But according to the Confederation of Swedish Enterprise many companies have lost interest in the scheme because of a regulatory framework that is too complicated. The organisation would like to see the introduction of a system closer to that used by Sweden’s Nordic neighbours.
In Denmark and Finland key foreign personnel working in the country on a temporary basis are entitled to a tax reduction if they earn more than around 60,000 kronor per month.
“The government has said that it wants to make things easier for companies,” said Kerstin Nyquist, tax lawyer for the Confederation of Swedish Enterprise and a member of the commission that decides whether an expert meets the criteria required for a tax reduction.
“But how do you define whether a person holds a key position?” said Nyquist.
Swedish authorities introduced the system to enable Swedish companies to attract key personnel by putting them on an equal footing with companies in countries with lower tax regimes.