8.2 Social security contributions and tax deduction
8.2.1. General rules
Missions are obliged to pay social security contributions in Sweden on the gross salary and taxable benefits of locally employed staff. Missions must report and pay social security contributions on a monthly basis to the Swedish Tax Agency (Skatteverket). Please see section 8.2.3 for further details.
Since 1 January 2021, Missions are obliged to pay and report deducted tax for the locally employed staff on a monthly basis. Please see section 8.2.4 for further details.
EU/EEA countries and Switzerland: Please note that there may be exceptions to the obligation to pay social security contributions due to Regulations (EEC) 1408/71 and 883/04, since different Member States have different interpretations of what constitutes a civil servant. Please contact the Tax Agency or the Swedish Social Insurance Agency (Försäkringskassan) if you have any questions concerning this matter.
Tax agreements: Please note that locally employed staff may be exempt from paying taxes in Sweden due to tax agreements. Please contact the Tax Agency if you have any questions concerning this matter.
8.2.2 Registration as employer
In order to declare and pay social security contributions and taxes, the Mission needs to register as an employer in Sweden. Please complete the form SKV 4632 and send it to:
171 94 Solna
8.2.3. Reporting and paying social security contributions
Missions pay a reduced rate of social security contributions compared to Swedish employers. For 2021, the percentage is 19,80 %. For the current rates of social security contributions, see the Tax Agency’s website.
For missions, the payment of social security contributions, taxes and the PAYE (“payroll employee”) return are due on the same date (same date each year). It is important to state the correct OCR number when paying. The OCR number can be found on the Tax Agency’s website.
|Period||Declaration due date|
It is possible to declare online using a Swedish electronic ID. A Swedish electronic ID can be obtained by physical persons either through the Tax Agency (if registered as a resident in the Swedish Population Registry) or through the bank at which the person holds an account (generally also for those not registered as residents in the Swedish Population Registry, i.e. posted mission staff). Missions may give authorization to someone holding a Swedish electronic ID to file on behalf of the mission. In such case, complete and submit form SKV 4809 to:
171 94 Solna
The Mission can enter into an agreement with the locally employed staff whereby the employees declare and pay the social security contributions themselves (Social Security Agreement). This exception does not mean that the employee takes over the Mission's basic obligation to report and pay social security contributions. If the employee does not report and pay according to the agreement, the Tax Agency will make a claim directly to the Mission. For more information about Social Security Agreements, see the Tax Agency’s website.
8.2.4 Preliminary income tax
Previously, missions withheld the employees' preliminary tax. The locally employed staff submitted a preliminary income tax return form (SKV 4314), and later received a decision from the Tax Agency stating how much preliminary tax they needed to pay to their own tax account once a month.
From 1 January 2021, missions shall report and pay the preliminary tax for the locally employed staff monthly. This means that the locally employed staff need to fill in a new preliminary income tax return (SKV 4314) if they have received a decision from the Tax Agency to pay their own preliminary tax.
Missions shall deduct tax with 30 % for the locally employed staff. The locally employed staff can apply for an adjustment of the preliminary tax on form SKV 4302 to receive a decision on which percentage the Mission shall deduct each month.
If a Mission cannot implement the new tax regulation in time, there are a few options the Mission and the locally employed staff can choose from.
Neither the locally employed staff nor the Mission report or deduct tax for January 2021, i.e. the Mission only reports and pays the social security contributions for January 2021. From February 2021, the Mission reports and pays both social security contributions and taxes. Due to the decision the locally employed staff will receive regarding the adjustment of the preliminary tax, the tax deduction can be a little higher because there has not been any tax deducted for the first month of the year.
The locally employed staff does not pay their own tax for January 2021. The Mission reports any deducted tax with 30 % for the locally employed staff for January 2021. For the rest of the year the tax deduction can be lower if the locally employed staff show a decision for the adjustment of preliminary tax.
The locally employed staff can pay their own tax to their tax account and the Mission only reports the social security contributions for January 2021. From February 2021, when the locally employed staff should have received the decision regarding the preliminary income tax return and adjustment of preliminary tax, the Mission reports and pays the social security contributions and taxes.
8.2.5 Social Security Agreement
The Mission can enter into an agreement with the locally employed staff whereby the employees declare and pay the social security contributions themselves (Social Security Agreement). This exception does not mean that the employee takes over the Mission's basic obligation to report and pay social security contributions. If the employee does not report and pay according to the agreement, Skatteverket will make a claim directly to the Mission.
Further information is available on the Tax Agency's website.
8.2.6 Forms and contact information
To register as an employer: SKV 4632
To register a representative who can file online: SKV 4809
To submit a preliminary income tax return for locally employed staff: SKV 4314
To request adjustment of preliminary income tax (as individual staff member): SKV 4302
For further information, please contact:
Mr. Martin Agering at the Swedish Tax Agency
Phone: 010-574 14 20
Ms. Charlotte Hedin at the Swedish Tax Agency
Phone: 010-574 74 05
Further contact options are available on the Tax Agency’s website.
Ministry for Foreign Affairs
Visiting address Gustav Adolfs torg 1
Address 103 39 STOCKHOLM
email to Protocol Department