On 15 April 2021 the government presented its Spring Statement for 2021.
The emphasis in the statement is on continued and extended crisis measures to mitigate the effects of the pandemic. No tax measures that had not previously been announced were presented.
We present some of the most relevant features below.
Continued tax exemption for benefit of free parking at work
The benefit of free parking at work for all occupational categories was temporarily exempted from taxation in 2020. It is proposed that this exemption continue in 2021. The proposal is that tax exemption should apply retroactively from 1 January 2021 till 31 December 2021 and take effect on 1 May 2021.
Tax-free gifts for employees – maximum value SEK 2,000
It is proposed that the tax-free value of gifts from employers to employees during the coronavirus pandemic be raised from SEK 1,000 to SEK 2,000. This is in addition to existing tax-free gifts that may be given to employees. The proposal is set to take effect on 1 May 2021 and apply retroactively from 1 January for the whole year.
Extension of business support (omställningsstöd and omsättningsstöd) until May and June
As most people are aware, the support is available to businesses that have lost a large proportion of their sales as compared with the same period in 2019. It is now proposed that the support be extended for periods up to June 2021. This includes support for sole traders and partnerships whose partners include at least one private individual.
One-month extension of grace period for tax payments and reduced grace period charge
At present, a grace period for payment of preliminary tax and employer social security charges is available for a maximum of six reporting periods. It is proposed that a grace period for payment of these taxes and charges now be available for a further reporting period, i.e. for a maximum of seven reporting periods. It is also proposed that the grace period charge be lowered from the present 0.2 per cent of the sum for which a grace period has been granted per calendar month from and including the month following grant. Broadly speaking, it is proposed that the interest rate be lowered to 0.1 per cent for grace periods granted after 5 February 2021. Combined with interest on tax account deficits, this represents a credit cost equivalent to a tax-deductible annual rate of 3.1 per cent for limited companies (aktiebolag), which is the same as that applying prior to 5 February 2021.
Reduced employer social security charges for young people (19–23) during the summer months
Employer social security charges for young people between the ages of 19 and 23 are to be lowered to 10.21% between 1 June and 31 August 2021. Only the state pension charge is payable. The proposal will be included in a forthcoming budget amendment and is due to take effect on 1 July 2021.
If you have any questions about how the Spring Statement affects your business, or you wish to discuss any of the above points, you are more than welcome to contact us for a discussion.