Have you started thinking about the 2021 declaration? Declaring can feel difficult and it is not easy to keep track of which forms you need to fill in and send to the Swedish Tax Agency. We go through everything you need to think about and link to the Swedish Tax Agency’s various income tax returns so that you can easily find what you need for your particular company. We go through the annual accounts and annual report further to see what your company needs to do towards the end of the financial year.
Vad ska deklareras?
The declaration explains the company’s financial position, ie. assets, income, expenses and liabilities. To explain the company’s assets and liabilities, a balance sheet report is used that can easily be produced with bookkeeping program. The company’s income and expenses are reported in the income statement.
According to the bookkeeping Act, companies with a turnover of more than SEK 3 million per year must prepare annual accounts. If you have a sole proprietorship and a turnover of less than SEK 3 million per year, a simplified annual report is sufficient.
All companies close each financial year with an annual financial statement. The annual accounts are a summary of the current bookkeeping that took place during the year. The purpose of annual accounts is to get an overview of the company’s financial position.
Individual companies, trading companies with physical partners and non-profit associations and religious communities with a net turnover of no more than SEK 3 million can choose to end the financial year with simplified annual accounts. In a simplified annual report, only a balance sheet and an income statement are required.
Annual accounts must be compiled if the company is considered a small company and consists only of natural persons. An annual balance sheet, income statement and additional information must be included in the annual accounts.
Depending on the size of the company, you may need to prepare an annual report if the company has at least one legal entity or is counted as a larger company. If a company meets at least two of these requirements in the last two years, the company is considered larger.
-The company has an average number of employees over 50 people
– Total assets of the company exceeded SEK 40 million
– The company’s net sales have amounted to more than SEK 80 million
An annual report is a public document and must be sent to the Swedish Companies Registration Office. If you have a small trading company with a legal entity, you can choose to prepare your annual report according to the simplified K2 regulations or according to the K3 regulations. If you have a company that is considered larger (see definition above), you must always prepare the annual report in accordance with the K3 regulations.
An annual report consists of a board of directors’ report that provides an overview of the company’s position, development and results. As with financial statements, the income statement and balance sheet should be included, along with notes and a report on changes that occurred during the financial year (regulations K3).
If the company is considered larger, it is subject to auditing obligations. If you have a small trading company with at least one legal entity and meet at least two of these requirements during the last two financial years, you also have an auditing obligation and you must then have a qualified auditor who examines the annual report.
1. Has more than 3 employees
2. Turnover more than SEK 3 million per year
3. Has a balance sheet total of more than SEK 1.5 million
If you have an audit obligation, the audit report must be sent together with the annual report to the Swedish Companies Registration Office.
Depending on what kind of company or association you run, you need to fill in different forms. Should it need special forms for the company, they will be sent out by the Swedish Tax Agency. But as a rule, you who declare your company or association only need an extra form.
In order to declare an individual company, you need to end the financial year with a simplified financial statement for sales of less than SEK 3 million. Should your turnover exceed SEK 3 million, you need to make a regular financial statement (read more about simplified and regular financial statements above). The form for the declaration for an individual company is called NESupplied with Income Tax return 1 . Income tax return 1 It applies to both sole proprietorships, private individuals and partners in limited liability companies or trading companies.
In a trading company, the financial year ends depending on the size of the trading company and whether it consists of natural or legal persons with an annual report or an annual report. For the trading company, you submit anIncome tax return 4. One of the owners of the trading company declares the entire company, while the other partners declare with N3A forms for natural persons and N3B for legal entities. The financial year of the company decides when the tax return is submitted to the Swedish Tax Office.
Aktiebolag eller ekonomisk förening
In a limited company or economic association, the financial year ends with an annual report. Depending on whether it is a smaller or larger limited liability company, the annual report can be applied according to simplified regulations K2 or regulations K3. The form you use to declare a limited company or economic association is Income Declaration 2. If you are a partner in a limited company, you must declare it in the form named K10. Like a trading company, your submission of the tax return is determined when the company’s financial year ends.
Ideell förening, stiftelse eller trossamfund
A Non-profit association, foundation or denomination must submit Income Tax return 3 If the turnover is less than SEK 3 million, you can end with simplified financial statements and it applies to regular financial statements with a turnover exceeding 3 million. Not all associations need to declare only whether they have tax-exempt income and whether they meet the requirements to be a nonprofit. In such cases, you can apply without having to declare. If you are approved by the Swedish Tax Agency, you do not have to declare in 5 years. The application for not having to declare must be submitted to the Swedish Tax Agency 1 month before the end of the financial year. Depending on when the financial year ends, the tax return must be submitted.
Inlämning av deklaration
The declaration can be submitted via paper or digitally. Right now, you can transfer files digitally to the Swedish Tax Agency through their file transfer service. Files that can be transferred with the service are periodic compilation, agency deferral, Income Tax return 1 and 2 and appendices to Income Tax returns 1-4. By collecting your documents and forms digitally, you can access them wherever you are.
We hope this information has been helpful to you regarding your upcoming return. If you feel that you want extra advice or help with financial statements and annual reports, you are warmly welcome to contact us at Simson’s accounting firm. We work with great personal commitment and together we create solutions tailored to your company’s needs. Our goal is to help your company maximize profits and reduce costs.