In certain circumstances, you may be able to get more time to pay tax (a payment respite). You must show that exceptional circumstances apply. An application for a payment respite does not stop the debt from being submitted to the Swedish Enforcement Agency while the application is being processed. Therefore, it is very important that you apply as soon as possible.
A new type of payment respite was made available 30 March to companies financially affected by coronavirus. Companies can apply for temporary payment respite of employer contributions, deducted tax and VAT.
A payment respite is viable for someone who has involuntary temporary payment problems. By receiving a short payment respite there is a possibility for that person to raise the sufficient money. For instance, this can be done by collecting outstanding payments from customers or by selling assets.
If your application lacks any relevant information that we require to make our decision then we will contact you in order to receive that information. If the Swedish Tax Agency decides not to grant you a payment respite, we will then contact you so that you may state your opinion on the matter before the decision is finalised.
It is only when you receive a final decision where a payment respite has been granted that the agreed amount is exempted from the Swedish Enforcement Agency’s collection total.
You can be granted a payment respite if exceptional circumstances apply. Exceptional circumstances include when you are unable to make payments due to sickness, accidents or unemployment. It is contingent upon your ability to can show that you will actually be helped by receiving a short payment respite. It has to be probable at the time of your application that you will be able to pay your taxes at the end of the respite, for instance through adapting to your financial circumstances with the help of the Swedish Social Security Agency (Försäkringskassan) or a recognized unemployment benefit fund, etc.
If at the time when you apply it is already apparent that you will not be able to pay your outstanding taxes even if the respite is granted, then a respite will not be granted since the State then risks making a loss.
In some cases, you may be deemed as being under exceptional circumstances if, through no fault of your own, you need extra time to collect payment from customers, or if an employer, contractor or client has cancelled/defaulted on payments or has been declared bankrupt. When you apply you must show that it is possible for you to pay the taxes before the respite ends.
Payment respites are restrictively granted by the Swedish Tax Agency, especially to businesses or those applying for respite for large tax payments.
Normally, a private individual is not granted a respite longer than three months. A business can be granted a respite of two months at most. It is a normal part of business operations to be able to cope with temporary cash flow issues. The Swedish Tax Agency gives payment respite to businesses restrictively, so as not to harm competition.
You can be granted a respite for an amount that is considered reasonable in view of the circumstances. You can only be granted a respite for an amount that you arranged or can arrange to pay after the respite. If the amount that you apply for is greater, you will normally only be granted a respite for a part of the debt.