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- » Those who run a non-Swedish enterprise in Sweden
Those who run a non-Swedish enterprise in Sweden
From 1 January 2021, these regulations apply to you if you are running an enterprise outside Sweden but have employees working here, or if you are running a non-Swedish enterprise and are paid for work that has been carried out in Sweden.
Non-Swedish employers with employees working in Sweden
From 1 January 2021, these regulations apply to you if you are running a company outside Sweden but have employees working here. If you are operating a non-Swedish business that receives payment for work carried out in Sweden, please see the relevant information below.
How have the regulations changed?
Under the previous regulations, non-Swedish employers have only been obliged to deduct tax from payments for work carried out in Sweden if they have a permanent establishment in Sweden. But from 1 January 2021, non-Swedish employers with no permanent establishment in Sweden will also be obliged to deduct tax from these payments. The new regulations also apply to work carried out abroad, if it is within the scope of the employer’s business in Sweden.
You need to register your enterprise as an employer in Sweden
If you are a non-Swedish employer and will be making tax deductions , you need to register as an employer in Sweden. You can register through our e-service or by filling in a form. The form is only available in Swedish, but the e-service is also available in English.
- Register as an employer
- Form SKV 4632: “Tax registration for non-Swedish employers ” (“Skatteanmälan för utländska företagare”)
PAYE tax returns and tax deductions
As an employer, you have to file PAYE tax returns and make tax deductions for your employees.
Making tax deductions
If you are a non-Swedish employer with no permanent establishment in Sweden, you must deduct tax at the rate of 30% on any payment for work carried out in Sweden – unless the Swedish Tax Agency notifies you that a different tax rate applies. One exception is when a payment does not have to be taxed in Sweden, in accordance with the 183-day rule included in the regulations on special income tax (“särskild inkomstskatt” or “SINK”). In such a case, you do not have to make any deduction. It is up to you to determine whether the 183-day applies rule applies – you do not need a decision from the Swedish Tax Agency.
Here are some examples of decisions that can affect the tax deductions made:
- Decisions regarding special income tax: If an employee has limited tax liability in Sweden, the Swedish Tax Agency may have already made a decision regarding special income tax. If this is the case, you must deduct special income tax from any payment you make to the employee, at the rate stated in the decision notice. The tax rate is normally 25%.
- Decisions regarding changes in the payment of preliminary A-tax: The Swedish Tax Agency may have already made a decision regarding the adjustment of preliminary A-tax payments (“skattejämkning”), which may necessitate deductions at a different percentage rate. Such a decision is taken when an employee applies for a change to be made. The aim is to ensure that the preliminary tax paid is as close as possible to the final tax due. If one of your employees presents such a decision notice to you, tax deductions must be made in accordance with the rate stated in the notice.
Filing PAYE tax returns
You must declare the tax you deduct from salaries and any other payments made to employees for work carried out in Sweden by filling in a PAYE tax return once a month. If you have to pay employer contributions in Sweden, you must also declare these in your PAYE tax returns.
You must provide details of every employee in your PAYE tax returns, which you can file through our e-service or by filling in two different forms. (One for employer details and one for information about each employee.)
- File a PAYE tax return
- Form: SKV 4786 PAYE tax return: “Main information about the employer (”Arbetsgivardeklaration huvuduppgift”)
- Form: SKV 4788 PAYE tax return: “Specific information about the individual payee (Blankett ”Arbetsgivardeklaration individuppgift”)
- Further information on filing a PAYE tax return
- Further information on employer contributions
- Payments to your tax account from foreign bank account
Non-Swedish enterprises that receive payment for work done in Sweden
The following regulations apply to non-Swedish enterprises that are paid for work that has been carried out in Sweden.
How have the regulations changed?
Under the existing regulations, a Swedish enterprise that makes a payment for work to a non-Swedish enterprise is only obliged to deduct tax from such a payment if both of the following apply:
- the non-Swedish enterprise has a permanent establishment in Sweden
- the non-Swedish enterprise is not F-tax certified.
From 1 January 2021, a Swedish enterprise that makes such a payment for work to a non-Swedish enterprise must deduct tax from the payment – regardless of whether or not the non-Swedish enterprise has a permanent establishment in Sweden. The rate of taxation is determined by where the work has been carried out. The Swedish enterprise must deduct tax from any payment if the work is carried out in Sweden, or abroad within the scope of its business in Sweden.
How much tax will be deducted?
The Swedish enterprise making a payment for work must deduct tax at 30% on the full amount – unless the Swedish Tax Agency has determined that a different rate applies .
How do I get a refund on tax deducted from my earnings?
If an enterprise has paid you for work and deducted preliminary tax from your earnings, the preliminary tax will be refunded to you when the final tax you are due to pay has been calculated. This calculation is made during the year following the tax year in question.
If you do not have to pay tax in Sweden, the full amount of preliminary tax you have paid will be refunded to your tax account. If you are liable for tax in Sweden (for example, if you have a permanent establishment here), the preliminary tax that has been paid on your earnings will be used to pay your final tax. Once your final tax has been paid, any excess preliminary tax will be refunded to your tax account.
You can apply for an early refund of any preliminary A-tax you are due – but only if you can prove that you have an urgent need for it. It is not sufficient to state that you have no tax liability in Sweden.
What can I do to avoid payers making preliminary tax deductions on my earnings?
If you do not want tax to be deducted in Sweden on payments for work, you have the following options:
Apply for F-tax certification
Anyone who runs a business in Sweden can be granted F-tax certification. This means you are responsible for paying your own preliminary tax to the Swedish Tax Agency. If you can show that you are F-tax certified, preliminary tax should not be deducted from payments that companies make to you for work.
You can apply for F-tax certification through our e-service or by filling in a form. The form is only available in Swedish, but the e-service is also available in English.
- Apply for F-tax
- Form: SKV 4632b (”Tax application for foreign entrepreneurs")
- Conditions for F-tax approval
Apply for exemption from tax deductions
If you are not liable for tax in Sweden, you can apply for exemption, which means no tax deductions will be made by enterprises that pay you a certain amount for your work. If the Swedish Tax Agency approves your application, you will be notified of our decision, and can then show the decision notice to any enterprise paying you.
You can apply for exemption from tax deductions by writing a letter to the Swedish Tax Agency, including the following:
• details of the enterprise paying you (name, address and corporate identity number/personal identity number)
• the period to which your application refers
• the reason you wish to be exempt from tax deductions (i.e. because you are not liable for tax in Sweden)
Please send your application to the Swedish Tax Agency at the following address:
Skatteverket
Utlandsenheten
SE-205 31 Malmö
Sweden
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