Sweden Tax Agency Provides Clarity on Maritime Income and Deductions for Shipboard Employees

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The Swedish Tax Agency has provided clarification regarding maritime income and deductions for employees working on ships. According to the agency, maritime income refers to earnings from work on board Swedish vessels classified as short-haul or long-haul, as well as merchant vessels registered in the European Economic Area (EEA). Taxable maritime income includes various components such as salary, benefits, tips, holiday pay, and sick pay.

The deduction for maritime income is determined based on the number of days an employee works on board. For close proximity work, the annual deduction is set at 35,000 Swedish kroner (equivalent to US$3,147), while for long-distance shipping, it is 36,000 kroner (equivalent to US$3,237). The agency has also specified that annual maritime income deductions are subject to a maximum limit.

These clarifications from the Swedish Tax Agency aim to provide clear guidelines for employees in the maritime industry regarding their income and deductions. By defining what constitutes maritime income and outlining the deductions available, the agency seeks to ensure that individuals in this sector are aware of their tax obligations and can accurately calculate their taxable income. The agency’s announcement serves as a valuable resource for employees and employers in the maritime industry to navigate the complexities of tax regulations.

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