Contents
1 § This chapter provides for a tax exemption for
- states, municipalities and pension funds in 2 §,
- Foundations in 3-6 §§,
- voluntary associations in 7-13 §§,
- registered religious communities in 14 §,
- some other legal entities in 15-20 §§, and
- owners of certain properties in 21 §.
In the case of nonresidents, the provisions of the income they are liable to tax under 3 or 6 Chapter.
Fully exempt legal persons
2 § Completely exempt from tax is
1. states,
2. county, municipalities and municipal associations,
3. pension under the Act (1967:531) on securing the pension promise, etc., and
4. Coordination Association of 4 § Law (2003:1210) Financial Coordination of Rehabilitation Measures.
The Act (1990:661) yield tax on pension funds is provided for on returns for pension funds. Create (2004:790).
Foundations
Liability
3 § A foundation is liable only for the income of any activity referred to in 13 Chapter. 1 §, whether the foundation meets
- purpose requirement in 4 §,
- business requirement 5 §, and
- completed the requirement in 6 §.
A foundation that meets the requirements of subsection is not subject to tax on capital gains and capital losses.
Specific provisions for pension funds in 2 § and on several other foundations in 15-18 §§.
Purpose requirement
§ 4 The Foundation shall have as their main purpose to
1. foster care and upbringing of children,
2. provide grants for education or training,
3. carry out ancillary the needy,
4. promote scientific research,
5. promote Nordic cooperation, or
6. strengthen Sweden's defense in cooperation with the military or other authority.
The objects may not be specific to particular families or particular individuals. Create (2007:1419).
Activity requirement
5 § The Foundation is in the activities exclusively or almost exclusively provide such a purpose specified in 4 §. Create (2007:1419).
Completed requirement
6 § The foundation will, over a period of several years, engage in activities which reasonably corresponds to the return on plan assets.
Non-profit organizations
Liability
7 § A nonprofit organization is liable only for the income of any activity referred to in 13 Chapter. 1 §, If the compound fulfills
- purpose requirement in 8 §,
- business requirement 9 §,
- completed the requirement in 10-12 §§, and
- transparency requirements in 13 §.
An association that meets the requirements of subsection is not taxable for
1. capital gains and capital losses,
2. the income which comes from an independent business or a specific management unit intending property, if the income as the main part comes from
- activity is a direct contribution to the promotion of the purposes outlined in 8 § or who have a natural connection with such purposes, or
- activities that are traditionally used as a source of funding for voluntary work, or
3. Income from ownership of a property belonging to the association and used for its activities in such a manner specified in 3 Chapter. 4 § real estate Act (1979:1152).
Specific provisions for certain non-profit organizations in 15- 17 §§.
Purpose requirement
§ 8 The association will be the main aim to promote the purposes specified in 4 § or other public purposes, such as religious, beneficial, Social, political, sporting, artistic or other cultural purposes.
The objects may not be limited to certain families, Association members or other designated economic interests of. Create (2007:1419).
Activity requirement
9 § The association will in the activities exclusively or almost exclusively provide for such purposes set out in 8 §. Create (2007:1419).
Completed requirement
§ 10 The association shall, over a period of several years, engage in activities which reasonably corresponds to the return on assets of the association. Create (2007:1419).
§ 11 Tax Board may waive the completion requirement of 10 § for an association which intends to purchase a property or other facility intended for the non-profit business. The same applies if an association intends to carry out major construction, reparations- or construction works on a property used by the association.
The decision may concern more than five fiscal years in a row. It may be conditional that the association will provide security or the like for the income tax that compound may be required to pay because of the review of tax assessments for the years in which the decision relates, if it expires under 12 §.
Tax decision may be appealed in. Leave to appeal is required for an appeal to the Administrative. Create (2008:134).
12 § If it does not, within the time have carried out the intended investment or has not observed any other provision of the decision, the compound is taxable as if the exemption had been granted.
Transparency requirement
§ 13 The association may not refuse any entry as a member, if there is reason to do so by the nature or extent of the association's activities or purpose of the association or other.
Registered religious communities
§ 14 The provisions concerning non-profit organizations in 7-13 § § are applied also in case of registered religious communities.
Some other legal entities
§ 15 The following legal entities are taxed only on income of any activity referred to in 13 Chapter. 1 §:
- such cathedrals, local churches or the like belonging to the Swedish Church, in their capacity as owners of certain assets that are intended for Swedish Church,
- health care facilities which are not conducted for profit,
- mercy establishments, and
- Agricultural Society with the bylaws established by the Government or the authority which the government decided.
A legal entity that meets the requirements of subsection is not subject to tax on capital gains and capital losses.
§ 16 / Ceases to apply:2010-07-01/ The following legal entities are taxed only on income due to holdings of real estate:
- academies,
- Public education works,
- groupings of students at Swedish universities and colleges that the students on the law are required to be members of, and coordinating body for such associations with the purpose to perform its duties in the associations under the Constitution is responsible for,
- regional development company with the support of 1 § Law (1994:77) on the right for regional development companies won the right to consider matters relating to assistance to professionals and the parent company of such development company,
- Unemployment Funds,
- employee-provided in the Act (1967:531) on securing the pension promise mM. and whose purpose is solely to provide benefits in the event of unemployment, illness or accident,
- Foundations established under agreements between organizations of employers and employees for the purpose of leave severance pay to laid-off workers or promote measures to assist workers made redundant or at risk of becoming redundant as a result of the reduction, business closure or rationalization of the company's business or with purpose to leave the lay-off compensation, and
- corporation or other entity whose exclusive task of providing the lay-off compensation. Create (2004:790).
§ 16 / Enters into force:2010-01-01/ The following legal entities are taxed only on income due to holdings of real estate:
- Akademier,
- Public education works,
- Student unions at public universities and colleges referred to in 4 kap. 8 § högskolelagenoch nationer vid Uppsala universitet eller Lunds universitet som avses i 4 kap. 15 § Higher Education as well as coordinating body for such associations with the purpose to perform its duties in the associations under the Higher Education Act or regulation issued pursuant to the Higher Education is responsible for,
- Regional development company with the support of 1 § Law (1994:77) on the right for regional development companies won the right to consider matters relating to assistance to professionals and the parent company of such development company,
- Unemployment Funds,
- Employee-provided in the Act (1967:531) on securing the pension promise mM. and whose purpose is solely to provide benefits in the event of unemployment, illness or accident,
- Trusts created pursuant to agreements between organizations of employers and employees with the purpose to provide severance pay to laid-off workers or promote measures to assist workers made redundant or at risk of becoming redundant as a result of the reduction, business closure or rationalization of the company's business or with purpose to leave the lay-off compensation, and
- Company or other entity whose exclusive task of providing the lay-off compensation. Create (2009:768).
§ 17 The following legal entities are also taxable only for income due to holdings of real estate:
- Swedish Game Company and its wholly owned subsidiaries only in the gaming business,
- Company Horse racing,
- Alva and Gunnar Myrdal's Foundation,
- Apotekarsocietetens foundation for the promotion of pharmacy development, etc.,
- Book industry and financial institutions Ltd,
- Dag Hammarskjöld Foundation,
- Fund for Industrial Cooperation with Developing Countries,
- Fund for the Swedish-Norwegian Industrial Cooperation,
- Trade Procedures Council,
- Industry- and nyföretagarfonden,
- Jernkontoret, as long as the office's profits are used for publicly beneficial purposes and dividends are not paid to shareholders,
- King Carl XVI Gustaf's 50th årsfond of Science, Technology and Environment,
- The Nobel Foundation,
- Norrlandsfonden,
- Olof Palme Memorial Fund for International Understanding and Common Security,
- Right Livelihood Award Stiftelsen,
- SSR – Swedish Standards, as long as its profits are used for general purposes beneficial and dividends are not paid to members,
- Foundation Anna Lindh Memorial Fund,
- Foundation Industry Centers,
- Foundation industrial development center in Upper Norrland,
- Foundation County Council fund for technology procurement and product development,
- Foundation Production Technology Centre in Borås for textile industry – Proteko,
- Foundation Collaboration universities / colleges and industry in Stockholm and the six corresponding foundations based in Lulea, Umeå, Uppsala, Linköping, Gothenburg and Lund,
- The Swedish Film Institute,
- Foundation Sweden's National Day,
- Foundation Swedish techno-scientific attache operations,
- Foundation UV-house,
- Foundation EW house,
- Swedish Bible Society Bible Fund,
- Swedish church's foundation for nation-church activity,
- Swedish Ships Mortgage Bank,
- Swedish Committee for UNICEF,
- Swedish Trade Council, and
- TCO:International Scholarship to Prime Minister Olof Palme Memorial. Create (2005:798).
§ 18 The provisions on the limitation of the tax liability in 15-17 § § are applied to foundations only on completion of the requirement in 6 § is satisfied. If there are specific requirements regarding the operation or the like, the provisions on limitation of the tax liability only if the foundations of their activities exclusively or almost exclusively with these requirements. When it is stated that the foundations solely to perform certain activities, however, the. Create (2007:1419).
§ 19 associations are taxable only on his income from the possession of such property which is not managed in the life insurance business.
With the support association also means European cooperatives engaged in similar activities.
The Act (1990:661) yield tax on pension funds is provided for on returns for friendly societies. Create (2006:619).
§ 20 Producer organizations are exempt from tax for income relating to market regulation under the Act (1994:1709) for EC:s regulations on the common fisheries policy.
Owners of certain property
§ 21 The owner of such property, as defined in 3 kap. 2 § real estate Act (1979:1152) är inte skattskyldig för inkomst från sådan användning av fastigheten som gör att byggnaden enligt 2 kap. 2 § real estate law shall be construed as other than special building communications building, distribution building or purification.
Owners of such property, as defined in 3 Chapter. 3 § property tax law is not taxable for income derived from such use of the property referred to in that section.
Other owners of such property, as defined in 3 Chapter. 4 § real estate law than such a non-profit organization or a kind of registered religious community that meets the requirements of 7 § first paragraph is not subject to tax on income of the property to the extent it is used for the purposes of that section. Create (2007:1419).
