Paying taxes (betala skatt)
The Swedish tax system is the basis for the Swedish welfare. Through taxes, the state can give everyone the same chance to education and a good life in Sweden. A large part of the Swedish welfare system is paid by taxes. There are taxes that pay for care, child care (school, medicine etc), social services and elderly care. But also roads, public transport, refugees and the joint environmental activities are paid for by taxes.
When you work, you pay taxes on your salary. This tax is called inkomstskatt. The salary you receive before you paid the tax called bruttolön. The salary after you have paid tax called nettolön. Nettolön is the money you have left to live on. The Swedish tax system is designed so that those who earn more money pay more in taxes. Those who do not have enough money to get by can get help from the community.
The tax is different in every municipality. It tends to be 29-35 per cent of bruttolön. If you earn a lot, you pay even more taxes to the state.
If you have a sickness or retirement pay income tax. You also pay taxes for benefits on your work. A benefit may be for example, you can use the job's private car or get food stamps to buy lunch or dinner at the restaurant.
Each year, everyone who have an income and pay taxes submit a tax return to the Tax Agency. The declaration contains information on how much you earned and how much you paid in taxes through the year. The Tax Agency will send your tax return to your home. The declaration must be submitted to the Tax Board by the beginning of May each year.
The Tax Agency receives information from your employer, insurance companies and banks on how much money you received during the year. This information is usually on the declaration as you get home. You must make sure that all information is correct.
Value added tax is often called VAT. VAT is a tax on things and services, and everyone pay sales tax on most things and services they buy. The tax is part of the price we pay. There are different rates of VAT depending on what you are buying, from 6 to 25 percent. There are also items and services that are exempt from VAT, for example, health and education. The state uses the VAT as a policy instrument, and has low tax on things that you think is good that people are buying.
Excise Duties (punktskatt)
Excise duty is an additional tax on certain things, such as alcohol, gasoline, electricity and tobacco. Politicians decide what goods will have the special tax. There are usually things that are dangerous to the environment or health.
Social fees (sociala avgifter)
Employers pay social security contributions for their employees. The social security contributions are employer contributions, private contributions and general pension. In addition to salaries, therefore the employer pay income taxes and employer contributions to the state for all employees. It is done once a month to the Tax Agency. Anyone who runs their own business do not pay any payroll for itself, but rather a personal contribution.
Working black (jobba svart)
Working black means that workers and employers do not pay any tax or social security contributions (which is illegal). If an employee or an employer does not pay taxes and declare their income, they break the law. The society is based on those who work pay taxes. The tax is then used for health care, roads, elderly care and other welfare that is for all citizens. So if you do not pay taxes, you get punished.
When working “black” you will not be payed if you get sick. You are not able to get any compensation if you are injured at work. You get less parental benefits, lower pension and no work certificate. If you work “black” can it be difficult to get a first-hand contract for an apartment or buy on credit. Landlords and businesses often want you to show an employment contract.