The new year brings some important changes regarding the payroll in Sweden. Internago has put together a brief overview of the most important changes that you should be aware about for this year.
- Decreased share capital needed to set up a Limited company (AB) in Sweden
In order to lower the barrier to set up an AB in Sweden the capital that needs to be in place is lowered from 50 000 SEK to 25 000 SEK. With this amendment there is consequently a possibility for existing AB’s to lower their share capital.
- The top 5% marginal income tax (värnskatten) is removed
- The change means that the highest marginal tax on income is lowered with 5%. Previously people (<65 years old) paid an extra 5% tax on the part of the income above annual earnings of SEK 703,000 (SEK 58,583 per month). The top threshold for governmental tax is removed for 2020 meaning that the governmental part of the income tax cannot be more than 20% compared to the previous 25%.
- Increased tax deduction for people above 65 years of age
- People at the age of 65 or more can from this year benefit from a higher tax deduction if earning between 210k to 1400k SEK per annum. The deduction is made automatically and doesn’t have to be requested.
- The tax on fuel is lowered but it will be more expensive to refuel
- The carbon and energy tax on petrol and diesel is decreased. The reduction is equivalent to the added indexation with 2% for 2020. However, other taxes related to fuel are adjusted with the result that in total the fuel will be more expensive.
Internago is a payroll provider in Sweden as well as in many European countries. Please send an email to email@example.com or fill in the contact sheet below to get in touch with us for more details or if you have any questions.
Visit our website if you want to know more on how we can support you and your company – www.internago.com