Background & Purpose

The Swedish National Audit Office investigated if the ROT deduction effectively boosts employment and reduces undeclared work, finding it costly for the state compared to its benefits.

Proposals & Debate

The Audit Office reported that the ROT deduction was too expensive for the state, as it didn't create enough tax income from less undeclared work or more employment. The government acknowledged some points but disagreed with the Audit Office's view on the value of reducing undeclared work, proposing no changes to the deduction.

The Decision

The Swedish Parliament decided to accept the government's position, meaning the ROT deduction will continue with its current rules and no changes will be made.

Does this affect you?

  • Homeowners: Can continue to use the ROT deduction for home improvement projects, saving money on labor costs.
  • Construction and Craft Businesses: Will continue to benefit from the demand for services driven by the ROT deduction, ensuring stable business.
  • Swedish Tax Agency: Will continue to administer the ROT deduction under existing regulations, processing applications and payments.

In Practice

  • Homeowners can continue to use the ROT deduction for home repairs, renovations, and extensions.
  • Individuals can still deduct a portion of labor costs for these services directly on their invoices.
  • Companies offering construction and craft services will continue to apply the deduction as before.
  • The government will not introduce new rules or restrictions for the ROT deduction.
  • The aim to reduce undeclared work and increase employment through ROT remains, despite the Audit Office's critique.