Report earnings in a limited company
A limited company must always file its own income tax return, where it reports it earnings for the tax year. The final tax payable by the company is shown in the final tax assessment notice.
If the limited company makes a loss
In limited companies, it is possible carry forward a deficit in the business and apply it in the future. The deficit is entered in next year's tax return.
There is a restriction on the possibility of using an old deficit in connection with changes of ownership. This prevents the possibility of trading in deficits.
Tax allocation reserve
The rules regarding tax allocation reserve mean that the limited company can defer the taxation of the business income to a later year. The company can thus obtain a kind of tax credit. The tax allocation reserve can also be used to even out the results between different years and thus achieve more even taxation. If you know you will have a loss in a particular year, you can allocate money to the tax allocation reserve in years leading up to this and then reverse it to taxation in the year with loss. In this way, you can offset profit against loss.
In limited companies, 25 percent of profits can be set aside in a tax allocation reserve. The reserve must be reversed to taxation within six years. Limited companies and other legal entities are taxed at a standard tax rate on allocations made to the tax allocation reserve.
Limited companies report their results in Income Tax Return 2.
If the limited company cannot submit the return by the deadline
If the company is unable to submit the tax return on time, it is possible to apply to the Swedish Tax Agency for an extension. To be granted an extension, there must be compelling reasons.
VAT and PAYE tax returns
A limited company that is registered for VAT must submit a VAT return. The VAT return can be submitted monthly, quarterly or annually.
If the limited company is an employer, you must submit a PAYE tax return. The company must also submit a PAYE tax return if you made tax deductions without being obliged to make deductions.