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Taking dividends from a Swedish company

Better to pay direct or via parent company?

MisterDuck
post 28.Nov.2018, 03:17 PM
Post #1
Joined: 3.Jun.2015

I know some members here have their own AB company through which they channel their contractor earnings, so maybe some of you have encountered this problem before. I have a year end profit to be distributed and have a choice between taking that as a dividend to the foreign parent company (which I own 100%) or transferring the ownership of the AB to me personally then taking the dividend direct to myself, not going through the foreign parent company at all. In either case I'll be taxed in sweden on the money, as if it goes via the parent company I will declare it on my tax return when I subsequently take a dividend from the parent.

My question, which my Swedish accountant seems not well placed to answer, is which is most tax efficient?

The third way is to keep the money in the company, and put it towards next year's salaries, taking away some of the uncertainty over whether I can carry on paying myself a salary from my AB if the workload takes a dip.

What would you do and why?
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Solith
post 28.Nov.2018, 04:31 PM
Post #2
Joined: 9.Jul.2006

I would get a better accountant.
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sandon
post 29.Nov.2018, 09:33 AM
Post #3
Joined: 6.Jan.2007

Have you paid a salary from the AB?

If not the dividend is limited to around 165TK.

Do you need the funds?

If not i would leave it in the Company for the future.
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MisterDuck
post 29.Nov.2018, 12:24 PM
Post #4
Joined: 3.Jun.2015

QUOTE (Solith @ 28.Nov.2018, 04:31 PM) *
I would get a better accountant.


Thanks, I'm in the process of doing that actually.

QUOTE (sandon @ 29.Nov.2018, 09:33 AM) *
Have you paid a salary from the AB?. If not the dividend is limited to around 165TK. . Do you need the funds?. If not i would leave it in the Company for the future.


I have taken salary from the AB at around 27k/month (after tax). I don't need the funds out at this point in time, but wonder if it's a lost opportunity to not take out at 20% within this tax year. Surely taking it out later could result in more tax liability?
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sandon
post 29.Nov.2018, 12:57 PM
Post #5
Joined: 6.Jan.2007

Duck

Where are you based?

I am an accountant based in Stockholm roots from Aus.

How long have you had the Company and no by not taking the dividend from the Company doesn't effect you being able to access it in future years.

Drop me a line swaaccounting@hotmail.com and we can discuss things further
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sandon
post 29.Nov.2018, 01:02 PM
Post #6
Joined: 6.Jan.2007

Unfortunately the salary paid only gives you the the possibility to access 169tkr at 20% tax
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