Sweden - Tax Guide for Freelance Contractors
Welcome to our guide to Swedish Taxation. You will find a wealth of information which will be useful if you plan to work in, or place consultants in, Sweden.
Our tax guides give a general overview of the actual taxation rates and rules at the time of writing. There are of course many ways to legally reduce tax or social security burdens in Sweden. Please contact us for more information or an actual breakdown of your situation, and to find out more about our range of payroll and contact management services in Sweden.
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Swedish Income Tax
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Tax residents in Sweden: are liable to pay national and municipal Swedish tax on their
worldwide income,
Non tax residents in Sweden: are liable to pay tax on income derived from work performed
in Sweden.
Individuals will be regarded as tax residents:
- if they are present in Sweden for a period of more than 6 months.
Married persons are taxed separately
Taxable income includes:
- income from employment (deemed to form only one source), is taxed for Municipal tax up to the threshold and for National tax for the exceeding part.
- income from business (may include various sources of income), is taxed for Municipal tax up to the threshold and for National tax for the exceeding part.
- income from capital (deemed to form only one source) is taxed separately. No Municipal tax is levied.
Certain deductions are permissible for 2011 including:
- basic allowance between approx. SEK 12'600 and SEK 33'000 depending on the amount of income,
- costs incurred for maintaining income are deductible against the same source of income,
- work related travelling costs,
- premiums paid for private pension insurance and alimony,
- expenses for construction work and refurbishments carried out on personal property,
- expenses incurred due to double accommodation andhome travel during temporary assignments away from ordinary place of work for up to two years for single individuals and five years for married couples.
Individual income tax rates for 2011:
Individual income tax in Sweden is comprised of two major parts: A municipal tax rate between 28.9% and 34.2% and a national tax rate between 20% and 25%. For 2011, the national tax rate applies only to individuals earning more than SEK 383'000 per year. Assuming a municipal tax rate of 30%, the combined tax burden is as follows:
- 30.00% from SEK 0.00 up to SEK 383'000,
- 50.00% from SEK 383'000 up to SEK 548'300,
- 55.00% over SEK 548'300,
There is a 25% expatriate flat tax rate for non-residents.
Filing date:
In May following the assessment year.