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Accounting during limited company bankruptcy

Learn more about bankruptcy accounting. This includes accounting of revenue and the reversal of funds.

As representative of a company, you must provide employer declarations and income statements until the decision on bankruptcy. Often, the receiver takes over this responsibility, but you must agree on this in such cases. The receiver is only obliged to submit an employer's declaration and income statements for the compensation paid by the bankruptcy estate. 

Company income tax return 

An income tax return must be submitted until the company is deregistered, regardless of whether there is any income to declare or not. It is the company's representative who is responsible for filing the income tax return, not the receiver. This applies both to the period before the bankruptcy begins and during the bankruptcy. 

Taxable income in bankruptcy 

As a rule, the company is obliged to pay tax on all its income. This also applies when the company is declared bankrupt. 

If the company has taxable income in bankruptcy, it must be declared in the usual way in the tax return. This applies, for example, if the company is a property owner. The company must then pay property tax for as long as it owns the property. Other examples of taxable income are capital gains on property sold by the bankruptcy estate and claims invoiced by the receiver. 

Funds 

During bankruptcy, tax allocation reserves and compensation funds shall be reversed and taxed. This means that the amount reversed must be included as income in the assessment for the tax year in which the bankruptcy was declared. 

Partners' income tax return 

The shares are considered divested on the day the company is declared bankrupt, i.e., when the bankruptcy is declared. Capital loss on qualifying shares is reported on the Swedish Tax Agency's form K10. 

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

Tax account 

The tax account is not affected by the bankruptcy of the company. However, the tax account statements will be sent to the receiver until the bankruptcy is concluded. 

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