Reimbursement for business journeys
An employer in Sweden can reimburse employees for using a personal vehicle for business journeys. On the other hand, an employer can also reimburse employees if they used a benefit car for business journeys and they paid for the fuel themselves. A benefit car is essentially a car provided by the employer that an employee can also use privately.
There are maximum mileage allowances per kilometer that the employer can reimburse tax-free. These maximum amounts depend on the type of vehicle. You can find the rates on the government’s website.
Maximum mileage allowances for using a private vehicle for business journeys:
|Own car, also electric and hybrid car||SEK 25 per 10 km||SEK 18.50 per 10 km|
|Motorcycle/moped car/EPA tractor/A tractor||SEK 9 per 10 km||SEK 9 per 10 km|
|Moped||SEK 9 per 10 km||SEK 9 per 10 km|
|Bike||SEK 9 per 10 km||SEK 9 per 10 km|
|Own boat||Actual cost||Actual cost|
Maximum mileage allowances for using a company car for business journeys:
|Benefit car, diesel||SEK 12 per 10 km||SEK 6.50 per 10 km|
|Benefit car, not diesel||SEK 12 per 10 km (2023)||SEK 9.50 per 10 km|
|Benefit car, fully electric||SEK 9.50 per 10 km (2023)||SEK 9.50 per 10 km|
You can pay your employees more than these maximum amounts, however, the excess will be considered taxable income.
If you carpool with a colleague and share the fuel cost, the mileage allowance should also be shared.
Reimbursement for commute expenses
An employer may reimburse employees for their commute between home and the place of work. The maximum tax-free allowance for commute is based on the cheapest means of public transport or a fixed amount per kilometer in case a private or company car is used. These fixed amounts per kilometer are the ones set out in the previous paragraph on reimbursement for business journeys.
Some requirements need to be fulfilled for the allowance of travel by car, motorcycle or moped to be tax-free:
- The distance between your home and your workplace must be at least five kilometers;
- The time saving compared to travelling by public transport must be at least two hours;
- Only the part of the cost exceeding SEK 11,000 is deductible.
If you travel by public transport, the reimbursement for these expenses is tax-free if the distance between your home and your workplace is at least 2 km.
You can find more information about commute reimbursement (e.g. parking costs, ferry toll, carpooling, leisure home), on Skatteverket’s website.