The company income tax return – key dates and common pitfalls

The income tax return is one of the most important annual obligations for limited companies. Missing a deadline or making mistakes can result in late filing penalties, tax surcharges and unnecessary additional work. Below we outline the most important dates for the year, common pitfalls, and what is new in the tax return process.

For companies with a financial year ending on 31 December 2025, the income tax return must be submitted no later than 3 August 2026. This applies regardless of whether the return is filed digitally or on paper. Missing this deadline can quickly become costly and create unnecessary administration.

If the tax return is submitted late, the company may be charged:

• A late filing penalty of SEK 6,250 (up to three times)
• A tax surcharge

If the return is not submitted at all, the company may be subject to discretionary taxation, and there is also a risk that the company’s F-tax approval may be withdrawn.

It is therefore important to have clear routines in place to ensure that the income tax return is submitted on time.

New e-service – easier digital filing

One new development this year is that the Swedish Tax Agency (Skatteverket) has launched a new e-service that allows the entire tax return to be submitted digitally even if you do not use a tax return software. This means that you can handle:

• the main form
• financial statements (INK2R)
• tax adjustments (INK2S)
• appendices

For many companies, this provides a more efficient way of working, although there are still alternative ways to submit the tax return, such as on paper, via file transfer from tax return software, or by combining digital and paper submission.

Structure of the tax return

Income Tax Return 2 consists of several parts which together provide a comprehensive picture of the company’s taxation:

• Front page (main form)
• INK2R – financial statements
• INK2S – tax adjustments
• Any appendices

The tax return relating to the 2025 tax year contains no new elements this year, but there are several details that are important to pay attention to.

Important checks on the front page

The taxable result must be transferred from INK2S. When doing so, it is important to consider whether the company has carried-forward losses from previous tax years. If there are restricted tax losses, the taxable result reported on INK2S may differ from the amount shown on the front page.

Another common mistake occurs when completing the basis for special payroll tax and yield tax. It is important to remember that what should be stated is the basis for calculating special payroll tax and yield tax, not the special payroll tax or yield tax themselves.

For companies that own property, additional steps are required. The basis for property fee or property tax must be completed depending on the type of property. These details are provided in the pre-populated tax return issued by the Swedish Tax Agency, but it is the company’s responsibility to verify that the information is correct. If anything is incorrect, the figures in the tax return should not be changed. Instead, the company must submit an “other information” note with the tax return explaining why the basis should be adjusted. Remember to tick the box “other information” on the front page when this is done.

The front page also includes the possibility to claim a tax reduction for renewable electricity. Under current legislation, a company may receive a maximum tax reduction as follows:

• Maximum 30,000 kWh
• SEK 0.60 per kWh
• Maximum reduction: SEK 18,000

It is important to reconcile these figures against the control statements received from the supplier.

The financial statements must reflect the annual accounts

When completing INK2R, the main principle is that the information should reflect the annual accounts. This means that both the balance sheet and income statement must be presented in the same way as in the company’s annual report. The Swedish Tax Agency uses this information as the basis for its review, making accuracy and consistency particularly important.

Tax adjustments – risk of errors with tax consequences

INK2S is one of the most complex parts of the income tax return. This is where the accounting profit is adjusted to a taxable result.

Adjustments may, for example, relate to:

• items recorded in the accounts that are not tax-deductible
• items not recorded in the accounts but which affect taxation

Common examples include:

• add-back of tax on the year’s result (including deferred tax)
• non-deductible expenses, such as entertainment or gifts
• tax-exempt income, for example dividends on qualifying shares

Several boxes in the tax return capture multiple different tax adjustments. Given that many items are aggregated, our recommendation is that the company always attaches a specification showing how the amount has been calculated. For example, many non-deductible expenses are reported in box 4.3c.

Tax adjustments relating to property

For companies that own property, additional adjustments are usually required. A common scenario is that accounting depreciation does not correspond to tax depreciation allowances. In such cases, adjustments must be made in the tax return.

If a company has sold a property, this will likely give rise to adjustments in the tax return. When reporting this, it is important to consider the following:

• adjust for the difference between the accounting and tax capital gain or loss (in the event of a loss, check whether it is covered by the property loss ringfencing rules)
• add back previously claimed depreciation allowances

It is important that these adjustments are reported as gross amounts, not as a net figure.

Losses carried forward and changes in ownership

Losses from previous years must be carried forward and reconciled with the prior year’s tax return and final tax assessment issued by the Swedish Tax Agency. Losses from the previous year are also included in the pre-populated tax return received from the Swedish Tax Agency. This is an area where errors are easy to make if care is not taken.

If there have also been changes in ownership or corporate restructurings, there may be restrictions on how losses may be utilised, for example through different types of loss limitations. In such situations, it may be advisable to seek assistance to avoid the risk of using losses that are restricted.

Remember form N9

Form N9, which relates to interest deduction limitations, is relevant for all limited companies with interest expenses. In some cases, a company does not need to submit form N9, but this only applies in exceptional circumstances. As a general rule, the company should submit form N9 as an appendix to the income tax return.

There is a main rule (the EBITDA rule) and a simplified rule. The simplified rule allows negative net interest of up to SEK 5 million to be deductible within a group of associated enterprises. What is important to bear in mind is that the simplified rule applies to the entire group. If one company applies the simplified rule, the entire group is limited to a maximum deduction of SEK 5 million in negative net interest.

Form N9 is one of the most difficult parts of the tax return and can easily give rise to errors. An incorrect deduction may result in tax surcharges, making this a key area to review carefully.

Open disclosure and corrections

If there is uncertainty as to how an item should be treated, it may be appropriate to submit an open disclosure. This means describing in an appendix how you have reasoned and why a particular tax assessment has been made. The purpose is to reduce the risk of tax surcharges by being transparent towards the Swedish Tax Agency. The “other information” box on the front page must also be ticked.

For an open disclosure to be effective, it must be clear and linked to the relevant amounts and boxes in the tax return. An overly vague disclosure may still, in some cases, result in tax surcharges.

A common question in connection with the tax return is whether errors can be corrected in the following year, but this is not possible. If an error is identified, the company must instead submit a correction or request a reassessment for the relevant tax year.

Finally, we recommend attaching the company’s annual report to the income tax return when it is submitted to the Swedish Tax Agency.

If you have questions about the income tax return, Azets’ experienced experts are here to help you. Read more about our tax advisory services or contact us and we will guide you further.