New tax rule to hit berry pickers' income in Sweden - Bangkok Post

New tax rule to hit berry pickers' income in Sweden

Berry picking in Sweden is a highly-sought job among Thai workers, but things may change this year after the Scandinavian country introduced a special income tax for short-term foreign workers.

Under the new tax regime approved by Swedish lawmakers in November last year, foreign workers who are employed no more than 183 days per year will pay a 25% income tax.

Suchart Pornchaiwisetkul, director-general of the Department of Employment (DoE), said a campaign is now under way to inform Thai job seekers and job placement agencies of the new tax rules.

Thais usually travel to Sweden and Finland to take up jobs at berry farms between July and September every year.

In Sweden, for instance, the minimum monthly income is guaranteed at 23,500 Swedish krona, or about 85,070 baht. According to labour officials estimates, Thai workers can expect to bring home between 13,327-31,156 baht for three months of work, after taxes and living expenses.

"Based on the department's calculations, it is highly likely Thai berry pickers will earn less in the upcoming seasons'', Mr Suchart said.

Job seekers need to be warned of the changes so they can make an informed decision, especially since many were known to borrow money to cover their initial placement costs, he said.

Despite the changes in Stockholm, Mr Suchart said the Finnish Tax Authority has informed Thai officials that it is making no change to the tax rules for berry pickers in its 2021 season.

The Ministry of Foreign Affairs is keeping an eye for any changes and will keep workers informed, he said.

According to the department chief, demand for Thai berry pickers in Finland is high, with the Finnish berry industry informing the nation's labour officials that they want 8,703 Thai workers to cover this season.

He said the DoE, which has job quotas for berry pickers in Sweden and Finland, will do its best to allocate the spots available.

The net income of a berry picker in Finland, who are allowed to work for 55 days during harvest season each year, ranges between 90,000 and 150,000 baht.

Labour Minister Suchart Chomklin also said the ministry has been informed of the new tax rules by the Ministry of Foreign Affairs and is working to help cushion impacts to be brought by the change.

In November last year, Anucha Burapachaisri, spokesman for the government, said a total of 5,245 Thai berry pickers travelled to the two Scandinavian countries for berry-picking jobs and brought home at least 618.3 million baht.