Proposed tax changes for foreign employees in Sweden - KPMG Global
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Sweden: New tax liabilities, reporting by foreign employees proposed

Proposed tax changes for foreign employees in Sweden

The Swedish Finance Department today submitted a proposal, based on a recent memorandum from the Swedish tax agency, for consultation that would revise the taxation of individuals working temporarily in Sweden. The proposal would expand reporting by workers subject to tax in Sweden, and would impose additional administrative responsibilities for both employees and their employer.


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The proposed legislative changes would provide: 

  • The concept of “economic employer” would apply concerning Swedish taxation.
  • The 183 day-rule would not apply for hired-out personnel.
  • Foreign companies without a permanent establishment in Sweden would have to withhold tax on salary paid out to employees working in Sweden.
  • Employees would have to register with the tax agency when working in Sweden.

If the proposal is enacted into law, it would result in extended tax liabilities and reporting requirements for foreign employer and employees.


Read a June 2017 report prepared by the KPMG member firm in Sweden

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