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Scholarships, payment, tax and insurance

Scholarships are regulated in the Tax Legislation and in the Higher Education Ordinance. KTH also has internally established guidelines and decisions. Here you will find information about the scholarships that are reviewed and managed by the HR department as well as answers to tax law and insurance related scholarship questions.

General information

Application for social security number, register with the Swedish Social Insurance Agency, etc.

For practical recommendations in connection with moving to Sweden and staying at KTH, please visit KTH relocation by clicking on the following link KTH Relocation

Payment of scholarship from KTH

The grantee registers his/her own bank account on Nordea's website. KTH's employer number at Nordea is 505751.

A scholarship holder who does not have a Swedish social security number needs a employee number to be entered to Nordea, contact persadm@kth.se  to get your employee number.

Tax-related questions

Characteristic of a scholarship is its beneficial form (without any requirement for consideration). Due to its beneficial nature, scholarships are a tax-advantaged form of financing, among other things. for persons undergoing training. The mere reason that a grant is classified as a scholarship does not mean that tax exemption occurs. A report with the aim of the grantee to report on how any study objectives or other purposes of the scholarship have been fulfilled is not considered as a consideration.

Tax-free.

Scholarships intended for the recipient's education are tax-free, even if the scholarship is awarded periodically. The scholarship may not constitute compensation for work carried out or to be carried out on behalf of the publisher (Income Tax Act Chapter 8, Section 5).

Neither legislation nor case law provides a clear answer to the question of when tax liability occurs. The fact that individual cases concerning scholarships are handled in accordance with internal regulations and guidelines does not guarantee that the tax authority or the court cannot come to a different conclusion on the question of the exemption of the scholarship.

If you have any doubts about a scholarship, please contact the contact persons within the university administration.

Infected scholarship

Salary work at KTH after a scholarship period does not normally in itself mean that a scholarship becomes taxable. On the other hand, paid work at KTH before the scholarship period can disqualify from tax exemption. Scholarships paid by former employers can be regarded as an outflow of the previous employment and are treated as wages. The scholarship will be "infected." On the other hand, it is possible to carry out smaller assignments for the scholarship giver without jeopardising the tax exemption for the scholarship awarded. The nature of the 'contagion' limit cannot be specified and may be determined on a case-by-case basis in the light of circumstances such as the nature and scope of the mission. In case of doubt, the contact persons in the university administration can be contacted.

Consequences

The consequences of a scholarship by the tax authority or the court being regarded as disguised salary or periodic support can be extensive as in both cases there are tax consequences for the grantee and KTH is charged social security contributions. Furthermore, in the case of special circumstances, a question of tax offences may be raised.

When conducting an internal examination of whether a scholarship is tax-free, the following questions may be asked:

• who is the scholarship publisher?

• is any tax-free basis – and which one – applicable?

• has there been tax-free discrimination offsets?

• who is at risk if the grantee is taxed afterwards?

For tax matters about scholarships, please contact your local tax office for advice. The Swedish Tax Agency takes no responsibility for auditing. The entire tax liability lies with the school.

The request is sent to:

stockholm@skatteverket.se

Enter corporate registration number: 202100-3054

Grantees' insurance coverage

All students in Sweden are today covered by the personal injury insurance (general student insurance) that has been taken out in the state insurance system by the Central Student Aid Board on behalf of universities and colleges. The insurance applies to studies in Sweden and the students are insured during school hours and during a direct journey between the residence and the school. The insurance covers personal injury by accident and some cases of illness through infection. The insurance applies to both Swedish and foreign students. More information about the insurance can be found under Personal injury insurance for students and doctoral students.

Information about insurance coverage for foreign nationals studying in Sweden can be found under Insurance cover for foreign guest lecturers/researchers and others. In addition to personal injury insurance, there is a complement for foreign students Kammarkollegiet's Student In-insurance in cases where KTH has an agreement with the student university for exchange between universities. Student In insurance provides foreign students with protection for medical expenses. It also includes a certain level of accident protection in the form of fixed amounts in the event of invalidity or death, as well as liability and legal protection. It is valid 24 hours a day in Sweden. The Student In insurance, KTH (school/department) can also take out for an individual student who will study or practice in Sweden when this is not done according to the above agreement.

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Last changed: Jun 25, 2020