ATAD III is currently a proposal, but if adopted, EU member states will need to implement the proposed measures into their domestic tax legislation by 30 June 2023 and apply them as of 1 January 2024. A two-year look-back rule shall be applied in order to determine if a company falls within the scope of ATAD III. A company’s position as of 1 January 2022 may thus already be a reference point.
The prudent approach will be to review EU holding companies in light of the proposal and consider appropriate actions on a current basis, such as aligning operations with new substance requirements ahead of time.
Although Norway is currently not expected to implement ATAD III directly, it should nonetheless be expected that Norwegian tax authorities will follow the EU development and review Norwegian substance requirements in light of ATAD III.
Schjødt's tax lawyers in Sweden and Norway are following the development closely.