Introduction of the new term ”economic employer” in Sweden is delayed

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Introduction of the new term ”economic employer” in Sweden is delayedAn increased tax liability for employees of foreign companies working temporarily in Sweden and the requirement that such foreign companies register and make tax deductions for these employees, were planned to come into effect on 1 January 2019. However, such new rules will not apply from that date, rather, their introduction has been delayed.

We have previously reported that the Government has proposed the introduction of the term ”economic employer” in Sweden as regards temporary work in Sweden on behalf of a foreign employer. This implies that a number of the individuals working temporarily in Sweden, today, will become liable for taxes for their work here. Furthermore, foreign companies having employees working in Sweden will incur an increased obligation to register themselves with the Tax Agency, as well as incurring the responsibility to deduct and pay in Swedish preliminary tax at source.

According to the Council on Legislation’s consultation paper, the intention was that the new rules would come into effect on 1 January 2019. It would appear that the proposal was planned to be included in the autumn budget and that Parliament would take a decision on the proposal, now, during the autumn.

However, the proposal is continuing to be worked upon at the Government Offices of Sweden and we have received information that the introduction of the new rules is delayed and will not be in effect on 1 January 2019.


The introduction of the concept of economic employer in Sweden will have major consequences for foreign companies sending employees temporarily to this country. The Tax Agency and other authorities also need to allocate resources for this and their work needs to be based on well-functioning processes.

In addition, we now have the results of the election which implies that it is uncertain as to the make-up of the Government which will be proposing the autumn budget and the new Government will make an assessment as to whether this proposal is something it wants to get through Parliament.

Considering the above circumstances, it is not surprising that the proposal has now been delayed.

The proposal for a tax deduction of 30 percent on invoices to foreign companies for work performed in Sweden when the foreign company is not registered for F-tax is included in the same Council on Legislation’s consultation paper as the above-mentioned proposal. We believe that this proposal will also be delayed.

If, and when, this proposal will be adopted by Parliament is uncertain, but it is probable that this will be delayed until the 2019 spring budget work. If the proposal is included in the spring budget, it is probable that the planned introduction of the new regulations will take place in July 2019.

Do you have any questions on individual taxation?

Magnus Westman

Magnus Westman

Magnus Westman arbetar på PwC:s kontor i Stockholm med internationell individbeskattning. Magnus har tidigare arbetat sex år på Skatteverket med internationell individ- och bolagsbeskattning och varit projektledare för internationella beskattningsfrågor.
010-212 48 33
Magnus Westman works with international personal taxation at PwC’s office in Stockholm. Magnus spent six years with the Swedish Tax Agency, working with international personal and corporate taxation, and was a project manager for issues relating to international taxation.
+46 10 212 48 33

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