When a company has business operations in Sweden it must be determined whether or not it has a permanent establishment. A company is equated with a domestic company if it has a permanent establishment. “Company” also refers to sole traders and legal persons.
Having a permanent establishment incurs higher social security contributions, payroll tax, and the obligation to pay income tax. Sometimes companies are also obliged to register branches or companies that will require accounts to be filed and the preparation of annual accounts or annual reports. In some cases, companies benefit from lower taxes in Sweden (e.g. corporation tax is lower in Sweden than the UK).
This service clarifies what applies to your operations. Based on this, we make an assessment as to whether a permanent establishment exists or not.