Income tax
If a sole trader or a foreign legal person carries out their business wholly or partly in Sweden then they are general liable to submit a yearly income tax return in which they must report their business income and expenses. A Swedish legal person on the other hand is generally liable to submit a yearly income tax return regardless of whether they conduct business in Sweden or not.
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Sole traders and foreign legal persons
All sole traders (natural persons that conduct business in their own name) and foreign legal persons are required to submit a yearly income tax return if the entrepreneur or company
- has had income which is liable to income tax in Sweden
- own property in Sweden which is subject to state property tax or municipal property charge,
- is liable to pay special tax on pension costs, or
- is liable to pay tax on returns on pension funds.
Swedish legal persons
The Swedish legal persons referred to here are:
- Limited Company (aktiebolag)
- Partnerships (handelsbolag)
- Limited Partnership (kommanditbolag)
- Economic Associations (ekonomiska föreningar)
- Non-profit organisations (ideella föreningar)
- Registered Religious Communities (registrerade trossamfund)
- Foundations (stiftelser)
When should the income tax return be submitted?
The income declaration is turned in yearly, after the end of the fiscal period pertaining to the business (sole trader/company) – normally once per twelve months. Sole traders shall declare their income on Inkomstdeklaration 1 at latest May 2 each year (or the next working day). Legal persons shall submit Inkomstdeklaration 2, 3 or 4 at one of four designated declaration dates.
Who may fill out, sign and submit the income tax return?
You/owner/designated person may fill out, sign and submit the income tax declaration return. It should be sent to the local Tax Agency office as specified on the preprinted version of the declaration forms. For each company and sole trader there is a last date for filing. A late filing fee may be charged if the last date of submitting the return has passed.
About the tax return forms
Four different income tax return forms:
Inkomstdeklaration 1 (INK1) | Swedish and foreign sole traders |
Inkomstdeklaration 2 (INK2) | Swedish limited liability companies (Aktiebolag), Swedish economic associations (Ekonomiska föreningar), and Foreign legal persons |
Inkomstdeklaration 3 (INK3) | Swedish non-profit organisations, foundations and registered religious communities |
Inkomstdeklaration 4 (INK4) | Swedish partnerships and unlimited liability companies (Handelsbolag och kommanditbolag) |