In addition to reducing the corporate income tax rate to 26.3%, the Swedish Government has introduced a couple of important measures in order to stimulate the economy for small and mid-size businesses and individuals:

  • enhanced tax relief (the so-called “ROT deduction”) will be available to Swedish individuals as of December 2009. Under this relief, an individual will be allowed to make a tax deduction amounting to 50% of the costs he has incurred for hiring a contractor to make improvements and work on the individual’s permanent and/or summer home, i.e. the effect of the relief is that the income tax liability of the individual will be reduced by 50% of the costs related to aforesaid work. The relevant contractor is required to have a tax certificate. The maximum relief available to an individual is 50 000 SEK (approximately EUR 5,600) per year. The relief cannot be carried forward.
  • a temporary deferral payment facility has been made available to employers. The deferral is granted on request unless there are particular reasons against it. The deferral is only available with respect to social security contributions and payroll taxes attributable to salary payments made between 1 February 2009 and 31 December 2009. The deferral can only be granted for two payment periods and may not exceed one year. The deferral is interest-bearing.