The budget bill for 2017, presented in September 2016 to the Swedish parliament (Riksdagen), includes provisions for country-by-country (CbC) reporting.
The budget bill is based on an agreement between the government’s formal coalition (Social Democrats and Green parties) and the Left Party. The budget primarily focuses on social issues (welfare, jobs, accommodating refugees, gender equality, etc.). While the budget bill has few reforms in the corporate tax area, there are some changes in the energy sector. The government also has focused on intensifying efforts to counter tax evasion and tax avoidance—including CbC reporting rules.
In the budget, the government declared an intention to introduce CbC reporting requirements by major Swedish multinational entities. It is expected that the government would have a proposal for CbC legislation ready before year-end. The government also intends to introduce measures allowing for the automatic exchange of information on financial accounts in accordance with directives or existing international agreements.
As proposed, CbC reporting would be required of multinational entity groups having a consolidated turnover of at least 7 billion kronor per year. The first CbC report would be filed within 12 months of the end of the fiscal year, which means that the first deadline to submit the CbC report from a Swedish perspective would be 31 December 2017, reporting for the financial year starting 1 January 2016. Also, it is possible that certain Swedish multinational groups may be required to submit separate CbC reports if the countries where they have business operations do not have exchange agreements with Sweden or have not implemented CbC reporting measures.
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