New income tax for commuters to Sweden

The government has completed a proposal on income tax for those living abroad but commuting to Sweden, reported DN on Sunday.

The change will mainly affect those living in Denmark who commute on the ferry to Sweden on a daily basis.

Currently they pay a “separate income tax” of 25 per cent on their income but they are not entitled to any allowance or reduction on their tax. The idea is that they will have the same tax as everyone else, and consequently the same allowances and tax breaks.

According to the government those living abroad should be allowed business travel claims and tax breaks for payments towards their pension.

Source: Dagens Nyheter