There is a proposal from government inquiry on how the income of micro-enterprises can be taxed according to a fixed standard. If this happens, it will provide significant benefits according to investigator, but only if VAT rules and accounting and accounting rules are also simplified.
In order this one comes to reality, there must be a strong political will and a majority on the issue is required. This may be doubtful if it exists in the future. If it will be started early as now, we may have to wait 20 years before it happens. Somewhere we need to start simplifying and creating pressure for further change. The proposal for voluntary flat-rate taxation is well thought out and provides a simple and good system for both the customer, the micro-entrepreneur and the Swedish Tax Agency, according to Mats Brockert who is tax expert at Srf consultants and had participated in the investigation as an expert.
Based on the proposal, individual companies with a turnover of a maximum of SEK 120,000 per year can use the system. The micro-entrepreneur account must be administered by the banks, and when a payment is made by a customer, 30 percent of the sum must be paid in automatically to the Swedish Tax Agency, which covers both social security contributions and pension provisions. The entrepreneur in an instant sees his money in the account estimated and ready. The customer who pays the money into the micro-entrepreneur account also knows that everything is going right. According to the inquiry’s calculations, approximately 17,000 companies would be eligible for the new system.
Good for the industry
For the accounting industry, micro companies are not the customers they are chasing, however, they want to follow companies on their growth journey. With a system where micro-enterprises can easily pay taxes, and it is thus noticeable if they have margins for it, we get an arrangement that makes it easier for viable micro-enterprises to grow and become ´real´ companies that can then become customers of accounting and payroll consultants according to Mats.
Mat says, “As I see it, our industry would also be the winner if the investigation’s well-prepared proposals become a reality. The proposals can be the key in the system that is required for the simplification work for individual companies to take off properly, and contribute to more companies being started.”