Sweden Accounting & Tax Glossary

An Aktiebolag (AB) is a Swedish limited company, the most common business structure for entrepreneurs and SMEs. Minimum share capital is SEK 25,000. The AB is registered with Bolagsverket and is a separate legal entity with limited shareholder liability. At least one director must be resident in the EEA.

Arbetsgivaravgifter are Swedish employer social contributions, payable on top of gross salaries. The standard rate is 31.42% of gross salary in 2025. They cover pension, health insurance, parental leave, unemployment, and other social benefits. Reduced rates apply for workers under 26 and over 65.

Bolagsskatt is Swedish corporate income tax, charged at a flat rate of 20.6% on the taxable profits of Swedish limited companies (aktiebolag). There is no regional variation. The rate was reduced from 21.4% in 2021.

Expansionsfond is a Swedish tax deferral mechanism available to sole traders (enskild firma) and partnerships, allowing them to defer tax on reinvested profits at the corporate rate of 20.6% rather than the personal income tax rate of up to 52%. The expansion fund becomes taxable when withdrawn, at which point the remaining 31.4% personal tax differential applies.

Inkomstskatt is Swedish personal income tax on employment, self-employment, and certain other income. It combines a municipal (kommunalskatt) flat rate of approximately 32% with a national (statlig) surcharge of 20% on income above SEK 598,500 (2025). The effective top marginal rate is around 52%.

The K10 (for AB shareholders) and K12 (for partnership interests) are Swedish tax forms used to separate dividends and capital gains taxed at the flat 20% rate within the gränsbelopp (threshold) from income taxed at the higher 30% or employment income rate. The underlying rules are the 3:12 rules (fåmansföretagsreglerna), applying to closely held companies.

Moms is Swedish VAT (mervärdesskatt). The standard rate is 25%, with reduced rates of 12% for food, restaurant meals, and hotels, and 6% for newspapers, books, sports, cultural events, and public transport. The registration threshold is SEK 120,000 annual turnover.

Periodiseringsfond is a Swedish tax equalisation reserve that allows companies and sole traders to defer up to 25% of their taxable income into a reserve, reducing the current year's tax. The reserve must be reversed (added back to income) within 6 years. An annual interest charge of 1.5% multiplied by the government lending rate applies.

ROT (Repairs, Conversions, Extensions) and RUT (Cleaning and Household Services) are Swedish consumer tax deductions allowing a 30% reduction in labour costs for qualifying work. ROT maximum is SEK 50,000 per person per year; RUT maximum is SEK 75,000 per person per year. Only individuals can claim these deductions.

F-skatt (F-skattsedel) is a Swedish tax approval status for self-employed individuals and businesses, indicating that the holder is responsible for paying their own preliminary tax. When a client pays an F-skatt holder, the client is not required to withhold tax (A-skatt), making F-skatt essential for freelancers and sole traders.

Personalliggare is a mandatory digital employee register required in certain industries including construction, hairdressing, restaurants, and car repair workshops. It must record every worker on site and be accessible to Skatteverket inspectors for real-time verification. Missing or inaccurate entries result in a kontrollavgift (inspection fee).

Skatteverket is the Swedish Tax Agency, responsible for tax assessment, collection, population registration (folkbokföring), and identity numbers. All company and individual tax filings — including moms, arbetsgivardeklarationer, and income tax returns — are submitted via Skatteverket's e-tjänster (digital services).