General information – types of securities, deadlines, other market specifics – Finland (LuxCSD as issuer CSD)
Types of securities
The eligible securities issued in Finland (LuxCSD as issuer CSD) are as follows:
- Finnish Treasury bills denominated in EUR (zero coupon notes)
Withholding tax
Finnish Treasury bills denominated in EUR (zero coupon notes issued through LuxCSD as issuer CSD) | Holding restriction? | Withholding tax rate | Relief at source | Quick refund | Standard refund |
No | 30%a | ||||
Non-resident (0%) | Yes | Yes | No | ||
Resident – legal entity (0%) | Yes | Yes | No | ||
Resident – individual (30%) | Nob | No | No | ||
Undisclosed (30%) | No | No | No | ||
a. Withholding tax is only applicable on redemption proceeds (early and final), as the securities do not distribute any coupon.
b. Even if clients hold Finnish Treasury bills denominated in EUR (zero coupon notes issued through LuxCSD as issuer CSD) on behalf of a Finnish tax resident individual beneficial owner that is subject to the maximum default withholding tax rate of 30% through LuxCSD, the respective client must disclose to LuxCSD the details of the individual beneficiary resident in Finland due to reporting requirements.
Default withholding tax rates for undisclosed beneficial owners
Nominal interest is not paid on Finnish Treasury bills denominated in EUR (zero coupon notes issued through LuxCSD as issuer CSD). However, holders will receive redemption proceeds at either early or final maturity, which by default are subject to a 30% withholding tax on the difference between the redemption price minus initial issue price unless tax documentation is provided, as described in the procedure below.
Capital gains tax
There is no capital gains tax withheld through LuxCSD on Finnish securities held in LuxCSD. However, capital gains tax may be payable on specific gains. LuxCSD does not assist in this regard. Please consult your tax advisor for further information.
Stamp duty
There is no stamp duty withheld through LuxCSD on Finnish securities held in LuxCSD. Stamp duty may however be payable on specific transactions. LuxCSD does not assist in this regard. Please consult your tax advisor for further information.
Deadlines
Relief at source deadline
The deadlines for the submission of documentation to obtain relief or exemption at source of withholding tax on redemption proceeds from Finnish Treasury bills denominated in EUR (zero coupon notes issued through LuxCSD as issuer CSD) are as follows:
Document | Deadline for receipt by LuxCSD |
One-Time Certificate for Finnish Treasury bills denominated in EUR (zero coupon notes issued through LuxCSD as issuer CSD) | Two business days prior to the first redemption payment date, by 10:00 CET. |
Per-payment instruction | Two business days prior to the redemption payment date, by 10:00 CET. |
Quick refund deadline
A quick refund is available for eligible beneficial owners, if relief of withholding tax has not been obtained at source.
To apply for a quick refund of withholding tax on redemption payments, the same documentation requirements apply as for the relief-at-source process. However, in addition to the One-Time Certificate, all clients must also send a per-payment request for a quick refund.
Document | Quick refund |
One-Time Certificate for Finnish Treasury bills denominated in EUR (zero coupon notes issued through LuxCSD as issuer CSD) | By 10:00 CET on the third calendar day (or the first business day thereafter if the third calendar day is not a business day) of the month following the redemption date. |
Per-payment instruction | By 10:00 CET on the third calendar day (or the first business day thereafter if the third calendar day is not a business day) of the month following the redemption date. |