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Swedish Tax Agency's legislative proposal regarding Transfer Pricing Documentation

Legislative proposal on Transfer Pricing Documentation

The Swedish Tax Agency has submitted its proposal to the Swedish Ministry of Finance regarding the implementation of BEPS action 13 about documentation and sharing of country-by-country reports (CbC).



Annika Lindström

Partner, Transfer Pricing

KPMG i Sverige


Relaterat innehåll

The Swedish Tax Agency was previously instructed by the Swedish Ministry of Finance to complete draft legislation for the implementation of the revised standards for transfer pricing documentation following the completion of BEPS Action 13 by the OECD.

On 29 April 2016 the Swedish Tax Agency submitted its proposal to the Ministry of Finance covering the new OECD standard for transfer pricing documentation and the automatic exchange of country-by-country (CbC) reports. The proposal also included provisions for the exchange of CbC reports between countries, including the EU Directive for the automatic exchange between EU members (DAC 4) and the OECD multilateral agreement on CbC reporting.

The Swedish Tax Agency's proposal is summarized below:

Master File and Local File

  • The proposal follows the Master File and Local File OECD approach detailed in BEPS Action 13. 

  • The Swedish Tax Agency’s proposal has expanded the reporting obligation to also include Swedish partnerships, foreign companies with a permanent establishment in Sweden and Swedish companies with a permanent establishment abroad. 

  • Small and medium-sized Enterprises (SME) are not covered by the new documentation rules. SMEs are defined as Groups of companies with fewer than 250 employees and a group turnover of less than 450 million SEK, or a consolidated balance sheet total of less than 400 million SEK. Both of these tests are applied to the preceding tax year in question. 

  • The deadline for the Master File and Local File preparation is the same as the corporate income tax return for that year, although it is not a requirement for transfer pricing documentation to be filed with the tax authority. Transfer pricing documentation should instead be submitted to the Swedish Tax Agency upon their request.

  • The regulations are proposed to come into effect for fiscal years beginning after 1 January 2017.

Country-by-country reports

  • Under the current proposal a Swedish parent of a multinational group must submit a CbC report to the Swedish Tax Agency. Swedish subsidiaries should also submit the CbC report if the foreign parent company is not liable to submit a CbC report in its country of residence, or the tax authority in that country does not exchange the report with the Swedish Tax Agency. 

  • Groups which have combined revenues of less than 7 billion SEK are exempt from CbC reporting.

  • The content of the CbC report follows the OECD BEPS Action 13 standard.

  • The CbC report should be submitted to the Swedish Tax Agency within one year from the end of the fiscal year covered by the report.

  • Information shall be exchanged between the states through automatic information exchange within 15 months from the end of the reporting year. CbC reports shall be submitted for the first time by 31 December 2017 for the fiscal year beginning 1 January 2016 or later. In cases where a CbC report is not submitted to the Swedish Tax Agency, penalties will be applied.

KPMG's comment

CbC reporting will relate to fiscal years starting on or after 1 January 2016 despite the fact that the legislation will likely be enacted this year. However, the updated transfer pricing documentation rules (Master File and Local File) are proposed to come into effect from 1 January 2017.

The Swedish Tax Agency has now submitted its proposal to the Ministry of Finance. It is likely that the Ministry of Finance will draft a bill based on the Swedish Tax Agency proposal and that it will passed into law in autumn 2016 (at the earliest).

Please feel free to contact us if you want more information about how this proposal might affect your company. 

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