• 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
Swedish government promises cash to combat Russia threat

Swedish government promises cash to combat Russia threat

Sweden's government has pledged to invest an extra 1.3 billion kronor in the military as Russia ramps up its activities in the Baltic Sea area. READ  

Two terror plots stopped in Sweden
Swedish Security Service Headquarters in Stockholm Photo: Janerik Henriksson/TT

Two terror plots stopped in Sweden

The Swedish Security Service (Säpo) says it has stopped two terror attacks being planned by violent Islamist extremists living inside the country. READ  

Late summer sun set to hit Sweden

Late summer sun set to hit Sweden

Forecasters have predicted sunshine across Sweden this week, with a warm front moving in from Russia and temperatures of up to 25C. READ  

International police hunt
Swedish killer arrested after European hunt
Photo: Police

Swedish killer arrested after European hunt

UPDATED: Police arrested a man on Tuesday afternoon after he went missing from a psychiatric ward in western Sweden at the weekend. The man had been convicted of murdering a five-year-old schoolgirl in 2003. READ  

Music
The five best Swedish songs of the month
Swedish singer Tove Lo. Photot: TT

The five best Swedish songs of the month

The summer may be (almost) over but the music will keep on playing here at The Local. Our resident music guru Paul Connolly will be selecting his top new Swedish tracks for us in a new monthly feature. READ  

Hedgehog pet craze sweeps Sweden

Hedgehog pet craze sweeps Sweden

African pygmy hedgehogs are being bought by growing numbers of Swedes, as a trend for keeping exotic pets sweeps the country, the Department for Animal Welfare and Health tells The Local. READ  

Poisonous mushrooms cause stir in Sweden
The mushroom in this picture is not the same as the one from the story. Photo: Shutterstock

Poisonous mushrooms cause stir in Sweden

A person selling freshly-picked mushrooms in Gothenburg has come under fire after it turned out the delicacies were not only poisonous but also hallucinogenic. READ  

Pirate Bay founder case starts in confusion

Pirate Bay founder case starts in confusion

The largest hacking case in Danish history began in confusion on Tuesday, after lawyers representing Swedish Pirate Bay co-founder Gottfrid Svartholm Warg accused the prosecution of "unreasonable" tactics. READ  

Swedfund joins H&M in Ethiopia expansion

Swedfund joins H&M in Ethiopia expansion

As H&M expands into Ethiopia, Sweden's state venture capital unit Swedfund has announced that it will back the clothing giant, in a move hoped to create more jobs for local women. READ  

Elections 2014
Social Democrats reveal election manifesto
Photo: TT

Social Democrats reveal election manifesto

UPDATED: Sweden's main opposition party the Social Democrats has revealed its election manifesto at a press conference at a high school in Stockholm, with a key focus on education and welfare benefits. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Lifestyle
The five best Swedish songs of the month
Sponsored Article
Introducing… Insurance in Stockholm
National
Huge clear up underway after Skåne floods
Politics
Sweden's Alliance reveals full manifesto
Tech
Sweden's highest peak to lose title next year
Blog updates

02 September

America night (Blogweiser) »

" There was an event this weekend for the ‘Americans in Sweden’ Facebook group. I’m a member, and I brought my girls to the evening. The gathering was at a Boston-themed sportsbar in a mall. There were loads of screens, a bowling alley, a game room and a jumbotron. It was as good a place as any to..." READ »

 

25 August

Hit och dit, här och där (The Swedish Teacher) »

" Hej igen! A common challenge for Swedish language students are the location adverbs hit/här, dit/där, hem/hemma etc. Some of the location adverbs come in two versions. We should use one type of location adverb when we use a verb describes where we are, and we should use the other type of location adverb when we the verb..." READ »

 
 
 
Politics
How immigration became a key election issue
Society
Brit's life in Sweden becomes BBC radio show
Gallery
People-watching August 27
Gallery
Top ten false friends in Swedish
National
Roma advocate scoops Wallenberg prize
Society
Meet the man who made a Swedish store recall its high heels for kids
Business & Money
'How I came to run my own business in Sweden'
Politics
Expert explains why Sweden's election oozes uncertainty
National
City plays Schindler's List theme at Nazi rally
Society
For Stockholm Fashion Week, here's the A-Z of Swedish fashion
National
'Amnesiac' man avoids deportation for ten years
Gallery
Princess Estelle through the years
Business & Money
Swedish city all set for six-hour workday trial
Business & Money
Five golden rules for the Swedish job hunt
Sponsored Article
Graduates: Insure your income in Sweden with AEA
Gallery
People-watching August 22-24
National
Armed royal guards caught (very) drunk on the job
National
Sweden orders textbook on Roma discrimination
Gallery
Violent anti-Nazi demonstrations in Malmö
Society
A closer look at Sweden's five official minority languages
Sponsored Article
Find out what gives this Swedish school executive appeal
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

756
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