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Taxation when having worked part of a year

Which time horizon applies?

post 26.Mar.2013, 03:32 PM
Post #1
Joined: 11.Apr.2012

Dear all,

I had moved to Sweden last year. I was employed in my home country (EU) up until one day before my employment in Sweden started, i.e. I worked the full year.

I was told by Swedish friends that with the Skatteverket return for 2012, I would be likely to receive a lot of money back, because my income for only a few months would be treated as my full annual income, and hence my tax rate would be lower. The consensus among those friends (who actually work with tax) was that my income in my home country would be irrelevant.

E.g.: Let's assume I had worked 3 months in Sweden at a monthly salary of 40,000. Every month, I would have paid tax as if my annual income were 12*40,000 = 480,000. But in the end, my Swedish income in 2012 would only have been 120,000, for which the tax rate would have been lower, so I would receive a huge payback.

Anyway: I am getting money back, but much less than I had anticipated. I inquired this with Skatteverket, but they asked for some time to work on the issue. I assume a lot of people here have made their own experience about this in the first year they spent in Sweden. Was my friends' reasoning off? Or what did I miss?

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post 26.Mar.2013, 03:46 PM
Post #2
Joined: 10.Dec.2010

Sorry but I am confused. You must pay taxes in the country of residence. If you lived for all of 2012 in Sweden you pay the year's taxes in Sweden. When did you move to Sweden?
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post 27.Mar.2013, 07:48 AM
Post #3
Joined: 22.Nov.2011

Sounds like you should count yourself lucky that you haven't received a higher tax bill! If You lived the whole of last year in Sweden then your total glabal income would be taxed by Sweden, double taxation agreements come into play, but the net effect should be paying up to Swedish rates.

If you were only resident for part of the year, then your tax calculations Sweden are based upon the duration of that time, not the entire year. Hence, your preliminary tax payments per month are correct. You cannot receive tax rebates for taxes on income that was earned when you were not a tax resident in Sweden!!!
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post 27.Mar.2013, 08:38 AM
Post #4
Joined: 20.Sep.2011

I presume you paid tax on your UK take, in the UK, then what you've earned since arriving in Sweden, you've been taxed here. There is no crossover?

So the tax estimates will have been based on the amount of year remaining, unless you have other incomes or expenses that are tax deductable, that have occured since the original estimate when you first started work, then the calculations are likely to be accurate, hence no future rebate.
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post 27.Mar.2013, 09:48 AM
Post #5
Location: Malmö
Joined: 17.Oct.2010

Just look at the total amounts and compare using a tax calculator to see if the tax you will pay makes sense. Don't worry about the size of the rebate; if it's low it just means you already got the money back each month.

Also, as others have mentioned, it sounds like you will also owe some additional tax for your employment from the first part of the year.

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