Executive summary

The Swedish Parliament passed the bill introducing a new excise tax on flights (the flight tax) at the end of November 2017. The new Law (SFS 2017:1200) on excise tax on flights will be effective as of 1 April 2018.

Detailed discussion

Tax liability

All domestic and foreign companies operating flights from Swedish airports, using airplanes with a capacity of more than 10 passengers, are required to report and pay the flight tax to the Swedish Tax Agency (the STA).

A tax liability occurs when a plane (capacity over 10 passengers) departs from any of the Swedish airports.

Tax rates

According to the provisions of the upcoming law, the following tax rates will apply:

• SEK60 (approx. US$7) per passenger with a final destination in a country according to Appendix 1 of the law¹
• SEK250 (approx. US$30) per passenger with a final destination in a country according to Appendix 2 of the law²
• SEK400 (approx.US$49) per passenger for all other destinations

Exempt passengers

The following individuals are not subject to the flight tax:

• Children aged two and younger
• Passengers on rescheduled flights due to technical issues, weather conditions or other unforeseen events
• Flight crew on duty during the flight
• Transit and transfer passengers

Obligation to register

All airline companies required to report and pay the flight tax must register via a special registration form with the STA. Additionally there is a requirement to have a corporate identity number (CIN).

A company can apply for the CIN by sending a special letter to the STA. A company must have a CIN prior to registration for the flight tax.

Reporting and payment obligations

Any airline company subject to the flight tax must submit monthly returns. The flight tax must be paid before the last day for the reporting and filing of an excise return which is generally the 12th day of the month following the reporting period.

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ENDNOTES

¹ Albania, Andorra, Austria, Belarus, Belgium, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Kosovo, Latvia, Liechtenstein, Lithuania, Luxembourg, Macedonia, Malta, Moldova, Monaco, Montenegro, Netherlands, Norway, Poland, Portugal, Romania, San Marino, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, Ukraine, United Kingdom, Vatican City.

² Afghanistan, Algeria, Armenia, Azerbaijan, Bahrain, Burkina Faso, Canada, Cape Verde, Chad, Djibouti, Egypt, Eritrea, Ethiopia, Gambia, Georgia, Guinea, Guinea Bissau, Iran, Iraq, Israel, Ivory Coast, Jordan, Kazakhstan, Kuwait, Kyrgyzstan, Lebanon, Libya, Mali, Mauritania, Morocco, Niger, Oman, Pakistan, Palestine, Qatar, Russia, Saudi Arabia, Senegal, Sudan, Syria, Tajikistan, Tunisia, Turkmenistan, United Arab Emirates, United States, Uzbekistan, Yemen.

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CONTACTS

For additional information with respect to this Alert, please contact the following:

Ernst & Young AB, Stockholm

• Uladzimir Tsypiashchuk
  uladzimir.tsypiashchuk@se.ey.com
• Tomas Karlsson
  tomas.karlsson@se.ey.com

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ATTACHMENT

PDF version of this Tax Alert