Individuals temporarily working as hired personnel in Sweden must pay taxes here. The Parliament approved the government’s proposal.

According to the government’s proposal, the so-called 183-day rule will not apply in leasing situations. The rule means that individuals temporarily working in Sweden on behalf of a foreign employer are exempt from paying taxes here if their stay in Sweden is less than 183 days per year.

According to the proposal, the 183-day rule will not apply to leased labor. This means that an employee temporarily working in a Swedish operation in Sweden must pay taxes here if the employment is through leasing from a foreign company. The operation can be a company conducting business in Sweden or the Swedish state, a municipality, or a region. The tax requirement will not apply to leased personnel performing work for no more than 15 consecutive days and if the total working days in Sweden do not exceed 45 days during a calendar year.

The new rules apply to limited tax liability individuals who are leased to Swedish companies. It is thus personnel leasing that is affected by the rules. A pure consulting assignment that does not involve being part of the customer’s operations is not included.

The legislative changes take effect on January 1, 2021.

Tax Committee Report 2020/21:SkU5

Committee’s Proposal for Decision: Approval of the bill. Rejection of the motion.
Parliament’s Decision: The chamber approved the committee’s proposal.

Read more on the Tax Agency’s website: Tax Agency

Source: Parliament