The Swedish Tax Agency published a guidance on companies’ country-by-country reporting (CbC) obligations with respect to short and extended tax years, and company divestments and restructurings on 15 January 2018. The guidance provides following matters:
-The Swedish Tax Agency considers that the limit of SEK7bn regarding the obligation to submit country-by-country report is a fixed limit that should not be adjusted for the duration of the fiscal year.
-The Swedish guidance also considers situations whereby a company that has become a parent company in a main group after a divestment or other form of restructuring. The guidance also confirms that in such a situation, the company is obligated to submit a CbC report even if it was a parent company in a subgroup in the previous financial year, provided that revenue for the previous fiscal year exceeded SEK7bn.
-The CbC report is one element of a new three-tiered standardized approach to transfer pricing documentation proposed under Action 13 of the base erosion and profit shifting project. Under the framework, multinational enterprise groups (MNEs) are required to provide aggregate information annually for each jurisdiction where they do business, relating to the global allocation of income and taxes paid, together with other indicators of the location of economic activity within the MNE Group.
-The tax agency further provides that the OECD Guidelines for country-by-country reporting can be used to interpret the Swedish rules, provided that it does not conflict with the law or concerns situations that do not occur in Sweden.
