Finland: Notice from group of Finnish issuers regarding dividends paid in 2020
Euroclear Finland has provided an announcement on behalf of a group of Finnish issuers, about dividends paid in 2020.
The announcement states among other things that the Finnish Tax Administration (FTA) has recently paid special attention to the dividends paid to nominee registered securities subject to a withholding tax rate lower than 15% or subject to a withholding tax of 0%. According to the FTA, the reduced withholding tax rates have in some cases been applied without proper grounds.
It is further highlighted in the announcement that the account operators (such as Clearstream Banking) may only apply a withholding tax rate lower than 15% to the dividends paid for nominee-registered securities, if before the dividend payment it can be confirmed that the recipient’s entitlement to the dividend payment is not restricted by any contractual arrangements which would require that the dividend paid to the recipient is transferred further (such as securities lending/borrowing arrangements).
We continue to monitor the Finnish market closely and will provide more information as it becomes available.
This Taxflash is intended to provide customers with general information gathered from different sources that are generally believed to be reliable. Clearstream Banking S.A. does not guarantee the accuracy or completeness of the information and does not undertake to keep it up to date. Use of the information made available in this Taxflash is at the customer’s own risk and Clearstream Banking S.A. its subsidiaries and affiliates expressly disclaim any liability for any errors or omissions