Legal and tax information

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 Latvian residents: 15%

Treaty tax rate may be applied if client’s tax residency is Latvia 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 dividend ex-date.

The client 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 the client about the need to provide or update documents needed for application of lower tax rate.

Certificate of Residency (issued by the Latvian State Revenue Service).

In the certificate a reference to the Double Taxation Avoidance Convention between Latvia and Norway must be included.

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.
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.
Here you can find information on how to fill the document.

For legal person it is reasonable to claim more favorable income tax rate as soon as possible. Retrieved approval and additional mentioned documents can be applied for and presented to the bank before dividend ex-date starting from 01.01.2019. After the approval is presented to Swedbank client is eligible for treaty tax rate.

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 the Latvian State Revenue Service.

In the certificate a reference to the Double Taxation Avoidance Convention between Latvia and Norway must be included.

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.

Document sample is added. Current document is valid after first submission until underlying circumstances will change and client presents new confirmation.

Here you can find information on how to fill the document.

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.

Suggested process for legal person should be:

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 proovide new certidicate 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 SRS 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:

Private customers: To present documents, choose from menu: Payments, accounts → Document signing → Document upload.

Business clients will upload documents to business client i-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 business 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 recievers have 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 the underlying circumstances change. The previously provided Beneficial Owner Confirmation is not valid from 01.04.2024.

Please fill out the new form and upload with your Certificate of Residency.

NB! Please mark all your securities accounts at Swedbank where Finnish securities are 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 in Finland.

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 Latvian residents: 15%

Tax rate stated in the Tax treaty between Latvia and Finland tmay be applied if the declared client’s tax residency is in Latvia and the client is able to provide valid documents to the bank according to requirements mentioned below.

For application of reduced withholding tax rate, the client must provide the bank with necessary documents 3 business days before dividend ex-date at the latest.

As of January 1st, 2020, there has been changes in Finnish withholding taxation for Finnish tax residents, for example, if you are a Latvian resident with a Finnish tax residency.
According to the new regulation, 25,5% withholding tax will be applied to the Client whose data can be disclosed (name, ID, address, Finnish tax-ID). If Swedbank does not have all the necessary data, 50% withholding tax will be applied.
If you are Finnish tax resident, please make sure you have provided your Finnish tax-ID to Swedbank.

Certificate of Residency

As the Certificate of Residency is valid only for the current calendar year, the Certificate of Residency has to be provided for each year the treaty rate is applied (without an end date).

Issued by the local State Revenue Service.

The certificate has to refer to the Double Taxation Avoidance Convention between Latvia and Finland.

The certificate must be in English.

The certificate issued by the local State Revenue Service has to be manually signed and scanned.
Investor Self-Declaration (dividends)

As of January 2024 Finnish dividend recievers have 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 the underlying circumstances change. The previously provided Beneficial Owner Confirmation is not valid from 01.04.2024.

Please fill out the new form of the Investor Self-Declaration (dividends) for
- Private customer
- Business customer
and upload it with your Certificate of Residency.

NB! Please mark all your securities accounts at Swedbank where Finnish securities are 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, but in advance to dividend ex-date.
30% tax rate will be applied in Finland if, at the time of payment, there is no identifying information on the beneficial owner.
A certificate of residency (issued by the State Revenue Service) should be applied starting from year 2021 and should be renewed every year, since it is valid only for current calendar year. For example, if dividend ex-date is on Q3, then certificate of residency can be obtained e.g. during summer.

Process for presenting needed documentation to the bank:

Private customers: To present documents, choose from menu: Payments, accounts → Document signing → Document upload.

Business clients will upload documents to business client i-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 business 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
Tax treaty¹ rate of 15% for Latvian residents.

NB! Tax treaty rate is applicable only in case of Swedish company’s shares purchased directly from the Stockholm Stock Exchange. It does not demand any additional actions from customers.

It is not possible to request the tax treaty rate for those Swedish securities that are traded on markets others than Sweden.

From 01.09.2022, Swedbank is not be able to apply the tax treaty rate to dividends paid out by Swedish companies shares, which have been purchased from the Helsinki Stock Exchange in Finland. In the case of those securities, the applicable tax rate is 30%.

¹ Convention between the Republic of Latvia and the Kingdom of Sweden for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and on Capital.

Legal and tax information

Norwegian dividend taxation

Suggested process for legal person should be:

Process for presenting needed documentation to the bank:

Finnish dividend taxation

Process for presenting needed documentation to the bank:

Taxation of Swedish dividends

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