Temporary Work Deduction (Tillfälligt Arbete)

It’s possible for people who have the following job contract but most important is to satisfy point 2 Core Conditions for Claiming Deductions

• 6 months Probation period (Even for single person moving from parent’s home)

• ICT Visa holders

• PhD/Postdoc/Researcher who has fixed term employment

• Any job with a fixed term employment

1. Introduction: Understanding “Temporary Work” in Swedish Tax

Many individuals find themselves working in Sweden for a limited period or in a location away from their primary residence. This could be due to a short-term contract, a project-based assignment, or simply commuting a significant distance. Understanding the tax implications for such situations is crucial for compliance and maximizing potential deductions.

For individuals with unlimited tax liability in Sweden, the Standard Swedish Income Tax Act is the general tax system that allows for various deductions, including those related to increased living expenses and travel due to temporary work or dual residence.  

The duration of an individual’s stay in Sweden is a primary factor determining their tax liability, which in turn dictates the deductions available. Stays of six months or more, or intentions to stay over a year, typically lead to unlimited tax liability under the standard Income Tax Act.

2. Core Conditions for Claiming Deductions

To be eligible for these deductions, several stringent conditions must be met:

• Maintaining a Primary Residence: The individual must genuinely maintain a residence where they live, implying they continue to incur costs for their original home. This demonstrates that the new location (work location)  is indeed a temporary second residence.  
• Overnight Stay Requirement: The individual must stay the night in the same area as their place of work. This criterion confirms the necessity of a second dwelling due to work.  
• Minimum Distance: The distance between the primary residence (original home) and the place of work must be greater than 50 km. This ensures that the distance is significant enough to warrant a separate temporary residence.
• Temporary Nature of Employment: The employment term must be relatively short, generally no more than two years. However, deductions can also apply if the employment term is longer but still temporary in nature, such as for project-based work or construction assignments, or if the individual works in more than one location. For married or cohabiting individuals, the accommodation deduction period can extend up to  

Eligible Expenses and Deduction Rules

These deductions are typically claimed in Box 2.3 (“Temporary work, dual residence and journeys home”) of the “Inkomstdeklaration 1” tax return.  

• Increased Living Expenses (Meals and Minor Expenses) for first month.
• Accommodation Expenses:
  • No Time Limit for Deduction: Unlike meals, the one-month time limit does not apply to deductions for accommodation expenses.  
  • Calculation: Individuals can claim the actual amount paid for accommodation at the temporary work location. It is crucial to be able to show the actual expenses incurred with supporting documentation.  
  • Deduction for Old Home: If the family home has been moved to the place of residence at the place of work, a deduction can be made for the home at the old place of residence. However, this deduction is not applicable if the old place of residence is rented out.  
• Trips Home:
  • Eligibility: Deductions are applicable for travel expenses incurred when going home if the distance is at least 50 kilometres. This applies to trips home within the EU/EEA area or Switzerland.  
  • Frequency & Amount: Deductions are limited to a maximum of one round-trip home journey per week.

3. Practical Advice & Essential Documentation

The Importance of Record-Keeping

To claim any deduction, the fundamental principle is the ability to prove your expenses. This means maintaining comprehensive records from the outset of your temporary work period.  

• What Documents to Keep:
  • Employment contracts: Crucial for verifying employment terms, duration, and work locations.  
  • Proof of Dual Residence: Rent agreements, utility bills,

• • Accommodation receipts: For actual expenses incurred at the temporary work location, detailed receipts are necessary.  
  • Travel tickets/receipts: Keep records for all trips home and work-related travel, including public transport, rental cars, taxis, and fuel/parking for personal car use.  
  • Bank statements: These can serve as supplementary evidence to show payment of expenses