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HMRC internal manual

Double Taxation Relief Manual

HM Revenue & Customs
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Finland: Dividends

Under the terms of the fifth amending agreement (see DT7154) a United Kingdom-resident shareholderis not entitled to payment of any part of the Finnish tax credit. Dividends paid by a Finnish company to a United Kingdom-resident shareholder are exempt from Finnish tax and are taxable only in the United Kingdom, except where the dividend is effectively connected with (see INTM153110, fifth sub-paragraph) a business carried on by the United Kingdom resident recipient through a permanent establishment or fixed base in Finland.

Where a dividend is paid by a Finnish company to a United Kingdom company which controls directly or indirectly at least 10per cent of the voting power in the company paying the dividend, credit is due for the underlying tax (see INTM164010(d)) under Article 25(1)(b) as amended.

The above guidance took effect from 1 January 1998 in respect of Finnish tax. If details are required of the provisions applying for earlier periods, these can be obtained from the Tax Treaty Team.