Proposed new act on disclosure of income tax information

by Ebba Perman Borg, Victor Elovsson and Maria Ström


Business man standing in front of building

On 21 March 2023, the Swedish Department of Justice published its proposal (prop. 2022/23:88) for a new act to implement the EU Directive (EU) 2021/2101 amending EU Directive 2013/34/EU regarding the disclosure of income tax information by certain undertakings and branches. The proposal is based on the report published in June 2022 (SOU 2022:29).

The purpose of the proposal is to increase transparency in the tax payments of large groups and to assess the impact of such undertaking’s activities on the real economy. In short, the proposed new act, the “the Act on disclosure of certain large companies’ income tax information” will obligate companies and groups within the EEA, and with more than EUR 750 million in yearly revenues, to prepare and submit a public report detailing its income tax payments. The information in the report shall be presented on a country‑by‑country basis for those jurisdictions in which the group is liable for corporate income tax. The report shall also include information on business conducted in non‑cooperative jurisdictions in EU’s so‑called blacklist.

In Sweden, the threshold for a group to become obligated to submit a report is proposed to be SEK 8 billion, and the report shall be submitted to the Swedish Companies Registration Office (Sw. Bolagsverket) as the relevant competent authority. The proposal also state that the auditor report of a company must include a statement from the auditor on whether the company has been obligated to submit a report and whether such submission has taken place.

The new rules are proposed to enter into force on 22 June 2023 and to apply on financial years commencing after 31 May 2024.

Schjødt’s tax lawyers are following the continuous development closely.

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