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Help with salary breakup

(Regarding tax liability of allowances)

BPlus
post 19.Jul.2017, 01:41 PM
Post #1
Joined: 29.Jun.2017

Hi all,

I have an offer for Employement from a Swedish company which says that the gross salary is 31K which would come aroung 24K SEK after tax. On top of it, the employer would pay me about 13k allowance so that my in hand after tax comes around 37k.

When i asked about tax liability for this allownace, the employer said that this allowance is tax free. Does this concept of "tax-free allowance" hold good in Sweden? I mean is this offer safe to believe on?

The employer said the allowance would reflect in my salary slip.

Thanks,
BPlus
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ChocOwl
post 19.Jul.2017, 02:22 PM
Post #2
Joined: 17.Jan.2011

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TLSucks
post 19.Jul.2017, 04:00 PM
Post #3
Joined: 12.Dec.2013

QUOTE (BPlus @ 19.Jul.2017, 12:41 PM) *
Hi all,I have an offer for Employement from a Swedish company which says that the gross salary is 31K which would come aroung 24K SEK after tax. On top of it, the employer wou ... (show full quote)


AFAIK fhere is no such thing as tax free allowance. Even benefits are usually taxable.
If you get 13k in bonus your taxable amount would be 44k.
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seabird
post 19.Jul.2017, 04:03 PM
Post #4
Joined: 8.Jun.2017

I think that allowance that OP is saying might be 'Holiday compensation'.
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BPlus
post 19.Jul.2017, 05:33 PM
Post #5
Joined: 29.Jun.2017

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BPlus
post 19.Jul.2017, 05:41 PM
Post #6
Joined: 29.Jun.2017

My employer specifically said -
You need not to pay tax for the allowance by the arrangement of the company.
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TLSucks
post 19.Jul.2017, 06:31 PM
Post #7
Joined: 12.Dec.2013

QUOTE (seabird @ 19.Jul.2017, 03:03 PM) *
I think that allowance that OP is saying might be 'Holiday compensation'.


That is not tax free.
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LLHope
post 19.Jul.2017, 06:54 PM
Post #8
Location: Stockholm
Joined: 1.Jan.2014

QUOTE (BPlus @ 19.Jul.2017, 05:33 PM) *
The job location is Stockholm.. Its for a 2 year employment contract from a swedish based company.

By having a contract that specifically says it is for 2 years, even if it is extended after 2 years, risks you not being able to get a permanent residency because it is clear from the initial 2 year contract that there is NO intention to settle in Sweden. So don't be surprised if yo uare eventually asked to leave.

QUOTE (BPlus @ 19.Jul.2017, 05:41 PM) *
My employer specifically said -. You need not to pay tax for the allowance by the arrangement of the company.

Then you should ask what is the allowance, and for a pointer to the tax rules that specifically state the allowance is tax free.
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TLSucks
post 19.Jul.2017, 07:08 PM
Post #9
Joined: 12.Dec.2013

QUOTE (BPlus @ 19.Jul.2017, 04:41 PM) *
My employer specifically said -. You need not to pay tax for the allowance by the arrangement of the company.


Tax is always withheld by the employer, but since they do not know your exact tax rate they can only withhold an approximate amount on your salary. This is later adjusted when you file your taxes, and is the reason why salaries are always quoted pre-tax, never post-tax, in contracts.

Any compensation you receive will be taxed, whether it is in the form of salary, company car, bonus, or other compensations. Some benefits such as private health insurance, gym membership, etc, are tax free.

Your contract should in addition to salary and benefits specify details about occupational pension savings, vacation time, working hours, employment location, employer details, travel allowance, etc. If your employer is unionized, much of this is regulated. If your employer is not unionized it is important to have all details on paper.
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BPlus
post 19.Jul.2017, 07:50 PM
Post #10
Joined: 29.Jun.2017

QUOTE (LLHope @ 19.Jul.2017, 11:24 PM) *
By having a contract that specifically says it is for 2 years, even if it is extended after 2 years, risks you not being able to get a permanent residency because it is clear ... (show full quote)


I guess that's a good option to ask him under which law is it tax free and whether i have to pay tax while filing annual or something like that later.
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BPlus
post 19.Jul.2017, 07:52 PM
Post #11
Joined: 29.Jun.2017

QUOTE (TLSucks @ 19.Jul.2017, 11:38 PM) *
Tax is always withheld by the employer, but since they do not know your exact tax rate they can only withhold an approximate amount on your salary. This is later adjusted when ... (show full quote)


Employer is unionized. All these things like working hours, vacation time, occupational pension, location etc are mentioned. Only allowance is not mentioned. But i have mail confirmation from the employer regarding that.

Thanks,
BPlus
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yet another brit
post 20.Jul.2017, 03:07 PM
Post #12
Joined: 5.Jan.2013

A stipend - generally intended to support education - can be tax-free. But a stipend by definition cannot be part of a work compensation package ((mis)use of this mechanism within universities notwithstanding). Essentially anything you get from employment is taxed.

I am really wondering what your employer is thinking of giving you.
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*Guest*
post 27.Feb.2020, 05:09 AM
Post #13


I am a Non EU resident and have been provided an offer of employment in Stockholm, Sweden .
In the salary letter there are two components . First one is Gross salary in monthly basis which i presume will be inclusive of all taxes and social security benefit.The other component is allowances which is an amount lesser than the gross salary mentioned above .

So my question : is the allowance part separate from the gross or is it included in the gross salary amount mentioned earlier ?

i guess anything that i earn in Sweden will be taxable according to the taxation norms. But my question is more of the allowance part , is it an extra amount which will be given in cash/cheque apart from the gross salary mentioned. i had gone some previous posts earlier and it seems similar concern. can anyone help me out with their wise opinion . I would be really grateful
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Anders
post 27.Feb.2020, 07:56 PM
Post #14
Location: Malmö
Joined: 14.Nov.2019

QUOTE (urban_nomad @ 27.Feb.2020, 05:09 AM) *
I am a Non EU resident and have been provided an offer of employment in Stockholm, Sweden .In the salary letter there are two components . First one is Gross salary in monthly ... (show full quote)

The employer pay some taxes/fees on top of the gross salary.

Doesn't the allowance have a purpose? Do you get anything more than salary? Like an apartment? Almost everything you get from the employer should be taxed, one exception is health activities, like a gym card, up to 5000 SEK is free of tax.
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