Sweden MOF Issues Memorandum on Proposal to Reduce Taxes on Earned Income, Pensions, Sickness Compensation

The Swedish Ministry of Finance Sept. 8 issued Memorandum No. Fi2025/01695, on a proposal to reduce taxes on earned income, pensions, and sickness and activity compensation. The proposal includes measures to: 1) increase that tax reduction, by an average of approximately 3,800 Swedish kronor (US$406), under the ordinary earned income tax credit, for full-time workers with low and medium incomes; 2) increase the higher basic deduction for pensioners who are at least age 66 at the beginning of the year, by reducing annual tax by an average of approximately 2,300 kronor (US$245) per individual with annual earned income exceeding approximately ...