An updated version of the guidance on withholding tax on dividends, interest and royalties paid to non-residents has recently been published by the Finnish Tax Administration.
According to updated version, foreign corporate entities and foreign citizens who live overseas are not fully liable to pay tax i.e. they are nonresidents. They must pay tax in Finland on their income from Finnish sources. When Finnish citizens move away to live overseas they do not become nonresidents until after the beginning of the fourth calendar year after they moved away. If necessary, taxpayers can submit an application for a tax-at-source card to the local tax office in order to have the tax office examine the extent of their tax liability in Finland.
Unless bilateral tax treaties with Finland set a lower percentage or unless the income is exempt from tax withholding, the payer of dividends, interest or royalties to nonresidents must withhold tax upon payment at the specific rate. Tax returns on self-assessed taxes, including dividend withholding tax, are to be filed electronically. If the 12th falls on a Saturday, Sunday or a public holiday, the last day to file is extended to the next business day. Returns filed online and on paper have the same due date. Filing the tax return on the paper form is allowed only under exceptional circumstances. Self-assessed taxes (previously often referred to as Tax Account taxes) are paid quoting the bank reference number for self-assessed taxes.
Tax withheld at source on dividends is Type 39, and on interest and royalties is Type 69.