On 19 March 2024, the Swedish Ministry of Finance (MoF) released proposed amendments to the Act on Additional Tax, aimed at incorporating the Pillar 2 global minimum tax as outlined in Council Directive (EU) 2022/2523. As per the proposal, a sovereign wealth fund classified as a governmental entity would not be regarded as part of a multinational group for the application of the global minimum tax.
The proposed update focuses on following topics:
- International Alignment: Sweden’s law will be adjusted to reflect recent OECD guidelines, promoting a consistent approach across countries.
- Simplification for Businesses: Companies operating in other countries with similar minimum tax rules may benefit from simplified reporting procedures.
- Addressing Tax Avoidance: The update clarifies how to handle situations where companies might create structures to avoid paying taxes.
- Foreign Tax Credits: There is a proposal to amend the Act on Credits for Foreign Tax, allowing for the offsetting of foreign national supplementary tax against CFC taxation.
The proposed amendments are scheduled to take effect on 1 January 2025.
