Sweden - Taxation

Statics have shown that Sweden has been rated as one of the countries with the highest proportion of its gross domestic product being spent on social services. There is a high cost of living in Sweden, yet it enables all Swedes to have the benefits of health care and education. It is a simple policy, that when a nation’s citizen have higher education and access to health care, the society as a whole can enjoy a high quality of life.

All people in Sweden have access to tax funded services and benefits. Some sectors of the work force will receive higher pensions, dependent on the nature of their occupation.

Sweden is also known to be a country that funds concerns outside of it, in international territories. It does this through sustainable development projects, health care projects and peace keeping missions. Sweden has developed a way to use state funding to support all sectors of its society, and this has been referred to in international circles as The Swedish model.

Generally education is subsidised from age 6 to university. Pension and health care is funded by high income tax and contributions made by the employer. By utilising resources to finance and support all aspects of society, there is an overall benefit for Swedes. People do not generally bemoan high income tax, as everyone benefits and by contributing society as a whole may only improve.
It is evident by being in Sweden, to recognise that the taxes have been placed into productive developments. To this day, Sweden has evolved to be a reputable country for health care, education and public transport.

Government spending on prisons and law enforcement is considered low, yet it is considered to be quite a safe country relative to others. State expenditure on the military is also viewed as low;however peace keeping missions and foreign aid are high up on the government’s agenda.

A special tax break is legally permitted for key foreign personnel. Although 75% of their salary is taxed according to normal Swedish income tax regulations, 25% is tax free. This is only valid for the initial three years of living in Sweden. This is to welcome engineers, scientists or any other expert who are working in the country and giving specialised expertise that is not that easily available nationally.

There was a compulsory church tax in Sweden before 2000. This had to be paid if someone belonged to the Church of Sweden. With the alteration in the legislation since 2000, the state now collects from individual taxpayers what would have gone to the church. This tax is an optional check off box on the tax payers tax return. This tax is then allocated to various religious institutions, such as Catholic, Muslim, Jewish and other faiths as well as the Lutherans, determined by what each taxpayer directed (by ticking the allocated box) where his or her taxes should be sent to.

All income tax is directly deducted from monthly salaries and employers pay a payroll tax. All people are taxed individually, regardless of marital status. Value-added taxes are part of the total price of goods, food and services.

For more information, please view: https://www.nordisketax.net