Sweden – Parliament Approves Modified Income Tax Thresholds for 2014

Sweden – Parliament Approves Modified Income Tax ...

Sweden’s Parliament approved a revised budget proposal for 2014, which includes further changes to the personal income tax thresholds.

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Flash Alert 2014-011

Sweden has approved a revised budget proposal for 2014, which includes further changes to the personal income tax thresholds.1

 

WHY THIS MATTERS

Parliament voted to approve personal income tax thresholds different than what the government originally proposed in its budget; this is unusual. The adjustments to the thresholds are less than originally anticipated and effectively marginal – approximately 1.7 percent upwards – and will have no significant impact on international assignment-related tax costs.

Therefore, the new income tax thresholds for income year 2014 that came into force on 1 January 2014, are as noted in the table below.

New 2014 Personal Tax Rates/Thresholds for Residents and Nonresidents

 

 Income Year 2014

Taxable Income

Tax

 Residents  SEK 0 - 420,800  Municipal income tax*
   SEK 420,800 - 602,600

 Municipal income tax

+20% national income tax

   Over SEK 602,600

 Municipal income tax

+25% national income tax

 Nonresidents  Special income tax on non-residents 20% 


*Please note that the municipal tax rate varies between different municipalities.

KPMG NOTE

As readers will note in Flash International Executive Alert 2013-138 (9 October 2013), the planned first two income thresholds for residents for Income Year 2014 were supposed to have been:

  • From SEK 0 to 435,900, and
  • Above SEK 435,900 to 602,600.

FOOTNOTE

1 For the decision from the Riksdag, Sweden’s parliament (in Swedish), see:http://www.riksdagen.se/sv/Dokument-Lagar/Utskottens-dokument/Betankanden/Arenden/201314/FiU16/.

For the original budget presented by the government (in Swedish) Prop. 2013/14:1, Budgetpropositionen för 2014, see:http://www.regeringen.se/sb/d/16886/a/223709.

CONTACTS

For further information or assistance, please contact your local IES/People Services professional or one of the professionals with the KPMG International member firm in Sweden noted below:

 

Bernt Björkman 

Tel. +46 8 723 94 89

bernt.bjorkman@kpmg.se

 

Katrin Fahlgren

Tel. +46 8 723 9147

katrin.fahlgren@kpmg.se

The information contained in this newsletter was submitted by the KPMG International member firm in Sweden.

© 2016 KPMG AB, a Sweden corporation and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

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