Taxation in Sweden

Taxation in Sweden may involve payments to three different levels of government: the municipality, the county council, and the central government. The payments are collected by the Swedish National Tax Board ("Skatteverket"). In addition the Swedish National Tax Board collects a church tax from members of the Church of Sweden. The tax rates in Sweden are commonly cited as among the highest in the world.

Sweden has a taxation system that combines a direct tax (paid by the employee) with an indirect tax (paid by the employer). In practice, the employer provides the state with both means of taxation, but the employee only sees the direct tax on his declaration form. The compilation of taxes that compose the final income tax (2003): tax on gross income from the employer: 32.82% "(indirect, fixed)", pension fee on gross income: 6.95% "(indirect, fixed)", municipal tax on gross income less pension tax and a base deduction: ~32% "(direct, varies by municipality)", state tax on gross income less pension tax and a base deduction: 0%, 20%, or 25% "(direct, progressive)".

Value Added Tax

The value added tax ("mervärdesskatt" or "moms") rate in Sweden is 25%, with exceptions for food and services like hotel room rental fees (12%), and for sales of publications, admission tickets to cultural events and travel within Sweden (6%)' [http://www.skatteverket.se/blanketterbroschyrer/broschyr/info/552.4.39f16f103821c58f680007909.html 'Momsbroschyren" (SKV 552)] , Swedish National Tax Board (in Swedish)] .

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