Tax Planning for Limited Companies 2024/2025 in Sweden

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As the year-end approaches, there are several key aspects to consider for optimizing both your personal and business finances. Here we present some effective strategies, such as maximizing low-tax dividends under the K10 rules, utilizing accrual funds, making pension contributions, reinvesting in the company, or in the stock market. Would you like a customized solution tailored for your specific business? Don’t hesitate to contact us for a free consultation to begin with.

Salary Optimization for Dividends (K10)

By withdrawing the right salary level, you can maximize your low-tax dividend according to the K10 rules. All limited companies are entitled to a standard taxed dividend (simplified rule), where the threshold for 2025 is 204,325 SEK. By withdrawing a certain salary in 2024, you can increase the dividend threshold. For example, a single employee can raise the threshold for low-taxed dividends to approximately 300,000 SEK, without exceeding the limit for state income tax. If you have employees, the threshold can be further increased – we’ll assist you in calculating how to maximize your dividend.

If you want to take larger dividends in 2025, you need to make some decisions before December 2024. Be proactive and contact us so we can help you with the planning.

Allocating to Accrual Fund

Deferring tax through an accrual fund is an effective tool for smoothing out profits and taxes over the years. You can set aside up to 25% of the company’s profit into an accrual fund and defer tax for up to six years. During this time, the funds can be used for investments in the company or stock market placements to generate additional returns on capital.

Pension Contributions

Making pension contributions through the company is a smart way to reduce the company's earnings while securing your own future. The company can choose to make tax-deductible contributions to an occupational pension plan or set up a direct pension plan for you. Alternatively, as an individual, you can deduct up to 35% of your salary for private pension savings, up to a maximum of 573,000 SEK (2024). This is an effective way to combine tax relief with long-term savings.

Reinvesting in the Company or Stock Market

You can choose to reinvest in the company by purchasing equipment, hiring staff, or investing in marketing, which strengthens the company and opens up new opportunities. Alternatively, you can place capital on the stock market through a capital insurance. You get a good leverage and low taxation as long as the capital remains in the company. When the capital is withdrawn from the company, it is taxed as dividends or salary, depending on what is most beneficial.

Tailored Plan According to Your Needs

If your business is going well and you have a surplus approaching year-end, there are many opportunities for you as a limited company owner. Much depends on your short- and long-term goals – do you want to maximize your current return or focus on growing the business? Each strategy requires a tailored plan, based on both personal and company-specific conditions. Contact us today, and we’ll help you plan and optimize both your business and personal finances.

Ali Sherifi

With a solid background in economics and a strong passion for technology, I strive to develop modern accounting solutions. My goal is to simplify and streamline financial management for business owners.

Contact us today for a free initial consultation, and let us help you create a tailored financial plan.

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