Taxes and contributions for general partnerships

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In a general partnership, the company itself does not pay the taxes from its profit. Instead, the individual partners in the general partnership are taxed on their share of the company’s profit.

Temporary rules due to the coronavirus

Some of the information on this page may be affected by temporary rules as a result of the coronavirus. 

Read more about temporary rules

Information to entrepreneurs due to the coronavirus

We have collected all the information from the authorities that business owners and employers should be aware of.

How coronavirus affects you as a business owner and employer

On this page:

  1. Preliminary tax
  2. Standard deduction
  3. Report changed income
  4. A self-employed person’s social insurance contributions
  5. Reduction of self-employed contributions
  6. Choose number of qualifying days
  7. Lower fees for older people

General partnerships are obligated to pay only VAT, property tax/property fees and special payroll tax and policyholder tax on employee pension costs. General partnerships also handle social insurance contributions and preliminary tax on behalf of employees.

Preliminary tax

As a partner in a general partnership, you are responsible for paying tax and social insurance contributions from a share of the profits. Your preliminary tax is calculated by the Swedish Tax Agency (Skatteverket). As a partner, you therefore need to file a preliminary income tax return to the Swedish Tax Agency detailing your share of the general partnership’s profit. You then pay an equal amount of preliminary tax every month during the tax year, normally on the 12th of each month. Consequently, the size of the payments is not affected by your profit/loss in the relevant month. The preliminary tax is made up of income tax (municipal and, if applicable, state tax) and social insurance contributions.

Your share of the business’s real income is recorded in the income statement. Once you have filed your return for the year you will receive a final assessment notice specifying your final tax liability.

Standard deduction

General partnership partners can make deductions for self-employed contributions and special payroll tax in their tax return. In the first year you make what is called a standard deduction. Your exact self-employed contributions for the year will then be detailed in your final assessment notice. In the next year’s tax return, you will include your exact self-employed contributions. The standard deduction is made only in your tax return and no corresponding amount is paid to the Swedish Tax Agency.

Report changed income

If, over the course of the year, you realise that the general partnership’s profit will be higher or lower than you first stated, you should report this change to the Swedish Tax Agency. If you fail to do so, you risk under- or overpaying tax over the course of the year. At the end of the year you will then either be liable to pay the difference or receive a refund when your preliminary tax payments are checked against your final tax liability. You can make changes by filing a preliminary income tax return

Read more about preliminary tax

File a preliminary income tax return at the Swedish Tax Agency (in Swedish)

A self-employed person’s social insurance contributions

If you run a general partnership you must pay social insurance contributions in the form of self-employed contributions. The self-employed contributions should be paid from income from an active business activity. Special payroll tax is paid from income from passive business activities.

The self-employed contributions are calculated based on the profit from the business activity. The social insurance contributions are administered by the Swedish Tax Agency and provide basic coverage in the form of, for example, sickness benefit and pension. They are tax deductible. The self-employed contributions below apply to seven qualifying days.

The 2020 tax year

A self-employed person’s social insurance contributions

Employer’s contributions

Retirement pension contribution

10.21 %

10.21 %

Survivorship annuity contribution

0.60 %

0.60 %

Health insurance contribution

3.64 %

3.55 %

Industrial injuries contribution

0.20 %

0.20 %

Parental insurance contribution

2.60 %

2.60 %

Labour market contribution

0.10 %

2.64 %

General payroll tax

11.62 %

11.62 %

Total

28.97 %

31.42 %

Reduction of self-employed contributions

If you pay the entire self-employed contribution, you will receive a reduction of 7.5 % on income up to SEK 200,000 if you receive income in excess of SEK 40,000 from your business. You can receive a reduction of SEK 15,000 at most.

Choose number of qualifying days

You can choose how many qualifying days you wish to have. You can increase or decrease the number of qualifying days and thus alter your self-employed contributions. You can choose 1, 7, 14, 30, 60 or 90 qualifying days.

The self-employed contribution to health insurance for the 2019 income year is calculated based on the following income percentages up to eight times the base price amount at the start of the year:

  • For insured with one qualifying day: 3.92 %
  • For insured with seven qualifying days: 3.64 %
  • For insured with 14 qualifying days: 3.54 %
  • For insured with 30 qualifying days: 3.34 %
  • For insured with 60 qualifying days: 3.10 %
  • For insured with 90 qualifying days: 2.92 %

Lower fees for older people

If you were born between 1938 and 1954, you will pay only a retirement pension of 10.21 per cent. The same applies if you have received full sickness benefit or full activity compensation for part of the year.

If you were born in 1954 or later and have been receiving a full retirement pension from the public pension system for the entire income year, you will pay only a retirement pension contribution of 10.21 percent and special payroll tax of 6.15 percent, i.e. a total of 16.36 percent for the period 1 January – 30 June 2019. As of 1 July 2019, you only need to pay the retirement pension fee of 10.21 per cent.

If you were born in 1937 or earlier, you do not have to pay any self-employment contributions or similar.

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Responsible: Swedish Agency for Economic and Regional Growth

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