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 partial liability, the provisions of the income that is taxable in accordance 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.
In law (1990:661) yield tax on pension funds is provided for on returns for pension funds. Create (2004:790).
Foundations
Liability
3 § A foundation is taxable only on income from 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 the first paragraph is not taxable for capital gains and capital losses.
Specific rules on pension funds are 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 must not be limited to certain families or certain persons. Create (2007:1419).
Activity requirement
5 § The Foundation shall in the activities exclusively or almost exclusively cater for such purposes specified in 4 §. Create (2007:1419).
Completed requirement
6 § The foundation shall, over a period of several years, engage in activities which reasonably corresponds to the return on plan assets.
Non-profit organizations
Liability
7 § A non-profit association is taxable only on income from 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 §.
A compound that meets the requirements of the first paragraph 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 on certain non-profit associations are in 15- 17 §§.
Purpose requirement
8 § The association must have as their main purpose the promotion of those purposes specified in 4 § or other public purposes, such as religious, beneficial, Social, political, sporting, artistic or other cultural purposes.
The objects must 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 cater for such purposes specified in 8 §. Create (2007:1419).
Completed requirement
10 § The association will, 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 grant exemptions from the requirement of completion 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 relate to a maximum of five tax years in succession. 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 Agency's decision may be appealed to a general administrative. Leave to appeal is required for an appeal to the Administrative. Create (2008:134).
12 § If the association is not within the prescribed time has completed the intended investment or have not complied with any other condition in the decision, the compound is taxable as if the exemption had been granted.
Transparency requirement
13 § The association may not refuse anyone admission to membership, 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 on 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 taxable only for the 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 person that meets the requirements of the first paragraph is not taxable for capital gains and capital losses.
16 § /Upphör att gälla U: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 Chapter. 8 § högskolelagen (1992:1434) and nations at Uppsala University and Lund University, referred to in 4 Chapter. 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 companies 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,
- Personnel funds provided for 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 formed under agreements between organizations of employers and workers 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
- A corporation or other legal entity whose sole task is to provide redundancy compensation. Create (2009:768).
17 § The following legal persons are also liable only for income due to the holding 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 § provisions on limitation of liability to tax 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 income because of possession of property that is not managed in the life insurance business.
With the support association also referred to European cooperatives engaged in the corresponding activity.
In law (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 on 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 a property referred to in 3 Chapter. 2 § real estate Act (1979:1152) is not taxable for income derived from such use of the property to ensure that buildings under 2 Chapter. 2 § real estate law shall be construed as other than special building communications building, distribution building or purification.
The owners of such property as referred to in 3 Chapter. 3 § property tax law is not taxable for income derived from such use of the property referred to in that section.
Another owner of such a property referred to 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).