Sweden snags top spot in European tax ranking
Published: 3 Oct 12 09:01 CET | Print version
Online: http://www.thelocal.se/43584/20121003/
Sweden has once again topped the European tax league, boasting a 56.6 marginal tax rate, according to a new report.
- Sweden unveils plan to slash corporate tax rates (13 Sep 12)
- Liberalisation fastest in Sweden: report (24 Mar 12)
- Ex-minister: financial transactions tax 'failed' (15 Jan 12)
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
What do you think? Leave your comment below.
Sweden 'fails to help well-educated foreigners'
The white-collar union Saco has lambasted Sweden's Employment Agency for its failure to help well-educated, foreign-born job seekers, whose unemployment rate is more than three times the average for people born in Sweden. READ () »
Mixed results for Sweden refugee job push
Fifteen percent of refugees in Sweden who enrolled in the new establishment system the past two years have gone on to find jobs, new figures show, leading some observers to worry that the low success rate will place a burden on the benefits system. READ () »
Riksbank unveils new board members
Sweden's central bank has appointed two new board members plucked from banking and academia to replace two outgoing members, one of whom was an outspoken critic of the Riksbank's commitment to the government's inflation goal. READ () »
350 jobs lost as Ericsson shuts Swedish factory
Swedish telecom giant Ericsson has buckled under the pressure of European competition and will turn off the switch on a cable production plant in Sweden, leaving 350 employees without jobs. READ () »
Sweden has 'lower tax burden' than Senegal
While Sweden has a reputation for having one of the most painful tax bills in the world, a new report ranks Sweden 20th when comparing the tax burden on salaries when social security payments and salary brackets are taken into account. READ () »
Ericsson probed over suspected bribes
Swedish telecom equipment maker Ericsson is suspected of having bribed ministers in Romania in connection with being awarded a contract for the country's emergency number and is now under investigation in the United States. READ () »
Warning over 'long-term' Swedish export slump
Sweden's largest business confederation has gone out guns blazing, criticizing politicians for not facing up to the challenges of "a lost year for Swedish exports" in 2012. READ () »
'Lean hospital a sign of Swedish welfare reform'
A Stockholm hospital saved from closure by private health care providers has been hailed by the Economist as one of modern's Sweden public-private success stories. READ () »
H&M mulls production in South America and Africa
Swedish clothing giant H&M is looking into the possibility of sourcing its production to South America, Central America, and even Africa, chief executive Karl-Johan Persson said on Monday. READ () »
Nord Stream plans new gas pipelines
Gas pipeline firm Nord Stream will hold an information meeting on the Baltic island of Gotland on Monday to introduce a proposal to extend its controversial gas pipeline project. READ () »
- 17/05 Solna voted best place to live in Sweden »
- 17/05 Ikea founder rated fifth richest in the world »
- 17/05 LinkedIn profile lands Swede with hefty tax bill »
- 16/05 India in no rush to open first Ikea store »
- 16/05 H&M CEO to Bangladesh: raise minimum wages »
- 15/05 Sweden plummets in income equality ranking »
- 15/05 Pensioners to recruit ageing Swedish rockers »
- 15/05 Swedish shop hits back: our Converse are real »
- 15/05 Young Swedes forced to live with mum and dad »
- 14/05 Converse in bid to ban 'fake' shoes in Sweden »
| 23/05 | Account Executive/Office ManagerToolbox Marketing | Stockholm, STHM |
| 23/05 | Application Owner AXNet Entertainment | Stockholm |
| 23/05 | Area sales ManagerGemalto | Stockholm, STHM |
| 23/05 | E.ON are looking for a Regional Category Manager ElnätExperis Sverige | SKÅ |
| 23/05 | Integration Engineer at AditroAditro | Stockholm, STHM |
| 23/05 | Java Developer (Turku, Finland)Academic Work | Turku |
| 23/05 | Manager Service Management CenterTelenor Sverige AB | Stockholm, STHM |
| 23/05 | Platform EngineerTeliaSonera | Farsta |
| 23/05 | Product ManagerSafemind AB | Stockholm |
| 23/05 | Produktionsplanerare, Coca-Cola Enterprises SverigeCoca-Cola Enterprises Sverige AB | Stockholm, STHM |
- 23/05 Tax evasion 'OK for Joe Normal' say Germans »
- 22/05 Spain and Germany fight youth employment »
- 21/05 Car boss asks Merkel to rethink CO2 pledge »
- 21/05 SAP to hire hundreds of autistic IT experts »
- 18/05 Economists warn against German euro exit »
- 17/05 Germany cool to France's EU economy plan »
- 17/05 Au pairs rules relax for non-German families »
- 16/05 Germany refuses to slam French economic policy »
- 16/05 Capri-Sun drink wins false advertising award »
- 15/05 Anaemic economy feels winter chill »
- 20:20 Adobo- Filipino Recipe
- 20:06 Husby Riots and violence against the police...
- 19:38 Moving to Sweden (Questions) HELP
- 19:13 Is it save to keep money at forexbank?
- 18:49 Found out I'm pregnant!
- 15:14 Freelancer needed to build a website
- 14:43 International school in Lund
- 14:42 Markets in Gothenburg
- 12:44 Swedish Summer Language Classes in Malmö?
- 11:18 Bank account deposits
Create an account with Banc De Binary, the world’s most reputable binary options firm, and start cashing in today! You can start by practicing with our free $50,000 demo account.
www.bbinary.com
Expat counsellor & talk therapist offers counselling for stress, relationship issues, sexuality, culture adjustment & life coaching. Private & confidential. Stockholm or Skype. Contact me today! 08-559 22 636 or
CLICK HERE
Casa Birgitta in Algarve, Portugal. Reduced price in best location. Private estate on white sand beach. All amenities included. Book here today! edward_george1@hotmail.com
Find products and services that are specifically focused on English speakers living in Sweden!
FULL DETAILS
Individuals & Couples - Stockholm Beth Rogerson PhD - Clinical, Marriage & Family Therapist
Click or call 08-5580 1266 now
Your comments about this article:
The comments below have not been moderated in advance and are not produced by The Local unless clearly stated. Readers are responsible for the content of their own comments. Comments that breach our terms and conditions will be removed.
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.
Coincidence?
Also known as the bottom spot.
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.
.... 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
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.
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.
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!