Operating ‘Pay As You Earn’ for employees conducting work in Sweden is different for foreign businesses that are not established in Sweden, regarding both social security contributions and tax deductions.
Foreign employers without permanent establishment in Sweden must pay Swedish social security contributions for locally employed personnel. Foreign employers without permanent establishment pay contributions at a slightly lower rate than other employers do.
A foreign employer who has no permanent establishment in Sweden is obliged to withhold tax for Swedish preliminary tax on wages paid to an employee.