From 1 November 2025, new rules apply to foreign companies operating in Sweden, tightening the conditions for obtaining and retaining F-tax approval.
Foreign entities, carrying out work in Sweden, should apply for a F-tax approval. The F-tax demonstrates that the entity itself is responsible for paying applicable Swedish taxes. A F-tax registration does not in itself create a corporate income tax liability. Such liability depends on whether or not the company has a permanent establishment in Sweden.
A foreign entity without a permanent establishment in Sweden, is obliged to file an annual Specific Information with the Swedish Tax Agency if one of three criteria is met:
The Specific information enables the Agency to assess potential permanent establishment exposure.
There has previously been no ground for revocation when foreign companies without a permanent establishment fail to provide Specific information.
According to the new rules, an application for F-tax shall not be approved, and an already granted F-tax approval may be revoked, if the applicant or the holder of F-tax has failed to fulfill the obligation to provide specific information, or if the information provided is so incomplete that it cannot serve as a basis for assessing tax liability under the Income Tax Act.
In the construction sector, the impact of the new rules is particularly pronounced. Most Swedish construction sites require ID06 cards for workers. While the cards are personal, employers must be connected to the ID06 system, which in practice presupposes Swedish F-tax approval. Loss of F-tax status can therefore restrict site access and disrupt ongoing projects.
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
Alice Moon
Tax Director
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