On 25 March 2020, the government submitted a proposal to temporarily change the rules regarding. The proposal will only affect sole traders and individuals who are partners in Swedish partnerships.
The proposal means that the taxable profit for 2019 can be set aside with 100 percent to a deferred tax reserve, up to an amount of 1 million Swedish kronor. Currently, the rules are such that 30 per cent of taxable profit can be allocated to a tax allocation reserve. For many, this will mean that the taxable profit can be reduced to zero pounds, thereby reclaiming the preliminary tax paid during the income year 2019. Those with a tax-assessed profit exceeding 1 million pounds have instead the possibility to reduce the result for the income year 2019 by 1 million pounds through allocation to a tax allocation reserve.
Regarding the repatriation of profit, the current rules still apply, in other words, repatriation no later than six years.
The easiest way to reclaim advance tax that has already been paid into the tax account is to request a reassessment of the provisional income tax return. The review can be carried out up to and including 30 June 2020.
Making deductions in the ordinary tax return is also an option, and you will then receive the tax back after the final tax assessment notice has been sent out, with the repayment taking the form of a tax refund. Those who have already submitted their tax return for the income year 2019 but wish to take advantage of the government's proposed tax relief will have to submit a new tax return.
The government proposed that the proposals should take effect in April 2020 and that they should apply retroactively for the 2019 tax year.
If you need help accessing any of the government's support packages, please contact your MOORE contact person or get in touch with your local MOORE office.
