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Return to old function as self employed?

Skatt etc...

Loeske17
post 7.May.2014, 12:38 PM
Post #1
Joined: 13.Jan.2011

Hi all!

Well it´s been a while since I´ve been here. Since then I have moved to Sweden (3-ish months ago), married my Swede and am busy working on Swedish (SFI på distans is a godsent, don´t have to wait for others). I was a bit of a stubborn ass concerning employment in Sweden without Swedish though, thinking with my 4 other languages, Master´s degree and international work experiences I´d surely find a job. Ehm. No.

Anyway, it seems my previous employer is missing me and since I can carry out my work from abroad (Project Manager) he as agreed to find out if we can set something up. They are based in the Netherlands but the company has partners all around the world (including SE) so they are considering letting me invoice them for hours. However, I am a total dumb dumb when it comes to taxes other than in my home country and was hoping for some help. Here are what I think should be the relevant stats:
1) I will be working and living permanently in Sweden (thus paying tax here, I got that far in my own research)
2) I have a personal number on the basis of being married to a Swede
3) I do not yet have a Swedish bank account
4) My work will consist of services only (no transportation of goods)

Where do I start? What would be the simplest setup? Do I have to start my own company and apply for F-skatt? How would that work?

Any and all advice from tax savvy persons on this forum would be greatly appreciated. Please let me know if I have left out any relevant information...

Thanks so much in advance!
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sandon
post 7.May.2014, 03:11 PM
Post #2
Joined: 6.Jan.2007

Hi
Where do I start? What would be the simplest setup? Do I have to start my own company and apply for F-skatt? How would that work?
The simpliest set up is a sole trader Enskild firma
This can be set up on-line check out www.versamt.se this will start the company as well as F-skatt approval.

I am working as an accountant if you require any further help send me a mail swaaccounting@hotmail.com and i can answer any further queries

Good luck

Steve
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ChocOwl
post 7.May.2014, 07:46 PM
Post #3
Location: Södermanland
Joined: 17.Jan.2011

http://www.thelocal.se/discuss/index.php?showtopic=63168
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Rick Methven
post 9.May.2014, 01:25 PM
Post #4
Location: Linköping
Joined: 30.Nov.2005

You would be best advised to set up an enskild firm. Nowadays you can fix it up for free and quickly at skatteverket. You will have to register for F skatt and estimate how much you will earn in the first year, but you can delay starting to pay tax for a few months until you have an income coming in. You will also have to register for Moms, but as you will be invoicing an EU company outside Sweden, you will not have to invoice vat. You willhowever be able to claim vat back on business related expenses.
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Loeske17
post 12.May.2014, 02:44 PM
Post #5
Joined: 13.Jan.2011

Thanks all, your answers really help!

I have managed to obtain a swedish bank account and should thus soon have access to e-legitimation, making it possible to apply for F-skatt (Sweden...the land of steps).

I was all set to do the above and begin my sole trader company (thanks so much on the confirmation that I will have to apply for a moms permit but do not need to charge moms for services in other EU countries by the way). However my father in law who says it is not possible to be considered a sole trader (enskildfirma) unless you have more than one customer...does anyone know this for a fact?

Thanks so much again for the information thus far, really appreciate it!
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LauraCristescu
post 12.May.2014, 03:52 PM
Post #6
Location: Stockholm
Joined: 8.Nov.2013

I know that's what they say, but i don't think they can actually check in any way..
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LLHope
post 12.May.2014, 04:09 PM
Post #7
Location: Stockholm
Joined: 1.Jan.2014

QUOTE (LauraCristescu @ 12.May.2014, 03:52 PM) *
I know that's what they say, but i don't think they can actually check in any way..

The purpose of having more than 1 customer is to ensure that it isn't just a way to minimise tax liabilities. Having only 1 customer then the tax office can declare that you are technically an employee of that customer and should be treated as such for tax purposes. The burden of proof falls to you to show that you have more than 1 customer.
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LauraCristescu
post 12.May.2014, 04:14 PM
Post #8
Location: Stockholm
Joined: 8.Nov.2013

Yeah but as a freelance sometimes in dry spells or when you start you start with 1 recurring client, and in time as you get more projects you expand.
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skogsbo
post 12.May.2014, 04:53 PM
Post #9
Joined: 20.Sep.2011

QUOTE (Loeske17 @ 12.May.2014, 02:44 PM) *
should thus soon have access to e-legitimation, I was all set to do the above and begin my sole trader company (thanks so much on the confirmation that I will have to apply fo ... (show full quote)

pretty sure you don't need e-legit to apply, you can apply in person, by filling in the form. Or at least you could a few years ago.

'1 client'; You need to stretch the truth initially, you are starting a new business, you are currently tendering to several clients and don't yet know how things will shape up precisely. wink.gif But, as said, they simply say "prove it!"
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Silberfüchschen
post 12.May.2014, 05:28 PM
Post #10
Location: Europe
Joined: 24.May.2012

QUOTE (LLHope @ 12.May.2014, 04:09 PM) *
The purpose of having more than 1 customer is to ensure that it isn't just a way to minimise tax liabilities. Having only 1 customer then the tax office can declare that y ... (show full quote)

What are the tax benefits to work as a sole trader as compared to an employee? Would the tax office really care?
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TLSucks
post 12.May.2014, 06:57 PM
Post #11
Joined: 12.Dec.2013

It is not so much about the tax as it is about employment laws. The tax is about the same, but without proper regulations on what is defined as self-employment a lot of employers could circumvent labour laws (e.g. pay-roll tax, vacation, sick-pay, insurances, etc) by making all of their employees self-employed. Thus there are European regulations about this.

If you as a self-employed only have single client, it may cause both legal and fiscal implications for you AND the client, so it is best to check the regulations carefully.

If you have regular monthly income the easiest way is to simply work as an employee, i.e. you just notify the tax office that you are employed by a foreign entity. The foreign employer is not bound by Swedish labour regulations. You will then pay monthly income tax and you can choose if you or the employer pays pay-roll tax (in the latter case the pay-roll is lower but if the employer fails to pay tax you might still be liable for it yourself.)
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LLHope
post 12.May.2014, 08:09 PM
Post #12
Location: Stockholm
Joined: 1.Jan.2014

QUOTE (TLSucks @ 12.May.2014, 06:57 PM) *
The tax is about the same

Tax difference exists and is about volume. A company pays 31.4% employer charges, where-as someone running an Enskildefirma pays own charges of 28.97%, whilst it doesn't seem much if you factor the difference up
for 100's or 1000's of employees it does make a difference. In addition to this, the most common abuse
of AB's and Self-employed is by Executives/Senior people to reduce the tax burden even further. However,
up to a income of around 430.000:- the taxes are more-or-less the same even between an AB / Enskildefirma. There are also deductions that can be made that can be carried across for the first 5 years of start-up that you cannot do as an employee, and more.

QUOTE (TLSucks @ 12.May.2014, 06:57 PM) *
The foreign employer is not bound by Swedish labour regulations.

If the employer is within the EU then YES they are. Anyone working in Sweden is bound by the labour law, it is the labour law! biggrin.gif

Plus, if the employer is within the EU, then You also have the benefit that no matter which jurisdiction the employment contract was signed under, case-law sides with the employee as the European Court consistently says that if your contract is under one jurisdiction but you are working in another the majority of the time, then whichever jurisdiction is most favourable to the employee is to be applied if dispute arises. Sweden has many ground laws with regards employment that cannot be overridden in contracts that are better than other EU member states. e.g. There are minimum notice periods based upon length of employment, rules for termination, redundancy, minimum holidays etc.
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TLSucks
post 13.May.2014, 12:10 AM
Post #13
Joined: 12.Dec.2013

QUOTE (LLHope @ 12.May.2014, 07:09 PM) *
Tax difference exists and is about volume. A company pays 31.4% employer charges, where-as someone running an Enskildefirma pays own charges of 28.97%, whilst it doesn't s ... (show full quote)

A foreign employer without permanent place of establishment only pays 21.54%...


QUOTE (LLHope @ 12.May.2014, 07:09 PM) *
If the employer is within the EU then YES they are. Anyone working in Sweden is bound by the labour law, it is the labour law! biggrin.gif


Ok, I've only had non-EU employers before.
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LLHope
post 13.May.2014, 12:37 AM
Post #14
Location: Stockholm
Joined: 1.Jan.2014

QUOTE (TLSucks @ 13.May.2014, 12:10 AM) *
A foreign employer without permanent place of establishment only pays 21.54%...

An employee that is resident in Sweden, even working from home, opens the door for the tax authorities in Sweden to declare that that is permanent establishment and therefore liable for full taxation.

Point to remember, Swedish tax authorities are admired by many countries, it is even classed as one of the most effective and efficient Public Authorities in Europe! (Lucky Us! rolleyes.gif )
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sandon
post 13.May.2014, 07:31 AM
Post #15
Joined: 6.Jan.2007

Hi
As to your father in laws comment the law changed in 2009.
Have a look at the link but your Fskatt should be approved.
If you are looking for someone that works in the industry send me a mail
swaaccounting@hotmail.com


http://www.skatteverket.se/rattsinformatio...2580002042.html
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