Summer 2025 has seen some significant updates to accounting, payroll reporting and tax in Sweden. From published updates to K2 and K3 regulations, to clarifications on the taxation of employee discounts, many of these updates will be relevant to both local and foreign-owned businesses in Sweden. Staying informed on the latest changes will help you stay compliant and successful.
In this article, Leinonen Sweden will provide an overview of the essential Swedish accounting news you need to know in July 2025.
5 Important Updates for Foreign-Owned Businesses in Sweden
1. New K2 and K3 regulations published by Swedish Accounting Board
These changes narrow the scope of companies allowed to use the simpler K2 regulations when preparing annual accounts. In financial years beginning after 31 December 2025, companies including (but not limited to) housing associations and those with one or more foreign branch must apply K3 rules, regardless of their size.
New and changed rules have also been published regarding K2 regulations. These concern issues like accounting for price adjustments on rent and leasing, and raising the threshold amount for accrual to SEK 7,000. These rules should also be applied from the financial year after 31 December 2025. A full list of the new and altered K2 and K3 rules can be found on the Swedish Accounting Board’s website.
2. Update on taxation of employee discounts
Employee discounts in Sweden can be tax free, providing they meet certain conditions. On 2 July 2025, the Swedish Tax Agency clarified that if an employer does not charge employees for a product or service (or sells it at a price lower than what would otherwise be accepted as a tax free employee discount), the difference between the market price and what the employee paid should be taxed as a benefit.
3. Updated list of agricultural and industrial goods for duty free EU imports
A new list of agricultural and industrial goods eligible for duty free imports into the European Union (EU) has been introduced by the European Commission. As of July 1 2025, new raw materials, semi-finished products and components not available or manufactured in the EU can now be imported without tariffs.
4. Swedish Tax Agency answers question on five year exemption for group units
For groups with all units in Sweden or in the first stages of international operations, additional tax can be reduced to zero during the first five years in which the group is covered by the Additional Tax Act. It has been asked whether groups covered by this exemption are obliged to calculate the effective tax rate and additional tax amount during this period. The Swedish Tax Agency recently released a position statement, clarifying that there is no obligation for group entities to do this under the Additional Tax Act.
5. Errors or deficiencies in 60% of forestry and slaughter operations
The Swedish Tax Agency has reported that errors and oversights were identified in six out of every ten inspections within the forestry and slaughter industries. These shortcomings were found across both local and foreign-owned businesses in Sweden. Frequently seen errors included unreported income, salaries, and benefits, as well as incorrect VAT deductions and unregistered businesses. Working with an expert in accounting, payroll and tax in Sweden can help businesses avoid these common oversights.
Stay Compliant With Leinonen Sweden
Staying up to date on Swedish accounting regulations is essential to avoid penalties as a foreign-owned business in Sweden, but it might feel difficult to keep up. Leinonen Sweden has been trusted by foreign-owned SMEs seeking guidance with accounting, payroll and tax in Sweden for more than a decade. Get in touch today to organise a consultation with a Swedish accounting expert and stay informed on the latest changes affecting you.
