G10 Income tax

Recognized in the income statement

The Group’s recognized tax expense for the year amounted to SEK 4,216 million (4,493) or 25.6 percent (22.7) of profit before tax.

Reconciliation of the tax expense

The Group’s weighted average tax rate, calculated in accordance with the statutory tax rate in each country, was 22.2 percent (22.6). The tax rate in Sweden was 20.6 percent (20.6).

Reconciliation of the Group’s weighted average tax rate, based on the tax rate in each country, and the Group’s actual tax expense:

Tax items attributable to other comprehensive income

Recognized in the balance sheet

Deferred tax assets and liabilities

The deferred tax assets and liabilities recognized in the balance sheet are attributable to the following assets and liabilities.

Unrecognized deferred tax assets

Tax losses carried forward for which no deferred tax asset has been recognized amounted to SEK 2,445 million and were allocated as follows:

The expiry dates of these tax losses carried forward are allocated as follows:

In addition, the Group had unrecognized deferred tax assets which amounted to SEK 240 million related to interest deduction limitations in the USA.

Change of deferred tax in temporary differences and unutilized tax losses carried forward

In addition to the deferred tax assets and liabilities, Sandvik reports the following tax liabilities and receivables:

OECD Pillar Two model rules

The group is within the scope of the OECD Pillar Two model rules. In Sweden, the jurisdiction in which Sandvik AB is incorporated, the Pillar Two legislation came into effect from 1 January 2024. The group applies the exception to recognizing and disclosing information about deferred tax assets and liabilities related to Pillar II income taxes, as provided in the amendments to IAS 12 issued in May 2023.

The Group estimates that it will not be liable to any material Pillar Two taxes as most jurisdictions in which the group operates have an effective tax rate of 15 percent or higher.