Withholding taxation of dividends in Finland concerning nominee registered shares

From the beginning of 2021 withholding tax of 35% is, as a starting point, applied to dividend payments made on nominee registered shares.  However, lower withholding tax rate (e.g. 15 %) can be applied, if depositary participants registered with the Tax Administration’s Register of Authorised Intermediaries have advised of lower withholding based on the required additional information collected by them. 

Any tax withheld in excess can be reclaimed after the year of the dividend payment by submitting a refund application to the Finnish Tax Administration, either on paper (form for corporate entities here, and for individuals here), or electronically.

You may also be able to receive a refund already during the year of dividend payment via your Authorized Intermediary. Please contact your depositary participant for further information.

Additional information on withholding tax reclaims can be obtained from the Tax Administration either:

by e-mail whtreclaims@vero.fi (for corporations only); or

via the Tax Administration general telephone and chat helplines (for both individuals and corporations)

For depositary participants additional information on withholding can also be obtained from Euroclear Finland Oy (e.g. Yield payments in the book-entry system – decision by the CEO).

Please note that UPM does not process withholding tax reclaims.

Dividends paid to Finnish tax resident holders of nominee registered shares may as of 2020 have been subject to withholding of 50% tax prepayment (ennakonpidätys). Any excess tax prepayment will be credited in the normal tax assessment process where the shareholder reports their dividend income to the Finnish Tax Administration