As of 25 March. The Swedish Government has put forward the proposal to the Parliament. The vote is expected to take place on Thursday 26 March, 2020, after which the law will come into effect as of 7 April, 2020. In addition, the Government on 25 Marc proposed a new package which includes an amendment to below. Please note that this sections is being continuously updated as we receive more information.
Details
- The proposal means that companies can defer payment of employer contributions, preliminary tax on salary and value added tax, which are reported monthly or quarterly
- To be clear, it is not solely applicable to taxes but also employer contributions (Sw. arbetsgivaravgifter)
- The deferral comprises three months' tax payments and is submitted for a maximum of 12 months
- The new rules are proposed to come into force on April 7, 2020 but can be applied retroactively from January 1, 2020
- This (seems to) mean that a company can defer three months of payments of their choosing, between January and September 2020. It appears these months do not have to be succeeding (e.g. can be April, June and August)
- After 12 months, the companies have to pay back what they have deferred, as it's a loan. E.g., if you defer the tax payments for June 2020, these are due in June 2021 for repayment
- Current proposal is for the period Jan-Sep 2020, but can be prolonged at a later staged beyond September 2020
Amendment to the previously proposed tax deferral rules
- The previously presented proposal on tax payment deferrals will be expanded
- it will now include VAT that is reported annually from December 27, 2019 to January 17, 2021
- This way, many self-employed people can, among other things, get deferred with VAT that would otherwise be paid during the spring, eg. on May 12 2020
- Depending on how the situation develops, the proposal may include more than SEK 7 billion if the entire liquidity enhancement is utilized
Eligibility and application
- Businesses are not eligible for this if they already have large tax debts (not defined) or if they are otherwise distressed financially (e.g. close to bankruptcy in the "near term", not defined)
- Applications are made on a case by case notice so the rules to be subject to the overall health of the companies