Three changes in tax legislation that affect your finances

Benefit of circular economy

From the turn of the year, it will be possible to rent out personal property tax-free up to SEK 20,000 per year.

This includes in principle all personal assets except the home.

Anyone who wants to rent out garden tools, vehicles, clothes, tools or something else can do so without having to declare the income up to the above-mentioned roof.

On 1 January, a tax reduction was also introduced for the repair and maintenance of, among other things, household appliances, prams and furniture.

It entails a deduction of 50 percent of the labor cost and can amount to a maximum of SEK 10,000 per year.

At the same time, existing tax deductions for the repair of white goods and electronics will be moved from the square deduction to the new reduction.

This means that the repair no longer needs to be carried out at home (which the square deduction requires) but that you can instead hand in your mobile phone or washing machine to a workshop and still receive tax relief.

- The idea is to benefit the circular economy, that we should fix and share things.

Here, the legislator wants to motivate us by giving tax deductions, says Anita Fink Knudsen, lawyer and senior advisor at the law firm Dahlberg & Partner.

Reduced income tax

On the first of January 2022, the tax will also be reduced for several large groups in society.

An increased employment tax deduction gives more money back for everyone who has a job.

Those who work full time can count on at least SEK 200 extra in the wallet per month.

The tax is also reduced on pensions, which means around SEK 150 more in the wallet per month for those who have a pension of SEK 13,000.

People who have sickness and activity compensation receive a tax reduction of an average of SEK 10,000 per year through a tax reduction.

Tax reduction for gifts

It will be more advantageous for those who want to donate money to social assistance or scientific research.

Even earlier, those who donate money to any of the above could get back 25 percent of the donated amount through a tax deduction.

Now the ceiling is raised from SEK 6,000 to SEK 12,000, which means that you can get a maximum of SEK 3,000 back on the tax if you donate SEK 12,000 or more.

- It is important that you check on the Swedish Tax Agency's website which organizations provide tax reduction, it is not something you decide for yourself, says Anita Fink Knudsen.