When an employee is working in Sweden, the employer is obliged to report the employment income to the Swedish tax Agency on a monthly basis and perform preliminary tax withholding from the monthly salary. The tax withholding obligation also applies to foreign employers. The Swedish withholding tax is only preliminary and should not be considered as your final tax liability.
We would like to remind you that it is your responsibility to file a correct tax return and to ensure this, you might want to reach out to your employer on this subject before filing your Swedish tax return should you notice that your employer has not reported your foreign employment income with the Swedish Tax Agency.
Under certain conditions, foreign workdays can be exempted from Swedish taxation. Please complete your calendar on www.gadeloitte.com to ensure your Deloitte contacts in all authorised countries have access to this data to review when preparing your tax returns.
If the income is not possible to exempt, a foreign tax credit may instead be possible to apply for to avoid double taxation.
In principle, all fringe benefits, i.e., any remuneration in kind received by an employee from the employer for services rendered, are taxable at fair market value. The intention is that all compensation for employment should be taxed at full value whether paid in cash or as a fringe benefit. For company cars and free accommodation, standardized valuations may apply.
When an employee uses a company car for private use, the car constitutes a taxable benefit. The benefit amount is based on standard valuations issued by the Swedish Tax Agency every year and depends on the market value of the car, year model, extra facilities, if the car is environmental, etc.
When calculating the value of a housing benefit for payroll purposes, a flat rate per square meter is used. The rates are set yearly for various regions to an average rate per square meter. However, you as an employee will have to report the market value of the housing which basically means what the costs would have been if you rent the housing on your own.
If the benefit is not reported in your Swedish payslips/in the monthly employer payroll reporting with the Swedish Tax Agency, we kindly ask you to inform Deloitte and provide additional information about the housing should Deloitte be authorized to assist you with your Swedish tax return.
Private living expenses may never be deducted. You may only claim deductions for expenses which have a direct connection to your work. Here you can find more information about the most common deductions in Sweden.