Finland: Interest on tax refunds ruled payable to non-residents
The Finnish Supreme Administrative Court has issued a ruling (KHO 2013:148), dated 25 September 2013, stating that interest on tax refunds must be paid to non-resident beneficial owners.
Further to this, the Finnish Tax Administration (FTA) has now announced that this ruling will introduce a change of legal status for the provisions to be applied with regard to tax reclaim applications on behalf of beneficial owners resident for tax purposes in EU/EEA Member States.
The FTA will apply this ruling both to new refund requests and to those that are still pending.
For tax reclaims already paid, the FTA recommends that the applicant file an appeal, within the applicable deadline, in order to reclaim the interest on the refunded amount.
It is expected that the processing of tax reclaims will, as a consequence, be temporarily delayed.
At this stage, detailed guidance and clarifications on the impact on the tax reclaim procedure are yet to be released by the FTA.
We continue to monitor the Finnish market for developments and will provide more information as it becomes available.
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