Tax allocation – what is a provision for accruals?
Tax allocations are a way for companies to defer (smooth) its earnings over several years by reducing the current year's fiscal performance over the years as the company makes a profit.
A provision for a tax allocation can be in a worse year reversed (dissolve) to taxation and instead increase the current year's taxable income.
Tax allocations is a tool for companies smooth out cyclical fluctuations on the company over a 6 year cycle goes to zero earnings nor pay any tax.
How much can you allocate to a tax allocation?
Sole traders and individuals who are shareholders in the Swedish trading company may set the maximum 30% the result
Legal persons (Limited company) max 25%.
The size of how much you can allocate to a tax allocation has not changed in a long time.
Learn more about how muchperiodiseringsfond till avsättning you can do during the current fiscal year (assessment year) This.
Differences between various types of company
In addition to differences in how much you can allocate to a tax allocation (see above) so the only difference between legal forms of legal entities must also include a standard-based allocation at beginning of year to tax.
Schablonintäkt during the taxation year 2011 (taxation year 2012)
A legal person who has made less provision for a reserve to take up a regular revenue to tax.
Revenue is estimated at 72 % of government borrowing rate at the end of November the second year before the assessment year multiplied by the sum of the deductions for payments for such allocation as the legal person has the tax year of entry.
The 30 november 2010 was the government borrowing rate 2.84% so more simply, one can say that the standard income for income year 2011 (taxation year 2012) estimated to be 2.04% multiplied by the sum of allocations to the allocation.
If the tax year is longer or shorter than twelve months, the standard income adjusted accordingly.
Calculation of the standard income for the income year 2011 (taxation year 2012)
Standard income for the income year is estimated at 2,84 % multiplied by the amount of provisions for tax allocation (see below)
=> 2,84% * Allocation of the tax year of entry (Opening allocation)= =Schablonintäkt
Read how large and how schablonintäkt calculated for the current fiscal year (assessment year) This.
The adjustment of the standard income is only made in the company's tax calculation for each tax year.
Reversal (dissolve) an allocation of tax?
A company decide which year to re-fund for fiscal. However, there is a limitation. An allocation must always be returned to taxation by 6:e years after marketing.
A provision is made during the income year 2011 reversed later income year 2017.
Allocation funds must be returned to the tax when you stop doing business.