Economic employer – Proposal approved by the Parliament

Tax Alert

Published: 2020-11-04

The Swedish Parliament has on November 4th approved the bill “Ekonomiskt arbetsgivarbegrepp – förändrade skatteregler vid tillfälligt arbete i Sverige” proposed by the Swedish Government. The legislative changes will come into force 1st of January 2021 and will affect individuals working in Sweden temporarily as well as implementing additional requirements for foreign employers.


In June 2020 the Swedish Government presented a bill proposing that Sweden should implement an economic employer approach. The proposal suggests a shift to an economic view regarding what entity is to be considered the employer in relation to the 183-day rule, which is present in both the internal regulation of non-tax-residents (SINK) and tax treaties.

Summary of the new legislation

Shift to an economic employer approach

Currently, Sweden applies a formal employer concept meaning that the entity that pays remuneration is also considered the employer. With the coming changes, an exception is implemented which affects situations where an employee is hired out to or performs work for an establishment in Sweden. The exception implies that the employee can by an overall assessment of various factors be determined to have an economic employer in Sweden, with the result that the individual can be taxable on remuneration sourced from work performed in Sweden from the day of arrival.

Obligation to withhold preliminary taxes

In accordance with current legislation, only Swedish companies and foreign entities with a permanent establishment in Sweden are obliged to withhold Swedish preliminary taxes. Once the new legislation comes into force however, this obligation will also apply to foreign employers without a permanent establishment in Sweden, if they have employees in Sweden that are tax liable in Sweden for the salary they receive from their foreign employer. The withholding obligation also entails an obligation for the foreign employer to register as an employer in Sweden and to submit monthly employer returns.

Requirement to hold a “F-tax certificate”

Lastly, the new legislation requires foreign companies, that receive payments for work carried out in Sweden, to hold a so-called “F-tax certificate”. In situations where the foreign company fails to present such a certificate, the payer must make a tax deduction of 30 percent on the payment.

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Deloitte’s comment

When the proposal was submitted to the Parliament in June 2020, Deloitte made a deeper analysis and review of the new legislation as regards its consequences for foreign employers and employees who temporarily perform work in Sweden. You can read the article here.

Deloitte will host a webinar in relation to these legislative changes “Providing services in Sweden – added taxation as of January 1”. The webinar will be held on November 17. Read more and register.

Contact us

Anna Sabelström Holmberg                       Oscar Rosendahl
Partner| Global Employer Services             Manager | Global Employer Services
aholmberg@deloitte.se                                orosendahl@deloitte.se
+46 73 397 13 04                                            +46 70 080 22 29

Jesper Forsgren Vickhoff                              Anna Carlsson
Associate | Global Employer Services         Associate | Global Employer Services
jforsgrenvickhoff@deloitte.se                       ancarlsson@deloitte.se
+46 70 080 34 08                                           +46 70 080 38 30

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