The Swedish Tax Agency clarifies the notification procedure on country-by-country reporting

According to the Swedish legislation on country-by-country reporting, Swedish entities and foreign permanent establishments in Sweden within a multinational group need to notify the Swedish Tax Agency about which company is to file the report. It is important to note that the notification obligation is not only applicable to Swedish multinational groups but also Swedish entities and Swedish foreign permanent establishment in a foreign multinational group with an annual group consolidated revenue exceeding 750 million euros. The Swedish Tax Agency has now clarified the notification procedure.

Country-by-country reporting

The legislation comes into effect as of April 1st, 2017, and the first report shall be submitted for the financial year beginning after December 31st, 2015.

A multinational group that meets the following conditions must submit a report to the Swedish Tax Agency within one year after the closing of the reported financial year:

• A multinational group with an ultimate parent entity in Sweden with an annual group consolidated revenue exceeding 7 billion SEK.
• A multinational group with an ultimate parent entity outside the Swedish jurisdiction with an annual group consolidated revenue exceeding 750 million euros or the equivalent amount in local currency.

The report shall contain certain financial data for each tax jurisdiction in which the group operates in. The report shall be submitted to the Swedish Tax Agency by the Swedish ultimate parent entity in a Swedish multinational group, or the Swedish surrogate parent entity of a foreign multinational group.

If the reporting obliged entity is not obligated to report in their home country or if the tax authority of that country does not share the report with the Swedish Tax Agency, shall the Swedish group entities and foreign permanent establishments in Sweden submit the report to the Swedish Tax Agency.

Country-by-country reporting - Notification

The entity obliged to file the report shall notify the Swedish Tax Agency about this obligation before the end of the financial year that is intended to be reported. Other Swedish entities and Swedish foreign permanent establishment within the reporting required group shall within the same timeframe notify the Swedish Tax Agency which entity that will submit the report for the group.

For the first financial year covered by the legislation, has the notification period been extended to April 30th, 2017, for the financial year ending before the legislation becomes effective. For the financial year 2016 the notification period has been extended till April, 30th 2017.

Notification by ultimate parent entity, surrogate parent entity and other Swedish entities that will provide a country-by-country report to the Swedish Tax Agency

A Swedish company filing the country-by-country report to the Swedish Tax Agency, shall notify the Swedish Tax Agency about this before the end of the financial year intended to be reported. In this notification to the Swedish Tax Agency the following information must be provided:

• Name of, address of and organisation number of the Swedish company filing the report,
• Name of, e-mail address of and telephone number of the contact person in the company filing the report,
• The start and end date of the financial year for the report, and
• Whether the company filing the report is an ultimate parent company, surrogate parent company or a subsidiary obligated to report.

Notification by other Swedish entities

A Swedish company which is part of a multinational group with another company filing the group’s country-by-country report shall notify the Swedish Tax Agency about this before the end of the financial year intended to be reported. In this notification to the Swedish Tax Agency the following information must be provided:

• Name of and organisation number of the Swedish company submitting the notification,
• Name of, address of and organisation/identification number of the Swedish or foreign company who is obligated to file the report,
• The tax jurisdiction which the company obliged to file the report belongs to, and
• The start and end date of the financial year for the report.

Comment

The legislation states that both Swedish multinational groups, Swedish subsidiary and Swedish foreign establishments of a foreign multinational group are covered by the new rules and are therefore obliged to notify the Swedish Tax Agency which companies in the multinational group that are submitting the country-by-country report. Now it is important to ensure the entities in the multinational group that are obliged to notify the Swedish Tax Agency about which company that is submitting the report.