Finland: Official guidance issued by the FTA regarding interest on tax refunds payable to non-residents
On 16 March 2015, the Finnish Tax Administration (FTA) issued official guidance (No. A126/200/2014 of 13 March 2015) regarding interest on tax refunds payable to non-resident beneficial owners.
This corresponds to the Supreme Administrative Court ruling (KHO 2013:148), dated 25 September 2013 and is further to our Announcements A14087 of 19 June 2014 and A14139 of 28 October 2014.
The guidance provides clarification of the following:
- The FTA will pay interest to the beneficial owner regardless of:
- The country of residence (both EU and non-EU countries);
- The income type from which tax was withheld;
- Whether the tax withheld was applied based on a double taxation treaty or domestic law.
- Reclaims with pending decision from the FTA:
- The interest will be paid automatically by the FTA.
- Reclaims already paid by the FTA, but without interest included:
- Eligible beneficial owners may file an appeal within the limitation period.
The FTA has in practice already implemented the Supreme Administrative Court ruling and has started to reimburse interest on refund requests. It has further acknowledged the beneficial owner’s right to receive interest for 2013, following the ruling.
Further information
We continue to monitor the Finnish market for developments and will provide more information as it becomes available. For further information, customers may contact the Clearstream Banking1 Tax Help Desk, Clearstream Banking Customer Service or their Relationship Officer.
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1. Clearstream Banking refers collectively to Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500 and Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Register of Commerce and Companies under number B-9248.