Go to main content

Taxes and contributions for trading partnerships and limited partnerships

Taxes and contributions for trading partnerships and limited partnerships

In a trading partnership or a limited partnership, the company itself is not taxed on its profits. Instead, the partners are taxed on their share of the profits. In addition, the company handles social security contributions and preliminary taxes for employees.

Your trading partnership or limited partnership must apply for F-tax approval and register for VAT and as an employer. The service also allows you to register your company for VAT and as an employer.

F-tax, VAT, employer and SNI

Anyone who will receive income from the trading partnership or limited partnership must complete a preliminary income tax return. The Tax Agency then assigns the partners a debited preliminary A-tax, known as SA-tax. The partners are therefore responsible for paying their share of the company's tax. The company is not taxed on the profit. Rather, each partner is taxed on their share of the profits. Partners can withdraw money from the company during the year. This is known as an own withdrawal.

The Swedish Tax Agency's tax calculator helps you to estimate how much in income tax and social security contributions you must pay as a sole trader. Please note that the calculator is not comprehensive and gives an approximate result.

The page Calculate your tax at the Tax Agency (in Swedish)

You can choose how many days you wish the qualifying period to have. By increasing or decreasing the number of days for the qualifying period, you can influence your social security contributions. You can choose 1, 7, 14, 30, 60 or 90 days for the qualifying period.

Your social security contribution to health insurance for tax year 2024 is calculated according to the following percentages on income, up to and including 10 times the price base amount at the start of the year:

  • For insured persons with a 1-day qualifying period: 3.77%
  • For insured persons with a 7-day qualifying period: 3.64%
  • For insured persons with a 14-day qualifying period: 3.53%
  • For insured persons with a 30-day qualifying period: 3.33%
  • For insured persons with a 60-day qualifying period: 3.08%
  • For insured persons with a 90-day qualifying period: 2.91%

For income over 10 times the price base amount, the percentage rate of 3.64 is applied in accordance with Chapter 3, Section 17 of the Social Insurance Contributions Act.

As a partner in a trading partnership or limited partnership, you must pay tax and social security contributions on your share of the profits. Your preliminary tax is calculated by the Tax Agency. Therefore, as a partner, you must submit a preliminary income tax return to the Tax Agency stating your share of the company's profits. Your share of the company's actual income is recognised in your income tax return.

Report changes in income

If, in the course of the year, you see that the profit will be more or less than you initially stated, you should report the change to the Tax Agency. Otherwise, you may risk having to pay residual tax, or risk paying too much tax during the year which you then are refunded when the preliminary tax is reconciled with the final tax. Changes can be made by submitting a preliminary income tax return

Correct your preliminary tax at The Swedish Tax Agency

When paying tax, you will pay preliminary tax in equal instalments every month during the tax year, normally on the 12th of each month. The size of the payments therefore does not vary with the profit or loss of each month. The preliminary tax consists of income tax (municipal and any State tax), as well as social security contributions.

After the annual tax return, a tax assessment notice is sent out by the Tax Agency showing the final tax. Each partner declares their share of the profit in an annex to the income tax return. Together with the profit from the business, the partners also recognise any provisions in the form of an allocation reserve or interest allocation. If you have paid too much preliminary tax, you will be refunded the excess amount. If you have a deficit, you will have to pay residual tax. In the event of minor differences, you can make a supplementary preliminary tax payment at the beginning of the coming year.

Social security contributions

If you operate a trading partnership or limited partnership, you must pay your own social security contributions. Individual social security contributions are payable on income from active business activity. A special employer’s contribution is paid on income from passive business activities.

Individual social security contributions are calculated on the profit of the business activity. Social security contributions are administered by the Tax Agency and provide a basic social safety net in the form of, e.g., sickness benefit and pension. Such contributions are tax deductible. Individual social security contributions below apply after a 7-day qualifying period.

Reduction of individual social security contributions

If you pay the individual social security contribution in full and you are neither a young person nor a pensioner, you can get a special deduction on your individual contributions. To qualify for the deduction, the surplus from active business activity must exceed SEK 40,000. You can deduct 7.5% of the figure providing your income from active business activities. The deduction is capped at SEK 15,000.
 

Table: Social security contributions

Swipe
Tax year 2024Social security contributionsEmployer contributions
Retirement pension contribution10.21 %10.21 %
Survivorship annuity contribution0.60 %0.60 %
Health insurance contribution3.64 %3.55 %
Industrial injuries contribution0.20 %0.20 %
Parental insurance contribution2.60 %2.60 %
Labour market contribution0.10 %2.64 %
General payroll tax11.62 %11.62 %
Total28.97 %31.42 %

Frequently asked questions about taxes and contributions for trading and limited partnerships