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Sweden introduces the economic employer concept
On 4 November 2020, the bill was approved by the Swedish Parliament.
On 4 November 2020, the bill was approved by the Swedish Parliament.
The legislative changes, which will enter into force on 1 January 2021, mainly result in the introduction of the economic employer concept. In short, this implies that employees subject to limited tax liability are no longer granted tax exemption for employment income according to the so-called 183 day rule if they are considered to be hired out to an employer in Sweden (i.e. to a Swedish economic employer). Foreign employers will be required to withhold tax on such remuneration.
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