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Swedish Tax Agency Requires Recovery of State Aid Provided through the Payment of Employer Contributions During Corporate Reorganizations

21 January 2025

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Approved Changes

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Sweden

The Swedish Tax Agency has published a notice on its position regarding the government's payment of employer contributions on guaranteed salary payments during a company reorganization. Under the Pay Guarantee Act, where employees do not receive their salary from their employer in the event of bankruptcy or company reorganization, a salary guarantee will be paid out by the government, which also includes the payment of the employer contributions on the salary. According to the notice, it has been determined the government is providing illegal state aid by paying a company's employer's contributions in connection with a company reorganization. When the...