As for many other countries, the focus for Sweden in Spring 2020 has been to combat the outbreak of Covid-19. The Swedish government has introduced a wide range of measures to mitigate the detrimental economic effect of the pandemic. These measures include inter alia deferrals for certain tax payments, including employer paid social security contributions, preliminary wage tax and value-added tax (VAT), as well as rent discounts for corporations in specifically vulnerable sectors.

It should also be noted that the government has announced that it will propose additional measures targeted at corporations suffering from decreasing revenues of 30% or more compared to the same period last year amid the Covid-19 outbreak. According to the proposal, corporations will be entitled to a contribution of between 22.5 and 75% of the corporation’s fixed expenses (excluding salaries) up to 150 million kronor ($15 million). As this measure may be important for many corporations, we recommend corporations active in Sweden to stay updated in this regard.

The most relevant recent developments in Swedish taxation for multinational corporations includes available rules for reduction of employer paid social security contributions in connection with the Covid-19 outbreak, reduction of employer paid social security contributions for employees working with research & development (R&D), the implementation of DAC 6 and the proposed implementation of the economic employer concept.

The article addresses the following topics

  • Reduction of Social Security Contributions for Employers
  • Reduction of Social Security Contributions for Employers
  • Increased Reduction of Social Security Contributions for R&D employees
  • Implementation of DAC 6
  • Implementation of Economic Employer Concept

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