Sign up for tax alert emails    GTNU homepage    Tax newsroom    Email document    Print document    Download document

July 8, 2020
2020-5946

Sweden extends MDR reporting deadlines for six months

The Swedish Parliament adopted, on 3 June 2020, final legislation implementing the European Union (EU) Directive on the mandatory disclosure and exchange of cross-border tax arrangements (referred to as DAC6 or the Directive). Under DAC6, taxpayers and intermediaries are required to report cross-border reportable arrangements from 1 July 2020. However, reports will retrospectively cover arrangements where the first step is implemented between 25 June 2018 and 1 July 2020.1

The Swedish Mandatory Disclosure Rules (MDR) legislation is broadly aligned to the requirements of the Directive. The key highlights of the Swedish legislation were summarized in an earlier Tax Alert.2

The Parliament decided to let the Swedish Government decide when the Swedish legislation should enter into force, in light of the COVID-19 pandemic.

On 18 June 2020, the Government issued regulations, where it stated that the legislation would enter into force on 1 July 2020 and the reporting deadlines should be in line with the DAC6.

On 24 June 2020, the Council of the European Union announced amendments to the EU Directive 2011/16 allowing Member States an option to defer for up to six months the time limits for the first filing and exchange of information on cross-border arrangements under Directive 2018/822 (DAC6 or Directive) due to the COVID-19 pandemic. The amendments also provide the possibility of one further extension for a maximum additional three months, by unanimous decision of the Council, depending on the evolution of the pandemic.3

On 30 June 2020, the Swedish Government issued a new regulation, deferring the reporting deadlines as follows:

  • Reports should be made by 28 February 2021 for ”historical” cross-border arrangements (i.e., arrangements that became reportable because the first step was implemented between 25 June 2018 and 30 June 2020).
  • With respect to arrangements targeted by DAC6 starting 1 July 2020, where a reportable cross-border arrangement is made available for implementation, or is ready for implementation, or where the first step in its implementation has been made between 1 July 2020 and 31 December 2020, the period of 30 days for filing information shall begin by 1 January 2021, meaning the latest date to report these arrangements is 31 January 2021.
  • The date for the first exchange of information on reportable cross-border arrangements is to occur by 30 April 2021.

The Swedish Tax Agency has issued some information about MDR on their website but the guidance does not go beyond what has been stated in the legislative history. Further guidance is expected.

Endnotes

1. See EY Global Tax Alert, EU publishes Directive on new mandatory transparency rules for intermediaries and taxpayers, dated 5 June 2018.

2. See EY Global Tax Alert, Sweden issues final proposal on Mandatory Disclosure Rules to Parliament, dated 26 February 2020.

3. See EY Global Tax Alert, Council of the EU adopts amendments for deferral of MDR filing deadlines, dated 24 June 2020.

_____________________________________________________________________________________________________________

For additional information with respect to this Alert, please contact the following:

Ernst & Young AB
Ernst & Young LLP (United States), Nordic Tax Desk, New York

ATTACHMENT

 
 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 2024, Ernst & Young LLP.

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.

 

"EY" refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.

 

Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct Opt out of all email from EY Global Limited.

 


Cookie Settings

This site uses cookies to provide you with a personalized browsing experience and allows us to understand more about you. More information on the cookies we use can be found here. By clicking 'Yes, I accept' you agree and consent to our use of cookies. More information on what these cookies are and how we use them, including how you can manage them, is outlined in our Privacy Notice. Please note that your decision to decline the use of cookies is limited to this site only, and not in relation to other EY sites or ey.com. Please refer to the privacy notice/policy on these sites for more information.


Yes, I accept         Find out more