Recently, the Swedish Tax Agency issued a notice concerning a ruling by the Supreme Administrative Court stating that recipients of dividends on which taxes have been levied are entitled to interest if the tax is later refunded.
The notice notes that withholding tax is generally levied on dividends paid by a Swedish fund to a foreign legal entity, which must be withheld and repaid by the depositor. If it turns out that the person is not taxable, a request for refund can be made to the tax authority.
In the view of the Supreme Administrative Court, the interest claim only exists if the tax was withheld in breach of EU or EEA law. The judgment of the Court confirms the general position of the tax authority on this subject.
