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Photo: Christine Olsson / TT
Finance Minister Magdalena Andersson. Photo: Christine Olsson / TT

Sweden mulls small business support

Tax relief for small firms
0:49 min

The government is to include a proposal in its spring budget that would reduce employer tax on sole trader firms in a bid to encourage such businesses to hire their first employees.

"The 'growth-support' scheme may encourage more people to take that step," finance minister Magdalena Andersson told Swedish Television. 

The reduction would see sole traders receiving general tax relief on the cost of hiring their first member of staff for the first year of employment, although a 10.21 per cent pension contribution would still be payable.

The inititative would reduce these businesses' monthly costs by some SEK 4,200 for an employee earning SEK 20,000.

If implemented, the changes are calculated to cost some SEK 400 million.

If approved, the proposal would enter force in January 2017; and would apply to sole traders, and not small limited companies.


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