G10 Income tax

Recognized in the income statement

The Group’s recognized tax expense for the year amounted to SEK 4,767 million (4,216) or 24.5 percent (25.6) 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 23.1 percent (22.2). 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:

Recognized in the balance sheet

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 2,492 million and were allocated as follows:

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

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 January 1, 2024. The Group has applied the mandatory relief from deferred tax accounting for the impacts of the top-up tax and accounts for it as a current tax when incurred.

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.