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

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in 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