Finland: Quick refund for Telia Company AB ISIN SE0000667925 (dep. 86)

24.10.2017

Customers of Clearstream Banking1 are informed that relief at source is not available for the dividend payment related to Telia Company AB, ISIN SE0000667925, on 27 October 2017, but only quick refund and standard refund are available.

Note: For eligible final beneficial owners that are residents of Sweden, a quick refund is not possible and withholding tax should be reclaimed directly from the Swedish tax authorities.

Quick refund procedure

Eligible beneficial owners

Quick refund is available to the following beneficial owners:

  • Beneficial owners that qualify for the benefit of a reduced rate of withholding tax in accordance with a double taxation treaty (DTT) between their country of residence and Sweden.

Documentation requirements

To reclaim withholding tax on dividends by using the quick refund procedure, customers must submit the following documentation to Clearstream Banking:

The per payment quick refund instruction may be provided either via the Clearstream Banking Upload BO List facility, via SWIFT MT599 or via CreationOnline free-format message.

The instruction must include the ISIN/Common Code of the security, the payment date, the Clearstream Banking customer account number, the total holding position, the reclaimed position split per tax domicile of the beneficial owner mentioning the tax rate to be applied (for example, XX shs for UK residents 15%).

The number of beneficial owners applying for the quick refund must also be provided, when sending the quick refund instruction.

Customers are reminded that a quick refund fee of EUR 75.00 per beneficial owner is applied by our depository and charged to customers.

Important note

Full disclosure of the beneficial owners must be provided by customers upon request from Clearstream Banking or the Swedish tax authorities. The following disclosure details are currently required by the tax authorities:

  • Full and official name;
  • Address in the country of domicile;
  • Tax ID/date of birth;
  • Certificate of residence of the beneficial owner.

Cash adjustment

Regarding the quick refund process for the Telia Company AB dividend payment, Clearstream Banking would like to advice customers of the related cash adjustment process for the above event, which will be processed as follows:

  • Upon receipt of the customer quick refund instruction:

    Following the market practice applied by the Finnish tax authorities, Clearstream Banking will upon the receipt of the customer quick refund instruction, process a debit on the customer’s account, representing the full net dividend amount of the position instructed for the quick refund.
  • Upon receipt of the funds

    Upon receipt of the funds, Clearstream Banking will credit the new net amount with the reduced tax rate applied, as instructed by the customer.

Foreign exchange

In order to apply for a quick refund, the depository will return the net dividend in Swedish Kronor (SEK) to Sweden. This net amount returned is calculated using the original SEK dividend rate per share announced by the issuing company. Consequently, corrections may affect the actual EUR dividend per share debited, depending on the exchange rate from EUR to SEK at the time of correction.

If the receiver will receive EUR, Euroclear Finland will execute the foreign exchange and return the new EUR net dividend to Clearstream Banking. Consequently, corrections may affect the actual Euro dividend per share credited, depending on the exchange rate from SEK to EUR at the time of correction.

Deadline

In order to apply for a quick refund, customers must provide the required documentation no later than 11 December 2017 (10:00 CET).

As of 12 December 2017, a tax refund can be applied for directly from the Swedish tax authorities via the standard procedure, as described in the Market Taxation Guide - Sweden.

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1. This Announcement is published by Clearstream Banking AG (CBF), registered office at Mergenthaleralle 61, 65760 Eschborn, Germany, registered with the Commercial Register of the District Court in Frankfurt am Main, Germany, under number HRB 7500.