ARTICLE · 23 OCTOBER 2026

The Scope Of The Swedish Transfer Pricing Correction Rule

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The Swedish Supreme Administrative Court ruled in favor of Kubikenborg Aluminium AB in a landmark transfer pricing case, setting aside a SEK 211 million adjustment related to an electricity contract termination and shareholder contribution. The court held that the arm's length assessment must consider the overall group arrangements, finding that the tolling agreement structure meant the electricity contract risk was borne by related entities rather than constituting an income transfer from the Swedish compa

SwedenTax

Victor Elovsson

Ebba Perman Borg

On 19 May 2026, the Swedish Supreme Administrative Court (“HFD”) ruled, in case HFD 2026 ref. 26, in favour of the Swedish aluminium producer Kubikenborg Aluminium AB (“Kubal”), setting aside a transfer pricing adjustment of approximately SEK 211 million and the related tax surcharge. The judgment can be read here.

The correction rule (Sw: “korrigeringsregeln”) in the Swedish Income Tax Act (1999:1229) allows the taxable result of a Swedish company to be adjusted upwards where terms agreed with a related foreign party deviate from what independent parties would have agreed, and the result has thereby been reduced in favour of a party not taxed in Sweden. The burden of proof rests on the Swedish Tax Agency.

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