Surplus liquidity

Long term surplus liquidity.

For you as a company owner there are several alternatives to choose from when it comes to manage the company’s liquidity. With a kapitalförsäkring it is possible to combine the attractive returns of the capital markets with the safety and tax advantages of an insurance.

An Kapitalförsäkring could be used to:

  1. Invest the surplus liquidity
  2. Safeguard the pension both for the company owner and the employees in tax efficient way (see Direct pension)
  3. Retain key employees (see Direct pension)

    Advantageous tax rules

    It is not possible to deduct the money that is paid into a Kapitalförsäkring, but on the other hand there is no tax when distributing the funds. The company does not pay any capital gains tax when reallocating within the insurance, i.e. when buying and selling securities. Nor when the funds are paid out. There is a small yearly fixed tax.

    Instead of letting the excess liquidity sits in a normal corporate account, a Kapitalförsäkring be a more efficient form of storing surplus liquidity. One can chose from either a pure asset management account or a pure Depåförsäkring. There could be a tax advantage by using a Depåförsäkring to handle excess liquidity in a company. Falk & Partners builds a tailor made portfolio that suits your and your company’s needs. You then trade and reallocate at your discretion. You are able at any time to buy or sell securities without needing to declare this to the tax authorities.

    Short term excess liquidity

    With a short term (less than 1 year) excess liquidity situation is it not advisable to use a Kapitalförsäkring. Then it is preferable to allocate that liquidity in a low standard deviation instrument in the money market, which gives a better return than placing the money in a bank account. A combination with low risk absolute return hedge funds could also be interesting.