Do you live in Finland and own shares in another Nordic country?
Do you live in Finland and own shares in a company in another Nordic country? The following information only applies to income from these shares.
Dividend from shares
Taxation in another Nordic country
Dividend income is subject to 15 % tax in the Nordic country of payment. The payer of dividend withholds this tax at payment.
If more than 15 % tax has been withheld by the payer, you are entitled to have the excess tax refunded. Please, contact the payer - e.g. the bank that has relayed the payment to you, or the tax authority in the country of payment.
Taxation in Finland
Receipts of dividend from another Nordic country are taxable in Finland in the same way as receipts of dividend from domestic companies. The taxable portion is calculated in the same way and the rate of tax is the usual 30 or 34 %. The double taxation will be eliminated by deducting the foreign tax from the Finnish tax. The deduction cannot be a higher amount than the Finnish tax on the dividend income in question.
If dividends from abroad are not stated on your pre-completed Finnish tax return, you should add them under the title "Ulkomaan pääomatulot" (Foreign Capital Income). In the field for additional information, you should add the name and home country of the company as well as the amount of taxes paid abroad.
Capital gains derived from selling shares
If you sell shares of a foreign company and make a profit, you have a capital gain taxable in Finland. The tax computation is no different from that of a domestic transaction. The rate of tax in Finland is 30 or 34 %.
Fill out tax form 9 to report your capital gains in Finland and write the relevant amounts in the lines of the Pre-Completed Tax Return form according to the instructions provided.
No capital gains tax is collected in the other Nordic country, if you have never lived in that country. However, in the rare case where the tax can be payable in the other Nordic country, the foreign tax will be deducted from Finnish tax in order to avoid double taxation. The deduction cannot be a higher amount than the Finnish tax on the income in question.