Sweden: Tax treatment, “invoicing” director’s fees | KPMG | GLOBAL
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Sweden: Tax treatment, “invoicing” director’s fees by private limited company

Sweden: Tax treatment, “invoicing” director’s fees

The Swedish Council for Advance Tax Rulings (Skatterättsnämnd) has decided that earlier, more restrictive precedence from 1993 applies in determining whether a company director’s fees may be "invoiced" by a private limited company.


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This ruling from the Council for Advance Tax Rulings is contrary to the position of the Swedish tax authority (Skatteverkets)—a position provided in guidance issued by the tax authority in 2008. The Council for Advance Tax Rulings concluded that for purposes of "invoicing” a company director’s activities from a tax perspective, the “invoiced activity” must be limited in time and must pertain to a particular assignment—criteria set forth in a prior decision of the Supreme Administrative Court (RÅ 1993 ref.55).

Uncertain tax treatment

Many companies have followed the tax authority's 2008 guidance to determine the basis on which fees for a director’s activities may correctly be invoiced by a private limited company. However, in light of the ruling from the Council for Advance Tax Rulings, it is uncertain whether that guidance continues to be correct. Thus, it is not clear when may a director’s fee be correctly invoiced by and taxed within that director’s own private limited company. 

The tax authority has filed an appeal, and has indicated that it will not revise its guidance or position until the Supreme Administrative Court resolves this issue.


Read a 2017 report (English) and (Swedish) prepared by the KPMG member firm in Sweden

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