Legal and tax information

Other information is available only in Lithuanian language.

Dividend taxation

Norwegian dividend taxation as of 01.01.2019.

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.

Statutory tax rate: 25%
Treaty rate for Lithuanian residents: 15%

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.

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.

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.

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.

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.

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 the beneficial owner of the dividend.
Gather all previously obtained documents and present to the bank at the latest three business days 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, three business days before dividend ex-date at the latest.
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.

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 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.

Please revise if you have presented all the necessary 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 01.01.2021.

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.

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 non-residents:

30% for private persons
20% for legal entities
Treaty tax rate for Lithuania an residents: 15%

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.

As of January 1st,2020, there has been changes in Finnish withholding taxation for Finnish tax residents, for example if you are Lithuanian resident with Finnish tax residency.
According to the new regulation, 25,5% WHT will be applied to the Client whose data can be disclosed (name, ID, address, Finnish tax-ID). If Swedbank do not have all relevant 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.

A certificate of residency (CoR)

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.

Confirmation from the dividend recipient that they are the beneficial owner of the dividend

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

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, three business days before dividend ex-date at the latest.
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 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.

Please revise if you have presented all the necessary 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 Lithuanian residents.

NB! Treaty tax 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 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%.

Legal and tax information

Dividend taxation

Norwegian dividend taxation as of 01.01.2019.

Suggested process for legal person should be:

Process for presenting needed documentation to the bank:

Finnish dividend taxation as of 01.01.2021.

Process for presenting needed documentation to the bank:

Taxation of Swedish dividends

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