What dividend tax means for you as a shareholder
For you as a shareholder, dividend tax determines how much of the dividend you actually get to keep after tax. In a close company (fåmansbolag, a Swedish tax category), dividends up to a certain threshold amount (gränsbelopp) can be taxed as capital income, while the excess is taxed as employment income.
This means that the same dividend can be taxed differently depending on your situation as an owner. Understanding the rules is therefore crucial to making the right decisions about dividends.
Factors that affect dividend tax
How a dividend is taxed is governed by several interacting factors.
- Whether or not the company is a close company (fåmansbolag)
- Whether the shares are qualified shares (kvalificerade andelar)
- The size of your threshold amount
- How large a dividend is taken out
- Whether the dividend exceeds the permitted capital allowance
When these factors are weighed together, it is determined whether the dividend is taxed as capital income or employment income, and at what tax rate.
When dividend tax becomes a central issue
Worth bearing in mind
Dividend tax is particularly important for owners of close companies, where taxation is governed by the 3:12 rules. In these companies, the size of the dividend, the salary drawn and the ownership stake affect how much is taxed as capital income and how much as employment income.
Dividend tax is also relevant in listed companies, but there the rules are often simpler and more predictable. The difference means that planning matters more in owner-managed companies.
Frequently asked questions
How high is dividend tax in close companies?
Dividends within the threshold amount are taxed as capital income, while the excess is taxed as employment income.
Is dividend tax the same for all shareholders?
No, the taxation depends on the type of company, the owner's role and the rules that apply.
Do dividends always have to be taxed?
Yes, a dividend is taxable income for the recipient.
Does the salary drawn affect dividend tax?
Yes, the salary drawn can affect the size of your threshold amount under the 3:12 rules.
When is dividend tax paid?
The dividend is taxed in the year it is received and reported in the tax return.