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Do you pay tax on interest earned in savings?

How can I claim it back?

uduck
post 2.Jan.2013, 08:20 AM
Post #1
Joined: 19.Oct.2010

Hi everyone.

Do you pay taxes on interest earned in savings account?
And is there any possibility to claim it back??
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teslar
post 2.Jan.2013, 08:41 AM
Post #2
Joined: 23.Jul.2009

1. Yep. It's an income, incomes are taxable.
2. Nope. Unless there's an exception to 1. which I'm not aware of but I doubt it.
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animesh
post 2.Jan.2013, 08:50 AM
Post #3
Joined: 27.Apr.2008

I think Skatteverket gets the information from the banks.
And it is automatic that interest earned is added to your income.

I have another question relevent to this,
What if one moves to Norway and still have savings account in sweden.
Are we liable to tell it to the tax authorities in Norway. or do they get this information,.
I would transfer the money later to my Norsk bank account , so i do not want a huge tax bill , if they assume all the amount as income , not just the iinterest !!.

Thanks
Animesh
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Essingen
post 2.Jan.2013, 09:42 AM
Post #4
Joined: 2.Nov.2008

Stop complaining and remember Mona Sahlin's famous words...

"Det är häftigt att betala skatt, ..."
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Kibiri
post 2.Jan.2013, 01:56 PM
Post #5
Joined: 1.Jun.2008

You pay 30% tax on income through interest, stocks, fonds, and other "Kapital Inkomst", regardless of your normal income rate. If you make profit on one and loss on another, then your loss is offset against your profit.

But sometimes they count only the 70% of the stock/fond losses. For example if it is net loss in total, or if that is a stock from outside of Stockholm stock exchange.
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uduck
post 2.Jan.2013, 11:42 PM
Post #6
Joined: 19.Oct.2010

Ok, I know for sure stocks, bonds etc are definitely eligible for tax.

I also know that you pay taxes on interest earned in savings accounts, but I didn't think it would 30%. And I didn't think I would be applicable since I have no income and am still a student. So, you guys are saying, interest earned on savings or fixed deposits will be taxed 30%?? Then the effective rate is actually quite low.

For example, Danske Bank offers 2.55% for fixed deposit. That means the effective rate is only 2.55%*70% = 1.785%??

Isn't there an allowance in Sweden where if you earn below certain amount of money, you're exempted from tax?
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Kibiri
post 3.Jan.2013, 01:09 AM
Post #7
Joined: 1.Jun.2008

Yes, there is a tax free allowance, but that does not apply to income through capital gains. If you earn 10 000 sek in a year by working then you wouldn't pay any tax, but if you earn that much through capital then you pay 3 000 sek tax. [as far as I know]
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uduck
post 3.Jan.2013, 01:51 PM
Post #8
Joined: 19.Oct.2010

That's true, but interest earned on savings account surely is not considered capital gains, isn't it??

As I understand, capital gains only applies to stocks, bonds and other financial derivatives and property assets.
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Yorkshireman
post 3.Jan.2013, 01:55 PM
Post #9
Joined: 22.Nov.2011

QUOTE (uduck @ 3.Jan.2013, 01:51 PM) *
That's true, but interest earned on savings account surely is not considered capital gains, isn't it??

Interest earned IS considered capital gain, and interest paid is considered capital loss.
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Taxalien
post 3.Jan.2013, 04:52 PM
Post #10
Joined: 24.Dec.2009

As I have repeated a 100 times, if you open an investeringssparkonto then all your income, capital and interest, is not taxed. The only tax you pay is based on what you deposit and what the total value is 4 times a year.

It is very tax advantageous to do this if you want to save money for a longer period of time and there is no taxation form hassle when you come to declare your holdings.

If you deposit money into any 2+% interest bearing account without going via an investeringssparkonto then you are in my mind totally nuts or you, like Sahlin, think that it is cool to pay tax.
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Yorkshireman
post 3.Jan.2013, 05:15 PM
Post #11
Joined: 22.Nov.2011

Whilst there is a potential gain with Investeringssparkonto as the advertisements would say, there is also a downside...
- You cannot balance the capital gains/losses in the tax declaration
- You normally do not have immediate access to Your funds, must make application for withdrawls.
- You can only make deposits in cash, not by transfering other financial objects (eg. funds).
- When the stockmarket goes down then the tax you are charged is effectively higher.
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Taxalien
post 4.Jan.2013, 09:41 PM
Post #12
Joined: 24.Dec.2009

The point is that you don't have to invest in the stockmarket. You can invest in pretty much anything, including a savings account.
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Bender B Rodriquez
post 5.Jan.2013, 03:58 AM
Post #13
Joined: 25.Mar.2006

QUOTE (Yorkshireman @ 3.Jan.2013, 06:15 PM) *
- You normally do not have immediate access to Your funds, must make application for withdrawls.

Not really. You have the same access to your funds as for a regular brokerage account, i.e. money on your ISK that are not tied up in funds/stocks are immediately accessible through a single click...
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Bender B Rodriquez
post 5.Jan.2013, 04:07 AM
Post #14
Joined: 25.Mar.2006

QUOTE (Taxalien @ 4.Jan.2013, 10:41 PM) *
The point is that you don't have to invest in the stockmarket. You can invest in pretty much anything, including a savings account.

You are only allowed to invest in traded products. You can of course keep cash in the ISK, but the interest rate is rubbish.
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Yorkshireman
post 5.Jan.2013, 08:57 AM
Post #15
Joined: 22.Nov.2011

QUOTE (Taxalien @ 3.Jan.2013, 04:52 PM) *
If you deposit money into any 2+% interest bearing account without going via an investeringssparkonto then you are in my mind totally nuts or you, like Sahlin, think that it is cool to pay tax.

An ISK is only good when You have higher % return on your investments ie. Financial objects that return 7+ % per year, and the true benefits of an ISK have yet to be proven since it is so new. It certainly is not for those that just want to save money in an interest baring account, even if they are limited monthly savers.

And for anyone that has a Last Will and Testament, needs to understand that the ISK stands outside of that and follows the standard Swedish rules for inheritance.
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