Amendments to the Swedish top-up tax

The amendments are proposed due to technical guidance which has been released on various occasions in 2023 by the OECD/G20 Inclusive Framework on BEPS, to assist governments with the implementation of the global minimum tax rules. Schjødt has reported on the release of technical guidance previously in 2023. Our previous article on the release of technical guidance can be read here, and our article on the adoption and implementation of the Swedish Top-up Tax Act can be read here.

The amendments concern, among other things, ensuring that the implemented Swedish rules meet the conditions to be an approved framework for national top-up tax, so that it is covered by other states’ safe harbour rule, and that the Swedish act on credit of foreign taxes is amended so that foreign national top-up tax can be credited in CFC taxation and in the taxation of a permanent establishment abroad.

The additions and amendments shall enter into force on 1 January 2025. A transitional provision is proposed which means that no top-up tax report will have to be submitted prior to 30 June 2026.