Dividend

Withholding taxation of dividends in Finland concerning nominee registered shares

The OECD Treaty Relief and Compliance Enhancement (“TRACE”) procedure must be applied to dividends paid by Finnish publicly listed companies to nominee-registered shares, the beneficiaries of which are non-resident taxpayers. Accordingly, a withholding tax of 35%, as a starting point, must be applied to dividend payments made on nominee registered shares as of 1.1.2021.

A lower withholding tax rate can be applied, if custodian is registered with the Tax Administration’s Register of Authorised Intermediaries and has 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. Please find further instructions and forms for applying tax refunds available on the website of 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 custodian if registered as Authorized Intermediary. Please contact your custodian for further information.

Please note that Nokia does not process withholding tax reclaims.

Additional information on withholding tax reclaims can be obtained from the Tax Administration by e-mail whtreclaims@vero.fi (for corporations only); or via the Tax Administration general telephone and chat helplines (for both individuals and corporations).