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Sammanfattning av regeringens åtgärder corona

Summary of the measures taken by the Swedish government and how Accountor will act

Here we have summarised the measures taken by the Swedish government so far trying to reduce the spread of the coronavirus, covid-19, reduce the burden on healthcare and mitigate the economic effects of the virus outbreak for companies. Please note that there are measures that have not yet come into force and that the government may update the information and recommendations. We also clarify how Accountor will act.

Temporary reduction of employers’ social security contributions and individual contributions (new March 25)
 

A temporary reduction of employers’ social security contributions will be proposed for the period March 1 to June 30, 2020. To provide equivalent relief to sole traders, a reduction of individual contributions is also proposed.

This means that companies only will pay the old age pension contribution on the remunerations given from March 1 to June 30 2020. It is proposed that this reduction should apply to up to 30 employees and on that portion of the employee’s wage that does not exceed SEK 25 000 per month. This entails tax relief of up to SEK 5 300 per employee and month. This is to make it easier for companies that are hit by a sudden loss of income while wage costs remain.

For sole traders, the proposal means that no other fee than the old age pension contribution and two-thirds of the other deductibles and the general salary contribution will be paid in 2020. The proposals are proposed to be temporary and will enter into force on 6 April 2020. You find information about the proposal here.

The rules are proposed to enter into force on April 6, 2020. To avoid unnecessary re-examinations, the employer wishing to have a reduction should wait to submit the employer declaration until the rules have come into force. Employer's declaration for March must have been received by the Tax Agency by April 14.

How does Accountor act with regards to our clients: We need to know if you would like to benefit from the temporary reduction. And we need information about the 30 people (maximum) the temporary reduction should refer to. Any accounting records including the reduction for the month of March cannot be made in the payroll system until after April 6. We monitor system updates from system suppliers. If an update cannot be completed before the declaration and payment date in April, this will be done manually. We are waiting to upload the PAYE tax return per employee reports on the Swedish Tax Agency's website until after April 6.

 

The proposal for tax relief to small businesses through increased provision for tax allocation reserves (new March 25)


The temporary rules allow sole traders and natural persons who are partners in Swedish partnerships to deduct all their profits for the year 2019, up to a maximum of SEK 1 million, to tax allocation reserves. For many traders, the taxable profit can thus be reduced to zero.

This means that many people can get back the preliminary tax they paid in 2019. The fastest way to get the preliminary tax back is to request a reconsideration of the company’s preliminary income tax return for 2019. This is possible until the end of the half year of 2020. If the trader only makes the deduction in the ordinary income tax return, the payment will be made as a tax refund after the final tax return has been received. A trader who already has submitted his income declaration and now wants to use the possibility of increased provision for tax allocation reserves needs to submit a new income declaration.

According to the current rules, sole traders and natural persons who are partners in Swedish partnerships have the opportunity to dedicate 30 percent of the profit as provision for tax allocation reserves.

The proposals will come into effect in April 2020 and will be applied retroactively for the year 2019. Details of the proposal can be found her                    

How does Accountor act: We wait to finalise the declarations for our clients. Everyone gets deferred until June 15. No effect but you postpone the tax.

 

Sickness benefit qualifying day discontinued

The Swedish government has decided to temporarily abolish the sickness benefit qualifying deduction between March 11 and May 31, the deduction of sick pay and sickness benefit, which normally is done in conjunction with the first day of sick day. The sickness benefit qualifying deduction will be made as usual on the payslip.  The employee can subsequently apply for compensation for the first day of sick leave from the government. The application should be done retroactively to Försäkringskassan.

Accountor will keep on making the sickness benefit qualifying deduction as usual for all of our customers’ employees.

Sickness benefit employees (updated May 6)

The government proposes to temporarily cover the entire cost of employers' sick pay during April, May, June and July. Self-employed persons are also compensated through the sickness benefit. The proposal is part of the government's extra amending budget presented as a result of the new corona virus.

The measure is implemented by making the rules for the existing aid "reimbursement for high sick pay costs" more generous. This means that reporting will be done via the AGI reporting (AGI = PAYE tax returns on an Individual Level) and the amount will be credited to the employer's tax account.

 

Sickness benefit self-employed

All self-employed persons who run companies as a limited company are covered by the rules on sick pay and are met by the proposal. Other rules apply to self-employed persons who have an F-tax note. For this group, the proposal for an abolition of the qualifying deduction is extended during day 1, so that it applies to day 1 to 14. This means that they receive a standardized sickness benefit for all these days.

The measure is implemented by making the rules for the existing aid "reimbursement for high sick pay costs" more generous. This means that reporting will be done via the AGI reporting (AGI = PAYE tax returns on an Individual Level) and the amount will be credited to the employer's tax account.

Accountor awaits information on how the sickness benefit and sick pay amount should be handled.

Medical certificate

The Government proposes to suspend the requirement for a medical certificate temporarily from the eighth calendar day of the sick pay period. It would mean that anyone who is ill could stay at home without a doctor's certificate for up to 21 days without losing the right to sick pay.

Accountor will not ask for medical certificates day 8-21.

Reimbursement for care of a sick child - vab

If the child is ill or a disease carrier, you can receive compensation for care of a sick child if you need to stay home to care for the child. You may also receive compensation even if there is just a concrete suspicion that the child is spreading infection, if assessed a by a doctor or a nurse. You will not receive compensation for vab if you keep children at home so that others will not infect them. No reimbursement is paid if the preschool or school is closed, and the child is not sick or spreads infection

Call for working remotely

The Swedish Public Health Authority encourages employers in the Stockholm region to allow employees to work from home whenever possible.Employers who have the opportunity to let employees work from home should consider recommending this. It could have a dampening effect on the spread of infection and thus relieve the medical care. The recommendation applies especially to companies in the Stockholm region,

where the spread of infection currently is the greatest.

Accountor encourages all of its employees who can, to work at home.

Read more about the current situation here.

Strengthening liquidity

The government has presented additional budgetary measures in response to the new corona virus. One of the proposals involves giving companies the opportunity to defer payment of employers’ social security contributions and employees’ preliminary tax for up to one year. The goal is to quickly and to a considerable extent strengthening the liquidity of companies - throughout the corporate sector.

The proposal means that companies can defer with payment of employer contributions, preliminary tax on salary and value added tax, reported monthly or quarterly.

The companies' deferral includes three months' tax payments and may be submitted for a maximum of 12 months.

The new rules are proposed to take effect on 7 April 2020 but can be applied retroactively from 1 January 2020.

This means that companies that have paid tax into their tax account in February and March can get the tax refunded from the Swedish Tax Agency.

Postponement will not be granted to companies that mismanage their finances or are otherwise dishonest. Deferment may not be granted to enterprises that have greater tax liabilities.

 

Deferred VAT payment (updated March 25)


All companies, regardless of the form of business, will, through the government's supplement on March 25, be able to request a deferral of VAT payments regardless of whether they report their VAT monthly, quarterly or yearly. The rules are proposed to take effect on March 30 and April 8, 2020, depending on how the VAT is reported, but can be applied retroactively.

For VAT that is reported yearly, the deferment can be granted retroactively as of December 27, 2019. This means that companies that have paid VAT as of December 27, 2019 can get the tax refunded by the Swedish Tax Agency.

For companies that report VAT on a monthly or quarterly basis, deferral can be granted retroactively for periods starting from January 2020. See the Governments information here.

New proposed lower deferral fee April 14

The Swedish Government has proposed to only charge an interest of 1.25 percent on the first six months of
deferral. For the following months there will also be a deferral fee of 0,2 percent of the differed amount. This
equals a deductible interest of 1.6 percent for the first six months and 3.1 percent for a full year.

How does Accountor act: We can help our clients with the application process. Easiest via e-service, which gives an advantage to those who have declaration agents.

 

Deferred employers’ social security contributions and preliminary tax on salaries (updated March 25)


Companies that report employers’ social security contributions and preliminary tax on salaries will be able to request a deferral of payment of these fees and taxes. The rules are proposed to take effect on March 30, 2020 and can be applied retroactively. This means that companies that have paid employers’ social security contributions and preliminary tax in their tax account in February and March for periods from January 2020 can get the tax refunded from the Swedish Tax Agency. See the Governments information here.

How does Accountor act: We can help you with the application process. Easiest via e-service, which gives an advantage to those who have declaration agents.

In support during the current situation, Accountor has a team of experts who can provide advice on matters from financing to planning and labour law issues. Please remember that we are here for you.

How does Accountor act: Accountor can help  to seek deferment for customers who would like to do so. Contact your contact person so we can help you.

Short-time layoffs/Short-Time Work Allowance

The government is proposing assistance to employers who are in need of short-time layoffs. This means that the employer's wage costs can be reduced by half by the state accounting for a larger part of the cost, up to three-quarters.

The construction is similar to that for short-time work, but the degree of subsidy is greatly increased. The employee receives more than 90 percent of the salary. The purpose is to save Swedish jobs. The proposal for short-time lay-offs is proposed to enter into force on April 7 and be valid during 2020, but will apply from March 16.

Accountor is happy to help you our clients with advice and or applications. Contact your contact person so we can help.

Please not that you cannot just start to make short-time layoffs. There are requirements linked to the short time work allowance. The Swedish agency for Economic and regional Growth has good information on the regulations around this.

In short:

  • The possibility for short-time working must exist within the collective bargaining agreement. In the event there is no collective bargaining agreement, there must be a written agreement with at least 70 percent of the employees.
  • You must have used other available measures to reduce labour costs, e.g. dismissal of personnel who are not permanently employed (where possible).
  • If the company is undergoing restructuring or are in bankruptcy/insolvent it will not receive the support.

In support during the current situation, Accountor has a team of experts who can provide advice on matters from financing to planning and labour law issues. Please remember that we are here for you.

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