A new year and a new government bring new tax rules. Therefore, we have carefully examined the Swedish Tax Agency's website and summarized the three most important updates in 2023 for you in the construction and installation sector: increased tax deduction for the installation of green technology, higher travel deductions, and reduced tax for working individuals over 65. Enjoy reading!
A couple of years ago, the so-called green deduction was introduced, which means a tax reduction (both material and labor) for private individuals when installing grid-connected solar cell systems, systems for charging self-produced electrical energy, and charging boxes for electric vehicles. The news this year is that the deduction for solar cell installation is increased from 15 to 20 percent from January 1, 2023, while the deduction for charging boxes and batteries remains unchanged.
→ Keep in mind that it's a good idea to be clear that your customers' deductions for green technology only apply to the materials purchased from the company that carried out the installation, that is, yours. If the customer chooses to buy the material themselves, they can still get a deduction for the labor cost, but not the material.
→ In February, we are launching new Fieldly functionality related to green technology, so keep your eyes open! Want to know more now? Contact one of our experts!
Do you drive your own car or company car for work? Previously, there was talk of scrapping the old travel deduction and introducing a completely new system with distance-based tax reduction, but that is not the case. Instead, the new government approved that the system remains the same while the flat-rate amounts for travel expenses are increased, both with own car and company car.
So when does the new travel deduction apply? From January 1, 2023, the deduction for work travel, business trips, and home journeys with your own car is adjusted from 18.50 to 25 SEK per kilometer, and for trips with a company car from 6.50 and 9.50 SEK to 12 SEK per kilometer. The amount for trips with electric company cars, however, remains unchanged, i.e. 9.50 SEK per kilometer.
What does this mean according to the government? For a commuter with 40 kilometers to work, the new deductions mean an annual tax relief of about 4700 SEK more than with a distance-based tax reduction. Want to prepare for the declaration? Here you can calculate travel deductions for 2022.
Are you over 65 and want to continue working? Congratulations! From January 1, 2023, you will pay less tax than your younger colleagues. The condition is that you must have turned 65 at the beginning of the tax year, and that the tax reduction amounts to a maximum of 6,000 SEK per year. The best part? The deduction is included in the Swedish Tax Agency's tables used by employers for salary payments, which means that you do not need to apply for it yourself. Want to know more about new laws related to your work, both as an employer and employee? Read our article about the most important changes in LAS (Employment Protection Act) from October 1, 2022 here.
Read more about the laws and regulations for 2023 on the Swedish Tax Agency's website.
