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Finland Approves New Transparency-Related Measures for Dividends Withholding Tax on Nominee Shares

24 April 2019

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Approved Changes

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Finland

The Finnish Ministry of Finance has announced that on 12 April 2019, the Finnish President approved the laws for the introduction of new transparency-related measures in relation to withholding tax on dividends paid on nominee registered shares. The laws provide for the following: An increased 35% withholding tax on dividends paid on nominee registered shares to an unidentified beneficial owner (50% rate applies if the beneficial owner is known to be tax resident in Finland); New eligibility requirements for reduced rates provided under tax treaties, including required confirmation of the identity of the dividend recipient, the recipient's tax residence, and...