Skattkort

Skattkort is a document issued by the national tax authority that directs employers on how much income tax to withhold from an employee’s wages. It is part of the pay-as-you-earn system and aims to ensure that tax is paid gradually over the year and that end-of-year tax refunds or balances are not excessive.

A skattkort specifies how the tax should be calculated, typically either as a percentage of the employee’s anticipated income or as a fixed monthly amount. The exact format and options can vary by country, but the underlying purpose is the same: to set the expected tax withholding for the person’s total income for the year. Employers use the skattkort to determine payroll deductions and to report withheld tax to the tax authority.

Who obtains and uses it, and how: Individuals usually obtain a skattkort by registering with the national tax authority and providing information about anticipated income, deductions, and personal circumstances. The tax authority issues the card, which the employee then presents to their employer(s). If a person’s income or eligible deductions change during the year, a new skattkort can be issued or an existing one updated to adjust the withholding amount or rate. In cases with multiple jobs, the tax authority or employer instructions may specify how to distribute withholding across employers to avoid underpayment or overpayment.

Relation to other tax instruments: The skattkort complements other elements of the tax system, such as tax tables and annual income declarations. It is distinct from the annual tax return, which is completed after the end of the tax year to determine final tax liability.

Note: The exact procedures and terminology can differ slightly between countries that use the term skattkort, but the core concept remains a withholding instruction from the tax authority to employers.