Sweden Tax Agency Updates Guidance on Tax-Free Income for Seafarers Due to Coronavirus

The Swedish Tax Agency Dec. 16 updated guidance on the income tax exemption for individuals employed on a foreign ship, that don’t complete the 183-day criteria due to the coronavirus pandemic. The updated guidance includes: 1) income earned on the ship, including salary and holiday pay, is tax-free if seafarers spent at least 92 days in the ship, on the ocean or overseas, and employment was terminated due to the pandemic before the 183-day threshold; 2) income earned without work in Sweden or for non-ship related activities is taxable; 3) time spent onboard for shipping activities must be counted for ...