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Advance pricing agreements
Availability and eligibility
Are advance pricing agreements with the tax authorities in your jurisdiction possible? If so, what form do they typically take (eg, unilateral, bilateral or multilateral) and what enterprises and transactions can they cover?
Advance pricing agreements (APAs) are possible in Sweden and are governed by the Act on Advance Pricing Arrangements in International Transactions (2009:1289). The Tax Agency is the competent authority for such applications. Under the act, bilateral and multilateral APAs are possible. The act applies to both Swedish business owners and foreign business owners with a permanent establishment in Sweden – that is, anyone that is liable to pay taxes in Sweden or is expected to become liable to pay taxes in Sweden. APAs cannot cover simple matters or minor transactions.
Rules and procedures
What rules and procedures apply to advance pricing agreements?
The primary Swedish regulation concerning advance pricing agreements is the Act on Advance Pricing Arrangements in International Transactions (2009:1289). The Tax Agency is the competent authority for such applications. Additional rules are found in the Ordinance on Advance Pricing Arrangements in International Transactions (2009:1295).
How long does it typically take to conclude an advance pricing agreement?
There is no typical processing time for APAs because every application is handled on a case-by-case basis. The processing time is affected by, for example, whether the applicant has submitted all necessary information and the complexity of the matter.
What is the typical duration of an advance pricing agreement?
Three to five years.
What fees apply to requests for advance pricing agreements?
A fee is levied for the filing and negotiation of an APA. The applicable rates are as follows:
- Skr150,000 for an APA application;
- Skr100,000 for renewal of an existing APA without amendments; and
- Skr125,000 for renewal of an existing APA with amendments.
Are there any special considerations or issues specific to your jurisdiction that parties should bear in mind when seeking to conclude an advance pricing agreement (including any particular advantages and disadvantages)?
It is important to keep in mind that an application for an APA under the Act on Advance Pricing Arrangements in International Transactions (2009:1289) may not cover simple matters or minor transactions. Whether the transaction will be considered minor is assessed based on the applicant’s circumstances.
An advantage is that an applicant may request to have a meeting with the Tax Agency before filing an application in order to discuss, among other things, the conditions for a potential APA.
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