Norwegian dividend taxation
As of 1 January 2019, rules concerning the application of a lower withholding tax rate than 25 per cent will apply on dividend distributions from Norwegian companies to foreign shareholders.
- Statutory tax rate: 25%
- Treaty rate for Estonian residents: 15%
Treaty tax rate may be applied if client’s tax residency is Estonia and the client provides valid documents to the bank according to requirements mentioned below.
For application of reduced withholding tax rate, the client has to provide the bank with necessary documents at the latest three business days before the ex-dividend date.
You shall be liable for submission of required documents, also for the accuracy of the documents and payment of
all taxes associated with the securities. The bank shall not be liable for damages caused to the client due to
applied tax rate or due to failure to submit required documents or to submit these on time. The bank shall not be
obliged to remind you about the need to provide or update documents needed for application of lower tax rate.
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A certificate of residency (CoR)
Issued by local Tax Authority
Certificate has to refer to Double Taxation Treaty between Estonia and Norway.
As the certificate of residency is valid
only for present calendar year, the certificate of residency has to be provided for each year the treaty rate is applied for.
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Confirmation from the dividend recipient that they are the beneficial owner of the dividend
Document sample is added.
Current document is valid after first submission until underlying circumstances will change and client presents new confirmation.
A legal person will need to submit the following documents to Swedbank for income tax under the double taxation agreement:
Confirming the dividend recipient is entitled to a reduced withholding tax rate.
To obtain this approval, the customer must apply to the Norwegian tax authorities for a more favorable income tax rate or tax exemption to the following address:
Central Tax Office - Foreign Tax Affairs (SFU)
Skatteetaten
Postboks 9200 Grųnland
0134 Oslo
NORWAY
Please note that the above form must contain a residency confirmation from the tax office
and the consent obtained will remain in effect until the conditions on which it is based have changed.
In this case, the customer must submit a new confirmation.
Issued by local Tax Authority.
Certificate has to refer to Double Taxation Treaty between Estonia and Norway.
As the certificate of residency is valid
only for present calendar year, the certificate of residency has to be provided for each year the treaty rate is applied for.
Document sample is added. Current document is valid after first submission until underlying circumstances will change and client presents new confirmation.
If based on the Approval a tax exemption is applied (0%), then the Approval is valid for three years after first submission or until underlying circumstances will change. Client has to provide following confirmation after every three years from initial acceptance.
The confirmation has to be presented before three years have passed from initial Approval date.
- Seek for the Norwegian tax authorities approval for a More favorable income tax rate or Tax exemption.
- Get a certificate of residency from local Tax Authority for the current calendar year.
- Fill the beneficial owner confirmation Confirmation from the dividend recipient that they are beneficial owner of the dividend.
- Gather all previously obtained documents and present to the bank before ex-dividend date.
- Every next calendar year provide new certificate of residency from local Tax Authority.
- Required documentation can be presented to the bank starting from 01.01.2019.
- Documents can be provided to the bank over the year, before dividend ex-date.
- If required documentation is not provided to the bank before dividend ex-date, then dividend will be paid out with statutory rate (25%).
- A certificate of residency (issued by local Tax Authority) should be applied starting from year 2019 and should be renewed every year, since it is given only for present calendar year. If dividend ex-date is on Q3, then certificate of residency can be obtained e.g. during summer.
- General information about the documentation requirements for reduced withholding tax rate.
Process for presenting needed documentation to the bank:
To present documents, choose from menu: Everyday banking → Document management →
Document
upload
Legal person will upload documents to business client Internet Bank.
Press the button "Upload new document".
Choose Type → Investment Agreements
Subtype has to be chosen according to the uploaded document.
Each document is uploaded under separate, specific subtype. Only relevant subtypes are available for private and corporate customers.
Please make sure if you have presented all the required documents.
All documents presented to bank have to be manually signed (preferably with blue ink pen)! Manually signed document has to be scanned and uploaded.
Documents are valid until underlying circumstances will change, in which case client has to present new documents and notify bank.
Finnish dividend taxation
As of January 2024 Finnish dividend reciever has to submit a new form – Investor Self-Declaration (dividends). The declaration is valid for the year of submission and the following 5 years or until underlying circumstances change. Previously provided Beneficial Owner Confirmation is not valid from 01.04.2024.
Please fill out a new form and upload with your Certificate of Residency.
NB! Please mark all your Securities accounts in Swedbank where Finnish Securities are held or will be held.
As of January 1st, 2021, rules for the application of a lower withholding tax rate on dividend distributions
from Finnish companies to foreign shareholders, in contrast to 30/20 per cent* applied for Finnish residents, enter into force.
NB! Lower withholding tax rates are not available for those Finnish securities which are traded in other
markets than Finland.
* Statutory tax rates in Finland:
- 30% for private persons
- 20% for legal entities
- Treaty tax rate for Estonian residents: 15%
Treaty tax rate may be applied if your tax residency is in Estonia and you are able to provide valid documents to the bank according to requirements mentioned below.
For application of reduced withholding tax rate, you must provide the bank with necessary documents
at the latest three business days before the ex-dividend date.
You shall be liable for submission of required documents, also for the accuracy of the documents and payment of
all taxes associated with the securities. The bank shall not be liable for damages caused to the client due to
applied tax rate or due to failure to submit required documents or to submit these on time. The bank shall not be
obliged to remind you about the need to provide or update documents needed for application of lower tax rate.
- If you are Finnish tax resident, please make sure you have provided your Finnish tax-ID to Swedbank.
- Please note, that 25,5% WHT will be applied if your data (name, ID, address, Finnish tax-ID) can be disclosed.
- If Swedbank does not have all relevant data, 50% withholding tax will be applied.
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A Certificate of Residency (CoR)
As the Certificate of Residency is valid only for current calendar year, the Certificate of Residency has to be provided for each year the treaty rate is applied for (without an end date).
Issued by local Tax Authority.
Certificate has to refer to Double Taxation Avoidance Convention between Estonia and Finland.
Certificate should be in English.
Certificate issued by local Tax Authority have to be manually signed and scanned. NB! Digitally signed document does not meet the requirements of the Finnish Tax Administration.
-
Investor Self-Declaration (dividends)
As of January 2024 Finnish dividend reciever has to submit a new form – Investor Self-Declaration (dividends). The declaration is valid for the year of submission and the following 5 years or until underlying circumstances change. Previously provided Beneficial Owner Confirmation is not valid from 01.04.2024.
Please fill out a new form of Investor Self-Declaration (dividends) for
and upload with your Certificate of Residency.
NB! Please mark all your Securities accounts in Swedbank where Finnish Securities are held or will be held.
- Required documentation can be presented to the bank starting from 01.01.2021.
- Documents can be provided to the bank over a year in advance to dividend ex-date. For example, if dividend ex-date is on Q3, then certificate of residency can be obtained e.g. during summer.
- All presented original documents have to be preserved until underlying circumstances will change.
- 35% tax rate will be applied if, at the time of payment, there is no identifying information on the beneficial owner.
- A certificate of residency (issued by local Tax Authority) should be applied starting from year 2021 and should be renewed every year, since it is valid only for current calendar year.
Process for presenting needed documentation to the bank:
To present documents, choose from menu: Everyday banking → Document management →
Document
upload
Legal person will upload documents to business client Internet Bank.
Press the button "Upload new document".
Choose Type → Investment Agreements
Subtype has to be chosen according to the uploaded document.
Each document is uploaded under separate, specific subtype. Only relevant subtypes are available for private and corporate customers.
Please make sure if you have presented all the required documents.
All documents presented to bank have to be manually signed (preferably with blue ink pen)! Manually signed document has to be scanned and uploaded.
Documents are valid until underlying circumstances will change, in which case client has to present new documents and notify bank.
Taxation of Swedish dividends
Foreign shareholders of Swedish companies are subject to:
- Statutory tax rate of 30%; or
- Treaty tax rate of 15% for Estonian residents.
NB! Treaty tax rate is applicable only in case of Swedish company’s shares purchased directly from the Stockholm Stock
Exchange. Treaty tax rate is applied according to the customer’s residency, it does not demand any additional actions from you.
It is not possible to request the treaty tax rate for those Swedish securities that are traded on markets others than Sweden.
- From 01.09.2022, Swedbank will not be able to apply the treaty tax rate to dividends paid out by Swedish companies,
which have been purchased from the Helsinki Stock Exchange in Finland. In the case of those securities, the applicable
tax rate is 30%.
This information is not to be considered as an investment recommendation or advice or as an invitation
to buy or sell securities or make other transactions. The bank does not provide tax or legal advice services.
