From 1 January 2021, new regulations apply regarding payment for work in Sweden. These regulations affect you if you are employed by a non-Swedish enterprise, or if you run a non-Swedish enterprise in Sweden.
The new regulations apply to three main groups. The implications of the regulations for each group are outlined on the following webpages:
Salary and benefits from employment or an assignment are exempt from taxation if the following conditions are met:
From 1 January 2021, the 183-day rule is no longer applicable to workers outsourced to carry out temporary assignments in Sweden.
Outsourcing is when a worker is hired out by his or her formal employer to carry out work under the direction and management of another employer or client (known as an economic employer).
An overall assessment is made to determine whether the work is carried out under the direction and management of an employer or client who is not the worker’s formal employer. The following factors are taken into consideration:
For work to be considered as outsourcing, the client who hires the workers must be one of the following:
An economic employer is an employer or client that hires outsourced workers.
No. The party that pays out salary and benefits to a worker is obliged to make such deductions, and pay the tax to the Swedish Tax Agency along with any necessary social security contributions.
In our e-service, we ask questions to assess outsourcing arrangements. In the paper form, under “Employment income”, we ask whether the worker have a non-Swedish employer but carry out work in Sweden for a Swedish client, and ask for the name of the client. However, the paper form does not include follow-up questions to determine whether or not there is an outsourcing arrangement. We may therefore ask for further information, which could delay the process. For faster processing, we recommend applying via our e-service.
In the e-service, yes. In the form, it is only needed if the worker does not have a Swedish personal identity number or coordination number.
Unfortunately, it’s difficult to say. It depends on how many applications we receive.
If the Swedish Tax Agency has not yet made a decision, and the SINK 183-day rule is not applicable, a preliminary tax deduction should be made at the rate of 30 percent.
No, this will not be necessary. However, you can still apply for a decision to be made if you are unsure whether or not the 183-day rule applies.
Yes. Short-term assignments are not regarded as outsourcing.
A short-term assignment lasts for a maximum of 15 consecutive days, and the worker may not carry out more than a total of 45 days of work in Sweden in a calendar year.
Only working days are counted. If someone works for just part of a day, it still counts as a full working day. Days off – for example, at weekends or due to sickness – do not count as working days.
This can happen, for example, if an assignment starts in December one year, and ends in January the following year. In this case, you must look at how many days you worked in Sweden during each year to determine whether all or part of the working period can be considered a short-term assignment. If you have already exceeded the 45-day limit for the first year, then the part of the 15-day period that takes place in that year will not count as a short-term assignment. However, the part of the period that falls in the consecutive year may be considered a short-term assignment.
Yes. The 183-day rule no longer applies to outsourced workers, and Sweden has introduced the concept of an economic employer. The term “economic employer” corresponds to the term “employer” in the 183-day rule of tax conventions designed in accordance with Article 15(2) of the Organisation for Economic Co-operation and Development’s (OECD’s) Model Tax Convention on Income and on Capital.
No. The exception for short-term assignments applies only to SINK and does not affect the interpretation of the 183-day rule in tax conventions.
No. The SINK 183-day rule applies only to salary and other benefits – not to income from business operations.
Tax should not be deducted from payments for work if:
These exceptions apply regardless of whether the party receiving the payment for work is a private individual or a company.
Each party to the contract should assess whether or not a payment is for work in Sweden. If a payment is for work in Sweden, tax should not be deducted if: