Swedish withholding tax on dividends – reporting and payment
Dividends from Swedish companies to non-resident shareholders may give rise to Swedish withholding tax
Dividends from Swedish companies to non-resident shareholders may give rise to Swedish wit
Withholding tax (Sw. kupongskatt) is a tax levied on dividends from, among others, Swedish companies to primarily foreign shareholders. Its purpose is to ensure that foreign investors also pay tax on income generated in Sweden.
Who is responsible for reporting and paying withholding tax?
For dividends from Swedish companies that are not CSD-registered companies (most private limited companies), the company itself is responsible for reporting and paying the withholding tax to the Swedish Tax Agency (Skatteverket).
What does the company need to do to report withholding tax?
The company is obliged to collect information from the shareholders and complete the reporting even if withholding tax does not need to be deducted, e.g. where there are only Swedish domestic shareholders. There are specific Tax Agency forms for the information-gathering and reporting process (forms SKV3700, SKV2331 (aka 18a), SKV2332 (aka 18b) and KU31).
How has the process for reporting withholding tax worked historically?
Historically, the processes have often not been followed by distributing companies. However, the Swedish Tax Agency has announced that starting in the spring of 2024, they will increase controls to ensure correct taxation on dividends.
What happens if withholding tax is not paid in time?
If withholding tax is not paid in time, a late payment fee may be charged by the Tax Agency.
If you have any questions concerning the tax liability, reporting or payment processes in relation to Swedish withholding tax on dividends, you are welcome to get in touch.
Nils Schmid
Partner
KPMG i Sverige
Magdalena Wetterfors
Skatterådgivare
KPMG i Sverige
+46 72 083 37 66
magdalena.wetterfors@kpmg.se