Wage from a foreign employer without a permanent establishment in Sweden
- Sweden
- 06/04/2007
A foreign employer who has no permanent establishment in Sweden should not withhold tax for Swedish preliminary tax on wages paid to an employee. This applies even if the employee is liable to pay tax in Sweden.
Payment of preliminary tax
An employee who carries out work in Sweden for a foreign employer without a permanent establishment in Sweden is responsible for ensuring that preliminary tax is paid to the Swedish Tax Agency. If the employee has an unlimited liability to pay tax in Sweden, that is, the employee is resident in Sweden, a preliminary income tax return (SKV 4314) should be filed with the Swedish Tax Agency. The employee will then be debited a special tax (known as “SA” tax) on the basis of the information in the preliminary income tax return. The tax payments should be made to the Tax Agency monthly. The employer should inform the employee that it is the employee´s own responsibility to ensure the preliminary tax is paid.
Preliminär självdeklaration, SKV 4314 (pdf, 61 kB) (Preliminary income tax return, SKV 4314 - opens in a separate window)
If tax is nevertheless withheld
If the foreign employer has nevertheless withheld Swedish preliminary tax from the employee´s wages, this means that the employee can only be credited the amount as preliminary tax withheld if payment has been made to the Swedish Tax Agency. The employer should complete a Swedish income statement, which specifies wages, benefits and preliminary tax paid.
If the employer does not pay tax
If the foreign employee has withheld tax from the employee´s wages, but has not paid this tax to the Swedish Tax Agency, the employee cannot be credited with the sum deducted. The employee will in this case be taxed for the amount the employer has paid him, that is, the agreed wage minus any sum that the employer has withheld but not paid in to the Tax Agency. The Swedish Tax Agency will then require that the employee pays this tax. The employer should supply a Swedish income statement specifying wages and benefits.
Source: Skatteverket
