Sweden: Additional documentation requirements for reclaim applications for exempt foreign investment funds (non-UCITS)

25.10.2012

Further to our Taxflash T12019, dated 6 June 2012, and effective

immediately

according to information received from our local depository, the Swedish Tax Agency (STA) will require, in addition to the normal tax reclaim documentation, the following supporting documentation in connection with applications for refund of withholding tax for beneficial owners that are exempt non-UCITS investment funds:

  • Copy of the investment fund’s or management company’s authorisation to operate as a fund;
  • Fund prospectus or similar information booklet or fact sheet;
  • Latest annual report;
  • Fund rules or similar document that shows how the relationship between the investor and the fund or management company is regulated;
  • Statement showing that the fund meets the requirements indicated in the STA statement 2012-05-23 (see below).

Based on STA statement 2012-05-23, non-UCITS funds must fulfil the following criteria to qualify for tax exemption:

  • The fund is authorised to operate as a fund.
  • The fund’s purpose is to make collective investments in transferable securities, money market instruments, financial derivative instruments, fund units and deposits with credit institutions.
  • The fund’s capital is raised from a public investor or from a limited group of investors.
  • The fund operates on the principle of risk-spreading.
  • The units of the fund are, at the request of holders, redeemed or repurchased out of the funds assets.

N.B.: The burden of proof of compliance with the above rules lies with the investment fund.

Impact on customers

Customers of Clearstream Banking1 are strongly recommended to submit, for such funds, the required supporting documentation for any new and/ or pending reclaim applications.

Currently, a standard refund is available, for eligible funds only, directly via the Swedish Tax Authorities.

Further information

We continue to monitor the Swedish market for any new developments and will provide more information as it becomes available.

The Clearstream Banking Market Taxation Guide - Sweden has been updated to reflect the above information.

For further information, customers may contact the Clearstream Banking1 Tax Help Desk on:

LuxembourgFrankfurt
Email:tax@clearstream.comtax@clearstream.com
Telephone:+352-243-32835+49-(0) 69-2 11-1 3821
Fax:+352-243-632835+49-(0) 69-2 11-61 3821

or Clearstream Banking Customer Service or their Relationship Officer.

1. Clearstream Banking refers collectively to Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in the Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500 (CBF) and Clearstream Banking, société anonyme, 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 (CBL).

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