Tax that is paid on income from an employment.

Anyone who has employment or a pension almost always pays “A” tax. If you are an employer or pay pensions you must make deductions for preliminary tax from the salary/pension according to the preliminary tax tables.

A-tax certificate

Certificate to an employer showing which tax table is to be used for deducting preliminary tax.

Ability to work

Assessed ability of being able to work (full-time or part-time) depending on medical circumstances.


Summary of a certain type of business transaction, e.g. deposits and withdrawals from plusgiro, rent or telephone costs. All the company’s transactions must be placed in the account where they belong.

Account code

To enter the amount of a business transaction in the correct account.

Account receivable

Outstanding invoices a seller has or the money the seller is owed from its clients.

Account schedule

Summary of the accounts a company uses in its accounting.


Ongoing accounting that involves recording all of a company’s business transactions as they occur.

Accounting order

Document that is created to replace a lost verification.

Accounting period

Period that a company’s financial reporting covers.


All the printed and electronic documents that are part of a company’s accounting and financial reporting.

Examples include verifications, receipts and annual reports.


Formal recognition that a company has sufficient competence to perform a certain task.

Accreditation is proof that relevant quality requirements have been complied with. SWEDAC is Sweden’s central accreditation body.

Accrued interest

Interest expenses or income that you have not yet paid or received.

Acquisition expense

The expense you have in acquiring an asset.

The acquisition expense (or extra cost amount) is usually the purchase price with an addition for commission etc. In the case of an inheritance or gift you take over the previous owner’s acquisition expense.

Active refining

Temporary import of a product into the EU for processing or repair. The product is then exported as a refined product.

Activity support

Financial compensation to a job seeker during the period they participate in certain labour market programmes decided by the Employment Office Service.

The social insurance agency Försäkringskassan calculates and pays activity support.

Adaptation of workplace

Support that involves workplaces, working tasks or the work environment being adapted to compensate for a disabled person’s reduced ability to work. Adaptation may consist of working aids or special devices.

Adjusted acquisition expense

Extra cost amount for a partnership of limited partnership. Is affected by, that is increases or decreases, by the company’s financial results and other contributions.

Advice of final tax settlement

Annual advice of calculation of final tax.

This also shows tax still to be paid or tax that will be paid back. Business owners and companies normally receive the advice of final tax settlement in December, while paid employees may receive it in June, August or September.


The right of a company to buy or sell goods and services on behalf of another company. An agency is usually limited to a specific country.


Verbal or written agreement that involves rights and obligations for the parties involved. Regardless of the form, an agreement is normally binding on both parties.

Allocation of profit

The way in which a limited company disposes of the profit for the year and any remaining profit from previous years.


Repayment of a loan debt. This is usually done as regular payments, for example once a month.

Annual general meeting

The general meeting of a limited company that must be held within six months of the end of each financial year.

Annual report

Documentation of a company’s accounts, which consists of income statement, balance sheet, notes, directors’ report and possibly a financing analysis.

Some companies, such as limited companies, must conclude their accounting with an annual report.

Annuity loan

Loan where the total of interest and amortisation is always the same with every repayment. The borrower thus has a fixed monthly expense.

Anti-dumping custom restriction

Extra customs charges that under certain circumstances are applied to the import of goods that are dumped, i.e. goods that have a lower price for export than on the home market.


Request for retrial (in a higher body).

Approved auditor

Auditor who has an academic education (exam in economics), has three years’ qualified practice and passed the auditing exam from the Supervisory Board of Public Accountants.

Articles of association

Document containing the company name, nature of the business and other basic provisions for a limited company.

Assessment decision


Resources that have a direct or indirect financial value to the company.

ATA carnet

International customs document that you can use for the temporary import and export of professional equipment, product samples and goods for exhibition etc.

If you have an ATA carnet, you use this as declaration document instead of the single administrative document.


Certify that information is probable.


Investigation of the financial reporting and management of a company which is performed subsequently by an independent person, usually an auditor.


Person whose task is to investigate a company’s annual report and accounts and the board’s administration of the company.

The auditor may be authorised or approved by the Supervisory Board of Public Accountants.

Auditor certificate

Certificate from an auditor, for example when share capital has been paid with capital contributed in kind.

When share capital is paid with capital contributed in kind the auditor should confirm that all the property has been transferred to the company and that it has been listed at its actual value.

Auditor report

An auditor’s report of the conditions in a company.

In the auditor’s report, the auditor notes what has been observed in the investigation of the company’s annual report and accounts and in the board’s administration of the company.

Authenticating document

Documents that confirm information.


1. Permit, authorisation or other identification to exercise a certain trade or profession, certain defined duties within the trade or profession or run a certain type of business activity.

Authorisation is normally given by a government authority after testing the applicant’s competence and suitability.

2. The right for a person to represent another person or company. In principle it could cover anything, but there is no obligation for another party to accept an authorisation.

Authorised Public Accountant

Auditor who has passed a master’s exam in economics, has five years’ qualified practice and passed the higher auditing exam from the Supervisory Board of Public Accountants.

Authorised signatory

Person or persons with the right to sign in the company’s name with legally binding effect. An authorised signatory can sign an agreement, for example.

Back to top


Balance sheet

Reporting of assets, debts and equity on a certain occasion, normally the last day of the financial year.

Balance sheet total

The total of the asset or debt side of the balance sheet.

Bank certificate

Certificate that shows that share capital is paid.

The bank certificate may be issued by a bank, a credit market company or a foreign credit institution within the EEA.

Bank giro

The banks’ common system for transferring payments between accounts.


Legal process in which a person’s or a company’s business must stop and the assets are sold to pay creditors.

Base price amount

An amount that is based on price development in society and that is determined by the government every year.

The base price amount is used as a basis for various calculations, including compensation from the social insurance agency Försäkringskassan and the basic allowance in tax assessment.

Base rate

Interest rate that is determined by the Tax Agency that forms the basis for interest rates on tax accounts.

Basic account schedule

Standardised account schedule for accounting.

The basic account schedule can be used as a whole or a selection of appropriate accounts can be used.

Basic allowance

Allowance that reduces your taxable income without your having to apply for it.

The allowance is given to private individuals who are residents in Sweden. The size of the basic allowance is linked to the base price amount and the size of the assessed income.

Basis for VAT

Amount on which VAT is calculated.

The amount is normally the price excluding VAT. All price supplements except interest are included in the amount.

Examples of supplements include customs duty, point taxes, shipping costs, repayment and finance costs.

Binding classification notification

Written decision on product code for your product.

Swedish Customs issues the decision, which is normally valid for six years and binding throughout the EU.


Group of elected persons in limited companies and associations, for example, who take important decisions.

Board member

Ordinary member of a board.

Bonded warehouse

A way of storing non-community goods within the EU without needing to have customs clearance. As long as the goods are in a bonded warehouse you don’t need to pay customs and VAT on them.


Method of calculating the distribution of dividend from a cooperative society.
The distribution is based on how much a member has bought from the society.

Book value

The value that a company’s assets and debts have in the balance sheet.


1. A company’s subordinate department that is located in a different place from the head office (general meaning).

2. A foreign company’s office in Sweden with independent administration (registered with the Swedish Companies Registration Office).


Time-limited sole right of use. The distinctive feature that a company uses to distinguish its goods and services from those of others. A brand can be a word or some other graphic symbol that characterises a product or service.


Plan of estimated income and expenses over a certain period.

Build-up stage

The first period of a business activity, when high costs mean losses or small profits.

Business activity

Commercial activity that is run over an extended period, independently and for the purpose of making a profit.

Business concept

A brief description of what the company intends to earn money from and how this is to be done. The business concept can also be seen as how the company satisfies market needs.

Business plan

Strategic plan for how the business concept is developed in the longer term, which also contains various types of budgets.

Business transaction

An event that means that the company’s assets, debts, income or expenses have changed.


Calendar year

1 January – 31 December.

Capital base

The base that´s calculated from the company’s assets and liabilities. The capital base is used to decide provisions to expansion funds and for rate distribution.

Capital contributed in kind

Assets other than money that are used as payment for shares in a non-cash issue. Capital contributed in kind may for example be a vehicle or a property.

Capital gain

Gains that occur on the sale of property, residential rights or securities etc.

Capital income

Income on assets.

Examples of capital gains include interest income, dividend on shares and realisation gains on the sale of shares, property and residential rights.

Capital loss

Loss that occurs on the sale of property, residential rights or securities etc.

Capitalisation issue

An increase in share capital where assets are moved from some other part of a limited company, such as from the statutory reserve.

A capitalisation issue does not mean that the shareholders make a contribution.

Care of a (sick) child

Cash discount

Discount given when a customer pays before the due date.

Cash method

Method that means that you only enter cash receipts and payments on an ongoing basis during the tax year. (Except at year end when all other business transactions necessary to determine the financial results and position must be entered.)

Cash on delivery

That a buyer must pay the shipper directly before the item is handed over. Thus cash on delivery means that payment is made before the item is received.

CE marking

A mark that certifies that a manufacturer or importer meets the safety requirements set by the EU for the product group in question.

For many products, the manufacturer or importer itself is responsible for ensuring that the product meets the requirements. The exception is certain products with specific safety requirements.

Certificate of discharge from bankruptcy

Proof that a person or the estate of a deceased person is no longer bankrupt.

Certificates of discharge from bankruptcy are issued by the Swedish Companies Registration Office.


Certification that a company’s process, product or service complies with certain requirements. Certification is done by an independent company or organisation.

Certification of annual report

Certificate that accompanies the annual report in which a board member or the managing director certifies that the income statement and balance sheet have been adopted by the annual general meeting.

The certificate should also include the general meeting’s decision on disposition of profit or loss.

Chattel mortgage

A charge on a company’s moveable property that is used as security on a loan, for example. Examples of assets that can be used as security include machines and goods in stock.


Demand for payment. When someone is liable to pay you, you have a claim against that person. When you are liable to pay someone, that person has a claim against you.



Determine the right product code for a product from the rules in the customs tariff.


Terms in an agreement.

Close company

A limited company in which a maximum of four persons own shares corresponding to over half the voting rights in the company.

This is the main rule. There are other special rules. Closely related parties (spouse, child etc.) count as one person.

Collective agreement

Agreement between an employer and a trade union about what terms shall apply to pay and conditions of employment.

An individual company can be a party, but not an individual employee, who must be represented by a trade union.

Commercial agent

One who has agreed to buy or sell goods or services independently on behalf of another company.

A commercial agent can for example accept tenders and sign agreements on behalf of another company, if the agreement is so written.

Commission trading

Assignment to trade in, for example, securities on behalf of a customer but in your own name.

Community goods

Goods that originate in the EU or have customs clearance in the EU.


Company name.

Company reconstruction

Procedure decided on by a court that means that a company with payment problems is given an opportunity to resolve its problems.

Company reconstructions are offered to companies that are judged to be profitable in the long term. The procedure may for example involve coming to a financial agreement with lenders.

Competent board

Board of directors that satisfies the conditions that are required by law and company articles of association.

The number of board members in a limited company must be within the limits stated in the articles of association. The annual general meeting then decides exactly how many board members and deputies there will be during a mandate period.


Settlement of a dispute between parties. Conciliation may occur inside or outside a court.

Confirmation of order

Document issued by a seller so that a buyer can check that the order has been received and understood correctly.

Consent reservation

Provision in the articles of association which means that a shareholder must have the approval of the board or general meeting before being able to transfer his or her shares.

Consignment note

Document that accompanies a delivered product that contains information about the product type and quantity.


Goods and materials that are used and consumed within the company. Examples include office sundries, cleaning products and other items that are not used in production.

Consumable inventory

Inventory with financial lifetime of less than three years or inventory of limited value.


Assignment to perform extensive or more long term work. Often in the building and construction industry.


Company that undertakes to perform a contract. Often a person who starts new businesses or develops new products.

Control information

Information about income.

The employer must report which taxable remunerations that have been paid to employees during the income year.

Banks and credit institutions must report interest or dividend paid.


Independent gathering of persons who voluntarily cooperate to meet their common financial, social and cultural needs and wishes through a co-owned and democratically run company or enterprise.

Cooperative principle

Guidelines for how a cooperative can realise the cooperative values into action.

Cooperative society

Society that has financial activities that the members participate in and benefit from. The members do not have personal liability for the society’s debts. A cooperative society is a type of enterprise.

Cooperative value

Based on self-help, personal responsibility, democracy, equality, fairness and solidarity. Ethical values such as honesty, openness, social responsibility and care for others are important.


Time-limited sole right for a person who has created a literary (book, newspaper article, advertising copy etc.) or artistic (artwork, film, photograph etc.) work to decide how the work is to be used.

Corporate registration number

Identification number given to a juridical person, such as a company or association.


Expense that is distributed over a certain period, such as one or more years, in the accounts.


1. The right to borrow a certain sum of money belonging to someone else, a creditor.

2. Period of grace for payment for purchase of a product or service.

3. The right hand side of a accounting account.

Credit information

Information from a credit rating company about a private individual’s or a company’s income and liabilities, as well as any records of non-payment.

Credit rating

Assessment of a company’s or a private individual’s ability to pay.


Someone who has a claim for payment. Also known as a claimant.

Current asset

Assets that are intended for sale and that are not non-current assets.

Current assets are divided into four groups:
- goods in stock
- receivables
- current investments
- cash and bank deposits.

Custom rate

States how much you must pay in customs duty. The rate is often a certain percentage of the customs value.

Custom tariff

List in systematic form of the goods that occur in international trade. Product codes and customs rates appear in the tariff.

Custom value

The sum that you normally calculate customs duty on.

Put simply, the customs value is the invoice value including cost of freight and insurance to the EU border. The customs value is also the basis for calculation of VAT (customs value + customs duty = basis for VAT).

Customs ID

Identification number that every import and export shipment receives when it is registered in the customs data system.

Back to top


Day book

The company’s business transactions presented in order of verification number.
Sometimes called a verification list.

Day book keeping

Entering business transactions in order of registration so that it is possible to see the order in which business transactions have been registered. This means that the company’s business transactions can be presented in order of verification number.

In an accounting programme, day book and general ledger entries are normally made at the same time.


A company that buys products and sells them on. Dealer is another term for wholesaler and retailer.


1. Charge somebody an expense for something.

2. Write an amount on the left hand side of the accounting accounts, the debit side.


A company’s debts are, for example, bank loans or other loans, unpaid invoices from suppliers and costs that arise in the activities but that no invoice has yet been received for.

Debt collection

The decision and action of the enforcement service, on behalf of the government and municipalities, to ensure that payments due to government or local authorities are collected.

Debt collection claim

Exhortation to a debtor to pay a debt.

Debt collection company

Private company that receives payment for collecting debts on behalf of companies and individuals.

Debt collection cost

Cost relating to debt collection, such as reminder letters.


Person who owes a debt to another (to a creditor).

Declare export

Report of goods that are taken out of the EU customs area or EU VAT area. The export declaration is given to Swedish Customs.

Delivery term

Terms that describe whether the buyer or seller bears the cost of transportation of items and how the risk is distributed.

If nothing else is agreed the rules of the Purchases Act apply to trade within Sweden.


Distribution in the accounts of the expenses of purchased equipment over several years. Examples of such equipment are machines, computers and vehicles.

Deputy board member

Deputy to a board member.

Deputy managing director

Person who can replace the managing director of a company when needed.

Deputy member

Direct advertising

Advertising addressed directly to the recipient. This is usually advertising that comes to the mail box; other examples are e-mail and SMS text.

Direct selling

Sales method whereby the seller contacts the potential customer and proposes a transaction. Common examples are telephone selling or meeting at the customer´s home.

Directors’ report

The part of the annual report in which the board describes the most important events in the financial year and the company’s development.


Sale or in some other way giving up property, such as in a gift.

Distinguishing property

Where a company name is designed to be distinguishable from other companies, associations and brands and it is perceived as the name of a specific company.


When the enforcement service seizes a debtor’s property so that a creditor can be paid what is owed.


Issuing or disseminating something. Examples are goods or advertising.


Part of a limited company’s profit that is distributed to shareholders.


The municipality where the annual general meeting is held. If anyone needs to sign for the company before a court of law it is important to know which court to approach.

Double accounting

Accounting of every transaction in at least two accounts, with equal amounts in debit and credit.

Double taxation

Income that is taxed twice. For example when a limited company’s profit is taxed both at the company and at the shareholders.

Due date

The date on which a debt is to be paid.



Identification in electronic form, where electronic communication is used for identification, signature or both.


When a company fulfils its obligations to a customer, by performing work for example, earnings arise.

The earnings can be counted per year, per month or in some other period. The earnings are collected on a regular bases.


European Economic Area. The EEA is made up of the 27 EU member countries plus Iceland, Liechtenstein and Norway. For United Kingdom which has left the EU the same rules will apply as they were still members of the EU during the transition period until 31 December 2020.

Effective interest

The total cost of a loan (interest, set-up costs and notification charges). The effective interest is expressed as a percentage and shows how much a loan actually costs.


When someone is being forced to move from their home, office or premises, because of unpaid rent or a disturbing way of life, for example.

Employer declaration

Declaration used to report employer’s contributions and tax deducted.

Enforcement service assistance

Action taken by the enforcement service to protect someone’s rights.

Examples of assistance include eviction or returning an item that was bought with repayment instalments if the purchaser did not keep up the payments. This requires a decision that the seller, landlord etc. has the right to claim this.

Entry of goods

Bringing goods into Sweden from another country.

Environmental sanction charge

A charge that a company must pay if it ignores a regulation pursuant to the Environmental Code or if it starts an operation that requires a permit or reporting without having obtained a permit or made a report.


Equity corresponds to a company’s assets minus debts. It initially consists of the capital that you as an owner have invested in the company start-up.

From the company’s point of view, equity is a debt to the owners. If the debts are greater than the assets, the equity is negative. The company then has a claim on the owners.

Equity ratio

A company’s long-term ability to pay.

Established place

Staffed office or other premises from which it is possible to deliver or provide goods and services within the country.

The expression is used in a VAT context for a registered branch or a physical person who is a sole trader with an address in Sweden.

EU customs area

The EU is a customs union. EU member countries have a common customs border with other countries. Trade between EU countries is counted as domestic trade.

Goods imported from or exported to the EU customs area must be declared for customs.

EU VAT area

The EU is a customs union and a VAT area. Trade between EU member countries is counted as domestic trade.

Some EU members are not part of the VAT area. Goods imported from or exported to these areas must be declared for customs.


When someone is forced to move from their home, office or workshop premises, because of for example unpaid rent or a disturbing way of life. Also called ejection.


Application to the enforcement service for help in forcibly implementing what has been decided in a court.

Executive auction

An auction in which the enforcement service holds an enforced sale of seized property. Seized property is property that the enforcement service has decided shall be used to pay a person’s or a company’s debts.

Existing condition

Agreement condition that in certain cases makes it possible for a seller to be released from responsibility for actual faults in what is sold.

Expansion fund

Gives those who are sole traders or run a partnership or limited partnership the opportunity to pay less tax on profits that they choose to reinvest in the business instead of taking them out.


Item in the accounts that arises when a product or service is bought. In practice an expense usually arises when an invoice is received.


1. When a product is taken from Sweden to another country.

2. Taking goods or services out of the EU VAT area.

3. Taking goods out of the EU customs area.

Export declaration

Report of goods that are taken out of the EU customs area or EU VAT area. The export declaration is given to Swedish Customs.

External managing director

A managing director who is neither a board member nor a deputy board member.

Extra cost amount

The expense you have had in acquiring a divested asset.

The extra cost amount is usually the purchase price with an addition for commission etc. In the case of an inheritance or gift you take over the previous owner’s extra cost amount.

Extraordinary general meeting

A general meeting held between two annual general meetings.

Back to top



Tax paid by those who run a business.

F-taxpayers pay preliminary income tax, social security expenses etc. based on preliminary income information that is sent to the Tax Agency.


Tax paid by those who both run a business and have a position where an employer makes tax deductions.


That a seller invoices its customer and then transfers the invoice, and thus the right to be paid, to another company, the factoring company.

Can also mean that a company is given a loan secured on the invoices that the company has issued but not yet received payment for.

Financial lifetime

The period during which an asset is considered to be of financial benefit to a company. The financial lifetime is divided into a number of years and depreciated in the accounts.

Financial result

A company’s income after deduction for costs, which shows whether the company has made a profit or loss.

Financial year

Time that a company’s financial reporting covers.

For a limited company, the financial year should be stated in the articles of association. Examples of financial years include 1 January - 31 December, 1 May - 30 April, 1 July - 30 June and 1 September - 31 August.


When a company acquires capital for its operation. This may for example be through a loan or risk capital.

Fixed cost

Costs that, within certain limits, are not affected by how much of a product or service a company produces.

Examples of fixed costs include rent and insurance.

Force majeure

Unforeseen event of an extraordinary nature. This might be war, fire or a natural disaster and may lead to an agreement party being released from its obligations.


Activity that involves receiving and sending goods on someone else’s behalf, as well as handling, where appropriate, co-loading, load transfer, customs clearance, insurance, storage etc.

Forwarding agent

Physical or juridical person who operates forwarding activities.


Independent capital that is administered over an extended period for a defined purpose.

A foundation is a juridical person that arises when, for example, an asset is bequeathed or given for a defined purpose. The foundation has no owner: it owns itself.


Person, company or association that starts a limited company.


Collaboration in which a company, the franchisee, buys a complete concept and organisation from another company, the franchiser.

All franchisees who participate in the collaboration are independent companies, but the customer perceives them as a chain since they are all based on the same design.

Freedom from debt certificate

Proof that a person is free of debt. The enforcement service issues freedom from debt certificates.

Freedom from liability

This is when the shareholders approve the board’s and the managing director's management of the company over the previous year at the annual general meeting.

Freedom from liability means that the shareholders relinquish the possibility of claiming damages from the board and managing director. In some cases liability can still be claimed if new information emerges after the annual general meeting.

Fully liable partner

Part owner of a limited partnership who has an unlimited liability for the partnership’s debts. There must also always be at least one limited partner in a limited partnership.

Back to top


General agent

Company that has the sole right to sell a certain product within a geographical area, usually a country.

General deduction

Deductions that decrease your taxable income. The commonest general deduction is pension savings (pension insurance and individual pension saving - IPS).

General ledger

Compilation of all verifications in order of account number.

General ledger keeping

Accounting of business transactions in systematic order so that the accounting makes it possible to gain an overview of the operation, its financial results and financial position.

In practice this means that accounting is done in different accounts. In an accounting programme, day book and general ledger entries are normally made at the same time.

General meeting

Meeting of the shareholders of a limited company.

Government pay guarantee

Guarantee, regulated by law, for payment of employees’ claims for pay etc. from an employer in the event of bankruptcy or company reconstruction.


Two or more companies with the same ownership structure and management.


Undertaking from one or more persons or companies to pay a debt on behalf of a borrower. This can be expressed as “being a guarantor for someone”.

Guaranteed loan

Loan with a guarantee as security.


A person who guarantees somebody else’s debt.


Person who represents a minor in a legal context, usually a parent.


Hobby activity

Activity that is independent and long lasting but not run for profit.

Income from a hobby is part of your taxable income and you pay your social security expenses yourself.

Back to top


Illness insurance

Part of social insurance that gives financial compensation to a person who is ill and losing income.

The illness insurance includes sickness allowance, disability compensation and sickness benefit.


1. Taking goods or services into the EU VAT area.

2. Taking goods into the EU customs area.

Import declaration

Report of goods that are taken into the EU customs area or EU VAT area. The import declaration is given to Swedish Customs.


A company’s income over a period consists of the total of the cash sales and invoiced sales during the period.

Income declaration

Report of a person’s or company’s income for a particular year. The declaration is sent to the Swedish Tax Agency.

Income tax return

Report income and expenses as the basis for calculating income tax.

Income type

Type of income. There are three income types: employment, capital and business.

Income year

The year when the income you declare has been earned. The term income year is used for private individuals.

Independent business practitioner

Person who runs a business and is responsible as sole trader.

Industry sector

Subdivision of businesses according to what the company makes or sells.

Injunction to pay

Application to the enforcement service to be paid or receive an item back.

If the person who is to pay or give back the item does not protest, the application results in a decision. The decision can then form the basis of the enforcement service’s work of collecting the debt or seeing that the item is returned.


Newly created product or service. It need not be an invention, it could be a further development or a new area of application of a product.

Input VAT

VAT that a company pays when it buys goods and services.


When a company or person has lasting problems in paying debts.

Intra union acquisition

Purchase of goods from another EU country on which the buyer pays VAT.


Non-current assets that have an expected financial lifetime of more than three years.


Financial placement in order to receive a future yield. This is done either to increase income or to reduce costs.

Invoicing method

In ongoing accounting: A method that means that you enter all transactions, such as accounts receivable and trade accounts payable, when the invoice is sent and received respectively.

VAT: A method that means that you report VAT when a customer invoice is sent or a supplier’s invoice is received.

Invoicing obligation

Obligation for those who are liable to report VAT to issue an invoice for every sale that is liable for VAT.

Back to top


Joint liability

Joint liability means that someone who is owed money can approach any of the part-owners and demand the entire amount that is outstanding.

Joint payment liability

An obligation for any of those who are jointly responsible for a monetary debt to pay the whole amount of the claim from a creditor.

Joint venture

Joint business activity involving joint risk that is shared, for example, between two companies, often of different nationality.

Juridical person

Enterprise or association.

Back to top



Used to describe the knowledge, insight and experience of an organisation or of one or more persons in an organisation.

Back to top


Labour market policy programme

Training or other initiative that increases the opportunity for a job seeker to find work.

Lay auditor

A person who need not have academic education as an auditor and whose task is to investigate whether a company is managed in a way that is appropriate and satisfactory financially.

A lay auditor may be appointed as a complement to an authorised and approved auditor. The lay auditor can present a specific report but cannot sign the auditor’s report.


Agreed terms that give the lessee the right to use an asset over an agreed period in exchange for leasing charges.

Legal force

When a decision can no longer be appealed.

Liability insurance

Insurance that compensates for damage or injury caused to a third party by the company’s products or services.

Limitation of a claim

When the right to claim payment ends.

Limited company

A type of enterprise where the part-owners are not personally liable for the company’s debts.

A limited company is a juridical person. In some cases, the board or part-owners can have personal liability.

Limited partner

Person who owns part of a limited partnership and has a limited liability for the partnership’s debts.

Liability is limited to a certain amount. There must also always be at least one fully liable partner in a limited partnership.

Limited partnership

A type of enterprise where all partners except one can limit their personal liability for the partnership’s debts.

A limited partnership is a type of partnership.


Winding up a company where assets are sold, debts are paid and any surplus
is divided between the owners.


Person appointed to wind up a company by liquidation.


A company’s ability to pay in the short term.

Liquidity budget

Plan for how receipts and payments will be distributed over the course of time in a company. A liquidity budget is normally divided into months.

List of shareholder

Local collective agreement

Agreement between an employer and a trade union that an existing collective agreement will be applied by the company.

Loss of value

Reduction in the value of a non-current asset due to age or use. Examples of a company’s non-current assets include machinery, a computer or a vehicle.


Managing director

Person appointed by the board to lead the day to day activities of a company.

Marginal tax

The tax percentage on the last hundred kronor earned.

Marginal taxation

Market rate

Interest rate that a borrower would pay on the open market, such as to a bank.

Market share

The company’s sales as a percentage of total sales in the market in question.

Market survey

Survey to investigate whether there is a demand for a certain product or service at a certain price.

Market value

The price that buyers are prepared to pay for a product or service on the market.

The market value of a company, for example, is determined not only by its assets but can be greatly affected by expectations.

Marketing plan

Action plan for how the company is to reach customers with its products or services.

Memorandum of association

Document that is drawn up when a limited company is to be created and which contains the main conditions for setting up the company.


Joining together two or more companies.

Merger plan

Document that describes how a merger is to proceed.

Minutes of the general meeting

Document that shows what decisions were taken at the general meeting.

Mixed enterprise

Enterprise that is only partially liable for VAT.


Form of market in which there is only one seller of a product or service.


Listing in a register saying that money can be raised on certain property, usually real property.

Mortgage deed

Proof that a mortgage has been taken out on a property. A property can be mortgaged by the property owner giving the mortgage deed as security for a loan.

Moveable property

Everything that is not real property. Examples of moveable property include office material, vehicles and rights.

Back to top



Amount after deduction of something. For example pay after tax deduction.

New share issue

Increase in share capital by issuing new shares to new or existing shareholders who pay for the shares with cash or other property.

Non-cash issue

A share issue with payment by capital contributed in kind, i.e. assets other than cash.

Non-profit organisation

An organisation that promotes its members’ ideals or financial interests through an operation that is not run for profit, or is at least not purely financial.

Non-profit organisations include sports clubs and trade unions, for example. A non-profit organisation can operate business activities.

Non-trustee certificate

Proof that a person does not have a trustee or guardian. The certificate is issued by the chief guardian board in the municipality where the person is registered.

Notary public

Public official whose task is to assist the general public by checking and confirming the correctness of various information, for example by confirming signatures, company documents and purchase documents.

The notary public is appointed by the County Administrative Board.

Back to top



Duty to do something, for example pay someone. Such a duty can be decided in a resolution, a court order, a law or an agreement.

OCR number

Number series used when paying by plusgiro or bankgiro. The OCR number means that the recipient can identify who made the payment.

Operating cost

Costs for the ongoing activities of a company.


Some form of business activity.


Communication from an authority that you must answer or act upon. For example, it may be to submit a declaration or certain information.

Output VAT

VAT that you as a business collect from your customers. You must report output VAT (the VAT your customers pay) in the VAT declaration.

Overdraft facility

Bank account from which the account holder can make withdrawals in the form of loans up to a certain amount (overdraft limit). There is usually fixed or variable interest on the amount borrowed.


Withdraw more money from an account than is in it, or exceed an overdraft facility.


Parallel company name

A company name translated into a language other than Swedish.

Parent company

1. Company that owns sufficient shares in another company (subsidiary) to give it more than half the votes in that company.

2. Company that in some other way has determining influence over another company (subsidiary), such as through an agreement.


Member of a partnership or limited partnership.


Type of enterprise in which the partners are jointly liable for the partnership’s debts.

Partnership agreement

Agreement between two or more part owners of a company that shows what they have agreed upon.

The agreement may be about distribution of responsibility and how disputes are to be resolved, for example.

Passive business activity

Small scale business activity.

If the business owner does not work more than 500-600 hours in the business during the course of a year it is normally considered to be passive. This is significant for whether self-employed contributions (active business activity) or a special payroll tax (passive business activity and retirement pension) is to be paid on the activity’s profits.

Passive refining

Temporary export of community goods to a country outside the EU for processing or repair.


Fixed term sole right to professionally use a technical solution to a problem, i.e. an invention. Professional use means, for example, manufacturing, selling or importing the invention.

Pay guarantee

Where, with a bankruptcy or company reconstruction, the government is responsible for payment of the employees’ remaining claims for pay and pensions.


When money physically leaves the company a payment occurs.

Payment reminder

Reminder to pay a debt. For example a reminder from the Tax Agency of unpaid tax. If the amount is not paid, the debt is transferred to the enforcement office for recovery.

Payment term

The terms that apply to payment for goods or services. These may for example be about payment time, interest on late payment and invoicing charges.

Period of grace

Getting more time to do something, such as pay a debt or submit a declaration.Normally you must first apply for a period of grace.

Periodic summary

Summary of the value of goods or services for VAT-free sale to other EU countries over a certain period.


Special approval from the authorities that is needed to be able to run a company in certain industrial sectors.

Physical person

A private, human individual as opposed to a juridical person.

Plan for return to work

Plan that is intended to lead to a person returning to work. The plan should give an overview of the various initiatives that are needed in order for a person to gain, regain or increase his or her ability to work.


A service for payment transfers.


Consent to postponing something, such as payment or the submission of a declaration.

Power of procuration

An authorisation given to a person (procuration holder) that means that the person can represent the company in everything that concerns the company’s business activities.

Also known as a trading authority. Applies to sole traders, partnerships and limited partnerships.

Preferential right

Provision in a company’s articles of association that certain persons are to be offered the chance to but a share before it is transferred to a new owner.

Preliminary tax

The tax that is paid to the Swedish Tax Agency every month to be set against the forthcoming final tax.

It can be paid as “A”, “F” or “SA” tax.

Prior option clause

Clause in the company’s articles of association that describes who has the right to redeem shares that have been transferred to someone else.

Private limited company

A limited company that does not offer shares on the open market, i.e. not a listed company.

Procuration holder

Person who has a special authorisation (power of procuration) and therefore has the right to represent the company in everything that concerns the company’s business activities.


When a public body invites tenders from several suppliers before an agreement is written.

Professional activity

An activity that is long lasting (is intended to be operated for a long time), is intended for profit and is independent.

Professional income

Income from employment and business activities.


Where a business activity’s income is greater than its costs.

Profit margin taxation

Output VAT on the profit margin (difference between sales price and purchase price).

Profit margin taxation is mainly used with the sale of used goods that a dealer has bought from someone who is not liable for tax on the sale, such as a private individual.


Where a company’s income is greater than its costs.

Prohibition against engaging in business activity

A decision by a court that a person is not allowed to run any business activity for a certain period.

Proof of domicile

Shows where a person is domiciled, i.e. the county, municipality and parish in which the person is registered. Proof of domicile can be ordered from the Swedish Tax Agency.

Proof of freedom from debt

Protection registration

Protecting your company name in more than one county. Applies especially to sole traders, partnerships and limited partnerships.


A special item in the balance sheet.

A provision is made for something that may become a debt in the future, such as pension expenses or guarantee undertakings.

Public limited company

A limited company that can offer shares on the open market, e.g. a listed company.

Public service non-profit association

Associations that act for members’ rights or interests or for other purposes of public benefit: action against poverty for example.

At least 90 per cent of the activities must be concerned with the public benefit purpose.

Purchase price

The price paid by the buyer.

Back to top


Qualified majority

Where more than half the votes are not sufficient for a decision but a bigger proportion of votes, such as two thirds, is required.

Qualified share

Share in a close company owned by a person who has been active in the company to a significant extent. This is significant for how income from the company is taxed.

Qualifying day

Day when you cannot receive sickness allowance or sick pay.


Board meeting where at least half the members are present, which means that the board is qualified to make decisions.


Offer to enter into an agreement on certain terms.


Pay guarantee

Where, with a bankruptcy or company reconstruction, the government is responsible for payment of the employees’ remaining claims for pay and pensions.


Where a company’s income is greater than its costs.

Purchase price

The price paid by the buyer.

Back to top



A decision by a country’s head of state or government to bind that country to an international agreement, such as a convention or treaty.

Real property

Land that is divided into properties. Real property may also be the buildings on the land and their fixtures. Everything that is not real property is called moveable property or chattels.


An authority’s possibility of or obligation to change its decision.


Person appointed by a court to handle the liquidation of a bankruptcy estate.

Reconciliation date for tax account

The date on which the monthly balance of a tax account is calculated.

The tax account has one reconciliation date each month, usually the first Saturday of the month. All payments and debts are reconciled on that date. There is also reconciliation with the enforcement service and the interest calculations are updated.

Record day for shareholder

The day a shareholder must be registered for a share so as to have the right to vote at the annual general meeting, be paid dividend or participate in a closed share issue, for example.

Record of bankruptcy estate

A summary of the assets and liabilities in a bankruptcy estate and who has claims against it.

Record of non-payment

Record showing that someone has not made payment.

The record is registered by a credit assessment company. Such a record could lead to someone not being given a loan, apartment, telephone subscription or work, for example.


Employ personnel.

Recruitment fair

Organised meeting where job seekers can meet one or more employers that wish to employ personnel.

Reference number

Registration number of a document. Consists of the date and a serial number.

Reference rate

The Riksbank’s official interest rate. The reference rate corresponds to the Riksbank’s funds rate at the end of the previous half year. If necessary the reference rate is rounded up to the nearest half percentage point.

Register of voters

List of the names of shareholders who attend a general meeting along with how many shares and votes each person or company represents.

Registration certificate

Document that shows that a company is registered with the Swedish Companies Registration Office.


1. Person who represents another person or group.

2. A person who acts on another’s behalf, in legal proceedings for example.

Representative’s liability

Meaning that the representatives of a company (board members, managing director) can in some cases be held liable to pay the limited company’s debts.

Residual value

Remaining value of an investment when it has been depreciated and the financial lifetime is over.

Results budget

Schedule of estimated income and costs over a certain period, usually a year.

Results report

Shows a company’s income and costs over a certain period, usually a month or a quarter.

Retained earning

Profit or loss from previous years that is carried over to the balance sheet.

Reverse charge

Tax liability for VAT that is transferred to the purchaser of a product or service. Sometimes referred to as reverse tax liability.

Revolving credit

Now usually called overdraft facility.

Right of priority

When certain claims take priority over others for payment from a debtor’s property, usually in the case of bankruptcy.

Right to deduct VAT

Right to deduct input VAT on purchases, imports and other costs for activities that involve an obligation to pay tax. Those who do not have such activities may be entitled to repayment of VAT.

Risk capital

Also known as venture capital. A collective term for investments in a company’s equity that include investments from both listed and unlisted companies.

The investment is usually made in return for ownership and influence in the company.


Compensation to the owner of an intellectual property right. Common examples are publishers’ payments to authors or a manufacturer’s payment to the inventor.

Back to top


Secondary employment

Work (to a limited extent) in addition to the real job.

Secondary firm

Part of the operation of a limited company that has a registered, protected name. It is still the company itself that runs the operation but with another name externally.


Property that a borrower pledges to secure a loan.

Self-employed contribution


When a document is given to you and you confirm in writing that you have received it in the way prescribed by law.



Ownership of part of a limited company. One share gives the right to a share in the company’s profits and to vote at the annual general meeting.

Share capital

Money or property that is needed to start a limited company.


Person or company that owns shares in a limited company.

Shareholder contribution

Increase in the company’s capital through contributions from shareholders.

Shareholder contributions may be conditional or unconditional. A conditional contribution can be paid back in certain circumstances, while an unconditional contribution cannot.

Shareholders register

A list of all of the company shares and shareholders. The shareholders register is public and must be created by the board. When a share is sold, the new shareholder must be listed in the shareholders register.

Sick pay

Pay that the employer pays to employees who are unable to work because of illness.

Sick pay period

The first to the fourteenth day inclusive that an employee is away from work because of illness.

Sickness allowance

1. Compensation that a business owner can receive from the social insurance agency Försäkringskassan for income lost due to being ill and unable to work.

2. Compensation that an employee can receive from Försäkringskassan for income lost when the employee is ill for more than 14 days.

Sickness allowance based income

The annual monetary income that an insured person could be assumed to receive from working in Sweden.

The sickness allowance based income (SGI) is used, for example, to calculate how much sickness allowance and parent’s allowance you can receive.

Simple partnership

Partnership in which at least two persons or companies decide to collaborate without forming a limited company, formal partnership or limited partnership.

This may for example be a building consortium or where several people buy a lottery ticket together. A simple partnership is not a juridical person.

Single administrative document

A specific form that you use when you make a written customs declaration.

SNI code

Code for a certain type of activity. SNI stands for Svensk Näringsgrensindelning which is the division into different industry sector codes, based on an EU standard.

Social economy

Enterprises whose main driving force is benefits for the general public or for members. Based on democratic values and organisationally independent of the public sector.

Social enterprise

Exists in various forms of association and has social goals rather than financial ones. Profits are reinvested and the organisation is run according to particular basic values.

Social insurance

National insurance intended to give financial compensation for the income you lose when, for example, you are ill, are injured at work, have a child or retire from work.

Social security expenses

National charges that businesses pay to social insurance.

You pay social security expenses in the form of self-employed contributions or employer’s contributions. You only need to pay employer’s contributions if you are an employer. These contributions finance the public illness and parents insurance and retirement pensions.

Sole trader

Company run by a person on his or her own account where the person is fully liable for the company’s obligations in the form of purchases, debts and other obligations.

A sole trader is a type of enterprise but not a juridical person.

Special authorised signatory

A person a limited company has authorised to sign for the company.

Board members, the managing director or others can be authorised to sign for the company.

Special payroll tax on professional income

Tax paid instead of employer’s contributions for persons aged over 65 or by sole traders in some situations.

Special start-up support

Labour market policy programme under which a job seeker with a disability that causes a reduced ability to work receives financial support for investments etc.

Specific payroll tax on pension costs

Tax that a company pays on costs of pension benefits for employees. Examples are costs for provisions for pension funds or purchase of pension insurance.

Split financial year

Financial year that is not a calendar year. Examples of split financial years include 1 May - 30 April, 1 July - 30 June and 1 September - 31 August.

Standard agreement

Agreement where some or all of the conditions are determined in advance.

Start of tax liability (VAT)

The time when the obligation to pay VAT to the government begins.

Start-up support

Labour market policy programme in which a job seeker receives activity support for a period to help in starting up a company.


The basic rules of an association.

Statutory reserve

A special item in the balance sheet that represents restricted equity. Mainly of significance for the type of enterprise called a cooperative society.


Review of goods in stock where every item is counted and valued.

Straight line interest

Interest that is calculated on the entire original loan amount. This means that the interest does not decrease as the loan is amortised.


Company that produces something for another company.

Subscribe for shares

To put your signature together with the number of shares you intend to buy in a limited company, when a limited company is formed or a new share issue is made.

Subscription list

Document for subscription for shares with the subscriber’s signature and the number of shares subscribed.

A subscription list is created when a limited company is formed or with a new share issue. When a limited company is formed the subscription list can either be made separately or included with the memorandum of association.


1. Company in which another company (the parent company) owns sufficient shares to give it more than half the votes.

2. Company over which another company (the parent company) has determining influence, such as through an agreement.

Summary process

Quick and easy way for someone who wishes to be paid or have an item returned to obtain proof that his or her claim is correct.

This proof can then form the basis of the enforcement service’s work of collecting the debt or seeing that the item is returned.

Supervisory authority

Authority that is responsible for exercising control over a certain activity.

Support for adaptation of workplace

Financial support that involves workplaces, working tasks or the work environment being adapted to compensate for a disabled person’s reduced ability to work.


Tangible asset

Parts of a company’s assets that are bought or sold by another company. Examples include machines, inventory and stores.

Tax account

Account at the Swedish Tax Agency where all your tax, payments, charges etc are recorded.

Tax declaration

Tax free allowance

The income you can have without paying national income tax.

There are two allowance points. On income over the initial allowance, you pay income tax of 20 per cent. On income over the higher allowance, you pay income tax of a further 5 per cent.

Tax liability for VAT

Someone who must pay VAT to the government. This can be someone who sells a product or service or in some cases someone who buys a product or service. An importer of goods or services may also be liable for VAT.

Tax obligation for VAT

Obligation to pay VAT. Sale and import of gods and services are normally liable for VAT.

Tax rate (VAT)

The percentage used to calculate output VAT on sales, imports and in some cases purchases.

The VAT is calculated on the basis for tax. There are three different tax rates for VAT: 6 per cent, 12 per cent and 25 per cent.

Tax related depreciation

Depreciation of inventory according to the tax rules. The tax rules give companies the opportunity to make larger or smaller depreciation than accounting rules permit.

Tax subject

Physical or juridical person who is to pay tax.

Tax surcharge

A special charge that you may have to pay if you submit incorrect information in your declaration or do not make a declaration.

Tax year

The year when the income you declare has been earned.

For private individuals the tax year corresponds to the year of income, i.e. the calendar year before the year the declaration is submitted. For juridical persons the tax year corresponds to the financial year.

Taxation decision

Basic decision on annual taxation, appeal decision or decision on taxation measures according to a court verdict. The Tax Agency advises decisions on taxation.

Temporary parent’s allowance

Financial support that you can receive from the social insurance agency Försäkringskassan if you lose income when your child is ill and you must be at home to care for it.

Temporary parent’s allowance is sometimes known as the everyday allowance for care of a sick child.


Offer to enter into an agreement. Also called a quotation.


To possess some property, rightly or wrongly, such as a vehicle or building, i.e. in some way or other to have disposal of the property.

Third country

Country outside the EU.

Threshold for national income tax

The income, after deductions, that you can have without paying national income tax.

There are two thresholds. On income over the lower threshold, you pay income tax of 20 per cent. On amounts over the higher threshold, you pay income tax of a further 5 per cent.

Trade or professional ID

Permit to exercise a certain trade or profession.

Trade or professional IDs can be found in health care, for example. The ID is issued by the relevant authority and requires approved education or training to have been completed.


Person who is legally appointed to act on behalf of another person who, because of illness, mental problems or poor state of health, for example, needs help in caring for him or herself or property.

A person who has a trustee may not start a company.

Type of enterprise

Type of company or organisation. Examples include limited company, sole trader or partnership.

Back to top


Undisclosed reserve

Assets that have a reported value that is lower than the true value.

Unemployment compensation

Financial support for a person who is unemployed and fulfils certain conditions.
The conditions are determined in the Act (1997:238) regarding unemployment compensation. The support is paid from an unemployment fund.

Unemployment fund

Organisation that assesses, decides on and pays out unemployment compensation pursuant to the Act (1997:239) regarding unemployment funds.

Unregistered firm

Back to top


Variable cost

Cost that changes in relation to the company’s sales. For example fuel (petrol, diesel etc.) for a haulage contractor.

Variable interest

Interest that is adjusted according to general interest rates and that may change from day to day.


Tax that is paid on almost all consumption of goods and services.

For businesses that must pay VAT to the government, the VAT is not normally regarded as a cost. In most cases businesses are entitled to deduct the input VAT (on purchases) from the output VAT (on sales).

VAT declaration

Declaration that is used to report VAT.

VAT registration number

Number given to all those who run activities that are liable for VAT and are registered with the Swedish Tax Agency.

VAT reporting

Reporting input and output VAT for a certain period. This is done in a VAT declaration.

Venture capital

Financing in the form of risk capital, usually when a company is started.


Information that documents a business transaction or adjustment in the accounts.
Verification may be a receipt or an invoice, for example.

Voluntary tax liability

The opportunity for property owners and others t apply for VAT liability.


Wholesale trading

Trading where the customers are other companies. As opposed to retail trading where the customers are consumers, i.e. private individuals.

Withdrawal of goods

When a business owner withdraws a product from the company for himself or transfers it to someone else without payment or at low price.

A product that is withdrawn by a business owner for private consumption is treated for tax purposes in the same way as a sale to a customer.

Withdrawal of service

When a business owner withdraws a service from the company for himself or transfers it to someone else without payment or at low price.

A service that is withdrawn by a business owner for private consumption is treated for tax purposes in the same way as a sale to a customer.

Working capital

The capital a company needs to finance the ongoing activities.

Working life oriented rehabilitation

Efforts to enable a person with a reduced ability to work because of disability or ill health to find, receive or remain in a job.

Unemployment compensation Financial support for a person who is unemployment and fulfils certain conditions.

The conditions are determined in the Act (1997:238) regarding unemployment compensation. The support is paid from an unemployment fund.


When a limited company or cooperative society raises the reported value of a non-current asset. The new value must be reliable and permanent.

Back to top


Year end

Summary of a company’s ongoing accounting at the end of the financial year.

Year end method

Method that means you report VAT only on receipts and payments. (Except at year end when unpaid invoices are also included in VAT reporting.)


Gain on invested capital. The yield is normally expressed as a percentage of the invested capital.