On 18 September 2019, the budget for 2020 was submitted to the Parliament by the Swedish Government. The draft budget provides for the following tax reform:
-The most important reform is the abolition of the austerity measures introduced in 1995 (upper limit for income tax);
-Tax for people over 65 years will be cut;
-A requirement for electronic payment should be introduced regarding tax rebate for domestic and home renovation services;
-The ceiling for deferred capital gains when selling a home should be raised;
-A tax on the financial sector should be introduced from 2022;
-The social security contributions paid by the employer are reduced for workers who have long been out of the labor market with effect from 1 July 2020;
-The social security contributions paid by the employer are reduced for employees working in research and development with effect from 1 April 2020;
-The fuel tax should be reduced; and
-A tax on plastic carrier bags should be introduced.
Details of the budget, unless otherwise stated, will apply from 1 January 2020.
