Today, the government submitted a draft law to the Swedish Parliament containing the necessary changes in Swedish law to implement EU directives aimed at ensuring a minimum global tax level for large multinational and national groups. This proposal is part of extensive international work within the OECD and the European Union to prevent tax evasion and aggressive tax planning.
The proposals in the draft law would mean that companies in large national or multinational groups, with annual revenues of at least €750 million, would have to pay at least 15% of profit in additional tax, regardless of where they are located. This means that the benefits of shifting profits from high-tax countries to low-tax countries are diminished.
Companies covered by the new law, according to the proposal, will be obliged to submit an additional tax report to the Swedish Tax Agency, which will form the basis for the Swedish Tax Agency’s assessment of whether the group meets the minimum tax requirements. The proposal also means that new reporting fees would be imposed, which could be imposed if it is clear that the additional tax report contains serious deficiencies. Penalties may also be related to violations of the rules, for example in the form of late fees and additional tax charges.
In order to reduce administrative costs for companies, a temporary simplification rule will be introduced that applies for a period of three years. The simplification rule means that the Group can retrieve information from existing country-by-country reports, facilitating the Group’s compliance with reporting in accordance with the additional tax rules. Furthermore, there will be permanent simplification rules based on ongoing work within the OECD that will be able to be used by national and multinational groups.
The proposal regarding representative responsibility of individuals that was made in the Law Council referral has been removed from the draft bill. This is a result of the Legislative Council’s opinion that it is doubtful that the preparation requirement in this section has been met. Other than that, no major amendments were made compared to the proposal that went to the legislature.
The proposal for an additional tax is based on EU directives on global minimum taxes that must be implemented into Swedish law by the end of the year at the latest. The Guidance, in turn, is based on proposals developed within the OECD and is based on model rules developed in the framework of work with the so-called two-pillar solution.
The new regulations are proposed to come into force on 1 January 2024. Revenue from additional taxes in Sweden is estimated at around 500 million SEK per year.
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