Skip to content
Voitto Knowledge Base

Questions and Answers about Form K10

What is K10?

It is an appendix that owners of qualified shares in limited liability companies must submit to the Swedish Tax Agency together with their income tax return. A limited company is a joint stock company or an economic association where four or fewer people own more than 50% of the shares.

No, it is a declaration for natural persons who own the company and is not submitted by legal persons. However, both natural and legal persons can be owners of the company, and the declaration must then be submitted for the natural persons who own shares.

Do we need to draw up more K10 if we are more shareholders in the company?

Yes, the form is personal and must be submitted by everyone who owns qualified shares in the company. Qualified share means that you yourself or a close relative must be active to a significant extent in the company.

Do I need to submit K10 even if I do not withdraw any dividends?

Yes. It is important to fill in the K10 every year even if you have not taken out a dividend because the dividend space is saved for the next year. If there is no K10 drawn up from previous years, the Swedish Tax Agency can request an investigation where the company can show from year to year how they have arrived at the current balance during the year in which a dividend is taken. If this form is instead drawn up annually, you avoid such questions from the Tax Agency.

What is meant by distribution space?

It is the maximum amount a partner can withdraw in the form of a dividend for low taxation, currently at 20% tax. Amounts that exceed the distribution space are taxed as income from service, which is about 32% - 57% tax depending on how much salary the person took during the year.

How do I know what my limit amount is?

It is the so-called 3:12 rules that govern how much dividend you can take for low taxation. In order to be able to calculate your possibility of a dividend at the lower tax rate, you must first of all own the shares in the company at the beginning of the year. In order to take dividends for lower taxation in 2021, you therefore need to own the shares from 31 December 2020.

There are two rules to use to calculate the limit amount:

  • The simplification rule (standard rule): May only be used in one of the companies if you own qualifying shares in several limited companies. This rule is used if you do not meet the salary requirement or if you have not received any salary from your company. This means that you may use a standard amount as a limit amount:

    • Standard amount for the tax year 2020 – SEK 177,100
    • Standard amount for the tax year 2021 – SEK 183,700
    • Standard amount for the tax year 2022 – SEK 187,550

  • The main rule (the salary rule): The main rule is based on the company’s salary basis. If you qualify to use the main rule, you may use 50% of the company’s salary base as a limit amount. To be able to use this rule, you or a close person need to have earned a certain minimum wage in the company, based on a special calculation. Keep in mind that government support linked to employment must be deducted from cash wages during the year.

For more information on how the various rules are calculated, see the Tax Agency’s website on Dividend on qualified shares.

Does Voitto help me set up K10?

Yes, we can do that. It is an additional service and a quote is sent out at the beginning of each year (January-March). The offer is valid per form. If you want help with more declarations, ask your economist for more quotes.

Does Voitto help with my entire private declaration or other attachments?

No. We only help with the K10 form.