close
Share with your friends

Sweden: Tax proposals in 2020 budget bill

Sweden: Tax proposals in 2020 budget bill

The government on 18 September 2019 submitted the 2020 budget bill that includes tax proposals and reflects certain reform initiatives.

1000

Related content

Among other measures, the 2020 budget bill proposes the following tax amendments that would be effective 1 January 2020:

  • Repeal of the upper tier limit for state income tax (the so-called “value tax”)
  • Reduced tax rate for individuals over the age of 65 years
  • Requirements for certain electronic payments
  • Reduced advertising tax rate

The government also indicated its intentions to implement certain tax-related initiatives, including:

  • A “financial employer” concept effective from 1 January 2021 (that is, the so-called economic employer concept when taxing foreign residents who work temporarily in Sweden)
  • Tax on the financial sector effective from 1 January 2022 (that is, a tax to be imposed on the financial sector or a "bank tax”)
  • Changes to the rules for deduction for research and development (R&D) effective from 1 April 2020 (to further reduce employers' fees for those who work with R&D in a company)
  • Increased taxation by foreign sellers regarding chemical taxes (to revise the rules that currently exempt from the chemical tax certain foreign sellers that make sales directly to Swedish consumers)
  • Value added tax (VAT) e-commerce package (to revise the VAT rules for e-commerce between businesses and consumers) to be effective 1 January 2021
  • Tax on waste incineration and tax on plastic carriers


Read a September 2019 report (Swedish) prepared by the KPMG member firm in Sweden

© 2021 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.


For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance.

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Want to do business with KPMG?

 

loading image Request for proposal

Stay up to date with what matters to you

Gain access to personalized content based on your interests by signing up today

Sign up today