Korus

KORUS - KPMG's group and interest equalization system

Calculate a groups interest deduction possibilities in seconds, KORUS automates the process.

The interest deduction limitation rules that have been in place since 2019 places a heavy burden on companies to manage and streamline the complex calculations involved.

To facilitate this work in organizations with multiple group companies, KPMG has developed KORUS, a program that automates and completes the group equalization process in a matter of seconds. With the help of KORUS, valuable hours are saved in a groups tax management. The tool also minimizes the risk of errors in the calculations.

How can KORUS help you calculate interest deductions?

KORUS is KPMG's group and interest equalization system. KORUS is an automated tool that, based on an algorithm, suggests group contributions and interest equalization on a company-by-company basis within a group. The automated process takes only a few seconds, making it easy to model the group's tax situation even if conditions change.

KORUS' recommendation aims to minimize the group's taxable surplus for the year.

Suggests group contributions in order to utilize older deficits before younger deficits in the group as much as possible.
Takes group contribution restrictions into account when recommending group contributions.
Suggests offsetting negative net interest in companies against other group companies with a positive net interest.
Suggests group contributions in order to maximize interest deductions, without increasing the group's total tax expense for the year.

Significantly reduces the time it takes to complete the group's tax dispositions.
Allows for optimization that is very difficult to achieve manually.
Minimizes the risk of transfer errors and manual miscalculations.
A flexible solution that can be implemented in many different ways to support existing tax calculations (e.g., in Excel) or Tax Calculation Tool.
Can be used independently and does not require help from consultants (unless that is requested).

Korus handles all data locally. Therefore, no company data needs to leave the group's local environment for the calculations to be performed. An internet connection is required for the program to be continuously updated.

There is practically no limit to the number of runs that can be done with the tool or the amount of data that can be handled.

We are very proud of how KORUS has become an integrated part of our clients' processes. Thanks to the close collaboration we have had with our clients, we have been able to create an automation between a companies' accounting and tax calculation tools. Further, KORUS is allowing our clients to focus on more important parts of the year-end process rather than manually inputting large amounts of data or relying on answers from external consultants for calculations.

Jörgen Graner

Partner and responsible for the development of KORUS since the rules were introduced.

The work with KORUS has, in turn, meant that many of our clients have reviewed and developed their tax calculation tools or, in some cases, purchased KPMG's tax tool (TCT), which is integrated with Korus. The goal in both cases is to minimize the companies' data entry and ensure that the correct information is automatically populated, enabling the client to start processing the information.

Anna Hallström

Certified Tax Advisor

Interest deduction rules

According to the Swedish interest deduction limitation rules, a company's right to deduct interest is restricted. In short, the rules convey that a company's net interest is deductible up to 30% of the company's taxable income before depreciation and net interest (EBITDA). Further, the rules do not contain an actual group exemption, meaning that the calculation of a company’s deductible interest must be made for each individual company in a group.

Tax equalization between Swedish companies in a group can be done through group contributions. Each group contribution will affect both the giving and receiving company's tax EBITDA and as such, the company’s possibility to deduct interest. Planning and optimizing a groups group contributions is already a time-consuming task that often must be done within a short timeframe in connection with the group's tax calculation. An extra layer of complexity arises when consideration also needs to be given to each company's interest deduction possibilities, further increasing the time a group must spend on their tax calculation if they wish to achieve a correct and optimal result through manual handling.

A group's tax situation can be significantly affected by small changes in interest rates and results of the business. Calculations of how such changes affect the taxable income and tax expense of a group are complex and time-consuming, where changes in one group company can affect other group companies' conditions for interest deductions.

Proposed updated interest deduction rules for 2026

We are currently reviewing our technical solutions in order to adapt to the proposed changes in the interest deduction limitation rules. More information relating to this will be provided soon.