Sweden: Interest on tax refunds ruled payable to non-resident investment funds
In September 2014, the Swedish Administrative Court of Appeal issued a ruling stating that interest on tax refunds must be paid to non-resident investment funds, including SICAVs.
The ruling stated that:
- According to EU practice, Member States must pay interest on taxes and charges levied in breach of EU Law. As a result, non-resident investment funds are eligible to reclaim interest on tax refunds.
- Interest must be calculated based on the interest rate provided by the Swedish Tax Agency. The rate is however foreseen to be adjusted during the year.
- Interest must apply to tax refunds from the day after filing the tax refund until the day the tax is repaid.
It is expected that the ruling will apply to all non-resident beneficial owners resident for tax purposes in EU/EEA Member States.
However, at this stage, the ruling has not yet entered into force and the Swedish Tax Agency may still appeal the ruling until 8 November 2014.
We continue to monitor the Swedish market for developments and will provide more information as it becomes available.
| This Taxflash is intended to provide customers with general information gathered from different sources that are generally believed to be reliable. Clearstream Banking S.A. does not guarantee the accuracy or completeness of the information and does not undertake to keep it up to date. Use of the information made available in this Taxflash is at the customer’s own risk and Clearstream Banking S.A., its subsidiaries and affiliates expressly disclaim any liability for any errors or omissions reflected herein. The information in this Taxflash does not constitute legal or tax advice. |