Sweden: Proposal to abolish requirement to keep accounting materials in hard copy

In brief

On 22 May 2024, the Swedish Parliament is expected to vote on a proposal to remove the requirement to retain original hard copy accounting materials. The bill, published on 29 February 2024, proposes that hard copy accounting materials, which has been duly saved digitally, no longer has to be kept in hard copy. The proposal is expected to result in significant time and cost savings for many companies.

The proposal is very welcomed as the requirement to retain hard copies has created administrative burden for many groups and companies. The amendments are proposed to enter into effect on 1 July 2024.

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Contents

Current law in short

  • The Swedish Bookkeeping Act (Sw. Bokföringslagen) requires Swedish companies to save hard copy accounting materials in its original form for at least seven years.
  • Under certain circumstances, it is possible to transfer the accounting information into digital form however even with this possibility, the hard copy materials should still be kept safe for four years.

Key takeaways from the proposal

In short, the Swedish Government proposes that the law is amended in terms of:

  • The requirement to save hard copy accounting materials in its original form is abolished.
  • Companies can save accounting materials in electronical copy only.
  • Companies may destroy hard copy accounting materials as long as the materials have been transferred to digital form, unless there is a risk that the accounting information can change or vanish.
  • The law is proposed to enter into effect on 1 July 2024. For companies with calendar year as financial year, the new rules will apply as of financial year 2025. For companies with broken financial year, the new rules should be applied for the first time for the financial year beginning after 30 June 2024.
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