Relief at source – Swedish equities

05.04.2024

Dividend payments distributed from Swedish equities are subject to 30% withholding tax by default in Clearstream Banking.

Eligible beneficial owners

The following beneficial owners are eligible to obtain relief at source from withholding tax on dividend payments on Swedish equities:

Equities

Beneficial owner

Tax rate

Non-resident of a DTT country a

DTT

Tax exempt entities:

  • Supranational organisations and foreign governments
  • UCITS funds
  • Non-UCITS funds

0%

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

For the purpose of obtaining relief or exemption at source on behalf of eligible beneficial owners, clients must submit to Clearstream Banking, before the relevant deadlines, the following documentation:

All beneficial owner types:

  • One-Time Certificate for Swedish Equities;
  • Per-payment instruction (if applicable);

And upon request:

  • List of beneficial owners
  • Certificate of tax residence and other supporting documentation

And, in addition, for:

  • Organisations and foreign governments recognised as tax-exempt by the Swedish Tax Authorities:
    • Certificate of exemption;
  • 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);
  • Non-UCITS funds:
    • Certificate stating that the fund is authorised to market and sell units of the fund in Sweden;

Note: All clients must ensure that the tax instructions provided relate to settled positions only, without consideration of pending trades.

Deadline

The deadlines for the submission of the documentation to obtain relief at source of withholding tax on dividends on Swedish equities are as follows:

Document

Deadline for receipt by Clearstream Banking

One-Time Certificate for Swedish Equities

One business day after the record date of the first dividend payment.

Per-payment instruction

One business day after the record date of each dividend payment.


Certificate of exemption

One business day after the record date of each dividend payment.

Certificate stating that the fund is qualified under the UCITS IV directive (2009/65/EC)

One business day after the record date of the first dividend payment.

Certificate stating that the fund is authorised to market and sell units of the fund in Sweden

One business day after the record date of the first dividend payment.

List of beneficial owners for whom relief at source has been requested

Upon request and within Clearstream Banking’s deadline.

Certificate of tax residence and other supporting documentation

Upon request and within Clearstream Banking’s deadline.