Payment difficulties

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Are you experiencing payment difficulties or want to apply for funding or loans due to the coronavirus? Here you will find information on how you can apply for a respite of tax payment, financing and loans.

On this page you will find information about:

  1. Overview of business support and rule changes due to the coronavirus
  2. Tax and fees for sole trader
  3. Tax and fees for limited company
  4. Temporary amendments for applications to unemployment fund (a-kassa) if you pause your company
  5. Financing
  6. Loan

Overview of business support and rule changes due to the coronavirus

In this overview you will find the support and rule changes made for businesses due to the coronavirus. In the pdf  you can see what applies to sole traders and limited companies, and what applies if you are an employer or not. The information will be updated continuously.

Overview of business support and rule changes

Tax and fees for sole traders and trading partnerships

Correct your preliminary tax for 2020

You can correct your preliminary tax for 2020 if you estimate worse or better results or even to make a loss. This means that you will have to pay less or no tax in the coming months as well as get back the tax you have paid in January and February.

Since the employers' fees for limited companies are lowered, the social contributions will also be regulated for sole traders and trading partnerships. This means that even if you were to report a surplus in your new preliminary tax return, your social contributions will be calculated lower than usual, i.e. 10.21 percent instead of the usual 28.97 percent. The lower social contributions apply for the rest of 2020 and up to a surplus of SEK 100,000, after which there will be ordinary social contributions. This reduction affects the standard social contributions that is to be made when calculating the surplus in the business operations. Standard social contributions are allowed with 10 percent up to a surplus of SEK 100,000.

You can submit a new preliminary tax return an unlimited number of times during the year. That way you won’t have to pay too much (or too little) preliminary tax.

Read more about how to correct your preliminary tax at the Swedish Tax Agency's website

Tax allocation reserve in the income tax return for 2020

To have a tax allocation reserve means that you can postpone part of the taxes of income in your business to a later year. For those who are sole traders or part-owners of trading companies, the government has decided to change the rules for tax allocation reserves.

The new rules mean that in your income tax return for 2020, you can deduct 100 percent of your taxable profit for the year 2019 in a tax allocation reserve, but no more than SEK 1 million. You will then be able to set aside this amount for the tax allocation reserve and use for any future losses. For many entrepreneurs, this means that the taxable profit is reduced to zero. This is an alternative to the usual rules, which will remain as well.

Read more about tax allocation reserve for sole traders and trading companies at the Swedish Tax Agency

Possibility to postpone payment of taxes and fees

Companies that are financially affected by the coronavirus can apply for a payment respite of tax and fees to a later occasion. There are two kind of  payment respites:

Read more about respite of tax in general at the Swedish Tax Agency

Tax and fees for limited company

Correct your preliminary tax for 2020

You can correct your preliminary tax for 2020 if you estimate less surplus or even to make a loss. For example, if you were expecting to make a profit for the year but now expect to make less surplus or even a loss, you can change the company's preliminary tax for the fiscal year. The company may then pay less or no preliminary tax during the remainder of the fiscal year and will also get back the tax you have already paid for the months that have passed during the fiscal year.

You can submit a new preliminary income tax return an unlimited number of times during the year. That way you won’t have to pay too much (or too little) preliminary tax.

If the company has paid a preliminary tax during the last fiscal year which now proves to have been too high, you can get back the difference by adjusting the preliminary tax for the last fiscal year.

Read more about how to correct your preliminary tax at the Swedish Tax Agency

Possibility to postpone payment of taxes and fees

Companies that are financially affected by the coronavirus can apply for a payment respite of tax and fees to a later occasion. There are two kind of  payment respites:

Read more about respite of tax in general at the Swedish Tax Agency

Liability for payment of legal persons' unpaid taxes and contributions

If you represent a legal person, you can become personally liable for virtually all unpaid taxes and fees in the legal person's tax account.

With the temporary rules due to the coronavirus, the Swedish Tax Agency will not hold you personally liable as a representative as long as the unpaid taxes and fees are covered by the act of temporary payment respite. The only exception is companies that have obviously exploited the opportunities completely in violation of the purpose of the respite regulations.

Read about the payment responsibility for legal persons' unpaid taxes at the Swedish Tax Agency

Temporary amendments for applications to unemployment fund (a-kassa) if you pause your company

The Government has decided to make temporary amendments for applications to unemployment fund (a-kassa). This means that you can pause your business more than once during a five-year period, as long as you intend to start up the business again. This change applies both to those whose businesses have been inactive within the last five years and to those who may need to pause their business activities in the future.
 
All unemployment funds have different terms and conditions when you apply for compensation. You must therefore contact your unemployment fund to see which terms and conditions apply to you. 
 
If you pause your business this year,  it can be inactive for no longer than until the end of 2021. Keep in mind that you need to continue to do the following as long as the business is not fully closed:
 
  • Submit financial statements for the business in your income tax return, even if you have no income to report.
  • Declare VAT, as long as the company is VAT-registered, even if no purchases or sales have been made. 
  • Submit employer's contribution, as long as the company is employer-registered, even if you have not paid any salaries or other benefits.
 

Financing

Financial support from the Riksbank

The Executive Board of the Riksbank has decided to lend money via the bank to help companies that are financially impacted by the coronavirus. It is the bank that determines the terms of the loan and which companies that will receive the loans.

Read more at Riksbank.se/en

Loan

Loans from Almi

Almi offers various types of loans within their regular range of services. If you need financing, you can apply for a loan from Almi. If you already have a loan, it is possible to seek payment respite with repayments. The Government has proposed that Almi receive a capital contribution of SEK 3 billion to increase their lending to small and medium-sized companies across the country.

Almi’s ”Brygglån” – a loan adapted to current corona crisis

Sustainable small and medium-sized companies in Sweden that are in need of financing as a result of the spread of the coronavirus, can apply for Almi’s “Brygglån”.  The loan provides an opportunity for conditions that are specially adapted to the current situation. The loan is always combined with advice, so that you can discuss and simulate the effects the corona crisis has on your cash flow, income statement and balance sheet.

Read more about “brygglån” at Almi’s website (in Swedish)

The Swedish National Debt Office’s guarantee programme

Small and medium-sized businesses that are viable but suffer financial difficulties as a result of the coronavirus, are given the opportunity of a state loan guarantee. A loan guarantee means that the state guarantees 70 percent of the loan amount. Companies can apply for loans under the guarantee programme by contacting their lender/bank.

Read more about credit guarantee at the Swedish National Debt Office’s website (in Swedish) 

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Responsible: Swedish Agency for Economic and Regional Growth

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