As a rule, entrepreneurs who run business as sole traders are approved for F‑tax. An approval for F-tax is based on the fact that the sole trader himself or herself is responsible for payingtaxes and social contributions on compensation for any work carried out. On this page, you can read about how to apply for F‑tax and what it means to be approved.
If you are a sole trader and also receive income from employment, you need to be registered for both F-tax and A-tax. This is known as FA-tax status.
If you have no Swedish e-identification, you can use a paper form instead:
Approved for F-tax means that you are responsible for paying preliminary tax and self-employed contributions on your income from any work you carry out. If you are approved for F-tax, your clients should not deduct tax from your earnings or pay employer contributions on them.
If a contractor is not approved for F-tax, anybody who pays them a fee for work must normally first deduct tax from the fee. This applies regardless of whether the contractor is a sole trader or runs a limited company. If the recipient is a natural person, the payer must also pay employer contributions.
To avoid a client having to pay your taxes and employer contributions, you must be approved for F-tax by the time your fee is paid. If you are granted approval after your fee is paid, F-tax will not apply to this particular assignment; in other words, your client will then have to deduct tax and pay employer contributions as if you were an employee.
You should not deduct tax or pay employer contributions on income from goods you have sold. So if your business activity solely involves the sale of goods, F-tax approval will not affect the way you declare and pay tax.
If you run a business and also receive income from employment, you need to be registered for both F-tax and A-tax. This is known as FA-tax status.
F-tax approval alone is not sufficient because it does not apply to employment. Instead, you can apply for F-tax approval while retaining your A-tax registration. This means that you will be approved for F-tax subject to conditions, which is known as FA-tax status. If you are approved for FA-tax, your employer must pay the Swedish Tax Agency preliminary tax and employer contributions on your salary. However, you are responsible for paying preliminary tax and self-employed contributions on income from the work you carry out within your own business. The first step is to submit a preliminary income tax return to the Swedish Tax Agency. We will then notify you of how much preliminary tax you should pay, and when each payment should be made.
If you have FA-tax status, invoices you issue for work within your own business must state that your business is approved for F-tax.
You can apply for FA-tax when you register with the Swedish Tax Agency as a sole trader. If you need to switch from F-tax to FA-tax or vice versa, you can also do so by logging into “My pages” (“Mina sidor”) on verksamt.se. If you cannot use the e-service, you can apply to switch by completing the form “Ändringsanmälan” (SKV 4639, in Swedish). Remember that you may also need to file a new preliminary income tax return if you switch between F-tax and FA-tax. This is because your deducted preliminary tax should be based on your total income – including income from both your own business and from employment – in order to avoid paying too much or too little preliminary tax. The easiest way to file a preliminary income tax return is via our e-service, “Preliminär inkomstdeklaration”.
Legal entities such as limited companies and partnerships cannot be granted FA-tax status.
If you don’t have Swedish e-identification, you can fill in a form instead.
You will receive a population registration certificate (an extract from the population register) when you are registered for F-tax, VAT or as an employer by the Swedish Tax Agency. You can always log in to “My pages” (Mina sidor) to view and print out your population registration certificate.
If you have been granted FA-tax status, you must state this in writing (in your quotes and invoices, for example) for every assignment. If you fail to do so, A-tax applies, which means that your client is obliged to deduct tax from your fee and pay employer contributions. F-tax does not apply to work you do as an employee. Employers are obliged to notify the Swedish Tax Agency in writing if an employee refers to an F-tax approval in connection with an evident employment relationship.
If your F-tax approval is withdrawn, remember to remove any statements relating to F-tax approval from your invoices and quotes.
You are eligible for F-tax approval if you conduct business activities, or have plans to do so. If you plan to become a sole trader and wish to be approved for F-tax, your business must fulfil certain criteria. The business must:
Operations run by a legal entity, such as a limited company or partnership, are normally always taxed as businesses activities. According to the circumstances of each individual case, the Swedish Tax Agency will determine whether the party applying for F-tax may be considered to be conducting business activities, or to be intent on doing so. Having a few clients – or in some cases just one – may be sufficient to satisfy the requirements for F-tax approval.
Someone who starts a business with their former employer as their first client maybe considered an independent trader in some circumstances. In other cases, however, such an assignment will be regarded as employment. Find out more (in Swedish) about economic activities in the section Vad är näringsverksamhet? (What is a business activity?).
You are not eligible for F-tax if you:
You can use our e-service to check whether a company you are thinking about hiring is approved for F-tax:
You do not require Swedish e-identification to use this service.
If you have been approved for F-tax, you must pay preliminary tax on a monthly basis. This applies whether you are a sole trader or run a limited company or partnership. Self-employed contributions for sole traders are included in the deducted preliminary tax.
When you register your company and apply for F-tax or FA-tax approval, you also have to file a preliminary income tax return including details of the profit you expect the company to make. The Swedish Tax Agency will use the information you provide to calculate how much preliminary tax you are due to pay. You will then receive written notification of our decision, with details of the amount of preliminary tax and when you need to make each payment.
When you need to submit information that is relevant to your deducted preliminary tax, or if you need to change the amount you pay, the simplest thing to do is to submit a new preliminary income tax return through our “Preliminär inkomstdeklaration” (“Preliminary income tax return”) e-service.
Besides paying employees a salary, employers also pay employer contributions for all staff to cover their pension payments and health insurance. If you are a partner in a limited company, you are considered a company employee when you pay yourself a salary. If you are a sole trader with F-tax certification, you have no employer to make social security contributions on your behalf. You have to pay these yourself in the form of self-employed contributions, calculated on the basis of your profits. These self-employed contributions are included in your debited preliminary tax. If your business operations are passive (property management, for example), you normally pay special payroll tax instead. This special payroll tax amounts to somewhat less than self-employed contributions.
Self-employed contributions and special payroll tax are deductible during the current tax year. When you state your expected profit, either on registering your company or on completing a preliminary income tax return, you should therefore make a flat-rate deduction for self-employed contributions or special payroll tax. The amount you should deduct depends on factors such as your age and whether or not you receive sickness or activity compensation.
If you have been approved for F-tax, you are certified to manage your own taxes, and your clients can hire you to carry out work without any risk of becoming responsible for your taxes and expenses.
If you don’t declare or pay your taxes, your F-tax approval may be withdrawn. This can make it difficult for you to get new assignments. Many companies only hire contractors approved for F‑tax. Creditors may also check for F-tax approval in connection with loan applications, since this shows whether or not you have handled your tax payments properly. If your F-tax approval is withdrawn, you might need to file a new preliminary income tax return. If your F-tax approval has been withdrawn and you accept an assignment from a client, you have to be treated as an employee. This means that the client must deduct tax from your fee and pay employer contributions. If you have a limited company, your client must deduct tax from the money you charge them.