New immigration requirements for non-tax residents in Sweden

The Migration Agency (Migrationsverket) has this week released a new requirement for zero SINK decisions and KU statements to be submitted as part of an extension application for individuals who have resided in Sweden for less than 183 days in a given 12 month period.

What is this message about?

Employees who have worked for less than 183 days over a 12 month period in Sweden with an employer (payer) without permanent establishment in Sweden – therefore making them non tax liable in Sweden – will be required to provide a zero SINK decision from the Tax Agency together with a KU statement filed by the employer. This will prove that the employer has submitted the respective income to the tax agency for that same year.  

If the employee stays in Sweden for less than 183 days and works for a foreign employer without a permanent establishment in Sweden the employment income will normally be exempt from taxation in Sweden in accordance with the 183 days rule. The recommendation in those cases is to apply for a zero SINK decision (Special income tax for non-residents) confirming that the employment income should not be taxed in Sweden and the foreign employer should file a KU statement.

What does this mean?

As a result of this new prerequisite, employers will be required to apply for zero SINK and file a KU statement even if the above conditions for tax exemption in Sweden are met in the event that they are required to file an extension application with Migrationsverket. Today, in practice, a lot of employers do not file a SINK application and/or a KU statement since there is limited risk of tax penalties and there is no tax to pay in Sweden.

What impact will it have?

Applications for where a SINK decision and a KU statement is not provided at the initial submission stage will be classified as incomplete, resulting in extended processing times of up to 4 months.

It is not yet clear as to whether Migrationsverket will continue to process these applications without a zero SINK decision together with a KU Statement or whether it will be mandated and requested separately later on, extending the overall processing times. Either way, given the announcement, we suspect that a decisions will be delayed until the zero SINK decision is provided.

EY understands that this additional requirement will create an added administrative burden on employers going forward whilst also forcing them to retroactively obtain past zero SINK decisions for upcoming extensions.

This further highlights the continued efforts made by the respective authorities to align their competences in ensuring employers are compliant with both their tax and immigration reporting responsibilities.

What to do if you need help

If you have any concerns or issues and wish to discuss these with us further. Please do not hesitate to reach out to your contact at EY or any of the contacts listed below.

José Vaz and Stina Fridlund


José Vaz
+46 70 148 13 25

Stina Fridlund
+ 46 72 536 18 76