Kvarskatt

Kvarskatt is a term used in the Swedish tax system to describe the portion of income tax that remains unpaid after the preliminary tax has been accounted for. It arises when the final tax assessment shows a higher tax liability than the amount already paid through withholding or prepayments.

The Swedish Tax Agency, Skatteverket, performs an annual calculation after you submit your income declaration. If the final tax is greater than what was prepaid, the difference is called kvarskatt. Conversely, if the final tax is lower, you may receive a tax refund (skatteåterbetalning). Kvarskatt can affect both employees with changes in income and self-employed individuals whose actual profits differ from what was assumed for preliminary tax purposes.

How it is calculated and paid: After the slutbesked (final tax decision) is issued, Skatteverket determines whether there is kvarskatt. The amount is due by the specified payment date. Depending on the situation, taxpayers can sometimes arrange installment payments or adjust future withholding to manage the liability. Interest and penalties may apply if payments are late.

Causes and scope: Kvarskatt commonly arises from underestimating income, additional earnings, changes in deductions, or new capital income that were not reflected in the initial tax withholding. It can affect private individuals and self-employed persons alike. In many cases, timely communication with Skatteverket and accurate information about income and deductions help minimize kvarskatt and ensure smoother settlement of the final tax.

Overall, kvarskatt represents the remaining tax obligation after final assessment, reflecting discrepancies between provisional withholding and actual year-end tax liability.