Tax card

 

 

Tax deduction when you have an unlimited tax liability

The term tax card is used for the information from the Tax Authority that shows what kind of tax form you should have concerning your income from work or pension. Both Swedish and foreign employers have a duty to deduct and pay in preliminary tax for employees who work in Sweden Swedish pension payers also have such a duty for people who get Swedish pension. Self-employed persons on the contrary pay in their tax themselves.

Tax form

A-tax [preliminary tax paid by wage earners and pensioners]

If you are employed you have to pay A-tax. The employer will make a tax deduction from the salary whether the employer is Swedish or not. Pensioners also pay A-tax on Swedish pension and the pension payer will do a tax deduction.

Approval for F-tax [tax paid as self-employed person]

If you carry on business activity as a one-man business, you should usually be registered as “approved for F-tax”. This means that you have to pay your taxes yourself every month. The approval is valid until further notice. A register extract can be sent if you request it. It shows, among other things, if you are approved for F-tax and can be used to show to your clients. If so they do not have to withhold any tax.

SA-tax (special A-tax)

SA-tax is a tax that you pay in yourself. It can be the case when you carry on business activity as a one-man business but do not have an approval for F-tax,

Irrespective of whether you pay A-tax, F-tax or SA-tax, the tax that is payed continuously throughout the year should as far as possible agree with your calculated final tax. You cannot decide yourself to pay in the tax in arrears.

How do you get a tax card?

If your employer does not know your tax form there is an obligation to make a higher tax deduction than normal and because of that it is important that you can show your tax form to your employer. The overwhelming majority of those who pay out salary or remunerations receive information regarding the employees' form of tax direct from the Swedish Tax Agency if you are registered for population purposes in Sweden. Because of that, an A-tax card is normally sent out only on request. If you still need an A-tax card, you can order one from the Swedish Tax Agency.

If you do not have a registration for population purposes, it is important that you make a declaration for preliminary tax to get the right tax deduction. You can do that on skatteverket.se or on form SKV 4402 .

You should use form SKV 4314, Preliminär självdeklaration [Preliminary personal tax return], to furnish the Swedish Tax Agency with the particulars, that will enable the Agency to levy SA-tax and calculate how much tax you should pay each month.

How do you get an approval for F-tax?

Application for approval for F-tax is made on skatteverket.se . You can make an application if you have an unlimited as well as a limited tax liability.

Decision on tax deduction when you have a limited tax liability

If you have a limited tax liability, you, your employer or pension payer applies for you to pay SINK (special tax for people with limited tax liability). You make the application on skatteverket.se or on form SKV 4350 . When you have received a decision, you should show it to your employer or pension payer so they can make a deduction for SINK instead of ordinary preliminary tax. SINK is a definitive tax and is payed on income from work or on pension but not on capital income.

If your employer is not Swedish and your income is not taxable in Sweden, no application for SINK has to be made and your employer has no duty to make any deduction for tax.

You can choose to pay ordinary tax instead of SINK and you can state that in your application for SINK.

Payroll withholding tax on work performed in another Nordic country, and transfer of tax (the Nordic treaty on payment and transfer of tax)

If you work for an employer in your country of residence but are going to perform work in another Nordic country, you or your employer must submit either form NT 1 or form NT 2 to the tax office where your employer is resident. This will ensure that your tax is deducted in the correct country. If you are liable to tax in your country of residence (i.e. if you stay for less than 183 days in the country of work), you should complete form NT 1. If you are liable to tax in the country of work, you should complete form NT 2. This applies if you stay there for more than 183 days, if your employer has a permanent establishment there, and (in some countries) if you are hired-out personnel.

In certain cases the Nordic treaty on payment and transfer of tax allows the tax authorities to transfer tax between countries. If tax has been withheld from your income from employment in one Nordic country and the same income proves to be taxable in another Nordic country, the tax that has been withheld can be transferred to the country in which the tax is payable. Any tax transferred pursuant to this treaty is always deemed to have been paid on time, so you will not be charged interest etc. on the amount transferred. However, if the amount paid is insufficient to cover the tax payable to the other country, you yourself will have to pay the excess tax, plus any interest due on that amount.