Sweden has adopted Country-by-Country Reporting (CbCR) requirements in line with the OECD’s BEPS (Base Erosion and Profit Shifting) Action 13 and the EU Directive on Administrative Cooperation (DAC4). The Swedish Tax Agency (Skatteverket) is responsible for administering these rules, which aim to ensure tax transparency among multinational enterprises (MNEs). This guide provides comprehensive information to help finance directors of MNEs determine their obligations under Swedish CbCR regulations, including applicability, filing processes, deadlines, penalties, and resources.

Applicability of CbCR in Sweden

Criteria for Reporting:

• Swedish CbCR requirements apply to MNE groups that:
  • Have an annual consolidated revenue of €750 million or more in the previous fiscal year.
  • Have the ultimate parent entity (UPE) located in Sweden, or:
    • The UPE is in a jurisdiction that does not mandate CbCR,
    • There is no effective exchange agreement with Sweden for CbC reports,
    • The UPE does not provide the report in its jurisdiction.

Relevant Legislation:

• CbCR requirements are governed by Chapter 33a of the Tax Procedure Act (Skatteförfarandelagen 2011:1244) and aligned with EU and OECD guidelines.

Reporting Requirements

Information to be Reported:

• The CbC report must include jurisdiction-level aggregated data on:
  • Total revenue, categorised as related and unrelated party revenue,
  • Profit or loss before income tax,
  • Income tax paid and accrued,
  • Stated capital and accumulated earnings,
  • Number of employees,
  • Tangible assets, excluding cash or cash equivalents.
• The report must identify all group entities, their jurisdictions of tax residence, and their principal business activities.

Form and Submission:

• Reports must be submitted electronically in XML format using the OECD’s standard schema.
• Filings are made via the Swedish Tax Agency’s online platform, available here: Skatteverket – CbCR.

Filing Deadlines

• CbC reports must be submitted within 12 months of the end of the fiscal year. For example, if the fiscal year ends on 31 December 2023, the report is due by 31 December 2024.
• MNEs must also notify Skatteverket of the designated reporting entity (UPE or surrogate parent entity) by the end of the fiscal year.

Penalties for Non-Compliance

Penalties:

• Non-compliance with Swedish CbCR regulations can result in:
  • Administrative penalties, including fines, for failure to submit a report or for submitting inaccurate information.
  • Increased scrutiny, including audits, for entities with repeated or significant non-compliance issues.

Defences:

• The Swedish Tax Agency may waive penalties if the MNE demonstrates reasonable cause for non-compliance, but robust systems and timely action are required to mitigate risks.

Confidentiality and Use of Information

Data Protection:

• CbC report data is used exclusively for risk assessment and transfer pricing analysis. Sweden complies with OECD confidentiality standards to ensure data is protected.
• Reports are shared with other jurisdictions under the Multilateral Competent Authority Agreement (MCAA), provided there are safeguards for data protection and use.