Here you will find answers to the most common questions about tax relief. If your question is not addressed below, please contact us.
Conditions for tax relief
In the decision I got from you, it says that tax relief applies for three years. I just read that tax relief is applicable for five years. Which period of validity is it?
One condition for getting a five-year period of validity, is that you entered Sweden after 31 May 2020. But if the decision granting you tax relief is dated before 1 January 2021, it is only valid for three years. Until 31 March 2021 it was possible to apply for an extended period of validity. Now this window is closed and no exceptions are allowed.
I came to Sweden before 1 June 2020. Why can I not enjoy tax relief for five years?
The five-year rule enters into force 1 January 2021 as a result of a proposal announced by the Swedish Government in June 2020. The government did not want to risk companies postponing key employments until after year-end, once the proposal was known. Therefore, the five-year period may apply retroactively for those who have arrived in Sweden between 31 May 2020 and 1 January 2021.
Those who – like yourself – have entered Sweden before the announcement have come here on no other expectation than a three-year relief. The government did not see sufficient grounds for making the longer period retroactively applicable to them.
My intention is to stay in Sweden for five years only and I have taken up a permanent job here. Will this have an impact on my possibilities to enjoy tax relief?
No. It's your intention to stay here for five years only that matters. As long as circumstances do not point in an opposite direction your form of employment is of no importance.
May I apply for tax relief even if my stay in Sweden will only be for such a short period that I will be taxed according to the Swedish Special Income Tax for Non-Residents Act (SINK)?
Yes, the duration of your stay in Sweden is not a condition for tax relief. But a decision granting you tax relief cannot be applied unless your earned income is taxed according to the Swedish Income Tax Act (1999:1229).
If your stay here is less than six months, you are normally taxed according to SINK. Then a positive decision from us cannot be applied.
However, in that case you may request taxation of your earned income according to The Income Tax Act. Thus our decision can be applied.
Please refer to the Swedish Tax Agency with your request or further questions about taxation according to SINK.
can i enjoy tax relief if customers are charged by my Swedish Company for work that I perform here?
Yes, but bear a few things in mind.
Tax relief based on remuneration rate presupposes that your company each month pays out a salary to you which exceeds the threshold independantly of the amounts that customers are charged.
Tax relief based on tasks and expertise requires in principle that your company has a clearly defined mission throughout your stay in Sweden. Further, the work performed by your company must be of such character that you would have enjoyed tax relief if you insead of your company had performed the work as employee of the customer.
can I enjoy tax relief if I invoice the work I perform to the customer as a sole trader?
No. Tax relief only applies to revenue taxed as earned income (as a sole trader your income is normally assessed as income from business operations).
Applying and processing
How long does it take to get a decision?
Application based on the remuneration rate: about 4–6 weeks
Application based on tasks and expertise: about 4–8 weeks
It may take longer, for example if we need to collect additional information from you. Read more at: Application procedures.
do i need a swedish civic registration number before i apply?
i have an undisclosed employment contract, must i file it?
No, you include documents of your choice. Your eligibility for tax relief must be underpinned by the data you provide though. Otherwise your application may be rejected. But please note, that with us data in your application as well as in other documents you file are covered by strict confidentiality. Read more at: Confidentiality.
i missed the deadline for application because i got information about tax relief too late. can my application nevertheless be examined?
No. The application must be received by the Board within three months from the date you started working here. No matter that you did not know about tax relief or when you got to know about it.
i sent my application in time. why has it been rejected?
Your application must reach us within the given timeframe. Otherwise we cannot try it no matter when you sent the application. This goes even if you sent your application in good time and the delay is caused by events beyond your control.
Following our decision
TO WHICH REMUNERATIONS DOES THE DECISION ON TAX RELIEF APPLY?
Tax relief applies to compensation for work paid out to you by the employer mentioned in the decision. Tax relief also applies to some payments due to sickness.
If you have specific questions about the application of the decision, please contact the Swedish Tax Agency. For instance you may wonder whether a payment qualifies as remuneration for work, or if a reimbursement (e.g. for school fees) qualifies as exempt from tax. As an employer you may want to know what to observe when reporting social security contributions and tax deductions from the employee’s pay.
does the tax relief cover remuneration paid out to me before the decision was issued?
Yes. The decision applies to all remuneration in return for work done during your stay in Sweden, regardless of when the decision was adopted and for the applicable period of validity (three or five years). In principle, relief which has not been taken into account earlier has impact at the latest when the Swedish Tax Agency decides on your taxation on the basis of your income tax return. But for full-scale information on the effects of your tax relief, please refer to the Swedish Tax Agency .
i will arrive in sweden later than stated in my application. do i have to notify the board?
No. Our decision applies during the first five (or in some cases three) years of your actual stay in Sweden. The validity is not linked to the dates in the application but depends on the situation on the ground. The validity is determined by the Swedish Tax Agency when applying the decision.
Please refer to the Swedish Tax Agency if you need further information on the application of our decision.
i gather i can get my expenses for return journeys covered. how do i go about it?
If you enjoy tax relief, remuneration from your employer to cover costs for two return journeys a year is exempt from tax. But the basis for such reimbursement is purely contractual. In other words the right to compensation does not originate from the law but from an agreement between you and your employer.
So, if you are unsure about your right to compensation, please refer to your employer. And please refer to the Swedish Tax Agency if you are entitled to compensation and need further information.