Tax deduction for educational costs

PDF Version
Name of the instrument - Local language
Avdrag för egna utbildningskostnader
Name of the instrument - English translation
Tax deduction for educational costs
Scheme ID
351
Country
Sweden
Reporting year
2020
Type of instrument
Tax incentive for individuals
Sub-type of instrument
Treatment of work/profession related training costs
Type of entry
Single instrument
Short description

Individuals are entitled to deduct educational costs of continuing vocational training that is necessary to maintain their current job position from their tax base in case all costs reported in the respective category exceed SEK 5 000 (approx. EUR 470) per year. The state co-funding - in the form of foregone tax revenues - equals eligible costs multiplied by the marginal tax rate (between 32 and 52%). The minimum earning per year required for application is SEK 20 000 (approx. EUR 1 900). Deductions are also allowed for education for which a person receives taxable study allowance. Costs permitted for deductions include study material, course costs and travel costs. Expenses regarding general education, upskilling measures for job changes and costs covered by tax-free allowances or grants are not eligible. The same applicant can re-use the scheme once in each calendar year.

Level of operation
National
Name of a part of the country
Not applicable
Name of the region (for regional instruments)
Not applicable
Name of the sector (for sectoral instruments)
Not applicable
Relevance
Further instrument
Inkomstskattelag (1999:1229) (12 kap. 1 § IL)https://www.riksdagen.se/sv/dokument-lagar/dokument/svensk-forfattnings…
Objective(s) and target(s)
Not available
Year of implementation
1999
Operation/management
The individual files their income declaration to the Swedish Tax Agency (Skatteverket).
Eligible group(s)
Individuals paying income tax.
Group(s) with preferential treatment
No preferential treatment
Education and training eligible
Continuing vocational training connected to the participant's current economic activity not paid for by the employer, but, if it is shown to be necessary for the work. Continuing education means that already acquired knowledge is maintained and that one acquires such knowledge as is needed to keep up to date with the development of the position one holds. While there is no specific regulation to be found in the law, according to the practice a condition for deduction is that the employee retains his or her salary benefits or a significant part of this from the employer, or that he receives some other comparable taxable compensation during the training period.
Source of financing and collection mechanism
State (loss of tax revenue) and the individual/the household
Financing formula and allocation mechanisms
Full training costs. Training costs need to be declared in the yearly tax statement within the category 'Other costs' in case all costs reported in this category exceed SEK 5 000 (approx. EUR 470) per year.
Eligible costs
Full training costs, including fees, travel costs, costs for accomodation, and course literature, reduce the taxable income.
Volumes of funding
Not available
Beneficiaries/take up
Not available
Organisation responsible for monitoring/evaluation
Skatteverket - Swedish Tax Agency
Most relevant webpage - in English
Not available
Most relevant webpage - local language
https://www4.skatteverket.se/rattsligvagledning/edition/2020.8/326344.h…
Recent changes

No recent amendment

Recent changes in response to COVID-19

No changes

Sources
https://www4.skatteverket.se/rattsligvagledning/edition/2020.8/326344.h…
https://www4.skatteverket.se/rattsligvagledning/324313.html
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