English TaxNews

English TaxNews

A newsletter with the latest news in Swedish and international tax law and related areas. The subscription for KPMG TaxNews is free and the newsletter is issued as soon as there are interesting news in the area.

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Annika Lindström

Partner & Head of Tax & Legal

KPMG i Sverige

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2023-2024

Stricter rules for labor immigration
The proposals in the investigation are proposed to come into force from 1 June 2025. (2024-02-16)

Update on Swedish permanent residence requirements
Judgement from the Swedish Migration Court of Appeal clarifies the interpretation of the “certain duration” requirement for permanent residency. (2024-01-19)

VAT recovery on the disposal of shares in a subsidiary undertaking
KPMG has acted as the representative in the case before the Supreme Administrative Court in Sweden. (2023-11-02)

Swedish VAT pro-rata rules is in violation of EU law
KPMG has acted as representative in a case in the Supreme Administrative Court. (2023-10-19)

Tax withholding rules targeting foreign contractors deemed to breach EU law
The Swedish government has responded to the EU Commission’s formal notice. (2023-09-28)

Increased income requirement for work permit applications
The regulation will enter into force on 1st of November without any provisional regulations. (2023-09-25)

A new work permit application process
The introduction of the new process is planned for the end of 2023. (2023-05-17)

2022

Increased price base amount raises threshold for Swedish expert tax 
Higher salaries required to qualify for expert tax based on compensation in 2023. (2022-09-06)

Revised proposal for amended legislation on withholding tax on dividends 
The proposal would effect both foreign recipients of dividends and Swedish companies. (2022-06-20)

Employees Working from Home: New Legal Guidance Issued on PE Risks
The Swedish Tax Agency issues statement on when a permanent establishment may arise. (2022-05-20)

KPMG releases new tool for streamlined VAT Validation
KPMG’s VAT Validator enables companies to validate hundreds of VAT numbers in just one click. (2022-04-06)

Foreign companies’ filing requirements including “specific information"
On 1 January 2021, the Swedish Tax Agency introduced new rules regarding "specific information" (Sw. särskilda uppgifter). (2022-03-02)

2021

The Swedish Supreme Administrative Court clarifies Swedish "expert tax" rules
How compensation paid to foreign workers is to be calculated in order to assess whether the employee may be entitled to so-called expert tax. (2021-12-20)

New proposal from the European Council to harmonize regulations for EU blue card
The aim is to facilitate circular migration. (2021-11-11)

The Ministry for Foreign Affairs lifts the recommendation against travel to all countries in the world  
The pandemic-related advice against travel to the rest of the world will be lifted as of 1 October. (2021-10-01)

The Budget Bill 2022 from an immigration perspective
According to the Swedish government, the Swedish Migration Agency’s focus should be to streamline processes and improve digitalization. (2021-09-30)

A new Withholding Tax Act
The Swedish government intends to implement a new Withholding Tax Act, to be applied in respect of dividends paid after December 31st, 2023. (2021-09-27)

Extended deadline for UK citizens to apply for residence status in Sweden
The Swedish government has decided to extend the application to 31 December 2021.

Change in regulations regarding permanent residence permits in Sweden
Since 20 July 2021 updated regulations has come into force regarding applications for permanent residence permits. (2021-09-14)

The Supreme Administrative Court decides the Lexel case on the Swedish interest deduction limitation rules 
The Swedish SAC concludes that the interest expenses should be deductible for the company. (2021-03-22)

CJEU: The Swedish interest deduction limitation rules are in breach of EU law
The Court of Justice of the European Union (CJEU) published a preliminary ruling in the Lexel case (C-484/19) in which the court finds that the exception to the ten percent rule in the 2013-2018 Swedish interest deduction limitation rules is contrary to the freedom of establishment. (2021-01-20)

2020

Sweden: Brexit and Mobility – Deal Done, What next?
The EU and UK have agreed the so-called UK-EU Trade and Cooperation Agreement. In this TaxNews we have summarized some of the key points of impact for mobility professionals. (2020-12-30)

New rules on tax withholding for work in Sweden and obligation to file specific information 
From 1 January 2021 the rules on tax withholding for work performed in Sweden will change, resulting in more foreign companies needing to register at the Swedish Tax Agency. Additionally, foreign companies that are registered for F-tax but do not file a tax return must provide specific information (särskilda uppgifter) each year. (2020-12-08)

Brexit Update – The Time is Now 
In this TaxNews Brexit Update, we look at what we know about the possible Brexit outcomes for Global Mobility Services professionals and their employees, as they affect Sweden and the UK. (2020-11-13)

The Swedish Parliament has approved the introduction of the economic employer concept in Sweden 
The new regulations will be effective as of 1 January 2021. (2020-11-04)

Brexit to-do deadline: 1st of January 2021 
Times flies – are YOU prepared for Brexit and the new customs regulations? (2020-09-08)

August Update Sweden – Immigration restrictions related to COVID-19 
On August 27th the Swedish Government decided to extend the current entry ban until October 31st.  (2020-08-28)

New expert tax relief rules coming up in Sweden? 
The Swedish Ministry of Finance proposes changes to the tax relief for foreign experts, scientists and other key personnel staying temporarily in Sweden (expert tax relief). (2020-08-26)

Increased employment rights and compliance requirements for posted workers into Sweden 
As of July 30, 2020, the employment rights for posted workers to Sweden will be more comprehensive. (2020-07-03)

July Update Sweden – Immigration restrictions related to COVID-19 
The Swedish Government has decided to follow the recommendations of the European Commission by extending the entry ban for foreigners coming from a country outside EU/EEA/Switzerland to enter Sweden until August 31, 2020. (2020-07-03)

New Proposal on the Economic Employer Concept
On 23 June, the Swedish Government once again published a proposal to implement the economic employer concept in Sweden. The Government intend to implement the new regulations 1 January 2021. (2020-06-25)

Post Brexit – right to stay in Sweden 
The Swedish Government has introduced a bill regarding rights for British nationals in Sweden following Brexit. (2020-06-24)

The Growth Agency’s specific clarification on group contributions in relation to FY 2019 
The Growth Agency’s main assessment is that group contributions for FY 2019 should not affect the possibility of receiving support during 2020. (2020-06-18)

Update Sweden – Immigration restrictions related to COVID-19
The Swedish government has decided to follow the recommendations of the European Commission by extending the entry ban for foreigners coming from a country outside EU/EEA/Switzerland to enter Sweden until June 30, 2020. (2020-06-15)

Value transfers related to short-time work allowance
Swedish Agency for Economic and Regional Growth about dividends in connection with receiving support for short-time work allowance. (2020-06-08)

Business transition support – COVID-19
The Ministry of Finance's memorandum on transition support to companies. The rules are proposed to enter into force on July 1, 2020. (2020-06-04)

Proposal with further measures due to COVID-19
The proposal contains several suggestions for measures and, among other things, updated rules on short-time work. (2020-05-28)

KPMG Sweden wins 5th consecutive National Tax Firm of the Year award – Tina Zetterlund recognized for her leadership 
KPMG Sweden got to celebrate twice in the European Tax Awards. For the fifth consecutive year, KPMG was named National Tax Firm of the Year, and Tina Zetterlund won the award as EMEA Tax Practice Leader of the year. (2020-05-27)

Law Council's opinion on the new proposal for short-time work allowance – COVID-19
The Law Council approves the proposal to increase the support but questions the clarification of the requirement for "serious financial difficulties". (2020-05-15)

Legislative proposal on adjustments to the rules on short-time support – COVID-19
The government proposes increased support for short-time work and that certain payments should be taken into account when considering the right to the support.(2020-05-15)

Immigration restrictions related to COVID-19 
Sweden travel restrictions for foreigners due to COVID-19 outbreak. (2020-05-15)

Proposal for a new law on withholding tax on dividends
With this proposal the Ministry of Finance hopes to achieve an efficient and modern regulatory framework. (2020-05-05)

Swedish Tax Agency adopts the OECD principles on financial transactions, changing long-standing guidance
The Swedish Tax Agency has updated its guidance on the pricing of financial transactions. (2020-05-05)

Recent case law has implications for MNE groups acquiring Swedish companies with significant intellectual property 
The case law illustrates that ownership of intangibles may change following a third-party acquisition. (2020-04-22)

The Swedish Chemical Tax on electronical products and white goods is proposed to be expanded 
A new government bill proposes that the Chemical Tax on electronical products and white goods shall be expanded to include B2C transactions from foreign companies as from October 1, 2020. (2020-04-20)

Proposal regarding tax on chemicals in clothes and shoes 
On April 1, 2020 a proposal for new regulations of chemical tax in clothes and shoes was presented to the government. The committee has suggested that the proposal should be effective as per 1 July, 2021. (2020-04-20)

New rules on short-term work and the view on share dividend payments linked to the support measures (COVID-19)
– including a statement to the Government about lowering the interest rate on deferred tax payments. (2020-04-06)

Additional Government measures focusing on Sweden’s small and medium-sized businesses (COVID-19)
In addition to already announced support measures, the Swedish Government has presented further support measures aimed at small and medium-sized companies. (2020-03-26)

Extra working days from home in Sweden due to COVID-19 will not alter social insurance cover in the EU
The Swedish Social Insurance Agency has announced that additional working days from home in Sweden due to COVID-19 will not affect multi-state employees’ social insurance cover in the EU. (2020-03-19)

Tax proposal in Sweden in response to COVID-19
The suggest measures consists among other, strengthen companies’ liquidity through deferral of tax payments and the possibility for temporary lay-offs. (2020-03-17)

The new tax on plastic bags
On 1 March 2020, a new tax on plastic bags came into force in Sweden. However, the actual tax liability will be due from 1 May 2020. For those who has not already begun their work of planning for the new tax, now is the time. (2020-03-04)

Swedish SAC: A foreign investment fund’s legal form does not prevent it from using dividend WHT exemption
The ruling confirms that legal form does not prevent foreign investment funds from being comparable to Swedish investment funds. (2020-02-27)

OECD releases the final Transfer Pricing Guidance on Financial Transactions
The report aims to provide guidance on financial transactions that have been a frequent source of disagreement between tax agencies and taxpayers. (2020-02-13)

The Swedish government wants to attract international competence and counteract exploitation of labor immigrants
The Swedish government has appointed a committee to analyze and propose actions to attract international competence and counteract exploitation of labor immigrants. (2020-02-11)

Increased relief on social security for research and development (R&D-relief) from 1 April 2020 
Proposed bill on adjusted rules for R&D has been submitted to the Swedish Parliament. (2020-01-23)

The UK wants to leave the EU on 31 January 2020 
Brexit enters a crucial phase. (2020-01-14)

 

2019

Increased government fees for work permit applications 
New updated fees for work- and residence permit application as of 1 January, 2020. (2019-12-20)

The Swedish Supreme Administrative Court: Director’s fees to be treated as income from employment 
The Swedish Supreme Court has published a new ruling about director's fees. (2019-12-17)

Getting Ready for Brexit – Immigration 
What you need to consider if there is No deal or if there is some kind of deal. (2019-11-05)

Supply between VAT group and branch, new referral to ECJ from Sweden 
The Swedish Supreme Administrative court (SAC) today 30th October announced its decision to request a preliminary ruling from the Court of Justice of the European Union (EUCJ) regarding the VAT treatment of supplies from an overseas head office to its branch in Sweden, where the overseas head office only is a member of a VAT group. (2019-10-30)

Getting Ready for Brexit – Social Security
What you need to consider if there is No deal or if there is some kind of deal, including country specific information about Sweden. (2019-10-10)

The Swedish government plans to introduce stricter taxation for Business Travelers and posted workers in Sweden
As from 1 January 2021 the Swedish government plans to introduce stricter taxation for Business Travelers and posted workers in Sweden. (2019-09-09)

Swedish Supreme Administrative Court confirms tax ruling on withholding tax and yield tax
Swedish Supreme Administrative Court confirms tax ruling on withholding tax and yield tax in relation to foreign life insurance. (2019-06-26)

The Swedish Chemical Tax – recent developments 
KPMG provide an update on recent and potential future developments in this area. (2019-05-24)

Mandatory Disclosure Reporting coming up 
Mandatory Disclosure Reporting coming up - with some effects as of June 25, 2018. (2019-02-15)

New reporting system – employer return on an individual basis
As of 1 January 2019 every employer that is required to file a monthly employer tax return must now report the information both on an individual level and on a company level. (2019-01-17)

New Swedish Gambling Tax Enters into Force with Limited Time for Compliance
There are some potential challenges that may occur due to when and how this tax should be reported. (2019-01-11)

2018

No implementation of the suggested rules for temporary work in Sweden by 1 January 2019 
The introduction of ‘economic employer’ in Sweden is postponed. (2018-09-21)

Extended CFC legislation proposed
The purpose of the proposal is to make various kinds of tax planning involving companies in foreign jurisdictions more difficult. (2018-09-11)

Supplementary proposals regarding taxation and payment of tax for temporary work in Sweden
The Swedish government adjusts its proposal regarding the so-called hiring out of labor rule. (2018-08-16) 

OECD releases discussion draft on the transfer pricing aspects of financial transactions
OECD has issued a Public Discussion Draft on Financial Transactions, as part of its continuing work on Base Erosion and Profit Shifting (BEPS). (2018-07-06)

New legislation on the limitation of interest deductions and corporate tax rate cut
The Swedish Parliament passed 14 June a bill with the enactment into Swedish law of the EU Anti-Tax Avoidance Directive. The new rules include new interest deductions rules that will have substantial impact for a large number of companies in Sweden. Moreover, the corporate tax rate will be lowered din two steps. Please see our previous TaxNews for more information. (2018-06-15)

The Swedish parliament voted in favor of re-regulating the Swedish gambling market
The new Swedish Gambling Act and Swedish Gambling Tax Act will enter into force on January 1th, 2019. (2018-06-08)

The Swedish Government wants to apply the economic employer concept in Sweden from 2019  
If the proposal becomes legislation, this would result in extended tax liabilities and reporting requirements for foreign employer and employees. (2018-05-24)  

KPMG report update: A re-regulated gambling market
Final bill regarding the re-regulation of the Swedish gambling market to Parliament. (2018-04-25)

Swedish Government proposes new interest deduction limitation rules and corporate tax cuts
The Swedish Government has now presented its proposal on new tax legislation re interest deduction in the corporate sector. (2018-03-23)

KPMG report: Reformation of the Swedish gambling market
The report summarize the proposal and provide KPMG´s initial comments. (2018-02-06)

Swedish Administrative Court of Appeal ruling about transfer pricing
The Administrative Court of Appeal in Stockholm has reached a decision concerning questions related to the timing of data and information in a Benchmarking search that can be used to test whether the price is set at arm-length. (2018-01-23)

2017

The Swedish Government issues its proposal for a new tax on gambling and other regulations of the gambling market in Sweden
The Government proposes that new gambling rules should be designed as a licensing system and that a new gambling tax is introduced on licensed games. (2017-12-22)

Tax changes in the Swedish Budget Bill for 2018
The Budget Bill for 2018 was presented to the Swedish parliament (Riksdagen) last week. (2017-09-26)

Proposal on a revised definition of the employer concept
If the proposal becomes legislation, this would result in extended tax liabilities and reporting requirements for foreign employer and employees. (2017-06-30)

The Swedish Supreme Administrative Court: Director’s fees are usually income from employment
A decision of the high court in Sweden provides that certain fees paid to company directors are taxable as income from employment. (2017-06-27)

Government memorandum proposing corporate tax cuts and new interest deduction limitation rules
A Government memorandum proposing corporate tax cuts and new interest deduction limitation rules has been released today. (2017-06-20)

Chemical Tax warehouser registration – only 30 working days remain to be ready
On 1 July, 2017, the taxing provisions for Sweden’s new Chemical Tax on white goods and other electrical goods (such as computers, tablets, televisions, phones, games consoles and routers) will come into effect. (2017-05-17)

Proposal for amended Swedish tax legislation for real property transactions
On March 30, the special appointed Committee presented its proposal for amended Swedish tax legislation for real property transactions. (2017-04-11)

Proposal for new regulations of gambling in Sweden
Today, a proposal for new regulations of gambling in Sweden was presented to the government. (2017-03-31)

The Swedish Tax Agency regarding the notification requirements and information for Country-by-Country Reports
The Swedish Tax Agency has published information on Country-by-Country Reporting (2017-03-08)

New legislation on Transfer Pricing Documentation and CbC
On March 1 the parliament passed the Government's proposal for Transfer Pricing Documentation and Country-by-Country Reporting. The regulations will enter into force on April 1, 2017. (2017-03-03)

Withdrawal of the proposal on a Financial Activity Tax in Sweden
Late Friday the 24th of February, the Swedish government announced that it will not proceed with the proposal on a Financial Activity Tax. (2017-02-27)

New ruling regarding the possibility to invoice director’s fees from a private limited company
In a decision that went against the Swedish Tax Authority’s current public guidance (issued in 2008), on the 21 December 2016 the Council for Advance Tax Rulings upheld that earlier more restrictive precedence from 1993 is applicable in determining whether a director’s fees may be invoiced from a private limited company. This decision means that the current legal position is unclear. (2017-02-01)

Tax on chemicals within certain electronic products
Sweden has introduced a new tax on chemicals within certain electronic products that will take effect from 1 July 2017. (2017-01-19)

2016

Proposal on a Financial Activity Tax in Sweden
On November 7, 2016 a government committee presented its report “Tax on financial services” to the government. (2016-11-08)

Creation of Permanent Establishment due to reoccurring short-term activities in Sweden
A Swedish Administrative Court of Appeal has issued a decision in a case regarding Permanent Establishments. (2016-11-07)

The Swedish Tax Agency proposes measures linking tax policies and sustainability
The Swedish Tax Agency proposes tax policy requirements for state-owned companies and confirms tax as a sustainability issue. (2016-11-07)

Swedish judgment on the arm's length principle and the Swedish Tax Agency’s comment
Section 14 paragraph 19 Income Tax Act (ITA) can be applied when an agreement with certain contractual terms and conditions is replaced by another agreement with not as beneficial terms and conditions, although they by themselves are considered to be at arm's length, according to the Supreme Administrative Court (SAC). (2016-07-06)

Detailed Commentary on the Swedish Tax Agency’s Transfer Pricing and CbC Proposals
We have further examined the Swedish Tax Agency’s proposals for transfer pricing documentation and identified a number of particularly interesting points. (2016-05-24)

Swedish Tax Agency's legislative proposal regarding Transfer Pricing Documentation
The Swedish Tax Agency has submitted its proposal to the Swedish Ministry of Finance regarding the implementation of BEPS action 13 about documentation and sharing of country-by-country reports (CbC). (2016-05-03)

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