On 21 September 2020, the Government has submitted the Budget Bill for 2021 to the Riksdag (the national legislature and the supreme decision-making body of Sweden). The Budget proposes the following key tax measures:

  • Temporary tax reduction of 3.9% of the acquisition value of machinery and equipment acquired in 2021 should be introduced for companies and sole traders. The proposal shall enter into force on 1 January 2022;
  • The provisions on deductions for group contribution-blocked deficits and deductions for negative net interest income should be adjusted;
  • The tax on the financial sector should be increased by an additional SEK 5 billion from 2022. The Ministry of Finance has come up with a proposal for a so-called risk tax that will affect certain credit institutions;
  • The standard income on deferred amounts from home sales will be abolished from 1 January 2021;
  • The tax for people over the age of 65 is further reduced through a strengthened basic deduction to eliminate the difference in taxation between salary and pension;
  • A tax reduction for earned income should be introduced of SEK 1,500 per person and year. The Government intends to return in 2020 with a proposal that can enter into force on 1 January 2021;
  • A temporary tax reduction for earned income to deal with increased labor costs as a result of the pandemic should be introduced and apply in 2021 and 2022. The Government intends to return with a proposal that can enter into force in 2021;
  • The window deduction is extended to apply to, among other things, dry cleaning, certain moving and transport services and simpler supervision of housing. The total ceiling for root and square deductions is also raised from SEK 50,000 to SEK 75,000 per person, of which the maximum root deduction may amount to SEK 50,000;
  • A tax reduction for the installation of green technology, including solar cells, storage of self-produced electricity and chargers for electric cars, will be introduced by a maximum of SEK 50,000;
  • The time limit for foreign experts, researchers and other key people who stay and work temporarily in Sweden, with tax relief extended from 3 to 5 years;
  • A tax exemption for the benefit of food in special cases (for example when the public donates food gifts to employees in, among other things, healthcare) should be introduced and apply from 29 February 2020. The Government intends to return in the autumn with a proposal;
  • The standard calculation for determining the value of car benefit should be adjusted to better reflect the cost of private car ownership and not to reward the possession of fossil-powered cars. The Government intends to return with a proposal in the spring of 2021;
  • The calculation of the benefit value for free food is changed to be based on the price base amount instead of Statistics Sweden’s calculation of the average price of a lunch.