Norwegian 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.

Necessary documentation

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.

Process for presenting needed documentation to the bank:

1

To present documents, choose from menu: My bank → Document management → Document upload

Legal person will upload documents to business client i-bank.

Press the button "Upload new document".

2

Choose Type → Investment Agreements

Subtype has to be chosen accordingly to uploaded document. Each document is uploaded under separaate, specific subtype. Only relevant subtypes are available for private and corporate customer.

3
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.

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