PAYE tax returns per employee - AGI

AGI (Arbetsgivardeklaration på individnivå) refers to the PAYE (Pay As You Earn) tax returns was taken into use on January 1 2019. 

Since February 2019 all companies have to declare payments and deducted preliminary tax for each payee in a monthly PAYE tax return. In each return, you provide The Swedish Tax agency with information about your employees and your business.

The new reporting was soft-launched on July 1, 2018, for companies with personnel ledgers that have 16 or more employees.

Higher Requirements for Accurate Information

This reporting imposes even higher requirements for accuracy from the start, as each report means that everything for the reported month must be reconciled and finalized. Making corrections may become more complicated.

Consequences of Errors

In cases where an employee has been overpaid, it is no longer permissible to establish net salary debts. In practice, this means that the employee who has been overpaid by the employer must repay the gross amount. The employee then needs to apply for adjustment with the Swedish Tax Agency to reduce the tax for the rest of the year. Alternatively, the employee can wait for the tax refund in connection with the regular payment of excess tax the following year. In cases of underpaid tax, for example, due to a late-reported benefit, the employee will either be liable to repay in connection with the final tax statement or can request an adjustment or pay voluntary tax.

Reporting and Authorization

AGI must be submitted in the same way and on the same date as the employer declaration is submitted.

What Does PAYE tax returns, AGI, Mean for You as an Employer

For you as an employer, AGI means:

• Individual Reporting: The employer must report each employee’s salary, tax deductions, and other compensations (e.g., benefits) to the Swedish Tax Agency every month, rather than an annual summary.
• Monthly Submission: AGI must be submitted by the 12th of each month to report the previous month’s data. This means that you as an employer need to continuously keep track of employees’ salaries and tax deductions.
• Simplified Administration: AGI makes it easier to follow up on tax and other salary-related information, as the Swedish Tax Agency receives the necessary information directly and can perform checks continuously.

It also means that if there is an error in the reporting, it can be detected and corrected more quickly than before. For the employer, it is about ensuring that all salaries and tax information are reported correctly each month to avoid issues with the Swedish Tax Agency. 

Simply put: AGI is a more current and detailed monthly reporting of employees’ incomes and taxes, making it easier for both employers and the Swedish Tax Agency to keep track of the correct information in real-time. We at Accountor are happy to assist you with this.