Sweden’s Parliament approved a revised budget proposal for 2014, which includes further changes to the personal income tax thresholds.
Sweden has approved a revised budget proposal for 2014, which includes further changes to the personal income tax thresholds.1
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.
Income Year 2014
|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.
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:
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:
Tel. +46 8 723 94 89
Tel. +46 8 723 9147
The information contained in this newsletter was submitted by the KPMG International member firm in Sweden.
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