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On March 20, 2025, the Swedish Ministry of Finance issued a draft law to amend its Global Minimum Tax Act. The draft law is open for consultation until May 26, 2025.
The purpose of the draft law is to implement the provisions of the June 2024 OECD Administrative Guidance into domestic law.
Note that Sweden’s Global Minimum Tax Act already contains a general interpretative provision which states that the provisions of the OECD Model Rules, OECD Commentary and the OECD Administrative Guidance is to be used as a source of interpretation, to the extent that these are compatible with the EU Minimum Tax Directive and EU law. As such, the Global Minimum Tax Act only needs to be amended where the June 2024 OECD Administrative Guidance means that further legislation is required.
For instance, Article 1 of the June 2024 OECD Administrative Guidance includes details provisions for determining whether or not tax has been reversed within five years under the deferred tax recapture rules in Article 4.4.4 of the OECD Model Rules. However, Sweden’s current Global Minimum Tax Act already includes deferred tax recapture rules (Chapter 3, Section 35 of the Global Minimum Tax Act) and the June 2024 OECD Administrative Guidance is focused on how to determine whether a deferred tax liability has been reversed or not.
Given that the OECD Guidance is used as a source of interpretation under the Global Minimum Tax Act, these rules should apply without any specific legislative amendments being required.
The proposed amendments in the draft law will apply for tax years beginning after 31 December 2025. However, a reporting entity may choose to apply all or some of the provisions for tax years beginning after 31 December 2023.
Proposed Amendments in the 2025 Draft Law
| Fourth Set of OECD Administrative Guidance (Article) | Rule | Implementation in Sweden |
|---|---|---|
| 1.2.1 | Aggregate DTL Category basis | Applicable under general interpretative provisions |
| 1.2.1 | Exclusion of certain types of GL accounts and separate tracking | Applicable under general interpretative provisions |
| 1.2.1 | Exclusion of GL accounts that generate standalone DTAs | Applicable under general interpretative provisions |
| 1.2.1 | Exclusion of swinging accounts and separate tracking | Applicable under general interpretative provisions |
| 1.2.2 | FIFO/LIFO Basis | Applicable under general interpretative provisions |
| 1.2.3 | Aggregation of Short-term DTLs | Applicable under general interpretative provisions |
| 1.2.2 | Reversal of DTLs that accrued before the Transition Year | Applicable under general interpretative provisions |
| 1.2.2 | 5 year unclaimed accrual election | Applicable under general interpretative provisions |
| 2.1.2 | Recalculated deferred tax where GloBE carrying value differs from accounting carrying value | Ch.3, 30a – Draft 2025 amendment bill |
| 2.1.2 | GloBE and accounting carrying values and the Transition Rules | Ch.3, 30a – Draft 2025 amendment bill/general interpretative rules |
| 2.1.2 | Additional provisions for Intragroup transactions accounted for at cost | Ch.3, 30a – Draft 2025 amendment bill/general interpretative rules |
| 2.1.2 | Exclusion of GloBE carrying value from SBIE | Ch.3, 30a – Draft 2025 amendment bill/general interpretative rules |
| 3.1.3 | General rules for allocating cross-border, current taxes under a cross-crediting corporate tax system: 4 Steps | Ch.3, 27a -27d – Draft 2025 amendment bill |
| 3.1.3 | Specific rules for foreign PEs/CFCs, Hybrids/rev hybrids with domestic source income | Ch.7, 25a -25f – Draft 2025 amendment bill |
| 3.1.3 | Cross-crediting between Permanent Establishments and distributions from foreign subsidiaries | Ch.7, 25a -25f – Draft 2025 amendment bill |
| 4.1 | Extension of the Substitute Loss Carry-forward DTA to PEs, hybrids and rev hybrids | Ch.3, 34c – Draft 2025 amendment bill |
| 4.2 | Allocation of deferred tax expenses and benefits from a Parent Entity to a CFC, PE Hybrid or Rev Hybrid: 5 step process | Ch.7, 25a -25f/63f-63m – Draft 2025 amendment bill |
| 4.2.2 | Five-Year Election to exclude the allocation of all deferred tax expenses and benefits to CFCs, PEs, Hybrids and Rev Hybrids | Ch.4, 16a – Draft 2025 amendment bill |
| 4.2.3 | Exclusion of deferred tax assets or liabilities arising under a Blended CFC regime from transition rules | Ch.7, 63f – Draft 2025 amendment bill |
| 5.2.2 | Determining GloBE status when a Flow-through Entity is held directly by another Flow-through Entity | Ch 7, 3 – Draft 2025 amendment bill |
| 5.3.2 | Non-group owners: Partially owned Flow-through Entities | Ch 7, 6 – Draft 2025 amendment bill |
| 5.3.5 | Non-group owners: Indirect minority ownership | Ch 7, 6 – Draft 2025 amendment bill |
| 5.4.2 | Taxes allocated to a flow-through entity | Ch 7, 11/25a-25f – Draft 2025 amendment bill |
| 5.5.2 | Hybrid entities – Taxes pushed down include indirect owners | Ch 7, 64a-64h – Draft 2025 amendment bill |
| 5.5.4 | Hybrid entities – Entities located in jurisdictions without a Corporate Income Tax system | Ch 7, 64b – Draft 2025 amendment bill |
| 5.6.2 | Extension of taxes pushed down to include Reverse Hybrids | Ch 7, 64 – Draft 2025 amendment bill |
| 6.1.4 | Option to not impose top-up tax liabilities on SPVs used in securitization transactions | Ch.6, 2a-2c – Draft 2025 amendment bill |
| 6.1.4 | New definition: Securitization Entity | Ch.6, 2c – Draft 2025 amendment bill |
| 6.1.4 | New definition: Securitization Arrangement | Ch.6, 2c – Draft 2025 amendment bill |
For detailed information on the application of the GloBE Rules in Sweden, see our:
OECD Administrative Guidance: Domestic Implementation Matrix
Transitional CbCR Safe Harbour: Domestic Implementation Matrix
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