Search

New concept” Economic Employer” and possible tax liability in Sweden for foreign workers

Swedish Government has now passed the law which legislates the foreign workers tax liabilities, effective from January 1st, 2021.

Summarily, it will make foreigner worker an income taxpayer in Sweden if the work they do is benefitting a Swedish company or even a foreign company with Swedish permanent establishment.

Swedish companies who are using foreigner company’s workforce will be required to withhold 30% of the invoice to be paid out and report Swedish tax on salary for work performed in Sweden (unless they register themselves in the Tax Agency for F-tax and Employers). The obligation cannot be transferred to the Swedish company or to the company with Swedish permanent establishment.

There is an exception, when the foreigner workers are in Sweden and if the work is done within 15 consecutive days and the total of workdays in Sweden does not exceed 45 days per a calendar year. When calculating workdays, only days the workers works are counted.

There are some uncertainties and not all the specific questions are clarified by the Tax Agency, but we’ll work on getting answers.

4 views

Recent Posts

See All

New information regarding tax deferral

The Government has now decided that already deferred tax payments can be deferred additional 1 year. (Before this new decision, companies could only defer tax payments by 1 year, now there is a possib

3:12 Regulations about dividends

So called 3:12 regulations about dividends and taking the salary from your company. What is 3:12 regulation? This regulation pinpoints how a company share owners are taxed after taking out the dividen

Reminder to apply for ROT/RUT

Please note that any ROT/RUT invoices that are paid by client during 2020, have to be applied at Skatteverket latest by 31st of January. Failure to do so results in unpaid funds from Skatteverket. In

© 2021 Bookwise & Co AB ​• org. no. 559153-9761 • All rights reserved