Taxes and fees during liquidation of limited companies

If company assets are taken over by a partner, this is known as an "own withdrawal”. 

Taxable withdrawals for companies 

Own withdrawals affect the company's income tax returns and VAT reporting. Examples of taxable own withdrawals are equipment  and stocks. Depreciated equipment that is withdrawn must also be taxed. 

Income tax return 

For withdrawal taxation, the company recognises the asset’s market value as income on the income tax return. The market value is the price that the company would have received if the asset had been sold to an outsider. 

VAT 

If the company is VAT registered, the company must declare output VAT at the time of withdrawal taxation. VAT on own withdrawals is calculated based on the purchase price or the market value excluding VAT, whichever is lowest. If the purchase price is missing, you can use the cost price instead. The cost price consists of all the costs you have had to produce the goods.  

Partners 

Upon liquidation, your shares are considered sold. The liquidation therefore means that you will be taxed in the same way as during the sale of shares. When you make your own withdrawals during liquidation, the withdrawals are considered as compensation for your share(s). The compensation can be taxed both in services and capital. You report the sale on the Swedish Tax Agency's form K10 if the shares qualify. Capital loss is also declared on the same form. 

Download the Swedish Tax Agency's form K10 (in Swedish)

Paying the right preliminary tax 

The preliminary tax paid by the company will probably no longer be correct when the company ceases activity. This is because the company's result is affected by the sale of stocks, own withdrawals and funds to be reversed for taxation. In order to pay the correct preliminary tax, the liquidator should therefore file a new preliminary income tax return for the company. 
 
If the company does not submit a new preliminary income tax return, it will continue to pay the same preliminary tax as before. 

Correct your preliminary tax at The Swedish Tax Agency