Insights & news from Revea

Serving on a company board often entails significant responsibility and extensive work. The board makes key business decisions, oversees the company’s finances, and is responsible for ensuring that the company complies with applicable laws and regulations. But how does the remuneration for this role work – and what should you consider when paying or receiving board fees?

1. Personal Assignment or Corporate Assignment?

The main rule is that board fees are treated as personal remuneration. This means that the fee recipient normally reports the payment as employment income, and the company is responsible for paying employer contributions. Invoicing the board fee through your own company is only possible in exceptional cases and requires that the assignment is not considered personal in legal terms. In practice, these exceptions are quite narrow, so it is important to ensure that all formal requirements are met before invoicing via another company.

2. Tax Rules and Social Security Contributions

Since board fees are often classified as employment income, both preliminary tax and employer contributions must be reported and paid to the Tax Agency. In turn, the board member receives a payslip similar to that of an employee. To avoid unnecessary tax conflicts, it is wise to:

1. Ensure that the board fee decision is documented in the company – for example, in the annual meeting minutes or a specific agreement.
2. Clarify whether the fee recipient is considered an employee or not – if the board member also has an employment contract with the company, it is necessary to clarify the overall compensation package.

3. Size and Assessment of the Fee

There are no statutory minimum or maximum amounts for board fees in private companies. Often, the company’s size, complexity, and financial situation serve as the basis for determining the fee. For larger, listed companies, the fee may also reflect the risk and responsibility assumed by the board member. Although there are no precise rules regarding the amounts, recommendations and guidelines (for example, from industry organizations) provide guidance for a reasonable level.

4. Division Between Fixed and Variable Components

Some companies choose to split the fee into a fixed part and a variable part, linked to the company’s performance. However, this can create tax challenges, as board fees are often considered a fixed remuneration for ongoing board assignments. If you are considering a variable component, it is advisable to consult an expert to ensure it is handled correctly for tax purposes.

5. Documentation and Transparency

Regardless of the fee structure, clear documentation is essential. Always record the board’s decision on the fee and ensure it complies with the company’s articles of association and relevant meeting resolutions. A transparent and well-documented process minimizes the risk of future inquiries from auditors, the Tax Agency, or other stakeholders.

In summary, there are two key aspects to consider regarding board fees: how the remuneration is classified (as employment income or not) and that the fee decisions are properly documented. The rules can be complex and are updated regularly, so it is wise to seek expert advice to get it right from the start.

Do you have questions about board fees or other financial matters? Contact us at Revea for assistance with accounting, auditing, tax issues, payroll management, or financial advisory. We help you navigate the regulations correctly and ensure that you and your company comply with the applicable rules.

The annual accounts are a central part of closing a financial year, and it is crucial to complete them correctly to avoid unnecessary issues and ensure that the company meets its obligations. Here are some key points to keep in mind:

1. Reconcile the Accounting Records

Before starting the year-end closing, ensure that all accounting records are in order. Verify that all business transactions have been recorded and that there are no unclear or missing entries.

2. Correct Any Errors

Review and rectify any mistakes in the accounting records. Check that balances in items such as accounts receivable and payable match reality.

3. Reconcile Balance Sheet Accounts

Ensure that the balance sheet accounts are accurate by comparing them with supporting documents such as bank statements, receivables, and payables. Any discrepancies must be resolved before finalizing the accounts.

4. Inventory the Stock

If your company holds inventory, it is important to perform a stocktake at the time of closing the books. This ensures that the inventory value in the balance sheet is correct and that any necessary adjustments are made.

5. Prepare the Annual Report

If your company is a limited company, an annual report is required to meet statutory requirements. Ensure that the report is clear, accurate, and provides a true and fair view of the company’s financial position.

6. Seek Assistance if Needed

The year-end closing process can be complex, especially for larger companies or if there have been many transactions during the year. A qualified accountant or auditor can help ensure everything is done correctly from the start.

Proper preparation for the year-end closing not only saves time but also reduces the risk of errors and subsequent adjustments. If you need support with your annual accounts, do not hesitate to contact us at Revea. We assist with everything from accounting and auditing to tax advice and financial planning.

Get in touch, and we’ll review your situation together!

In 2025, several changes will come into effect that affect taxes for both wage earners and pensioners. The new rules are designed to create economic incentives for work and improve financial conditions for older people. Here are the key updates:

Tax Relief for Work and Pension

1. Enhanced Earned Income Tax Credit

From 2025, the earned income tax credit and the increased basic deduction will no longer decrease with higher incomes, resulting in lower marginal tax for high-income earners.

2. Lower Tax for Older Employees

Wage earners who turn 67 during the income year will pay only 8% tax on employment income up to 342,000 SEK, including the increased basic deduction and the enhanced tax credit.

3. Increased Basic Deduction for Pensioners

Pensioners aged 67 or older will pay significantly lower taxes. The difference in net income may amount to about 1,900 SEK per month compared to younger pensioners, thanks to the higher basic deduction.

Economic Benefits of Working Longer

Continuing to work after age 66 offers several benefits:

• Higher Pension
  Every additional 10,000 SEK in annual income increases the future pension by about 110 SEK per year for life.
• Lower Employer Contributions
  Employers pay only the age pension fee (10.21%) for employees who turn 67, compared to 31.42% for younger workers.

Tax on Pension and Combined Income

Combining pension with work provides a more favorable tax outcome, especially after age 67. However, if the income is high, state income tax may apply. To avoid this, you can:

• Reduce the Proportion of Pension Withdrawals
  Withdrawing less of your public pension reduces the risk of exceeding the threshold for state income tax.
• Use the Tax Agency’s Tools
  Run a preliminary tax calculation to optimize the balance between salary and pension.

Key Thresholds for 2025

• State Income Tax
  A 20% tax is levied on taxable income above 625,800 SEK, regardless of age.
• Earning Cap for Pension Rights
  The maximum pensionable income is 604,500 SEK.

Plan for a Better Pension

Working longer and delaying pension withdrawals offer significant financial benefits through both a higher pension and lower taxes. Want to know how your situation will be affected? Contact Revea for advice on accounting, tax, and pension!

Have questions about how the new rules affect you? Get in touch with Revea – we’re here to help you navigate financial matters!

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Enter Redvisning has now become part of Revea — a full-service agency with the same personal service, the same contact persons and the same services as before. The only thing that is new is the name and that we now have even more colleagues to collaborate with.

With us, you will receive continued help with everything from accounting and financial statements to payroll management, auditing and consulting.

Do you have questions or want to get in touch with us? Welcome to hear from you — we are here for you just as usual.

You can find us at Gamla Brogatan 32 in Stockholm

Feel free to contact us via contact form or call us directly at the same number as before, 08-678 18 40.