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Economic measures provided by the Swedish Government to alleviate the economic effects for companies due to the covid-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.

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Jörgen Graner

Partner / Head of International Corporate Tax

KPMG i Sverige

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On 16 March 2020, the Swedish Government submitted a referral for a changed budget due to the Corona crisis. The parliament is expected to approve the proposal on the 19 March 2020.

The proposed budget has been suggested to alleviate the situation for Swedish companies, employers and employees. In the proposed budget, they have raised the possibility for temporary lay-offs and strengthen the liquidity via the tax account.

Strengthen companies' liquidity through deferral of tax payments

The Swedish Government's proposal means that companies may receive a deferral of payment of employer's social security contributions, preliminary taxes on salary and VAT that is reported on a monthly or quarterly basis.

Companies’ extension of payment includes tax payments for three months and can be granted up to 12 months. 

It is proposed that the new rules will come into force from 7 April 2020. They may however be applied retroactively from 1 January 2020. This means that companies that have made tax payments for January to March may have this tax refunded from the Swedish Tax Agency. Interest of currently 1.25% p.a. and a fee of 0.3% per month is levied on the amount during the extension period. Extension of payment will only be granted companies that do not mismanage their financials. Moreover, extension cannot be granted for companies with substantial tax debts. Companies must apply for extension with the Tax Agency.

Temporary lay-offs

The temporary lay-offs are aimed to save employments in Sweden. The employees will, during the temporary lay-offs, reduce their work hours but still receive more than 90 percent of the salary, with a cap up to SEK 44,000 per month. The Government will take on 75 per cent of the cost for the employee´s reduced work hours. The suggested measure will come into force on the 7 April and will be applied from the 16 March 2020 to the 31 December 2020.

The Swedish Agency for Economic and Regional Growth (Tillväxtverket) will be the government body responsible to process and decide on temporary lay-offs. To receive the support an application must be submitted to the Agency. If rejected by the Agency, it will be possible to appeal the decision to the Administrative Court.


Please feel free to contact us if you would like to know more.

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The article in Swedish


Jörgen Graner

International Corporate Taxation
+46 8 723 97 90
jorgen.graner@kpmg.se

Joachim Broberg
Indirect Tax
+46 8 723 97 82
joachim.broberg@kpmg.se

Johnny Ekström
Individual Taxation
+46 8 723 96 70
johnny.ekstrom@kpmg.se

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