• Sweden edition
 
Sweden snags top spot in European tax ranking

Sweden snags top spot in European tax ranking

Published: 03 Oct 2012 09:01 GMT+02:00
Updated: 03 Oct 2012 09:01 GMT+02:00

For the third year running, Sweden has the highest marginal tax rate among OECD countries included in an annual survey carried out by tax consultancy KPMG, the Dagens Nyheter (DN) newspaper reports.

Number two on the list is Denmark with a marginal tax rate of 55.38 percent, followed by Spain with 52 percent.

According to the KPMG report, the Czech Republic has Europe's lowest marginal tax rate, a mere 15 percent, while Hungary is a close second lowest with 16 percent.

In the report, a marginal tax rate is defined as the tax high-earners pay on their last unit of income. In Sweden's case, that means high-earners pay 56.6 percent in tax on their last earned krona.

The KPMG report compares tax rates in 114 countries, including the 33 industrialized countries of the OCED.

The consultancy has found that the global financial crisis has had an impact on tax rates in a number of countries.

"During the last year, more countries have raised their marginal tax rates than have cut them, and the financial crisis is almost always given as an answer," Helena Robertsson, head of KPMG's tax business in Sweden, told DN.

However, Sweden may soon lose its grip on the top spot in the ranking if French President Francois Hollande succeeds in implementing a marginal tax rate of 75 percent on those who earn more than 1 million euros.

The study also looks at what happens when social fees such as mandatory pension fees are added into income tax calculations for people earning $100,000. The adjustment moves Sweden down to 20th place with 36.3 percent.

The Local/dl

Follow The Local on Twitter

Don't miss...X
Left Right

Your comments about this article

09:42 October 3, 2012 by RobinHood
Congratulations Sweden on being number one once again. Swedish taxpayers will be celebrating this wonderful news.

This is an excellent day for politicians and supporters of the Left and Social Democrat party to suggest that Swedes should pay even more tax to ensure those wily French don't steal our coveted number one position.
10:20 October 3, 2012 by Swedish Cat
Easy math. We have more people living of our system than that actually are working! Please keep on bringing more people in year on year that lacks education to keep the stats up. If we keep up this madness no tax money in the world will keep us in a good standard.
11:02 October 3, 2012 by eppie
When we are not considering spain (that is raising taxes because of its huge deficit), the countries with high taxation are topping most list like, wealthiest country, most competitive economy, happiest people, healthiest economy in crisis.

Coincidence?
11:28 October 3, 2012 by Dr. Dillner
Sweden needs to fund all its social entitlements somehow.
11:44 October 3, 2012 by rfmann
"Sweden snags top spot..."

Also known as the bottom spot.
12:35 October 3, 2012 by EtoileBrilliant
Agree with Eppie on this won, there is a high correlation between "happiness indices" and tax rates.

Where Sweden falls down is the large discrepancy between high aggregate income tax rates (including employers contribution) and the relatively low capital gains taxes.

My Swedish accountant told me that no one gets rich in Sweden by working hard. You need to speculate. I listened to him and cut more working time down to 80% with very little change in end of month income.
13:05 October 3, 2012 by engagebrain
Try reading the article - last para

.... what happens when social fees such as mandatory pension fees are added into income tax calculations for people earning $100,000. The adjustment moves Sweden down to 20th place ...........

So really 20th place for high earners - there goes another myth
15:16 October 3, 2012 by Abe L
Nothing to be proud of and this should really be a target for the government to work on and drop in the ranking.

High taxes are a slap in the face for every working citizen trying to make ends meet. Especially when the taxes aren't used for matters that benefit the taxpayers, so aside from paying taxes you're stuck with horribly congested infrastructure, very poor and expensive public transportation, sub-par healthcare, rising crime levels and a police force that is only used to write traffic tickets.
15:54 October 3, 2012 by stateohio905
I really wonder why we pay 35% in the USA. We get literally nothing for that. Public schools and other "free" staff are paid from the additional state's and local taxes.
18:14 October 3, 2012 by Maddeshusband
Sweden has it´s house in order.

No debt crisis, no trouble to get loans (if needed) and no unnaturally high interest.

Sweden doesn´t borrow money for a country´s normal consumtion and investments.

This is where the tax rate should be to achieve this, and there it is. Simple.
18:43 October 3, 2012 by Great Scott
@RobinHood

More useless waffle from yourself, you really need to take those dark sun glasses off and see the light of day.

I know, you want your beloved Moderate party (who are having a whale of a time at your expense) to reduce nurses, home helps, wardens, teachers, doctors, street cleaners, dustmen and any other people working for central or local government paid out of tax payers money. This of course would turn Sweden into a third world country, but you would be happy.

@Abe L

"horribly congested infrastructure, very poor and expensive public transportation, sub-par healthcare, rising crime levels". Is the effect of tax cuts!
20:47 October 3, 2012 by DAVID T
56.6% tax and 25% Vat - doesn't leave much
08:21 October 4, 2012 by skogsbo
david, what proportion of your income are you paying 56.6% tax on ? :) There are other countries like Greece where you don't need to pay tax at all, but would you rather live there?
Today's headlines
Dad jailed for assaulting his infant twin sons
Photo: Jessica Gow/TT

Dad jailed for assaulting his infant twin sons

A man in central Sweden was sentenced to prison for aggravated assault on Friday after doctors noticed that both his twin sons had sustained serious and unexplained injuries. READ  

Swedish city all set for six-hour workday trial
Clocking in. File photo: Shutterstock

Swedish city all set for six-hour workday trial

Officials finalized plans on Friday for the "Gothenburg guinea pigs" who will test out the six-hour workday, a move it's hoped will cut down on sick leave, boost efficiency, and ultimately save Sweden money. READ  

Armed royal guards caught drunk on the job
Photo: Gunnar Lundmark/TT

Armed royal guards caught drunk on the job

Three Swedish soldiers risk prison after they were found to be drunk while guarding Stockholm's Royal Palace. The men, who were all armed at the time, were charged on Friday. READ  

Stockholm
What do the Swedes do when summer's over?
Photo: Isabela Vrba

What do the Swedes do when summer's over?

The heatwave is well and truly over, the days are getting shorter, and winter is coming. With this in mind, The Local's Isabela Vrba chatted to ten Stockholmers about how they plan to tackle the autumn. READ  

Swedes spend fortune on nail polish trend
Photo: Bertil Ericson/TT

Swedes spend fortune on nail polish trend

Swedes are spending more than ever on makeup - and a growing chunk is going directly to their fingernails, new figures showed on Friday. READ  

Sweden mulls stripping paracetamol from shops
The pharmacy section of a grocery store. Photo: Fredrik Sandberg/TT

Sweden mulls stripping paracetamol from shops

After a drastic increase in the number of paracetamol poisonings in Sweden, authorities have said the drug should only be available in pharmacies. READ  

Listeria fears prompt meat recall in Sweden
File photo: Andreas Hagerman/Flickr

Listeria fears prompt meat recall in Sweden

After finding traces of listeria in ham sold in Sweden, food companies decided on Friday to recall several Danish cold cuts. READ  

Sweden Floods
More rain expected as floods hit day four
Photo: Johan Nilsson/TT

More rain expected as floods hit day four

UPDATED: Sweden's floods showed no signs of abating over Thursday night, with highways closed, emergency teams working overtime, and more rain on the way. READ  

Ikea opens first store in the Balkans
An Ikea city centre store in Hamburg. Photo: TT

Ikea opens first store in the Balkans

Swedish furniture giant Ikea has opened its first store in the former Yugoslavia, near Croatia's capital Zagreb. The move marks the company's first step in an expansion to the Balkans market. READ  

Elections 2014
'Sweden Democrats hold the key to elections'
Jimmie Åkesson. Photo: Bertil Ericson/TT

'Sweden Democrats hold the key to elections'

With national elections around the corner, political scientist Stig-Björn Ljunggren says there's a hive of activity behind the scenes, and that the right-wing nationalist party could end up being the key player. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Politics
'Sweden Democrats hold the key to elections'
Society
Swedes celebrate first day of smelly fish season
Politics
Sweden elections: How do they work?
Finest.se
Gallery
People-watching August 20th
Society
Did you know the Bronx in NYC was named after a Swede?
Blog updates

17 August

Sea Fever (Around Sweden in a kayak) »

"I’m going to keep this post short and sweet as its not something I take any pleasure in writing. After much deliberation I have made the heartbreaking decision to abandon my trip after 1200km due to reoccurring injury. It is not a decision I have made lightly and it is one that has been truly devastating..." READ »

 

17 August

St. Louis strong (Blogweiser) »

"It’s typically a bad sign when my hometown makes news in Sweden. St. Louis was in the headlines here a few years ago when a tornado struck the airport. The city also caught attention after a politician talked about ‘legitimate rape’. Now, shooting and riots this week in Ferguson, a part of St. Louis, are..." READ »

 
 
 
Politics
"Iraq reminds me of the Yugoslav wars. It's the same story."
Society
Swedes slam Danes for 'racist' art
National
Majority of Swedes favour more or just as many refugees
Society
Lock your bathrooms: Swedish toilet invader on the the loose
Politics
'Assange will not leave until safe'
Gallery
See more images from the southern Sweden floods
Sponsored Article
Find out what gives this Swedish school executive appeal
Society
Serial chicken smuggler caught at Norway border. Again.
Society
This gold coin may be the key to solving a Swedish massacre
Shutterstock
Lifestyle
The Swedish mentor (and why you may need one)
Politics
Reinfeldt calls for tolerance to refugees
Gallery
People-watching August 16-17
National
Sweden celebrates 200 years of peace
Society
Top ten literal Swedish words
Politics
'Terror training should be illegal': Liberal Party
Gallery
Swedes talk about 200 years of national peace
Politics
Islamic extremist shakes Sweden with TV threat
National
Teacher fined for 'Hitler salute' in German class
Features
Kiruna residents talk life in a town on the move
Skatteverket
Sponsored Article
Introducing... ID cards and permits in Stockholm
Sponsored Article
Introducing...Your finances in Stockholm
Sponsored Article
Introducing...Housing in Stockholm
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

706
jobs available
Swedish Down Town Consulting & Productions
Swedish Down Town Consulting & Productions is an innovative business company which provides valuable assistance with the Swedish Authorities, Swedish language practice and general communications. Call 073-100 47 81 or visit:
www.swedishdowntown.com
PSD Media
PSD Media is marketing company that offers innovative solutions for online retailers. We provide modern solutions that help increase traffic and raise conversion. Visit our site at:
http://psdmedia.se