Text 7640, 374 rader
Skriven 2005-01-18 21:09:33 av Ed Connell (1:379/1.6)
Kommentar till text 7597 av JOHN MASSEY (1:123/140)
Ärende: Re: Tsunami Disaster Reli
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Hey, JOHN.
BF>> BrF>> The feedom we have here in Sweden is AT LEAST as good as
BF>> yours.
BF>> EC> How much of the money that you work for do you have to turn over
BF>> EC> to the government?
JM> Taxes in Sweden
JM> In Sweden the public sector, i.e. national government and the local
JM> authorities, has assumed responsibility for a great many services.
JM> These include education, labor market and industrial policies, care of
JM> the sick and elderly, pensions and other social security, environmental
JM> protection, and so on. To discharge its responsibilities, the public
JM> sector must lay claim to a fair share of aggregate resources by means
JM> of taxation. Swedish taxes are therefore relatively high, but much of
JM> the revenue they yield goes back to taxpayers in the form of transfer
JM> payments and public services. The Swedish tax system includes many
JM> direct and indirect taxes and contributions. The most important direct
JM> taxes are the national and local income taxes and the national tax on
JM> capital. Aside from taxes, there is an extensive system of employer
JM> contributions which cover pensions, health benefits and other social
JM> insurance. Revenues from indirect taxes, virtually all of which go to
JM> the state, stem from two main sources: value-added tax and excises on
JM> duties. All tax legislation must be passed by Parliament. However, the
JM> local authorities are free to set the income tax rates in their
JM> respective municipalities and county council districts.
JM> Sweden has concluded conventions for the avoidance of double taxation
JM> on income and capital with some 60 countries.
JM> Direct taxation
JM> Income tax
JM> In Sweden taxable income belongs to one of three categories: earned
JM> income from employment, income from capital or income from business.
JM> Different tax regulations and rates apply to these three sources of
JM> income.
JM> Income from employment
JM> The following taxes are levied on earned income:
JM> * local tax at a rate of 26-35 percent (depending on the
JM> municipality),
JM> * national income tax of 20 percent on annual taxable earnings of
JM> between SEK 252,000 and 390,400 and 25 percent for income above SEK
JM> 390,400 (year 2001).
JM> Typical sources of income in this category are salaries and pensions as
JM> well as all forms of fringe benefits such as meals, travel and use of a
JM> company car plus reimbursement for expenses, per diem allowances and
JM> travel, etc.
JM> There are relatively few deductions permitted for this income category.
JM> In principle, the deduction of costs necessary for the earning of
JM> income is allowed. However, the link between the expense and the income
JM> must be extremely strong. Deductions are granted primarily for:
JM> * travel to and from work
JM> * on-the-job (business) travel with a private vehicle
JM> * higher living expenses in conjunction with business trips.
JM> Income from capital
JM> Generally speaking all income in this category is taxed at a rate of 30
JM> percent regardless of the amount. Examples of income from capital are
JM> dividends, interest, capital gains arising from the sale of stocks,
JM> bonds, real estate, personal property and other similar assets plus
JM> income from the rental of flats or houses unless this is undertaken as
JM> a business activity.
JM> Half of the sum of a capital gain resulting from the sale of a private
JM> residence is taxable. It is also possible to defer payment of the tax
JM> if the seller in turn purchases an equivalent property or tenant-owner
JM> flat not later than the year following the year of sale. If the sale
JM> concerns a property owned for business activity then 90 percent of the
JM> capital gain is liable to taxation. Income from the sale of other
JM> private assets is taxable if the profit exceeds SEK 50,000.
JM> If a capital deficit results a tax reduction is granted. The tax
JM> reduction is 30 percent for that portion of the loss that is below SEK
JM> 100,000 and 21 percent for the balance.
JM> Income from business
JM> The regulations governing taxation of business activity are largely the
JM> same for limited companies and businesses operated by individuals. As a
JM> general rule, all income from business activities is liable to
JM> taxation. Income from capital is considered as part of the business
JM> activity if it is generated by capital invested in the business.
JM> The tax rates for individuals engaged in business activities are the
JM> same as those for income from employment. On the other hand, limited
JM> companies pay only 28 percent of their taxable income in tax.
JM> Taxable income is calculated on the basis of generally accepted
JM> accounting principles and is therefore closely linked to the company's
JM> accounts. The calculation of taxable income is based on principles used
JM> in business economics with minor adjustments on fiscal grounds.
JM> All costs necessary to maintain and develop the business operation are
JM> deductible expenses.
JM> Annual depreciation is permitted for assets invested in the business
JM> operation. One method applied to equipment allows depreciation at 30
JM> percent per annum on the book value of remaining equipment.
JM> Alternatively, depreciation can be calculated at a rate of 20 percent
JM> annually based on the acquisition value of the remaining equipment. The
JM> cost of equipment with a shorter economic life, i.e. less than three
JM> years, as well as equipment of a lesser value can be deducted in its
JM> entirety. Lesser value in this context normally means below SEK 2,000
JM> while for larger companies the limit is SEK 10,000. In the case of
JM> buildings, scheduled depreciation is allowed at a rate of 2-5 percent
JM> of the acquisition cost depending on how the building is used.
JM> Employer contributions are deductible in the calculation of the taxable
JM> income from business operations.
JM> Profit equalisation is possible for most business operations, via so-
JM> called accrual accounts, where a private business can deposit a maximum
JM> of 25 percent of profits and a limited company 20 percent. The amount
JM> deposited must be reversed and subjected to taxation not later than
JM> five years from the year of deposit. Losses can be carried from year to
JM> year without any time limitation.
JM> A group of companies does not constitute a single taxable subject in
JM> Sweden. All companies in the group are regarded as individual taxable
JM> subjects. To avoid consideration of tax regulations in the selection of
JM> organisational form, e.g. a single company or a corporate group, there
JM> are regulations that permit the transfer of funds from one Swedish
JM> company to another, for example via group contributions. Such
JM> contributions are regarded as a deductible expense for the contributor
JM> and taxable revenue for the recipient.
JM> Basic deduction and tax reduction
JM> Individuals are entitled to deduct a basic deduction and pension
JM> contributions from their taxable earnings. The size of the basic
JM> deduction is linked to the price-indexed base amount* as regulated by
JM> the National Insurance Act and must be at least 0.27 percent of the
JM> base amount. In 2001 the base amount is SEK 36,900, which gives a
JM> lowest basic deduction of SEK 10,000. For annual earnings of between
JM> SEK 68,700 and 206,900 the basic deduction is higher and reaches a
JM> maximum, SEK 19,500, on incomes between SEK 106,400 and 112,800.
JM> Pensioners are granted a special basic deduction of up to SEK 57,600
JM> for singles and SEK 51,000 for married pensioners (2001).
JM> A special tax reduction of SEK 1,320 is granted to those with earned
JM> incomes of up to SEK 135,000. If income exceeds that amount the tax
JM> reduction is gradually reduced up to a maximum income of SEK 245,000.
JM> Other direct taxes
JM> Real estate tax and real estate taxation
JM> A national real estate or property tax is levied on private houses,
JM> residential buildings on farms and rented residential and business
JM> premises. The real-estate tax is calculated on the basis of the
JM> assessed taxable value. The residential parts of a building dating from
JM> 1991 and later are not taxed for the first five years, while the tax
JM> rate is reduced by 50 percent during the subsequent five-year period.
JM> Houses and residential apartments in blocks of flats are taxed at a
JM> rate of 1.2 percent of the taxable value, whereas floor space used for
JM> other purposes is charged at a rate of 1.0 percent. The real estate tax
JM> on industrial premises is 0.5 percent. The assessed real estate value
JM> is expected to equal approximately 75 percent of the market value of
JM> the property. The taxable value is used in the calculation of real
JM> estate tax as well as inheritance, gift and wealth taxes.
JM> Inheritance tax
JM> The inheritance tax (succession duty) is a tax on the additional
JM> capital received by an heir on the occasion of a person?s death. The
JM> tax is based on the amount received.
JM> The inheritance tax is progressive. The rate thus rises as the amount
JM> inherited becomes larger. In addition, different tax tables are used
JM> depending, among other things, on the relationship between the heir and
JM> the deceased. There are lower tax rates on inheritances received by the
JM> closest relatives, who are also favored by the fact that the tax-free
JM> base amount that may be subtracted from their inheritance is higher in
JM> their case.
JM> Gift tax
JM> Gift tax is a supplement to inheritance tax and is calculated, in
JM> principle, according to the same rules. Special relief is granted in
JM> calculating inheritance tax on assets in unlisted companies. Certain
JM> non- profit organizations are exempt from inheritance and gift tax.
JM> Indirect taxes
JM> Value-added tax
JM> Value-added tax (VAT, moms) is a state sales tax that is levied on all
JM> increases in value throughout the production and distribution chain and
JM> reported to the tax authorities.
JM> The obligation to pay VAT arises when a taxable transfer of goods or
JM> services is carried out in Sweden in a professional context.
JM> VAT is also to be paid on the value of acquisitions from other
JM> businesses within the European Union (EU) and for the import of goods
JM> and services from countries outside the EU. No VAT is paid on exports
JM> to non-EU nations.
JM> The Swedish tax authorities and the Customs Department (Tullverket) are
JM> responsible for VAT taxation. Since Sweden's entry into the European
JM> Union in 1995 the border control of trade with other Member states has
JM> ceased. Taxation on the acquisition of goods within the EU is instead
JM> carried out in accordance with the domestic regulations that apply in
JM> each Member state.
JM> The tax authorities are responsible for levying taxes on domestic trade
JM> and EU acquisitions while the Customs Department
JM> supervises imports from countries outside the EU.
JM> The general VAT rate is 25 percent and this is applied to the turnover
JM> of all goods and services excepting foodstuffs, hotel accommodation,
JM> campsites and passenger transport (12 percent), as well as books,
JM> newspapers and certain goods and services in the cultural sphere (6
JM> percent).
JM> VAT is reported by the person liable to pay the tax, either by
JM> submitting the information in their tax return or in a special VAT
JM> return. Individuals and companies who are liable to pay tax declare
JM> their VAT in the annual tax return if their tax base is not higher than
JM> SEK 1 million. The VAT is then included in their final tax assessment.
JM> If the tax base exceeds SEK 1 million the company has to account for
JM> the VAT in a special return that is submitted and paid monthly.
JM> Excise duties
JM> Special consumption taxes or excise duties are levied on some goods and
JM> services. The majority of these purchase taxes have been introduced for
JM> reasons other than the generation of revenue for the state. These
JM> duties are also a means of steering the consumption of such commodities
JM> as energy, alcohol and tobacco.
JM> The 16 excise duties which exist at present include taxes on fuel (e.g.
JM> petrol, oil, coal and liquefied petroleum gas), electrical power,
JM> alcohol, tobacco, gaming, motor vehicles and roads.
JM> Social security contributions
JM> For citizens of the EU/EEA, the right to social security benefits and
JM> the obligation to make contributions are determined by EU regulations
JM> and the EEA Agreement. In other words, citizens of other countries can
JM> be covered by a social insurance agreement.
JM> Social security is financed via general pension charges, social
JM> insurance contributions, a state old-age pension fee and general tax
JM> revenue. The general pension contribution is levied to finance income-
JM> based pensions and supplementary pensions. The contribution is paid
JM> individually and is calculated on the basis of income from employment
JM> and other earned income. It is applied to the portion of the aggregate
JM> income that does not exceed the equivalent of a normal income.
JM> Social security contributions are levied to finance the national social
JM> insurance system, old-age pensions and certain other social services.
JM> The contributions take the form of payroll taxes and a tax on the
JM> earnings of the self-employed. Payroll taxes are paid by the employer
JM> and are calculated on the basis of salary plus any other taxable
JM> benefits provided to the employee. The payroll-tax rate is 32.82
JM> percent and the rate for the self-employed is 31.01 percent (2001).
JM> Tax payment
JM> Tax accounts
JM> As of 1998 the tax authorities administer a tax account for everyone
JM> obliged to pay taxes or other charges. All accounting, payments and
JM> credits are reported in that account. Generally, the account handles
JM> the payment of preliminary tax (pay-as-you earn, PAYE), payroll taxes
JM> and VAT. All information that the tax subject is required to submit is
JM> to be presented in a single document, a tax return.
JM> The tax return is to be submitted monthly by employers and those self-
JM> employed who are registered for VAT purposes.
JM> Tax withholding
JM> The tax collection system is arranged in such a way that estimated
JM> taxes are withheld and paid at intervals during the income year (PAYE).
JM> In principle, these preliminary tax payments should in the end add up
JM> to the amount calculated according to a person?s final tax assessement.
JM> In the case of employees, the employer is in charge of the withholding
JM> and payment process. Self-employed people make their own estimated tax
JM> prepayments. Banks and other financial institutions withhold
JM> preliminary tax on interest and dividends.
JM> After the final tax assessment is determined with the help of a
JM> person?s tax return, its amount is compared with the sum of the
JM> preliminary tax payments made over the year. If the prepayments were
JM> too small, the taxpayer is billed for the difference plus interest. If
JM> they were too large, the excess is refunded and the taxpayer is paid
JM> interest.
JM> Assessment and appeals
JM> Income tax returns
JM> Individuals and legal entities are required to file an income tax
JM> return every year. Spouses are assessed individually for all taxable
JM> income and therefore both spouses must declare their income. Joint
JM> taxation is only applicable to wealth tax. For individuals with
JM> relatively straightforward financial circumstances there is a
JM> simplified, pre- printed tax return that can be supplemented, signed
JM> and returned to the local tax authority. The simplified income tax
JM> return is to be submitted not later than 2 May following the income
JM> year (the so-called assessment year).
JM> Simplified income tax returns are assessed on the basis of the
JM> information about individuals' salaries, other forms of remuneration,
JM> assets and savings which employers, banks and other credit institutions
JM> are obliged to supply to the tax authorities.
JM> Other individuals and legal entities file a more detailed type of tax
JM> return which should be submitted by 31 March of the following year. The
JM> new option of supplying this information electronically is a distinct
JM> advantage for this category of taxpayer.
JM> Appeals
JM> Tax returns are assessed by the local tax offices. A person who wishes
JM> to challenge a decision can ask the office to reconsider its decision
JM> at any time during the five years following the income year in
JM> question, or otherwise appeal the decision to the county administrative
JM> court (l?nsr?tt). Appeals are submitted to the local tax office, which
JM> reconsiders the decision before any documents are turned over to the
JM> county administrative court. In some cases, as a result of this
JM> reconsideration, the tax office approves the taxpayer?s request and the
JM> appeal is dropped, thus never reaching the court. The court?s decisions
JM> may, in turn, be referred to one of Sweden?s four administrative courts
JM> of appeal (kammarr?tt). Under certain conditions the verdicts of the
JM> latter courts may be appealed to the Supreme Administrative Court
JM> (Regeringsr?tten).
JM> Advance rulings
JM> There is a special judicial board (Skatter?ttsn?mnden) that issues
JM> advance rulings on particular tax assessement issues upon a taxpayer's
JM> request. The National Tax Board (Riksskatteverket) is Sweden?s central
JM> administrative agency in charge of promoting correct and uniform
JM> enforcement of the tax laws, and plays an adversarial role vis-?-vis
JM> the taxpayer in these cases. Advance rulings are issued if it is
JM> especially important to a taxpayer to know the tax consequenses of a
JM> particular action or if it is of importance for uniform interpretation
JM> or enforcement of the law. Decisions of the judicial tax board may be
JM> appealed to the Supreme Administrative Court.
JM> Legal sanctions
JM> A person who submits incorrect or insufficent information in a tax
JM> return is charged a penalty. This is an administrative, economic
JM> sanction detemined by the tax authorities. The rule of thumb is that
JM> this penalty amounts to 40 percent of the tax that should have been
JM> paid. This penalty does not prevent a person from also being prosecuted
JM> for tax evasion. Cases of alleged tax evasion are handled by the
JM> regular court system. The maximum punishment for tax evasion is
JM> normally two years' imprisonment.
JM> Copyright: This text is published by the Swedish Institute on
JM> www.sweden.se. It may not be reused without prior consent. To obtain
JM> permission to use the text, please contact: webmaster@sweden.se. Photos
JM> or illustrations may not be used in other contexts. For more
JM> information on the copyright and permission.
JM> Publisher:
JM> Swedish Institute
JM> Published:
JM> 1 Nov 2001
JM> Classification:
JM> FS 35 y Qaf
JM> Internet address:
JM> http://www.sweden.se/templates/cs/BasicFactsheet____3927.aspx
Whew! That's free? <g>
--- Fidolook Lite FTN stub
* Origin: Procrastinate NOW, don't put it off for tomorro (1:379/1.6)
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