The Swedish withholding tax system
- Sweden
- 06/04/2007
Dividend payments beneficially owned by non-residents are liable to a 30 percent non-resident withholding tax. Depending upon the customer’s residency, however, it may be possible to reduce the rate of tax payable in accordance with the provisions of a double taxation treaty. Some approved international organizations, such as UN, may benefit exemptions from withholding tax on dividend payments in accordance with special Swedish legislation.
All withholding tax deductions are made by a Swedish bank or the Swedish Securities Register Centre (VPC), and remitted to the Swedish Tax Authorities within four months from the date that the dividends were paid. In the case of tax deductions effected during the current year the bank or VPC is able to refund tax (in case of funds not yet remitted to the Swedish Tax Authorities); or demand repayment of tax from the Swedish tax authorities (in the case of funds which have been remitted to the Swedish tax authorities).
Withholding tax deductions effected during previous years for tax treaty customers may only be reclaimed by means of an official tax reclaim form, “Claim for repayment” RSV 3740. Also, all Swiss residents must claim repayment retrospectively, on form R-Sv 1(800).
Demand for tax refunds in respect of tax deduction in the current or previous year may be made to the Swedish bank or VPC, who will forward the claim to the Swedish tax authorities. The tax reclaim demand should contain the following information:
- Name of beneficial owner
- Registered address of beneficial owner
- Name of the company that has paid the dividend
- Number of shares held
- Pay date of dividend
- Dividend rate
- Gross dividend amount
- Withholding tax amount
- Tax reclaim amount
- Custody account number
- Customers reference number
- Certificate of residence
Source: “Skatteverket”
