Business Traveler Services | KPMG | SE
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Business Traveler Services

Business Traveler Services

Sweden is introducing the ‘economic employer concept’ (ekonomiskt arbetsgivarbegrepp). Are you prepared?

Like many countries, Sweden wants to widen and defend its domestic tax base. One of the focus areas is non-resident travel, where the failure to comply with proposed new reporting and tax payment requirements will result in surcharges, interest and other penalties.


The Swedish Ministry of Finance submitted a proposal for consultation in June 2017. This put forward changes to the taxation of individuals working temporarily in Sweden, together with broadening the categories of employees who pay Swedish tax. The changes will also bring significant administrative costs.


Sweden’s new rules are set to apply from 1 January 2019. So your organization needs to be on top of these developments and to update its compliance procedures.
 

In more detail, the proposals mean:

  • Applying the concept of economic employer to Swedish taxation, resulting in more employees being liable to taxes in Sweden.
  • The so called 183-day exemption rule will not apply when personnel are hired out, causing these individuals to be taxed from the first day of their work in Sweden.
  • Foreign companies without a permanent establishment in Sweden will in many situations have to withhold tax on the salaries paid to employees working in Sweden. This will oblige the foreign company to register as an employer in Sweden and to file a monthly payroll return.
  • Employees may be required to register with the Tax Agency when working in Sweden.
  • A Swedish organization that hires a foreign company without a permanent establishment in Sweden will have to deduct tax from its payments to the supplier if the supplier is not properly registered in Sweden.


As well as complying with these new rules, employers will continue to be legally responsible for meeting mandatory requirements in areas such as individual income tax, payroll reporting and income tax withholding, as well as social security payments, corporate tax obligations associated with permanent establishments, and maintaining the proper immigration/work permit documentation.
 

How KPMG can help

Our Business Traveler services helps both companies and employees to deal effectively with all these requirements. It brings together in-depth expertise in tax, immigration, mobile assignment administration to make managing a global workforce simple, efficient and more transparent.

KPMG LINK Business Traveler tool provides companies with great visibility and control in dealing with the compliance and risk aspects associated with business travel, with minimal interruption to employees and the business. You will be able to:

  • Track the travel of all employees, including on-the-go tracking via a mobile app.
  • Receive instant trip analysis and guidance – fast, accurate and tailored tax, social security and immigration assessments.
  • View real-time travel assessments for an employee who is contemplating a business trip.
  • View management information which is available 24/7 through a live digital dashboard and generate compliance reports detailing issues and next steps.
  • Receive regular updates to tax, social security and immigration rules and logic.

 

For more information please contact us.


Petter Frödeberg
+46 8 723 96 82
petter.frodeberg@kpmg.se


Louise Hemmestad
+46 8 723 61 09
louise.hemmestad@kpmg.se

 

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