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Documentation and reporting

Rules and procedures

What rules and procedures govern the preparation and filing of transfer pricing documentation (including submission deadlines or timeframes)?

The Swedish rules governing transfer pricing documentation are found in Chapter 39, Sections 15-16 f of the Tax Procedures Act (2011:1244) and Chapter 9, Section 9-19 of the Tax Procedures Decree (2011:1261). In 2017 the Swedish transfer pricing documentation rules were amended to fit the new standards as set up by the Organisation for Economic Cooperation and Development (OECD).

According to the Chapter 39, Section 16 d of the Tax Procedures Act, the transfer pricing documentation must to be prepared at the time of the tax return. However, taxpayers are obliged only to file the documentation when requested by the Tax Agency.

There are no law stipulated time limits for a taxpayer to provide the Tax Agency with the requested documentation. The Tax Agency makes a case-by-case assessment on how much time the taxpayer should be granted to provide the Tax Agency with the information requested.

Content requirements

What content requirements apply to transfer pricing documentation? Are master-file/local-file and country-by-country reporting required?

Swedish legislation requires both master-file and local-file documentation. The requirement applies to multinational groups with an annual global turnover exceeding Skr7 billion. Multinational groups with fewer than 250 employees and with either an annual turnover of less than Skr450 million or a balance sheet total less than Skr400 million are considered as small and medium-sized enterprises and are as such exempt from the documentation requirements. The content requirements that apply are in line with the requirements set up by the OECD.

Additionally, and as of 2017, there is a requirement for country-by-country reporting which applies to multinational groups with an annual global turnover exceeding Skr7 billion. Such multinational groups must submit certain country-by-country data every year concerning each jurisdiction in which they are active. Usually, a multinational group is obliged only to file a country-by-country report with the Tax Agency if the parent company is a Swedish resident. However, all Swedish companies that are part of multinational groups must notify the Tax Agency which company within the group will submit the country-by-country report. The Tax Procedures Act governs the obligation to file a country-by-country report.


What are the penalties for non-compliance with documentation and reporting requirements?

There are no penalties or late filing fees for non-compliance with the country-by-country reporting requirement or the requirement for a company to notify the Tax Agency when part of a multinational group with an annual global turnover exceeding Skr7 billion. However, the Tax Agency has the right to issue an order to a company to submit notifications. Such an order may be accompanied with a fine if not followed. 

Best practices

What best practices should be considered when compiling and maintaining transfer pricing documentation (eg, in terms of risk assessment and audits)?

It is advisable to continuously assess the choice of pricing methods, as well as the written evidence gathered in order to be able to justify transactions.

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