Sweden

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Tax Policy

TAX POLICY

Income Tax Rate 57%

Corporate Tax Rate 26.3%

VAT Rate 25%

Individual income tax rates for 2011

Individual income tax in Sweden is comprised of two major parts:

·         A municipal tax rate between 28.9% and 34.2% and

·         a national tax rate between 20% and 25%. 

For 2011, the national tax rate applies only to individuals earning more than SEK 383'000 per year. Assuming a municipal tax rate of 30%, the combined tax burden is as follows:

30.00% from SEK 0.00 up to SEK 383'000,

50.00% from SEK 383'000 up to SEK 548'300,

55.00% over SEK 548'300,

Highest rate 59 %

Church tax of approx 1.0 % is included in the municipal tax. Individuals who are not members of an official church pay burial fee of approx. 0.2 % if they were living in Sweden on November 1 of the year prior to the income year.

Tax year

The tax year corresponds with the calendar year.

Special Expatriate´s Tax Regimes

There is a special tax relief (tax and social security base reduced by 25.0 %) for foreign experts and key persons.

General filing due dates

• Income tax return for 2011: May 2, 2012 and May 31 for persons living abroad.

• Extension upon request may be granted untill June 15, 2012.

Allowances / Deductions

Personal allowance varies between SEK 12,600 – 33,000.

•         SEK 12,600 on annual income exceeding SEK 336,700.

•         Standard tax reduction capped at approx. SEK 21,000, for individuals with employment income.

•         Commuting: Actual costs exceeding 9,000.

•         Commuting by car: SEK 1.85/km (company car: petrol SEK 0.95/km, diesel: 0.65/km, other fuel: 0.95/km). If time gained compared to public transport exceeds 2 hours per day or car is used for work more than 160 days per year.

•         Double household expenses: Rent paid + costs for hometravel once per week + SEK 63 per day the first 30 days (1 month) thereafter SEK 0.

Interest & Dividends

General allowance NIL

Tax rate 30.0 %

Capital Gains

• 22/30 of gains from sale of residential property are taxed.

• Other capital gains are taxed in full.

• Tax rate 30.0 %

Other taxes

• Municipal trade tax NIL.

• Corporate tax 26.3 %

Value added tax (VAT)

Swedish VAT (moms) is based on an input/output system, generally granting full credit in every line until (but not including) the final consumer.

The standard rate of VAT is 25 percent. A reduced rate of 12 percent applies primarily to food, hotel accommodation, camping, and cultural and sporting events. A reduced rate of 6 percent applies mainly to newspapers, books, magazines and public transport.

Certain services are VAT-exempt. These include medical and dental care, social services, banking and financial services.

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Source: http://www.deloitte.com

http://www.investsweden.se