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Is Sweden about to cut taxes for pensioners?

Sweden wants to cut taxes for pensioners – here's what that means.

Published: 19 June 2019 09:12 CEST
Is Sweden about to cut taxes for pensioners?
The changes could come into force next year. Photo: Fredrik Sandberg/TT

Taxes for pensioners in Sweden were already lowered at the turn of the year, but the centre-left coalition government now wants to cut them even further for around a million of the country's retired workers.

The proposal costs around 4.3 billion kronor ($450 million), according to Social Democrat Finance Minister Magdalena Andersson, who has submitted the proposal to various authorities for consultation. If the feedback is positive, the tax cuts will be part of the autumn budget and come into force next year.

Around half of the 2.2 million people on a Swedish state pension pay higher taxes on their pension than the average employee does on their salary. This is due to a series of tax deductions for workers – called the earned income tax credit (jobbskatteavdrag) – pushed through by the previous centre-right coalition which governed Sweden in 2006-2014, and then by the right-wing opposition budget in 2018.

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“The pension is a deferred salary and should therefore be taxed as such, and in addition we do not think that those who have helped build this country should be penalty taxed,” Andersson told the TT newswire.

It is up to the budget negotiations between the government and the supporting parties to decide how to finance the tax cuts. Erasing the tax gap completely would cost another three billion kronor.

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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.

Published: 12 March 2024 13:40 CET
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.

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