Cross-border business activities
A foreign financial company that sells products or offers services to the Swedish market, without establishing a branch or similar establishment in Sweden, is considered to be conducting cross-border business activities here. The term “financial company” refers to a company performing banking, securities, investment fund- or financing operations, or enterprises that provide Pan-European Personal Pension Products (PEPPs).
Undertaking
Foreign financial companies that intend to conduct cross-border business activities in Sweden must provide the Financial Supervisory Authority (Finansinspektionen) with a written undertaking to file income statements to the Swedish Tax Agency. A company must submit this written undertaking when notifying the Financial Supervisory Authority that it intends to conduct business in Sweden.
Which types of income statements does a foreign financial company have to submit?
Income statements must be submitted by 31 January of the year following the income year in question.
The following income statements must be submitted for private individuals living in Sweden and estates of deceased persons:
- form KU20 – interest income
- form KU25 – interest expense
- form KU21 – bonds
- form KU30 – standard rate of capital income on investment savings account
- form KU31 – dividends, etc. on part-ownership rights
- form KU32 – divestment of part-ownership rights / bonds
- form KU34 – divestment/issuance/completion of options
- form KU35 – completion of futures
- form KU40 – divestment (sales) of shares in investment funds
- form KU41 – standard rate of capital income on shares in investment funds
- form KU50 – pension savings
- form KU52 – foreign insurance or foreign PEPP
- form KU80 – payment from abroad
- form KU81 – payment abroad
The following income statements must be submitted for legal entities with fiscal domicile in Sweden:
- form KU50 – pension savings
- form KU52 – foreign insurance or foreign PEPP
- form KU80 – payment from abroad
- form KU81 – payment abroad
Please note that the list above is not comprehensive; it includes only the most common types of income statements.
Income statements KU80 and KU81
Income statements KU80 and KU81 must be submitted for legal entities, natural persons and estates of deceased persons for the following direct or indirect payments above SEK 150 000:
- international transfers from Sweden by parties with unlimited tax liability here
- international transfers to Sweden to parties with unlimited tax liability here
- domestic transfers within Sweden between parties with unlimited tax liability here, and parties with limited tax liability here.
Income statement KU52
Income statement KU52 should be used for non-Swedish enterprises that provide cross-border insurance services or Pan-European Personal Pension Products (PEPPs) in Sweden without having a permanent establishment here.
The form must be submitted for those parties that are liable to pay yield tax in Sweden on foreign life insurance or PEPPs, including:
- individuals living in Sweden
- legal entities based in Sweden for tax purposes.
Life insurance refers to pension or endowment insurance, and occupational pension agreements that are comparable to pension or endowment insurance.
The information provided must relate to the capital base of the insurance or PEPP in question. Different methods are used for calculating the capital base for pension and endowment insurance (or comparable products). The capital base for a PEPP is calculated in the same way as for endowment insurance.
The capital base for pension insurance is the value of the insurance at the beginning of the tax year.
The capital base for endowment insurance is the value of the insurance at the beginning of the financial year, plus a portion of the value of insurance premiums paid during the financial year. Please note that you should only include 50 percent of the value of premiums paid during the second half of the financial year.
Please specify whether this statement of earnings and deductions is related to pension insurance, endowment insurance or a PEPP in field 654.
How to submit income statements
Changed method of submission
Income statements must now be submitted digitally and can no longer be submitted on paper, except for KU10, KU31 and KU55.
If you don't have a Swedish Bank-id, you need a Freja e-id to submit income statements via the Swedish Tax agency's e-service.
Use our e-service
Registration of foreign companies in Sweden
In order for a company to submit income statements to the Swedish Tax Agency, it must have a Swedish corporate identity number. To apply for a Swedish corporate identity number, click on the link below.
If you have any questions
For general inquiries regarding financial companies cross-border business activities in Sweden, use our contact form for assistance.