Income tax

An income tax is a tax levied on the financial income of persons or of corporations. Various income tax systems exist, ranging from a flat tax to a progressive tax system. A tax levied on the income of companies is often called corporate tax, corporate income tax or corporation tax. Individual income taxes generally tax the total income of the individual (with some deductions permitted), while corporate income taxes often tax net income, the difference between gross receipts and expenses.

Income tax in Sweden

Sweden has a taxation system that combines a direct tax (paid by the employee) with an indirect tax (paid by the employer). In practice, the employer provides the state with both means of taxation but the employee only sees the direct tax on his declaration form.

Related Topics:
Direct tax - Indirect tax

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Below is a compilation of the taxes that compose the final income tax (2003):

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• Tax on "gross" income "from the employer": 32,82% (indirect, fixed)
• Pension "fee" on "gross" income: 6.95% (indirect, fixed)
• "State tax" on, "gross" income less pension tax and a "base deduction": ~32% (direct, varies by state)
• "Federal tax" on, "gross" income less pension tax and a "base deduction": 0%, 20% or 25% (direct, progressive)