Tax relief may be granted directly on the basis of your monthly remuneration independently of tasks, level of education and training or similar circumstances.
Determining the remuneration rate
Tax relief on the grounds of your remuneration rate is granted if the gross monthly
remuneration you receive for your work in Sweden exceeds twice the price base amount. Comparison is made against the price base amount for the calendar year when work started.
Let's take an example. The price base amount 2020 is SEK 47,300. If work begins in 2021, your monthly remuneration must be at least SEK 95 201. If it began in 2020, the remuneration must be at least SEK 94 601.
The contracted remuneration must reach the actual rate each month. This means that we do not take into account expense reimbursements or facilities such as fuel or travel benefits that are not specifically included in the contracted remuneration for each month. In addition, we do not include remunerations that are not paid on a monthly basis, such as annual bonuses.
If you have a contracted net salary, you must convert the parts included in our review to a gross amount in your application. When doing this, you need to take the tax relief into
consideration. This means that you should do your calculations as if you had already been granted tax relief.
Please note that tax relief is not affected if your remuneration temporarily falls below the given level because you are ill, on parental leave or absent from work for similar reasons.
Below, we present a few points that are worth checking before you submit your application.
Does my remuneration exceed two times the price base amount per month?
The key factor is if the contracted amount exceeds the actual rate. Your monthly salary and benefits such as company cars and housing allowances are examples of compensation which should be taken into account.
is my remuneration paid out monthly?
Non-monthly bonuses, moving allowances, relocation allowances and other
remunerations of a single nature should not be included in the application.
does my remuneration exceed the treshold Each month during employment?
Your remuneration must exceed two times the price base amount each month, counting as from when work first starts and for at least five years.
However, tax relief is not affected if your remuneration temporarily falls below the given level because you are ill, on parental leave or absent from work for similar reasons.
what about Variable remuneration?
Commissions, allowances or similar remunerations that are not based on a previously set monthly amount should not be included in the application.
what about contracted net salary?
It is not uncommon for foreign temporary personnel to be guaranteed a net salary for work performed in Sweden. If you have a contracted net salary, the amount must be converted to a gross salary in the application. Your calculation should be done as if you had already been granted tax relief.
is my salary paid by different companies?
We only consider remuneration paid by the employer listed on the application. It may occur that part of the amount is paid out by another company in the same group. Such amount is relevant only if it may be considered to be paid by the employer listed on the application. The margin for such an assessment is narrow. The mere fact that the specified employer bears the final cost is not sufficient.
what sort of documents will i have to provide?
It is your responsibility to show that the conditions for tax relief are met. The best way to do so is to provide the employment contract or similar document that regulate the employee's remuneration.
Otherwise, we usually request the submission of such documents. Please note, that a statement from your employer attesting that you receive a remuneration above the limit will in principle not do.