There are many new laws and regulations coming into force in Sweden in 2023. Several of them have existed before and are changing, but others are completely new. Below is a summary of the laws that we think you, as a business owner, are especially interested in. However, the list does not claim to be comprehensive.
The travel deduction is increased
On January 1, 2023, the amounts for the costs that you may deduct for work trips with your own car or benefit car will be increased.
If you make work trips with your own car, you can deduct SEK 25 per mile (previously 18.5 SEK per mile), and for work trips with a benefit car, the deduction is SEK 12 per mile (previously 6.5 and 9.5 SEK per mile). The right to deduct for benefit, cars that are powered entirely by electricity, is left unchanged at SEK 9.5 per mile.
Increased tax deduction for people over 65 years of age
Those who are over 65 and working, receive an increased employment tax deduction. The law applies to tax years beginning after 31 December 2022. The person who receives the increased employment tax credit must have turned 65 before the start of the tax year.
The tax reduction is progressive, i.e. the higher the earned income, the lower the reduction.
The retirement age and the age limit for increased basic deduction is raised
The retirement age for when you can draw a general pension at the earliest is raised from 62 to 63 years.
The retirement age for the earliest when you can receive a guaranteed pension, income pension supplement, housing supplement and elderly support is raised from 65 to 66.
The age limit to be entitled to the increased basic deduction is raised from 65 years to 66 years.
Right to retain employment until age 69
From the turn of the year, the age for the employee’s right to keep his employment will be raised from 68 to 69.
The address of the workplace must be provided in the employer’s declaration
If the payee has only had one workplace in one and the same employment during the accounting period, the address of the workplace must be provided in the employer’s declaration. This applies to tax years starting after 31 December 2022, i.e. for wages paid in January 2023 and later.
Increased tax reduction for the installation of solar cells
As of January 1, 2023, the tax on the installation of green technology will be reduced by subsidizing solar cell installations with 20 percent of the labour and material costs. Previously, the deduction was 15 percent. The law applies to the installations that have been paid for after 31 December 2022. Only households can take part in the deduction.
Temporarily reduced energy tax
From 1 January 2023, the energy tax on petrol and diesel will be temporarily reduced by 80 öre per litre. In addition, the tax on low-taxed oil is reduced by SEK 722 per cubic meter, which is a measure to ensure that the tax reduction does not conflict with the EU’s labelling directive.
Energy tax applies to fuels used for engine operation or for heating.
Tightened rules for nicotine products
From 1 January 2023, product requirements and labelling requirements also apply to tobacco-free nicotine products. This means, for example, that packaging must be provided with health warnings and a content declaration, with associated penalty provisions.
It is not only the manufacturer or importer who is responsible for compliance with the law, but also retailers have a responsibility for the products sold in the store or online.
Platform companies must collect and submit data to the Swedish Tax Agency
From 1 January 2023, platform operators will be obliged to submit control information to the Swedish Tax Agency about all sellers subject to reporting obligations. This data can then be transferred by the Swedish Tax Agency to other member states and third countries with which there is a valid agreement on such exchange. Platform companies must register with the Tax Agency by 30th of June 2023 at the latest.
Platform companies are companies who enable distance sale of goods to consumers through electronic interface such as marketplace, a platform, a portal etc.
Temporary tax on extraordinary profits for certain companies in 2023
Companies with activities in fossil fuels (at least 75 percent of the net turnover from the extraction of crude petroleum, natural gas or coal, petroleum refining, manufacturing of hard coal products) and whose taxable surplus in 2023 exceeds 120 percent of the average taxable profit for the years 2018–2021, must pay a temporary tax amounting to 33 percent. The temporary tax is levied in addition to the ordinary corporation tax of 20.6 percent.
The law applies from January 1, 2023 and is applied to the tax year that begins closest after December 31, 2022. The reason for the temporary tax is the high energy prices.
The energy tax from electricity is increased, as is the flight tax
At the turn of the year, the energy tax on electricity will be increased by approximately 9 percent according to current indexation rules. The flight tax is also increased by around 9 percent for the same reason.
Maintaining a sound financial position for your Swedish company is crucial when conducting business. To help you address situations where the value of your net assets falls short of legal requirements, we recommend checking out our blog post on the best measures to take.