Proposal regarding a top up tax act to ensure minimum taxation

by Ebba Perman Borg, Victor Elovsson and Maria Ström


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On 20 March 2023, the Swedish Ministry of Finance published its supplemental report (Fi2023/01114) to the official report (SOU 2023:6) and first draft to implement the OECD’s Pillar Two global anti-base erosion rules (the “GloBE Rules”), as set out under the EU Minimum Tax Directive (2022/2523). Please see also our article on OECD's technical guidance for implementation of the global minimum tax, our newsletter on 8 February 2023 on the Swedish official report to implement the new Top‑Up Tax Act, and our newsletter on 11 April 2022 regarding the EU Minimum Tax Directive (2022/2523).

The supplemental report covers certain articles of the EU Minimum Tax Directive and some of the additions which were decided in December 2022 and February 2023 within the framework of the GloBE Rules, which were not included in the official report. The supplemental report includes proposals for rules in the Top‑Up Tax Act regarding allocation of covered taxes, reorganisations, joint ventures, parent companies subject to rules on deductible dividends, and eligible distribution tax systems. The supplemental report also includes proposals regarding a temporary safe harbour rule, threshold amounts and currency, and the definition of a group of companies.

It can also be noted that the supplemental report includes opening up the possibility to apply for advance rulings in matters relating to the top‑up tax from the Swedish Council for Advance Tax Rulings. This means that groups which are subject to the rules may apply for legally binding preliminary rulings in complex issues which are likely to arise.

The Top‑Up Tax Act is proposed to enter into force on 1 January 2024, and to apply on financial years commencing after 31 December 2023.

Schjødt’s tax lawyers are following the development closely.

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