Sweden: Income Tax

The Swedish government has commissioned an investigation into the taxation of board director fees and other personal service assignments, aiming to create more equitable tax treatment. Currently, board fees are taxed as salary income directly to the individual, even when paid to a company, while other personal service income can often be channeled through corporate structures.

The newly introduced economic employer concept in Swedish domestic tax legislation will reduce the possibility to obtain tax exemption in Sweden under the 183-day rule

The package also included cuts to the corporate tax rate in two stages: from 22% to 21.4% starting 1 January 2019, then to 20.6% from 1 January 2021.