Job offer in Sweden: Confused about the salary breakdown

Question

I have received a job offer in Stockholm for a Software Engineering position and have had a verbal discussion about the same.

What I have been informed is that I will receive 31000 krona (after tax) as my monthly salary. However, the catch is I will only receive 15000 krona in Sweden, and the remaining 16000 krona will be deposited to an account I specify back home in my own currency. From what I understand, this is most likely done as a workaround to reduce taxes (?).

I am happy with the offer (as accommodation and utilities are sorted) but I have serious concerns about this unusual breakdown of the salary. Is there anything I have to worry about or look into further before entertaining any thoughts of accepting this offer?

My main concern is if they have simply exploited some loophole in the system or if it is in fact tax fraud and what follow up questions do I need to ask them to ensure that I am not getting myself into trouble.

UPDATE

I had a discussion with the local proxy (my point of contact with the Swedish company) and raised the obvious tax concerns with regards to the unusual salary breakdown.

What I was informed is as follows:

1. I will be recruited by the Swedish company at a salary of around 20000 krona (15000 krona after taxes).

2. The owner of the Swedish company is an investor of the local proxy (which is a startup) and will provide the local proxy with funds on a monthly basis. (These funds are not specific to me and has taxes accounted for)

3. A part of this investment will then be deposited by the local proxy on a monthly basis to my local bank account making up the remaining 16000 krona of my 'salary'. (again, any local taxes will be accounted for)

How would you guys evaluate this?

Answer 1

First off, for any questions relating to taxation in Sweden, it's a good idea to contact Skatteverket (the Swedish tax agency). The people there are generally happy to help, and also generally want you to get the paperwork right because it saves everyone a lot of trouble. They will also be more familiar with the details than the average random person on the Internet.

As I discussed somewhat in my answer to Do I declare money earned outside Sweden?, and as discussed by Skatteverket, it shouldn't matter to which account the money is deposited. Rather, the important issue is whether you are considered liable for taxes in Sweden, and whether the employer is established in Sweden. For example, from the latter linked page, my boldface:

If you reside in another country and work in Sweden, your employment income from work in Sweden will normally be taxed in Sweden. In most cases you will need to file an application for taxation in accordance with the Special Income Tax for Non-Residents Act. This is valid if you work for a Swedish employer or a foreign employer who is established in Sweden.

When staying [in Sweden] for at least six months, you are considered as resident in Sweden for tax purposes, and are liable for taxation in Sweden on all of your worldwide income. You must also file a Swedish income tax return. Your tax return must be filed no later than May 2nd of the year after the fiscal year.

So if you stay less than half a year in Sweden, it is likely that you will have to pay Swedish taxes on the full amount earned in Sweden, regardless of where it's deposited; and if you stay for more than half a year, you are liable for Swedish taxation on your full, worldwide income. Tax treaties makes this somewhat more complex, but those will depend very heavily on your specific situation anyway, so you're better off asking someone who knows the details there.

Again, contacting Skatteverket is a good idea.

Answer 2

Where are you from/reside originally? Please note that some countries, notably the US, charge taxes on foreign income earned, if that income is above a certain threshold. Last I checked it was 80KUSD/Y. If you originally reside in one of these countries you may be taxed twice, and one may give a writeoff for the other.

Source: lived in Canada, and had to file/pay both CA and US taxes.