Do you live in another Nordic country and intend to work as a self-employed person in Sweden?
This information is addressed to you if you live in another Nordic country and intend to work in Sweden as a self-employed person and deals only with taxation of your income as a self-employed person.
Registration in Sweden
You can apply for an F-skattsedel [notice of tax assessment for self-employed persons] at Skatteverket (The Swedish Tax Agency) when you want to carry out business activities in Sweden. A notice of tax assessment for self-employed persons (F-tax card) means that you can show your principal that you are responsible for paying taxes and national insurance contributions and that they will be paid irrespective of whether you pay in Sweden or in your country of residence. So that your business operations are regarded as a business activity in Sweden, it must be independent, permanent and be operated with the intention of making a profit.
If you do not have a permanent establishment, registration must be made on form SKV 4632 and on form SKV 4620 if you have a permanent establishment in Sweden. The definition of a permanent establishment according to the Nordic tax treaty can be found under the heading "General information/Permanent establishment". More information about the registration can be found in the brochures SKV 418 and 419 which you will find at www.skatteverket.se . When you have filled in the form you must send it to one of Skatteverket's foreign departments in Malmö or Stockholm (if you are from Denmark, Iceland, the Faroe Islands or Greenland, you must send it to Malmö, and if you are from Norway or Finland, you must send it to Stockholm). If your stay in Sweden is greater than a period of six months (with overnight stays in Sweden) you should instead send the form to the tax office in the municipality to which the tax office belongs where you have your accommodation or permanent address.
A Swedish "tax registration number" will be assigned on registration with Skatteverket.
Registration will, where appropriate, also be made for income tax (F-tax), VAT and as an employer. This should be done on the above mentioned forms, for further information see below.
You have to pay income-tax in Sweden if you have a permanent establishment in Sweden.
You must also pay incoem-tax in Sweden if you are a doctor, accountant, engineer or consultant (so called free profession) and have an unlimited tax liability in Sweden and is present in Sweden for a period or periods not exceeding in the aggregate 183 days in any ongoing twelve month period. This also applies even if you don't have a permanent establishment.
If you do have a permanent establishment, you must pay income tax in Sweden for that part of your earnings that are attributable to the permanent establishment.
The definition of a permanent establishment according to the Nordic tax treaty can be found under the heading "General information/Permanent establishment".
Only the part of your earnings (revenues minus costs) that are attributable to a permanent establishment or income taxable according to the rules of so called free proffession, are taxed in Sweden. Taxation in Sweden takes place according to Swedish internal regulations. If you expect the outcome of your work in Sweden to show a profit, you must pay preliminary tax (F-tax) during the year. Tax payments must be made every month. More information about tax regulations for private entrepreneurs in Sweden, can be found in the brochure SKV 295, "Tax regulations for private entrepreneurs" which can be found at www.skatteverket.se.
If you have limited tax liability in Sweden, you pay municipal income taxes at the rate of 25% and where appropriate, state taxes. See under "General information/Tax rates".
If you are regarded as fully liable for taxation in Sweden, for example if you stay in Sweden for a period greater than six months, you are taxed at the municipal tax rate that applies for the municipality you reside in or were you live permanently. Otherwise you pay state taxes in accordance with what is described above.
The income-tax return with supporting schedule (SKV 2161 or SKV 2150) based on Swedish regulations must be submitted the year that follows the income year for tax purposes, no later than 2 May if you are a resident abroad.
You do not have to pay any income tax in Sweden if you do not have a permanent establishment in Sweden or is liable to pay taxes according to the rules of so called free profession .
Social insurance contributions
There are specific regulations governing where you are covered by social insurance. You should contact the social insurance authority of the country where you live or the Swedish Social Insurance Authority (www.forsakringskassan.se) for more information.
Reporting and payment obligations for employees
If you have employees in Sweden, you are obliged to register as an employer in Sweden if you have a permanent establishment in Sweden. You must make Swedish tax deductions on the share of employee salaries that relate to work that is carried out in Sweden.
If you do not have a permanent establishment in Sweden, you should not make Swedish tax deductions even if the employees are liable to pay taxes in Sweden. The employees are responsible in this case for ensuring that taxes are paid in to the Swedish Tax Agency.
Social insurance contributions
If the employees are covered by social security insurance in their native country, contributions do not have to be paid in Sweden; contributions will be made in the employee's native country. A certificate must be presented for employees in order to prove that they are covered by social insurance in their native country.
National insurance contributions (employer's contributions for social insurance) must however be paid in Sweden if any of the employees are covered by the Swedish national insurance system. Registration as an employer must take place in Sweden in order to pay Swedish national insurance contributions irrespective of whether there is a permanent establishment or not. See under "General information - National insurance contributions" for more information and what the rates are.
Employer's contributions for social insurance and deducted preliminary taxes are reported on a monthly basis in an income tax return.
Statement of earnings and deductions
Irrespective of whether there is a permanent establishment or not you must present a statement of earnings and deductions form (form no. SKV 2300, 2343 or 2309) to Skatteverket in those instances where an employee carries out work in Sweden and is liable for taxation in Sweden or is covered by the Swedish national insurance system. See brochure SKV304 for more information regarding the statement of earnings and deductions.
When a foreign entrepreneur, that is to say a person who does not have a fixed establishment, lives or have an habitual abode in Sweden, has turnover/sales subject to VAT (VAT liable sales) of either goods or services within Sweden then VAT must be charged Those Who should charge the VAT will depend on what type of goods or services are sold and the status of the buyer
When a foreign entrepreneur sells goods in Sweden to a customer who is registered for VAT in Sweden, reverse charge applies, that is, the buyer is the one who is VAT liable for the acquisition. The seller can, however, apply to be registered for VAT and thus instead be VAT liable for all such sales.
If the buyer is not registered for VAT in Sweden (e.g. a private person or a foreign company) then the seller should be registered for VAT in Sweden and should charge Swedish VAT.
When a foreign entrepreneur supplies a service to another entrepreneur's fixed establishment within Sweden this service is deemed to have been supplied within the country. In the majority of cases therefore reverse charge applies, that is the buyer is the one who is VAT liable for the acquisition.
There are a number of exceptions to the general principle as outlined above, depending on the type of service supplied, where the service is supplied and the status of the buyer. For example, a supply of a service to property is considered to have been supplied where the property is situated.
More information about the rules regarding the sale of goods and (supply of) services is available on the Swedish Tax Agency's website at www.skatteverket.se. Alternatively, you can contact the tax office responsible for dealing with cases involving foreign companies from your country. The International Tax Office in Malmö deals with cases involving businesses from Denmark, Iceland, Greenland and the Faroe Islands. Tax Office 9 in Stockholm deals with cases involving businesses from Finland and Norway.
Contact Tax Information (Skatteupplysningen) from within Sweden on 0771-567 567 or from outside the country on +46 8 564 851 60 and they will put you through to the correct tax office.