Final days for closely held company part owners to pay any possible income tax arrears

Monday the 12th of December is the final day for many closely held company part owners to pay any possible income tax arrears for income year 2015. This year, the Tax Agency sent out final assessments to the majority of part owners of closely held companies already in September, three months earlier than usual. As a consequence, tax arrears now need to be paid in at an earlier date.

Any tax arrears are to be paid to the Tax Agency no later than three motnhs after the final assessment decision has been sent out. In previous years, the owners of closely held companies have usually received their final assessment notification in December and, consequently, have not needed to pay their final tax before March.

This year, the Tax Agency has changed its rountines and have sent out the final assessment notifications three months earlier. Those of you who have received your final assessment in September 2016 are to pay any possible tax arrears on no later than 12 December 2016.

If one does not pay the tax in December, the Tax Agency will send out a payment reminder in the first weekend of January 2017. If the tax is still unpaid by the first weekend in February, the remaining tax debt will be registered with the enforcement service (Kronofogden).

It is important to remember that one must pay an interest expense fee on the tax account if one has a deficit in that account. After the maturity date, that is, from and beginning 13 December 2016, a high level of interest expense is levied (16.25 percent) on the entire amount until the tax is paid, or until the debt is registered for attachment and is presented to the enforcement service. When the debt is presented to the enforcement service, the interest expense level is low (1.25 percent).

A low level of interest (1.25 percent) is also paid on any possible tax arrears during the period 13 February -12 December 2016 (for the period 13 February – 2 May 2016 one pays interest only on that portion of residual tax in excess of SEK 30,000).

There are owners of closely held companies who have still not received their final tax assessment for income year 2015. You are not affected by the due date in December but are to pay your tax arrears three months after the date of your assessment from the Tax Agency. Your should receive your final tax assessment at the beginning of December and the tax should be paid in during March 2017.

Author: Mirja Hjelmberg, former employee at PwC