Sweden: Liechtenstein joint stock companies may be exempt from Swedish dividend withholding tax

Effective

immediately

the Swedish Tax Agency (STA) has issued a statement confirming that joint stock companies established in Liechtenstein would be eligible to benefit from withholding tax exemption on Swedish dividend distributions.

The eligible Liechtenstein joint stock company should fulfil the following preconditions:

• Shares are held as capital/fixed and not as current assets by the holding company; and
• For quoted shares, the company holds at least 10% of the voting power and the shares must have been held for at least one year.

To qualify for exemption, the Liechtenstein joint stock company should provide the following refund documentation:

• The Claim for Repayment of Swedish Tax on dividends.
• The full chain of credit advices.
• A Power of Attorney, should the forms be completed by a third party on behalf of the beneficial owner.
• 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.

Impact on customers

Liechtenstein joint stock companies may be eligible for full exemption from withholding tax on Swedish dividend distributions, provided that the company fulfils all the required conditions.

Exemption at source is currently not available via Clearstream Banking¹, but Liechtenstein joint stock companies may obtain exemption via a standard refund, provided that all the required documentation is submitted to Clearstream Banking.

We continue to monitor the market and will inform customers as soon as further information becomes available.

Further Information

For further information, customers may contact the Clearstream Banking Tax Help Desk, Clearstream Banking Client Services or their Relationship Officer.

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1. Clearstream Banking refers collectively to Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500, and Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248.