Finland: Parliament approves Budget Bill for 2012

Further to our TaxFlash T11065, dated 18 October 2011, and effective

1 January 2012

the Finnish Parliament has approved amendments to the Act on the Taxation of Non-Residents’ Income and Capital (11.8.1978/627) and to the Income Tax Act (30.12.1992/1535).

As a consequence, from the above date, the standard rate of withholding tax on dividends will increase from 28% to 30%.

Impact on customers

A reduced rate of withholding tax on dividends may be applicable for the following types of beneficial owner as indicated:

We still await further clarification from the Finnish Tax Administration with regard to the procedures to obtain any tax relief.

We will continue to monitor the Finnish Budget Bill for 2012 for any developments and will provide more information as it becomes available.

Further information

For further information, please contact the Clearstream Banking¹ Tax Help Desk on:

or Clearstream Banking Customer Service or your Relationship Officer.

1. Subject to special conditions (please refer to EEA corporations eligible for 19.5% in Market Taxation Guide – Finland).
2. Clearstream Banking refers to Clearstream Banking, société anonyme, registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Register of Commerce and Companies under number B-9248 (CBL).