benefit from a "free year" (fria året) for social security contributions — the first employee may be exempt from employer social fees for the first month up to 12 months, capped at SEK 40,000 per month. This is not a corporate tax exemption but reduces the total employment cost for start-ups hiring their first employee. Additionally, certain start-ups may qualify for reduced social fees on younger employees (under 18) and R&D tax incentives.

R&D Deduction

For 2026, Sweden offers enhanced deductions for research and development expenses. Companies can deduct a bonus of up to 30% on qualifying R&D employee salary costs (increased from 15% in previous years). The deduction is capped at SEK 1.5 million per employee per year. To qualify, the R&D must be conducted in Sweden and meet the definition of systematic investigative work to achieve new knowledge or innovation. The deduction is claimed in the annual tax return and reduces taxable income.

Tax Audit Procedure

Skatteverket conducts tax audits (skatterevision) to verify compliance. Audits may be announced or unannounced. During an audit, Skatteverket reviews accounting records, VAT returns, corporate tax filings, employment tax records, and transfer pricing documentation. The audit period is typically 1–2 years back, but can extend further in cases of suspected fraud. Businesses have the right to be represented by a tax advisor during audits. Post-audit, Skatteverket issues a report with proposed adjustments, which can be appealed to the Administrative Court (förvaltningsrätt).

FAQs

Can a foreign company own a Swedish subsidiary?

Yes, there are no restrictions on foreign ownership of Swedish companies. A Swedish subsidiary (aktiebolag) can be 100% foreign-owned and is subject to the same 20.6% corporate tax rate. Withholding tax on dividends to foreign parent companies is generally 0% under the EU Parent-Subsidiary Directive or applicable tax treaties.

What is the minimum share capital for a Swedish AB?

The minimum share capital for a private limited company (privat aktiebolag) is SEK 25,000 as of 2026. For public companies (publikt aktiebolag), the minimum is SEK 500,000.

Are losses carried forward?

Yes, tax losses can be carried forward indefinitely. However, if there is a change in ownership (more than 50% of shares) and the company is not in the same business, loss carry-forward may be restricted under the "beloppsspärr" rules. There is no carry-back of losses.

How is a Swedish branch taxed?

A foreign company's Swedish branch (filial) is taxed at the same 20.6% rate on Swedish-source profits. The branch must maintain separate accounting records and file a Swedish corporate tax return. Branch profits may also be subject to top-up taxation in the parent company's jurisdiction.

What is the deadline for paying corporate tax?

Preliminary corporate tax is paid monthly (or quarterly for smaller companies). The final tax payment for the 2026 income year is due by the deadline for the 2027 return. Underpaid preliminary tax incurs interest (current rate ~2.5%).

Disclaimer

This guide provides general information about Swedish corporate income tax for the 2026 tax year. Tax laws and rates may change. The information presented is based on published Skatteverket data and Swedish tax legislation and may not reflect individual circumstances. Always consult with a qualified Swedish corporate tax advisor or Skatteverket directly for advice specific to your business situation. InvestmentKit does not provide tax advice.