Tax advisor warns of errors in employee benefit taxation

Tax advisor Marie Enander from Azets warns that employers often struggle with the taxation of employee benefits and gifts. Because the Swedish Tax Agency (Skatteverket) uses subjective terms like ‘reasonable’ in its guidance, assessments can vary between companies and authorities.

One specific area of concern is commemorative gifts. While gifts given after 20 years of service may be tax-free, gifts given after only 10 years are subject to standard payroll taxes and employer contributions. Incorrect assessments can lead to significant liabilities if discovered during tax audits. Conversely, benefits such as wellness allowances (friskvårdsbidrag) can be tax-free if managed correctly within the 5,000 SEK limit.