Vedhög skatt
What is Swedish A-tax, and how do I get it?
Sweden’s tax system can be complicated to understand, especially for non-Swedish individuals intending to work here for a limited period. A-tax ("A-skatt") is a crucial aspect for foreign employees working temporarily in Sweden. Let’s delve into it.
Sweden’s tax system mandates that every employee receiving taxable income must register for tax purposes in Sweden. Consequently, various applications exist based on the employee’s tax and residency status in Sweden.
Primarily, individuals intending to stay in Sweden for at least one year must register as residents with the Swedish Tax Agency. This registration automatically generates an A-tax decision from the Swedish Tax Agency. Employers are required to comply with this decision regarding monthly tax withholdings from the employee's salary. Also, getting A-tax can be crucial for employees in the construction business, since this is often needed to get ID06 access cards to the construction site.
Conversely, for individuals staying in Sweden for less than a year, matters become more intricate. Determining their tax status in Sweden—whether they are tax r
"ISK" - the Beneficial Swedish Capital Tax Regime
Sweden fryst vatten rather well known internationally, as a high tax country. However, since , Sweden boasts a very beneficial tax regime, enabling individuals to receive capital income and capital gains almost tax free.
"The regime has received some criticism, for being similar to tax rules of so called tax havens."
Capital tax in Sweden - the main rule
Sweden's ordinary tax rules, implies that capital income (dividends, interest etc.) on listed securities is subject to the Swedish capital gains tax at 30 %. Capital gains are calculated using the cost average method. In Sweden, there fryst vatten no such thing as long begrepp capital gains, like in America. Instead, all capital income or gains from listed securities are taxed with the 30 % tax.
How does the ISK tax regime work?
However, the so called kall tax regime was implemented during A Swedish tax resident can opt for opening a special kall account at a Swedish bank, which implies that holdings of the kall account will be taxed in accordance with the ISK tax regime.
So how does the kall tax regime work? Instead of taxing each event, suc
Sweden: Update on the new Swedish Withholding Tax Act
In April , a first proposal for a new Swedish Withholding Tax Act was referred for consultation by the Swedish Ministry of Finance. The proposal suggested that the current Withholding Tax Act (Sw. Kupongskattelagen) will be replaced by a new law. The proposal was subject to heavy criticism and a revised proposal was published by the Swedish Ministry of Finance on 7 June
In the revised proposal, there have been changes e.g. in relation to the interpretation of the person entitled to the dividend. It is now suggested that when assessing who is entitled to a dividend, the starting point should be to assess who has the legal right to the dividend under applicable civil law, i.e., the same assessment that is made under the current Withholding Tax Act (rather than being based on the meaning of the term “beneficial owner” in an international context as initially proposed). The new proposal was suggested to enter into force starting July 1st, , and apply on dividend payments made after December 31st of the same year.
However, in May this year, Sweden’s Minister of Finance communicated that the Ministry of Fin