To continue on the theme of the coronavirus, the government has published further budget measures. This proposal concerns companies' options for deferring payment of employer's contributions, preliminary income tax on wages, and value added tax (VAT) (which is reported monthly and quarterly).
The company's own preliminary taxes are therefore not covered by the deferral. To do something about these preliminary taxes, a new preliminary tax return must be submitted for the company. Also, don't forget to update the information to FORA if you make changes to the workforce during the year.
The Swedish Tax Agency is the deciding authority in deferral matters and will assess who is granted deferral, how much and for how long. It is only from 30 March that the Swedish Tax Agency can decide on temporary deferral of payment. You will then be able to apply directly in ”My Pages” on the Swedish Tax Agency's website. You can also apply using form 4839, but you will receive the decision faster if you wait until 30 March and apply directly in ”My Pages”.
The proposal means that the Swedish Tax Agency can grant companies extensions for tax payments for accounting periods from January 2020 to September 2020. The extension may be granted for a maximum of three accounting periods and for a maximum extension period of one year. For value-added tax reported quarterly, extensions can only be granted for one accounting period.
Those who are granted a deferral will, with the proposal, have the opportunity to postpone the tax payment for employer contributions, preliminary tax on salary, and value added tax. The due date for payment will then instead be the payment date that falls closest after the deferral period has expired, according to the Tax Procedure Act (SFL).
For granted payment deferrals, a deferral fee of 0.3 % percent of the deferred amount will be charged per calendar month commenced, starting the month after the deferral was granted up to and including the month the deferral is due for payment. In addition to the deferral fee, the Swedish Tax Agency's general base interest rate will be calculated daily on the deferred amount from and including the day after it was granted. The current cost interest rate is 1.25 % annually.
This deferral fee of 0.3 % per month commenced and the base cost interest rate corresponds to a normal (deductible) interest rate of approximately 6.6 % for the entire year to borrow the money from the state.
The proposal aims to help companies experiencing temporary liquidity problems due to the current virus outbreak. According to the Swedish Tax Agency, companies will therefore be required to prove that their payment problems are only temporary and can be settled once the deferral period has expired, with an overall assessment being made on a case-by-case basis. An example, according to the proposal, of companies that will not be granted deferral includes those with significant tax debts.
Does your company require assistance with a deferral application, or do you have further questions regarding the deferral, please contact your MOORE office and we will help you.
