Taxes and fees on the succession of generations for sole traders
When a company changes hands by gift, inheritance or will, this can be done without tax consequences. The recipient then takes over the tax values of the donor.
The new owner usually takes over tax allocation reserves, expansion funds, saved interest distribution and forest account. The Swedish Tax Agency's form N7 Övertagande av fonder och fördelningsbelopp (“Transfer of funds and distribution amounts”) must be completed by the person who has taken over the business.
Commercial property
If there is a commercial property in the business, the new owner takes over the initial values of the property. He thus assumes the cost amount and the depreciation base and continues depreciation as if the property had not changed hands. The new owner must apply for a title deed at the Swedish Mapping, Cadastral and Land Registration Authority. One of the reasons for this is to ensure that the right person pays taxes and fees for the property.
If the transferor is voluntarily liable to pay tax on the letting of premises, the new owner usually takes over the rights and obligations associated with the voluntary liability.
Go to the Swedish Mapping, Cadastral and Land Registration Authority
Paying the right preliminary tax
The preliminary tax currently paid is unlikely to be correct when you close the transferred company. This is because the company's result is affected by own withdrawals and funds to be reversed for taxation. To pay the correct preliminary tax, you should therefore submit a new preliminary income tax return.
Change your debited preliminary tax at The Swedish Tax Agency (in Swedish)
If you do not file a new preliminary income tax return, you will continue to pay the same preliminary tax as before. Otherwise, you risk a tax debt being handed over to the Enforcement Authority for collection.