Dividend taxation

Withholding taxation of dividends

Changes in the Finnish law based withholding taxation of dividends paid to holders of nominee registered shares entered into force and are applicable as of 1 January 2021.

In practice, this means that as a starting point, withholding tax of 35% will be withheld on Finnish source dividend payments in most cases. In certain situations where inter alia a custodian is registered with the Finnish Tax Administration, the withholding percentage may also be lower.

It is possible to apply from the Finnish Tax Administration for a reclaim of any tax withheld in excess of the applicable withholding tax rate (e.g. applicable tax treaty rate) after the year of the dividend payment.

This can be done by submitting a refund application to 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 registered custodian. Please contact your custodian for further information.

Additional information on withholding tax reclaims can be obtained from the Tax Administration either:

• by e-mail [email protected] (for corporations only); or
• via the Tax Administration general telephone and chat helplines (for both individuals and corporations)

Please note that Stora Enso does not process withholding tax reclaims. 

Dividends paid to Finnish tax resident holders of nominee registered shares may as of 2020 have been subject to withholding of 50% tax prepayment (ennakonpidätys). Any excess tax prepayment will be credited in the normal tax assessment process where the shareholder reports their dividend income to the Finnish Tax Administration.