The spring budget 2023

In April 2023, the Swedish Ministry of Finance presented its 2023 spring budget (prop. 2022/23:100), which was adopted by the Swedish Parliament on 20 June 2023. While the spring budget did not include any major tax related changes, it was noted that due to the general economic situation and high inflation, the Swedish Government will try to strengthen vulnerable households, e.g., through a lowering of income taxes, when the economic situation allows for it.

In addition, a few tax related proposals has been presented after the spring budget was presented, among which, e.g., a lowering of the widely discussed tax on plastic bags, an extension of the time period during which certain foreign citizens carrying out particularly qualified tasks may enjoy tax relief on their Swedish income (Sw. expertskatt) from five years to seven years, and a strengthening of existing earned income tax credits (Sw. jobbskatteavdrag) in order to lower the tax burden on income.

The changes in these additional proposals are proposed to enter into force on 1 January 2024. However, whether these proposals will make it into the budget proposal for 2024 is dependent on how the economic situation develops. Schjødt's tax lawyers are following the continuous development closely.