1 July and 1 August are dates when a number of new laws come into effect. Most of them have been previously reported on by Result, as they stem from the spring amending budget for 2020 and from the supplementary budgets that the government has put forward and the Riksdag has adopted to help businesses and private individuals during the coronavirus crisis. Some of the laws formally come into effect on 1 July or 1 August but have been applied for some time.
Temporarily tax-free parking and tax-free gifts
From April 1st to December 31st this year, employees and contractors can park tax-free at their workplace. This applies regardless of whether the benefit is provided by an employer, client, or another party. The tax exemption also covers gifts from the employer up to a value of SEK 1,000. This is in addition to existing tax-free gifts, such as Christmas presents, for example. The tax exemption for gifts applies from June 1st and for the rest of 2020. However, the legislative amendment entered into force on July 1st.
Deferral of deducted tax
Since 7 April, the Swedish Tax Agency has been able to grant temporary deferrals for deducted tax, employer contributions and VAT for companies experiencing liquidity problems. Since 1 June, the Swedish Tax Agency may revoke granted deferrals for taxes and contributions.
Transition support for businesses
Companies with a turnover of at least SEK 250,000 in 2019, and which, due to coronavirus, have experienced a drop of at least 30 percent in their turnover during March and April this year (compared to the same period last year), can apply for transition support. The support is intended to help cover the company's fixed costs. The minimum amount paid out per company is SEK 5,000, and the maximum is SEK 150 million. The support has been available to apply for from 22 June up to and including 31 August 2020.
Changed rules for investor relief
The investor deduction is a government subsidy paid to those who have purchased shares in a small company in connection with a new share issue or the company's formation. From 1 August, the rules for the deduction will change. The new rules mean that deductions can only be made for investments in companies that have been active in a market for a maximum of seven years. Deductions cannot be made for investments in companies in financial difficulty.
Reporting obligation for tax advisors
Tax advisers who design and provide international tax arrangements must report these arrangements to the Swedish Tax Agency. The government is now preparing amendments to implement this in Swedish law.
Increased ceiling for deferral of profit on sale of private residence
The ceiling for the tax deferral amount will be raised from SEK 1,450,000 to SEK 3,000,000 for sales of private residential properties and private residential rights that take place from 1 July 2020 onwards.
This article is published in cooperation with the magazine Resultat
