Standard refund – Swedish equities
Eligible beneficial owners
A standard reclaim of withholding tax is available if relief at source or quick refund have not been obtained by beneficial owners eligible for the reduced tax rate.
Equities | ||
Beneficial owner | Effective tax rate after refund | Tax refund available |
Non-resident of a DTT country a | DTT | 30% minus |
Tax exempt entities:
| 0% | 30% |
a. Residents of Switzerland cannot apply for relief at source or a reclaim using the quick refund or standard procedure via Clearstream Banking, but instead reclaim applications for residents of Switzerland must be filed, by the beneficial owner, directly with the competent tax authority. This is following an agreement between the Tax Authorities of Sweden and Switzerland dated 17 August 1993 that regulates treaty benefits and the reclaim process. Under this agreement, treaty benefits are only possible through tax reclaim.
In addition, UK tax resident individuals are not eligible to apply for relief at source or quick refund via Clearstream Banking. Such beneficial owners may however request a standard reclaim.
Documentation requirements
The certification required varies according to the type of eligible beneficial owner, as follows:
- All beneficial owners:
- Claim for Repayment of Swedish Tax on Dividends (SKV 3740/3742);
- Credit Advice;
- Power of Attorney;
- Letter of Request to Clearstream Banking for Reclaim of Swedish Withholding Tax;
- Funds established in accordance with the UCITS directive (2009/65/EC):
- Certificate stating that the fund is qualified under the UCITS IV directive (2009/65/EC)
- U.S. pension funds:
- Breakdown for U.S. Pension Funds;
- Organisations and foreign governments recognised as tax-exempt by the Swedish Tax Authorities:
- Certificate of exemption;
- Entities within the meaning of EU Parent Subsidiary Directive 2011/96/EU
- Certificate of tax residence;
- Confirmation that the beneficial owner is a legal entity as described in Annex I part A and that it is subject to taxation as described in Annex I part B.
- Liechtenstein joint stock companies:
- A Statement mentioning that the shares are held as capital/fixed assets by the holding company.
This statement should be issued by an audit firm; however, we are currently investigating to know whether such statement issued by the Liechtenstein joint stock company itself would be accepted by STA. - For quoted shares, a Statement mentioning that the company holds at least 10% of the voting power and that the shares have been held for at least one year.
This statement should be issued by an audit firm; however, we are currently investigating whether such a statement issued by the Liechtenstein joint stock company itself would be accepted by STA.
- A Statement mentioning that the shares are held as capital/fixed assets by the holding company.
Important note:
- All documentation is subject to final approval by the Depository, before it can be used for requesting a standard refund request on the relevant dividend payment.
- In addition, other supporting information than the above stated may be requested by the Depository, should the Depository deem this necessary to process the requested refund. The Depository will reach out to Clearstream Banking, should additional information/documentation be required.
Statutory deadline for reclaiming withholding tax
The general statutory deadline for reclaiming withholding tax using the standard refund procedure is five years after the end of the calendar year in which the income was paid.
The exception is Austria, for which the deadline is two years after the end of the calendar year in which the income was paid.
Clearstream deadline for standard refund applications
The deadline by which Clearstream Banking must receive the documentation is at the latest two months before the statutory deadline.
All standard refund applications received after this deadline will be processed by Clearstream Banking on a “best efforts” basis.
However, in such cases, Clearstream Banking will apply an extra charge and accepts no responsibility for forms that have not reached the Swedish Tax Authorities by the date considered being the statute of limitations deadline
When are refunds received?
The estimated time for receiving a refund from a standard refund application is two months from the date of receipt by the Swedish Tax Authorities, although this can vary depending on when the application is filed and the complexity of the information supplied in the reclaim form.
Notes on tax reclaims
Clients warrant the completeness and accuracy of the information they supply to Clearstream Banking.
It is the client's responsibility to determine any entitlement to a refund of tax withheld, to complete the forms required correctly and to calculate the amount due. Clearstream Banking is under no obligation to carry out any investigation in respect of such information.
Clearstream Banking accepts no responsibility for the acceptance or non-acceptance by the tax authorities of the refund applications nor for the reimbursement of taxes paid.