SHARE
COPY LINK

MONEY

Sweden proposes tax change for some foreign workers

More foreign workers in Sweden may have to pay tax, if a government proposal goes ahead.

Sweden proposes tax change for some foreign workers
Skatteverket estimates it would create another 330 million kronor a year in tax revenues. Photo: Fredrik Sandberg/TT

A person who does not normally live in Sweden, but is working temporarily in the country while being paid by an employer based outside of Sweden, may be exempt from paying taxes if they work less than 183 days during a year, according to current tax rules.

But according to the government's proposed changes, this rule should not apply if they have been contracted to carry out work for a company based in Sweden.

In other words, whether a temporary worker has to pay tax or not should depend on which company they are doing the work for, rather than in which country the employer paying their salary is based.

READ ALSO: Eight things to know about your Swedish tax return


Finance Minister Magdalena Andersson. Photo: Henrik Montgomery/TT

The government also wants foreign workers who are not registered residents with a personal identity number or coordination number (folkbokförda) to still register at the tax agency Skatteverket to help it keeb tabs on those working in the country.

It also suggests that rules applying to Swedish companies should also apply to foreign businesses operating in Sweden, for example rules on tax deductions and registration.

“We want order on the job market. This is a proposal that more people who are working temporarily in Sweden should also pay taxes in the country. They are also to register at Skatteverket to keep an eye on who is working. That facilitates control, competitiveness for Swedish businesses and tax revenues,” Finance Minister Magdalena Andersson told news agency TT.

Skatteverket estimates it would create another 330 million kronor ($39 million) a year in tax revenues.

The government has referred the proposal to other agencies and organizations to get their opinions before it decides to take it further. If it goes ahead, it is proposed it should come into force on January 1st, 2019.

For members

MONEY

How to avoid falling victim to tax scams in Sweden

Sweden's tax agency, Skatteverket, warns of an increase in scams when it's time for Swedish tax-payers to declare their taxes.

How to avoid falling victim to tax scams in Sweden

Anyone who earned more than 22,208 kronor last year received their tax returns digitally last week, marking the start of tax season.

That also means an expected peak in tax-related scams, Skatteverket warns.

Most of the scams are so-called phishing scams, meaning attempts to steal the victims’ personal information. Fraudsters may for example email a person, pretending to represent Skatteverket, and ask them for, among other things, their banking details.

“We’re seeing these in all channels. They use fake emails, SMS, letters and in some cases even phone calls. It is particularly common in tax declaration times – just when we’re about to send out the tax returns, the e-service opens and it’s possible to declare – but above all when it’s time for tax rebates,” Jan Janowski, a Skatteverket expert, told Swedish news agency TT.

A scam email might for example state that you’re entitled to a tax rebate and that you should click a link to receive it. Don’t click any links, open any attachments or reply to the message. Skatteverket advises that you immediately delete the email or text message.

Another common scam is that you receive a text message claiming to be from Skatteverket, telling you that you owe them money and you need to log in to calculate the amount. The website you’re urged to log in via does not belong to Skatteverket. Don’t click the link.

The agency stresses that it never asks people for their banking details. The exception is that you may be asked for your bank account information if you log into Skatteverket’s website to declare your taxes, but that always first requires you to log into the site.

To receive your tax rebate, you need to inform Skatteverket of your bank account number. You do this not by clicking a link in an email or SMS, but by logging into their website using a digital ID, for example BankID, and submitting your details. Only do this on your own initiative. If someone calls you and asks you to log in with your BankID during the phone call, don’t do it. That’s another common scam.

Skatteverket will also never call you to ask for your bank account or credit card number.

It will be possible to declare your taxes from March 19th. You’ll receive any tax rebate you’re owed by mid-April or early June, depending on when you submit your tax return. These are the dates when fraudsters are likely to attempt the most scams.

SHOW COMMENTS