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What is the OECD Pillar Two framework?
The OECD Pillar Two framework introduces a global minimum corporate tax rate of 15%, designed to combat tax base erosion and profit shifting. This major change impacts multinational enterprises (MNEs) operating across multiple jurisdictions, creating complex compliance challenges. Understanding how this framework applies to your business is essential to minimising risks and maximising financial opportunities.
When do the new rules take effect in Sweden?
Sweden’s implementation of the EU Directive on global minimum taxation came into force on 1 January 2024. The Income inclusion rule (IIR) and the qualified domestic top up tax rule (QDMTT) applies to financial years beginning after 31 December 2023 whereas the undertaxed profit rule (UTPR) applies to financial years beginning on or after 1 January 2025.
Who is impacted by Pillar Two in Sweden?
The rules apply to Swedish entities that are part of a group with consolidated revenues of at least EUR 750 million, as reported in the parent company’s consolidated financial statements.
This includes:
- Swedish-based multinationals with global operations headquartered in Sweden,
- Subsidiaries of foreign MNEs operating or established in Sweden, and
- Swedish-based groups where both the headquarters and subsidiaries are located in Sweden.
What actions should organisations take now?
If your business is affected, taking proactive measures today can help reduce risks and ensure compliance. Consider:
- Assessing your organisation’s exposure to Pillar Two taxes
- Reviewing and enhancing your financial reporting systems
- Collaborating with experienced tax advisors to develop mitigation strategies
- Staying informed about ongoing regulatory developments in your jurisdiction
Why choose RSM for Pillar Two compliance?
RSM combines global insights with local expertise to provide tailored support for navigating the OECD’s Pillar Two framework. We offer:
- Proactive solutions to minimise financial risks
- Expert guidance on new tax regulations
- Customised strategies aligned with your business objectives
- Local knowledge backed by RSM’s global network of professionals
Get Pillar Two ready with RSM in Sweden
Navigating the Pillar Two framework can feel overwhelming. RSM simplifies the process with expert guidance and tailored strategies, helping middle-market organisations in Sweden adapt to the changes, ensure compliance, and optimise tax outcomes.
