Taxes and fees during liquidation of an economic association 

Withdrawals to be taxed  

Examples of taxable own withdrawals are equipment and stocks. Depreciated equipment is also subject to withdrawal tax.  

Income tax return  

For withdrawal taxation, the association recognises the asset’s market value as income on the income tax return. The market value is the price that the association would have received if the asset had been sold to an outsider.   

VAT  

If the association is VAT registered, the association must declare output VAT at the time of withdrawal taxation. VAT on own withdrawals is calculated based on the purchase price or the market value excluding VAT, whichever is lowest. If the purchase price is missing, you can use the cost price instead. The cost price consists of all the costs you have had to produce the goods.  

Partners  

At liquidation your shares are considered sold, so liquidation means that you are taxed in the same way as when you sell your shares. When you make your own withdrawals during liquidation, the withdrawals are considered as compensation for your share(s). The compensation can be taxed both in services and capital. You record the sale on the Swedish Tax Agency's form K10 if the shares qualify and if the association qualifies as a close company. Capital loss is also declared on the same form.

Download the Swedish Tax Agency's form K10 (in Swedish) 

Paying the right preliminary tax  

The preliminary tax paid by the association will probably no longer be correct when the association ceases activity. This is because the association’s result is affected by the sale of stocks, own withdrawals and funds to be reversed taxation. In order to pay the correct preliminary tax the liquidator should therefore file a new preliminary income tax return for the association.  

If the association does not submit a new preliminary income tax return, the association will continue to pay the same preliminary tax as before.

Read about and submit a preliminary income tax return on the Swedish Tax Agency's website (in Swedish)