As of 1 January 2019, new 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.
Treaty tax rate may be applied if client’s tax residency is Lithuania 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.
A certificate of residency (CoR)
Issued by local Tax Authority
Certificate has to refer to Double Taxation Treaty between Lithuania 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.
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 Grønland 0134 Oslo NORWAY
The Approval is valid until underlying circumstances will change. In which case client has to present 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.
As of January 1st, 2021, new 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.
* Statutory tax rates in Finland non-residents:
Treaty tax rate may be applied if your tax residency is in Lithuania 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 three business days before dividend ex-date at the latest..
Issued by local Tax Authority.
Certificate has to refer to Double Taxation Avoidance Convention between Lithuania and Finland.
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. Current document is valid after first submission until underlying circumstances will change and client presents new confirmation.
To present documents, choose from menu: Everyday banking → Document management → Document upload
Legal person will upload documents to business client i-bank.
Press the button "Upload new document".
Choose Type → Investment Agreements
Subtype has to be chosen accordingly to uploaded document. Each document is uploaded under separate, specific subtype. Only relevant subtypes are available for private and corporate customer.
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.
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