Temporary tax exemption for parking benefits and gifts to employees

The government, together with the Center Party and the Liberal Party, presented on May 5, 2020 additional measures due to the coronavirus. The two proposed rules are temporary tax exemption for certain benefits that employees may receive from their employers.

The first proposal is a temporary tax exemption for employer provided parking. This means employees will be able to park for free at their workplace without being taxed on a parking benefit. The tax exemption shall apply retroactively from April 1 and during the rest of the year, for all professions and throughout the country. The purpose is to reduce the spread of infection in society by facilitating for those who need to get to and from work, without increasing crowding in public transport.

The second proposal is a temporary tax exemption for gifts from the employer, up to a value of SEK 1,000 per employee. The rules will be applied in addition to the already existing possibilities for the employer to give tax-free gifts to its employees, for example in the form of Christmas gifts. The rules are proposed to apply from 1 June and during the rest of the year. The background to the proposal is that many companies and municipalities have expressed a willingness to help to alleviate the financial consequences of the spread of the coronavirus. Through the tax relief that is now proposed, employees can get, for example, gift vouchers to shop and thereby support the local business community.

The government will submit the proposals in an additional amending budget.

Government crisis package
In addition to the above, the following support has been presented to companies:

• Proposed restructuring aid (read more here)
• Deferral with tax payments (read more here)
• State loan guarantee for small and medium-sized companies (read more here)
• Temporary reduction of social security contributions (read more here)
• Temporary discount for fixed rental costs in exposed industries (read more here)
• Increased tax allocation reserve for smaller companies and sole proprietors (read more here)
• Short-term leave for reduced salary costs
• Increased state responsibility for sick pay costs

Setterwalls continuously monitors and updates the information on the proposed restructuring aid and other measures in the government’s crisis package as a result of COVID-19. Please contact our experts for further advice for your company or questions about the above.

The content is a general description of informative nature only and is not legal advice to use as a basis for assessments in an individual case.