Sweden: 2010 Budget
On 21 September 2009, Sweden’s finance minister presented the budget for 2009 to the Riksdag1 (the parliament). We summarize some of the key proposals affecting individuals and their multinational employers below.
Personal Tax Rates/Brackets (Employment Income (including pensions))
|0-372,101 – 532,700||50|
Employers’ Social Security Contributions
The rate for employer social security contributions would remain the same as in 2009 (31.42 percent). The social security contributions for self-employed persons would be reduced to 28.97 percent (from 29.71 percent).
Extended Additional Personal Allowance for People in Work (Work Allowance)
A further extension of the work allowance would result in an additional tax relief of SEK 3,020 per year at an average municipal tax rate (31.52 percent in 2009). The extension would result in a total tax relief of more than SEK 1,400 per month at an annual salary of SEK 250,000. The maximum total relief would be SEK 1,752 per month.
Exit Taxation on Exchange of Shares
The Swedish domestic rules regarding exit taxation on exchange of shares would be adjusted in accordance with European Union (EU) law. Such deferral of exchange of shares would be subject to tax if the shares are sold or if the individual would no longer reside within the European Economic Area (EEA).
The proposals above are expected to be effective beginning 1 January 2010.
Measures Announced Earlier
Taxation of Certain Loans
New rules in Sweden imply that cash loans from certain foreign companies to certain individuals are to be taxed in the hands of the recipient under the Swedish rules on prohibition against loans to related parties (Sw: låneförbudsreglerna). The new rules are proposed to apply to loans given on or after February 13, 2009.