New regulations for reimbursement of work trips are proposed

The government has presented proposals this spring for a new set of regulations for how compensation for business travel is calculated. The proposal will now be considered but is expected to come into force on 1 January 2023.

The proposal means that the current system, which is based on the cost of travel between home and workplace, will be replaced with a tax reduction that is instead based on the distance between the two.

The tax deduction is 8 kronor per mile, but there are certain parameters to take into account.

Smaller deductions for you in a big city

To be able to deduct the tax, you must have at least 15 kilometers, one way, to work. If you live in or around Stockholm, Gothenburg or Malmö, the distance is twice as far, here the distance is 30 kilometers one way. Some peripheral municipalities will be considered a large city and thus covered by the higher limit.

It is worth noting that the first kilometers, i.e. 15 and 30 kilometers respectively, are to be excluded. Deductions can therefore only be made on kilometers that exceed these limits. The maximum compensation is 120 kilometers one way.

Municipalities to be covered by the higher distance limit

• Stockholm County: Botkyrka, Danderyd, Haninge, Huddinge, Järfälla, Lidingö, Nacka, Salem, Sigtuna, Sollentuna, Solna, Stockholm, Sundbyberg, Södertälje, Tyresö, Täby, Upplands Väsby and Upplands-Bro municipalities.

• Västra Götaland County: Gothenburg, Mölndal and Partille municipalities.

• Skåne County: Burlöv, Lomma, Lund, Malmö and Staffanstorp municipalities.

Less money for electric cars – more for diesel

The tax-free mileage allowance will be increased from the current SEK 18.50 to SEK 25. At the same time, the deduction for fuel when traveling by company car will be increased from SEK 6.50 and SEK 9.50 to SEK 12 per mile, with the exception of company cars that are fully or partially powered by electricity, where the deduction will instead be reduced to SEK 6 per mile.

More modes of transport included

One of the new features is that even those who take public transport or carpool to work can receive compensation. Those who cycle can also receive a tax deduction, but this requires that the distance between home and workplace is greater than the lower distance limit of 30 or 150 kilometres, depending on whether you are in one of the major cities or not.