General information – types of securities, deadlines, other market specifics – Finland (CBF)
Withholding tax
Debt securities | Holding restriction? | Withholding tax rate | Relief at | Quick | Standard |
Yes | 0% | ||||
No withholding tax is deducted on interest from Finnish government and corporate debt securities held in Clearstream Banking. | n/a | n/a | n/a | ||
Equities | Holding restriction? | Withholding tax rate | Relief at | Quick | Standard |
Yes | 35% | ||||
Non-treaty individuals (domestic law) | Yes | Yes | Yes | ||
Non-treaty corporations (domestic law) | Yes | Yes | Yes | ||
Residents of a double taxation treaty (DTT):
| Yes | Yes | Yes | ||
Tax exempt entities (domestic law):
| Yes | Yes | Yes | ||
Types of securities eligible in Clearstream Banking
The eligible securities issued in Finland are as follows:
- CBF-eligible security types
- Debt instruments;
- Equities and equity-linked securities;
- Finnish Depository Receipts (FDR).
Holding restrictions
Securities held on Clearstream Banking accounts that are beneficially owned by either Finnish nationals or Finnish tax residents cannot be held in Clearstream Banking.
Note: It is the responsibility of the Clearstream Banking client to ensure compliance with local holding restrictions. If a requirement is not met, it is the client who is liable to any related penalty. Clients may seek independent legal advice on the interpretation of Finnish disclosure requirements.
For further information, please refer to Investment regulation - Finland.
Capital gains tax
There is no capital gains tax withheld through Clearstream Banking on securities held in Clearstream Banking. Capital gains tax may however be payable on specific gains. Clearstream Banking does not assist in this regard. Please consult your tax advisor for further information.
Stamp duty
There is no stamp duty withheld through Clearstream Banking on securities held in Clearstream Banking. Stamp duty may however be payable on specific transactions. Clearstream Banking does not provide assistance in this regard. Please consult your tax advisor for further information.
Finnish stock dividends
There is no withholding tax applied by Clearstream Banking on stock dividend distributions received from Finnish securities that are held in Clearstream Banking (except on fractions).
However, withholding tax and other taxes may still be payable on such stock dividend distributions to the Finnish Tax Authorities. In this respect, Clearstream Banking does not assist and clients should consult their tax advisor for full information on it and appropriate implementation of taxation process.
Relief at source deadline
The deadlines for the submission of the documentation to obtain relief or exemption at source of withholding tax on dividends on publicly listed Finnish equities are as follows:
Document | Deadline for receipt by Clearstream Banking |
One-Time Certificate publicly listed Finnish Equities (various versions) | Four business days prior to the record date of the first dividend payment by 10:00 CET. |
Per-payment pooled tax breakdown | One business day after the record date of each relevant dividend payment by 10:00 CET. |
ISD-E form | Four business days prior to the record date of the first dividend payment by 10:00 CET. |
Certificate of Residence | Four business days prior to the record date of the first dividend payment by 10:00 CET. |
Tax-at-source card | Four business days prior to the record date of the first dividend payment by 10:00 CET. |
Per-payment beneficial owner declaration | One business day after the record date of each relevant dividend payment by 10:00 CET. |
Direct Investment confirmation | Four business days prior to the record date of the first dividend payment by 10:00 CET. |
Parent-Subsidiary confirmation | Four business days prior to the record date of the first dividend payment by 10:00 CET. |
Quick refund deadline
The quick refund can be applied for between 1 June and 1 November of the year of the dividend payment.
Statutory deadline for reclaiming withholding tax
The general statutory deadline for reclaiming withholding tax, applicable to reclaims submitted via standard refund procedures, is as follows:
Dividends paid | Statutory deadline |
Up to and including 31 December 2016 | Five years after the end of the year in which the income payment was made |
On or after 1 January 2017 | Three years after the end of the year in which the income payment was made |
Exception: The statutory deadline for Dutch beneficial owners reclaiming Finnish dividend withholding tax, is five years after the end of the year in which the dividend payment was made, instead of the general three years deadline, which is applicable for other beneficiaries.
The five-year deadline applies in respect to withholding tax levied since 1 January 2017.
Clearstream deadline for standard refund applications
The deadline by which Clearstream Banking must receive the documentation is at least four 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 Finnish Authorities by the date considered as being the statute of limitations deadline.
When are refunds received?
The estimated time for receiving a refund can vary depending on the time that the application is filed and the complexity of the information supplied in the reclaim form. Clearstream Banking has collected information from sources considered reliable but does not guarantee the accuracy of the timings presented.
Quick refund
The estimated time for receiving a refund is six weeks from the date that Clearstream Banking receives the certified documents.
Standard refund
The estimated time for receiving a refund is six months from the date of receipt by the Finnish Tax Authorities, although this can vary depending on when the application is filed and the complexity of the information supplied in the reclaim form.
Note: The Finnish Tax Authorities will only process applications for a standard refund in the beginning of the year following the dividend payment.
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.
With respect to tax reclaims in general, clients are reminded that Clearstream Banking accepts no responsibility for their acceptance or non-acceptance by the tax authorities of the respective country.